GfK Power to the iBrains: Identifying future consumer needs to anticipate demand ?

1© GfK 2017 | Power to the iBrains
Power to the iBrains
Identifying future consumer
needs to anticipate demand
GfK – Marco Wolters

Evolving
consumer behavior
is transforming the
purchase journey
1
Understanding
behavioral drivers
and future values –
how do they
shop?
3
Anticipating
future demand:
Implications for
successful retail
strategies
4
Introducing
the iBrains –
who are they?
2
How can retailers conquer the
Connected Shopper of tomorrow?
Power to the
iBrains
© GfK 2017 | Power to the iBrains

Evolving
consumer behavior
is transforming the
purchase journey
1

1 GfK , Kantar Worldpanel & Sita Ricerca Consumer Panels Countries included: GE, UK, FR, SP, IT, NL, BE, AT, SW, PO, CZ
2 GfK Ecommerce Monitor NL Q4 2016, period: January t/m December 2016
Hyper competition, changing shopper
demand and behavior, disruptive technologies
Evolving retail
landscapes in
challenging
markets
Belgium
-10%
Spain
-9%
Across Europe1, fashion turnover declines from
197,7 billion in 2013 to 192,4 billion in 2016
(-3%)
26%of the Dutch population made an
online cross border purchase
in The Netherlands in 20162
+41%
vs 2015
Italy
-8%

Source: GfK , Kantar Worldpanel & Sita Ricerca Consumer Panels Countries included: GE, UK, FR, SP, IT, NL, BE, AT, SW, PO, CZ
Source: GfK Retail Panel | 1 AT, BE, CH, CZ, DE, ES, FR, GB, IT, NL, PT | 2 CE, IT, OE, MTG, Photo, Telecom, SDA, PersDiag, MDA
Sales figures of Smart-Mobilephones are calculated with “Non Subsidised estimated Prices”
Overall online fashion sales grew from
12,8% to 17,1% in 3 years (11 countries)!
Online fashion
sales is growing
rapidly
+30%
24
19
13
10
8
11
7
3 4
2 2
28
24
21
15
14
13
9 8
7
4
2
YEAR DEC 13 YEAR DEC 16Internet sales (% total sales value)
+11
+33
+67
+61 +62
+18
+26 +33
+90
+90
+30

Source: GfK / Shopping Tomorrow
Possible retail
scenario’s in a
connected world
Efficiency/
Rational
Staying
athome
Goingout
Experience/
emotional
Home as a shop
Experience City
Fast & Easy
Fun a home

“It is not about where the purchase happens,
but how you can influence it” (Zalando, 2016)
Plenty of
opportunities to
take the lead
Understand the future shopper and anticipate on consumer trends to win at retail
Unleash the potential of Mobile
Source: GfK FutureBuy, 2016 | Q3A: Below are different statements about shopping. Please indicate how much you agree or disagree with each as it relates to your shopping experience
in general across the many different products and services you shop for | Base: All German respondents n=1000; Europe n=8000; Global n=20003
Embrace New
omnichannel
technologies
International
shoppers
34%40%
Anticipate
new shopper
groups
“I like it when a website
keeps track of my visits
and recommends
things to me.”
41% 40% 40%
“I like it when
a retailer contacts
me on my
smartphone.”
“I would be more likely
to visit a retail store that
offered some sort
of virtual or augmented
reality experience.”
of Chinese consumers
have been shopping for
fashion and lifestyle
products abroad in
the past year.
In 2020 the
i-Brains will represent
40% of consumers
in the US, EUR,
BRIC countries

The end of
online shopping
This is about the
future of retail in a
world that is
24/7 connected

From digital
connectivity
to digital
integration

Introducing
the iBrains –
who are they?
2

When the iPhone was launched in 2007 …
Capturing
tomorrow’s
opportunities by
understanding future
needs and how to
communicate with
generations
… I was
22
… I was
10
… I was
31
… I was
45
Aged 19 or
younger
Aged 20 – 35 Aged 36 – 49 Aged 50 – 68
GenZ:
Entertain
me
GenY:
Convince
me
GenX:
Feel
responsible
Boomers:
Reward
me

In 2020
the i-Brains
will represent 40%
of consumers
in the US, EUR,
BRIC countries.
Digital natives
invent the future!
i-Brains are the next generation
consumers.
Source: http://www.fitch.com/think/gen-z-and-the-future-of-retail

In order to win
this group now and
in the future you
have to really
know them!
And take them
seriously!
Winning the i-Brains
matters also now, because
93% of parents
say their i-Brains
kids influence family spending
decisions and household
purchases.
And although i-Brains are not (yet) big spenders,
they are already influencing consumer behavior!
Source: Goldman Sachs, “i-Brains matters more than Millennials”

Digital natives
Hyperconnected
Born seamless
Savvycynics
Trusting only peers
Iwantitnow! Good enough = OK
Multi social media platforms
Expectconstant
innovation
Visuals
Sociallyandbrand
conscious
Sharing > using
ZMOT
Concrete and control
Privacysceptic
Tech
dependent
Virtual > physical
Constant partial attention

Understanding
behavioral drivers
and future values –
how do they shop?
3

Retail is already
changing, but revolution
in upon us when
the i-Brains really
start shopping
and unleash the true
disruptive power
of the smartphone

17© GfK 2017 | Power to the iBrains© GfK 2017 | Power to the iBrains
6 key insights
on the iBrains
and their impact
on retail
Mobile first!
iBrains share, like control (co-create)
and want to be involved.
In Fashion, iBrains like web rooming
more than showrooming
1 iBrains are less loyal and browse intensively
to always find the best deals
Social networks driving decisions
Virtual/Augmented reality driving experiences
2
3
4
5
6

68% in last 6 months
Mobile first!
iBrains shop
mobile
However, the intensity largely differs per region
Use smart phone for Fashion shopping Using the mobile to pay …
Look forward to being able to pay for more and more
transactions from my mobile device
iBrains
52%
GenX
39%
iBrains
36%
GenX
21%

68% in last 6 months
Mobile first!
iBrains shop
mobile
However, the intensity largely differs per region
Difference
per region
26%
iBrains
In Europe
45%
iBrains
In APAC
34%
iBrains
In Europe
63% iBrains
In APAC
Use smart phone for Fashion shopping Using the mobile to pay …
Look forward to being able to pay for more and more
transactions from my mobile device

When trusted they are very open
for relevant personalized offers
iBrains share,
like control (co-
create) and want
to be involved
Would be more loyal to a brand/
retailer that lets me give input or help
shape the products/services I buy
High importance of personalized offers
to make more online purchases
iBrains
58%
GenX
47%
GenX
76%
iBrains
83%

Online opportunity to win clients
is bigger than the threat
In Fashion,
iBrains like web-
rooming more than
showrooming
Saw product in store and bought
online from other retailer (for fashion)
Saw product on device and later went
to the store to purchase (for fashion)
iBrains
43%
GenX
36%
iBrains
24%
GenX
23%

I-Brains are less
Loyal and browse
intensively to always
find the best deals
iBrains
61%
GenX
56%
World
57%
Less loyal to any one brand as I need
to shop around more to find best values

I-Brains
browse intensively
to always find
the best deals
Using online user groups or forums
to find deals or coupons
Using Google or other search engines
as a shopping tool
iBrains
37%
GenX
31%
iBrains
24%
GenX
15%
Comparing prizes from different stores
Using Shopping/Brand/Retailer Apps
on my mobile to find the best deals
iBrains
29%
GenX
19%
iBrains
42%
GenX
37%

Social networks
driving decisions
Social networks have become as important
as other information sources for me to make
the best product choices
Importance of opinions of family/friends/
colleagues for shopping decisions
iBrains
50%
GenX
35%
iBrains
50%
GenX
35%

Virtual/
Augmented
reality is driving
experiences
More likely to visit a retail store that offered
some sort of VR/AR experience
iBrains
52%
VR/AR just as important as real
physical experiences
38%
iBrains
In Europe
56% iBrains
In APAC
28%
GenX
44%
GenX
World
GenX
39%

Source: GfK/Accenture/EY
But apart from their
GenX parents i-Brains
also show different
shopper behavior
than Millennials!
iBrains
Experiment more with new retail
services (e.g. Siri, Alexa, instore
self service info sources, VR/AR)
Care less about bargains
More driven by social media
Are more feedback fanatics
Shop more instore
(because they have a problem)
Care more about experiences
Are more demanding
More impulsive; I want it now!
Compared
to Millennials

Anticipating
future demand:
How to reach iBrains?
Implications for
successful
strategies
4

 Peer suggestion
 Bookmarked websites
 Celebrities on Twitter
 YouTube sidebar
 TV ads & shows
 Magazines
 Billboards/posters
 Unplanned store visits
 Google
 Brand websites
 Bookmarked websites
 MMS photos
 iPhone print screen
 Price comparison sites
 Repeat store visits
 Bargain websites
 eBay (site/app)
 Parent pick-up
 Friends/parents
 SMS photos
 Social network
 Instant chat
Acknowledging and understanding the right
touchpoints per stage will allow retailers and
brand owners to build a relationship with iBrains
The i-Brains
and their path
to purchase
Finding
out
Browsing Decision
making
Buying Show
& Tell
Visibility Access Reassurance Pricing Fulfillment
Shopper
action
Retailer
action

1
Shift from offering
new things to buy,
to inspiring new
things to do.
2
Shift from telling
your story, to starting
a conversation
about theirs in which
they can
express their
individuality
3
Shift from making
it perfect before
sharing, to making
it better with
their input.
How to engage
with a new kind of
shopper, who pays
less attention but
with a sharper and
hyper-informed eye?

Thank you
Marco.wolters@gfk.com

GfK Power to the iBrains: Identifying future consumer needs to anticipate demand ?

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GfK Power to the iBrains: Identifying future consumer needs to anticipate demand ?