Nielsen

Understanding
the Online
Apparel Path to
Purchase

Period: September - November 2010

Matthew Dodd
Senior VP, Head of Media Analytics, Europe

Confidential & Proprietary Copyright © 2011 The Nielsen Company

Methodology

Group Designations
• Custom analysis of Nielsen's Usage of each type of retail website user
NetView active online panel of Mutually exclusive & Exhaustive
22,806 users
• Period: September - November Purchase
2010 Those that purchased
Sample Size: 697
• Sample size: 5,380 restricted to
adults +16 Quote
• 114 sites analyzed Viewed items in basket
Sample Size: 1,012
• For multicategory retailers, only
apparel urls considered Research
• 2,276 search terms categorized Those that visit sites for research
Sample Size: 4,102

Retail (Apparel) ES Confidential & Proprietary Copyright © 2011 The Nielsen Company
Source: NetView September - November 2010

Methodology: Site Categorisation

Apparel Spain
Sample Size: 5,380

Category: Site Designations

Private Clubs Traditional Pure Players &
Prescriptors
Catalogs


Market Overview


9.3m users of apparel sites and 1.2m online
apparel shoppers in Spain

In the period Sep-Nov 2010:

9.3m 6.6m

1.5m
1.2m
Total Apparel Research Basket Buy
Users
% of total: 100% 71% 17% 13%


Private Clubs receive 74% of all visits

Total Visits: 160m

Private
75%
74% clubs Privalia
Other 18%
private
clubs
29%

BuyVip
16%
Dreivip
9%
Vente-
privee
Ofertix 15%
13%
15% Traditionals
15%
9% Pure players
10% Total Private Clubs: 120m visits
2% Prescriptors


Traditional stores receive 15% of all visits

Total Visits: 160m

Private
75%
74% clubs
Kiabi
21%

Other
Tradit.
44%
Zara
13%

Corte
Inglés
Mango 12%
5% Pimkie
15% Traditionals 5%
15%
9% Pure players
10% Traditional Stores: 24m visits
2% Prescriptors


Pure players receive 9% of all visits

Total Visits: 160m

Private
74% clubs
La
Other Pure Redoute +
players / Vertbaudet
Catalogs 27%
32%

eBay
5% Spartoo
Venca 22%
6% Yoox
15% Traditionals 8%
9% Pure players
Pure Players & Catalogs: 15m visits
2% Prescriptors


Prescriptors receive 2% of all visits

Total Visits: 160m

Private
74% clubs
Other
Prescriptors Chicisimo
27% 30%

Trendencias
8%
Elrinconde
Que- moda.com
mepongo 16%
8%
Trendtation
15% Traditionals 11%

9% Pure players
Pure Players & Catalogs: 15m visits
2% Prescriptors


Traffic to apparel sites more than tripled in the
period 2007-2010

Private clubs: X3 in 3 Years
Top 10 Private Clubs´ Page Views

CAGR:
46%
6.1bn
5.5bn

4.0bn

2.0bn

2007 2008 2009 2010


We looked at visits… and what about conversions?


Private Clubs receive 77% of all conversions

Total Conversions: 2.7m

Private
75% Others
77%
74% clubs
13%
Privalia
DreiVip
27%
4%
Ofertix
13%

Vente-
BuyVip Privee
20% 23%
Traditionals
13%
15%
15%
9% Pure players
10% & Catalogs Total Private Clubs: 2m conversions
10%
2%


Pure players & Catalogs receive 13% of conversions


Private
75% Others
77%
74% clubs
9%
Yoox
6%
Ebay
7%

Spartoo La
8% Redoute
Vertbaudet
53%

Venca
19%
Pure players
13%
15% & Catalogs
15%
9%
10% Traditionals
10% Total PP & Catalogs: 338k conversions
2%


Traditionals receive 10% of conversions


Private
75%
77%
74% clubs Others
15%
Decathlon
Zara
3%
34%
El Corte
Inglés
8%

Mango
8%

Pure players Kiabi
13%
15% & Catalogs
15% 32%
9%
10% Traditionals
10% Total Traditionals: 278k conversions
2%


Those that purchase are more likely to be women
and aged 25-44

Gender Age
Composition Composition

27% Male

22% Female
19%
36%
64% 10%
7%
5%
3% 2% 2%3%

16 - 24 25 - 34 35 - 44 45 - 54 55 +

Base: All, those that get a quote and purchase in the retail (apparel) market
Note: Profile of all, those that got a quote and purchased in the retail (apparel) market; All figures are Based on Index v Active Internet Population


Important differences in gender of shoppers

Top Female Transacting Audience Top 10 Purchase Sites, sorted by Gender
Venca 87%

Kiabi 79%
Pure Players
& Catalogs 76% La Redoute 76%

Dreivip 75%
Traditional 70%
Privalia 68%

Ofertix 64%
Private 61%
Clubs
Zara 61%
Female Male Vente-privee 59%

BuyVip 52%

Private Outlet 31%

Female Male

Online
apparel
purchasers Private
made Clubs: 2.5
an average of
Pure
2.2 players & 1.4
purchases Catalogs:
in a quarter
Traditional
Stores: 1.3
Base: Those that purchase in the retail (apparel) market
Note: Average number of purchase events

Retail (Apparel) ES Confidential & Proprietary Copyright © 2011 The Nielsen Company 19
Source: NetView September – November 2010
- November 2010

One third of shoppers made more than one
purchase

Average Number of Purchases

Five+
36% Four 7%
2%

Three
7% One
Purchase

Two
64%
20%

Note: Distribution of purchase events. Only one event can be performed on a particular site within each web session


But the average hides big differences between
business models

More than one purchase:

Pure Players &
Private Clubs Catalogs Traditional

38% 18% 12%

Note: Distribution of purchase events. Only one event can be performed on a particular site within each web session


It takes 28 days and almost 2 hours for a shopper
to make her first purchase

Up to First Purchase ES Apparel

Average
1 Journey Length
28 days

Sites Visits per
2 Person 21.7 times

Time Spent per
3 Person 1hr 48 mins

Note: Activity UP TO the first purchase event


~40% of conversions can occur after 30 days

% of those that purchased
100%
85% purchase
90%
within 60 days
80%

70%

60%
Careful with 30-day
50% 62% purchase conversion tracker
40%
within 30 days cookies
30%

20% 17% purchase
within 24
10%
hours
0%
less than 24 hours

1 - 5 days

6 - 9 days

10 - 14 days

15 - 19 days

20 - 24 days

25 - 29 days

30 - 39 days

40 - 49 days

50 - 59 days

60 - 69 days

70 - 79 days

80 - 89 days

90 - 99 days
Note: % of those that purchase and the length of time UP TO the point of the purchase occurring.
Based on first event in the category.


Private Clubs have significantly higher look to book
ratio than other types of players
% of audience who purchased on the site

Total 12.2%

Private Club 14.3%

Pure Players
Catalogs
9.3%
& Catalogs
6.1% Pure
players 3.2%
Traditional 4.1%

Base: All in the retail (apparel) market
Note: The % of people who look for a product on a site who go on to purchase on the site


The store locator receives more traffic than you think

27% of top 10% of 22% of
30 traditional audience buyers visit
store sites do visits store store locator
not have a locator pages
store locator pages
used by their
customers Yes
57%


Some players are leveraging store locators effectively

% Audience Total audience (in ‘000)
who checked location who checked location

Primark 56% Marypaz 136
Reebok 32% Kiabi 99
Trucco 30% H&M 67
Mothercare 28% Primark 45

Karen Millen 27% El Corte Inglés 39

H&M 27% Reebok 31

Marypaz 24% Springfield 24

Neck&Neck 21% Trucco 26

Mustang 14% Merkal Calzados 30

Loewe 12% Bershka 25


Journey Paths
Searches = Sponsored Link Clicked
Quote
SEARCHES Purchase

zara online ofertix
Ofertix privalia
ofertix privalia zara online ofertix zara ofertix

DAY 1 4 7 8 9 12
SITES

Ofertix.com Zara Ofertix.com Ofertix.com Zara Ofertix.com
Ofertix.com
Privalia
Privalia
Zara

ofertix
privalia ofertix privalia privalia ofertix
zara online privalia ofertix ofertix privalia zara oferti

14 16 25 42 49 50 82
Ofertix.com Privalia Privalia Privalia Ofertix.com Zara Ofertix.com
Privalia Ofertix.com Ofertix.com Ofertix.com Privalia

Zara

Note: Example Retail Journey Paths


Journey Paths
Searches = Sponsored Link Clicked
Quote Purchase

cazadoras y
chaquetas baratas
ropa para para chica
SEARCHES

hombre barata cazadoras y
de vestir en chaquetas baratas
madrid pimkie pimkie para chica Kiabi.com

DAY 1 11 12 13 18 19
SITES

Springfield Pimkie Pimkie Pimkie Kiabi.com Kiabi.com x2
Pimkie
dress-for-less
Yoox

pimkie kiabi kiabi x2

29 30 32 35
Pimkie Pimkie Kiabi.com Kiabi.com x2

Note: Example Retail Journey Paths


Online shoppers search more

Those that purchased were more likely to use
search and sponsored search during their journey

Purchase
Total Purchase
(ex. Priv. Clubs)

use search at any
point in the journey 38% 56% 64%
start their journey
with search 17% 13% 27%
searchers who use
sponsored searches 19% 25% 22%
Average number of
searches* 4.4 8.2 7.0

Base: All, those that get a quote and purchase in the retail (apparel) market
Note: % of audience in the retail (apparel) market; Searches are defined as only those that lead to a relevant site *Searches per searchers


Searchers are 2x more likely to purchase than non-searchers
% of Purchasers
Those that click on
+28% sponsored searches are:
• 23% more likely to
23% purchase than avg
2x • 2.5x more likely to
18%
purchase than non-
searchers

9%

Non Searchers Searchers Clicked on
Sponsored Links

Base: Those that get a quote and purchase in the retail (apparel) market
Note: % of those who search or do not search and either quoted or purchased; ‘Times’ more likely versus total
Searches are defined as only those that lead to a relevant website. Correlation not cause.


Conclusions & Recommendations

1. If you are not online ,“Jump In”: Your customer is increasingly buying
online and Private Clubs are leading the way (77% of 1.2 Mill Purchases
in 3 months)
2. The power of the brand is important online. Strong brands drive better
conversion rates (Private Clubs, Traditionals and well established pure
players are doing very well)
3. Work on promotions and short term offers to increase frequency of
purchase and conversion. Private Clubs, with a successful push model,
drive high conversion rates and frequency of purchase but Pure Players &
Traditionals struggle with frequency
4. Develop strong store locators and make them visible and findable .
22% of buyers and 10% of the audience are looking for a physical store
online
5. Be found, work on SEO and SEM: Searches are 2x more likely to
purchase than non searches.


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