2. The consumer is changing…..
21st
Century
Consumer
“Share-of-Watch leads to share of wallet”
3. The consumer is changing…..
RAI – PWC
survey on
“Total Retail”
, Feb 2014
N = 1000
Convenience
Plays.
4. The consumer is changing…..
Not just price. Range. “Endless Aisle”
RAI –
PWC
survey on
“Total
Retail” ,
Feb 2014
N = 1000
47% of customers spoke
about range as the main
reason to buy online. 51%
mentioned price.
5. Retailers State of Mind
Source:
Retail
Operations
Benchmarki
ng
Excellence
Study,
ROBES,
2014, RAITCS study
Multi-channel and customer experience are key 2014 priorities.
6. Ecommerce channels (non-store channel ) of brick and mortar retailers.
Higher growth, higher cash memo size, lower returns.
Source: Retail Operations Benchmarking Excellence Study, ROBES, 2014, RAI-TCS study
Brick and mortar retailers have found that their online cash
memo size is 12% higher than in-store.
7. Ecommerce channels (non-store channel ) of brick and mortar retailers.
Higher growth, higher cash memo size, lower returns.
Harvesting
benefits
from
“TRUST”
Source: Retail
Operations
Benchmarking
Excellence Study,
ROBES, 2014,
RAI-TCS study
Online returns of Brick and mortar retailers are <3% significantly lower than pure-play Etailers.
10. How do retailers cope with “Showrooming”?
• By accepting it as a fact of life.
• There will be customers of the
market places who come to us for
the service experience.
• We have found “Click and
Collect” to be a viable
solution.
Duncan Grant,
Multichannel Director,
The Entertainer
We need to ask “What can I do that others can’t?”
11. Learnings from the UK Market.
Four facts about the UK market in terms of market
maturity:
1. Every UK resident has a bank account
2. 76% of UK residents have smart phones
3. All families have a tablet
4. The courier / postal system covers most of UK.
In spite of that online sales at a market level is at
10%.
Online sales in the UK = £ 7 bn.
12. Things to think about : Purchase process
“Found it.
Can you
pay for
it…?”
Multi channel can deliver new purchase paradigms.
13. Summary
Build on Trust. Create “Endless Aisles”
Increase “Share of watch”
Plan for Retail 3.0
Range / Quick Check-out of online PLUS Instant
gratification of Brick and Mortar.
Puchaser
Payor
User