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The NPD Group, Inc. | Proprietary and Confidential
Adapting Omni-Channel Strategies to Modern Consumer Behaviour
Presented by: Sandy Silva, Fashion Industry Analyst The NPD Group
Sponsored by MasterCard for Retail Council of Canada
June 3, 2014
The NPD Group, Inc. | Proprietary and Confidential
The image should fill up the entire space of the gray box, no gray should be seen
The NPD Group, Inc. | Proprietary and Confidential
2005St. Peter’s Square
Change
The NPD Group, Inc. | Proprietary and Confidential
The image should fill up the entire space of the gray box, no gray should be seen
The NPD Group, Inc. | Proprietary and Confidential
2013St. Peter’s Square
The NPD Group, Inc. | Proprietary and Confidential 4The NPD Group, Inc. | Proprietary and Confidential
EV LUTION OF RETAIL
1900sCorner Stores Limited choice People walked
1900-1940sDepartment Stores Automobile: travel farther In-home refrigeration: stock
more
1950-1970sMalls Time of the true mall
1990-2013Ecommerce
1970-1990Big Box Stores Driving smaller merchants
out of business
The NPD Group, Inc. | Proprietary and Confidential 5The NPD Group, Inc. | Proprietary and Confidential
Retailers offer products, hoping consumers buy them.
What’s changed is how we talk to them before they get to the store.
The NPD Group, Inc. | Proprietary and Confidential 6The NPD Group, Inc. | Proprietary and Confidential
Conversion
300
75Conversion Rate
25%
The NPD Group, Inc. | Proprietary and Confidential 7The NPD Group, Inc. | Proprietary and Confidential
Touch points
www.STORE
www.BRAND
IN-STOREdisplays, product info,
store associates
RETAIL FLYERS
STORE WEBSITES
WORD OF MOUTH
BRAND WEBSITES
PRODUCT REVIEWS
ONLINE STORES/AUCTION SITES
The NPD Group, Inc. | Proprietary and Confidential 8
Bought a brandAmong first considered
74%
of purchasesare planned
18 Days passed between first thought of buying product and making purchase
52
Bought at Retailer among first considered
73
1.42.2
Brands in mind
Retailers in mind
% %
Snapshot of Path to Winter Apparel Purchase
The NPD Group, Inc. | Proprietary and Confidential 9
24%
Touch points UsageCanadians still rely on in-store to make their winter apparel purchase decisions
42% 24% 20%
PC electronics
The NPD Group, Inc. | Proprietary and Confidential 10
Identified additional brands
Ruled out brands
Didn’t learn anything new
Impact on Brand ConsiderationWord of Mouth information impacts brand consideration. Consumers use online brand/product reviews to rule brands out.
56
43
39
30
40
30
30
31
41
%
The NPD Group, Inc. | Proprietary and Confidential 11
Impact on Retail ConsiderationWord of Mouth also impacts stores and websites consideration.
Identified additional stores/websites
Ruled out stores/websites
Didn’t learn anything new%
48
41
18
25
33
24
35
36
62
The NPD Group, Inc. | Proprietary and Confidential 12The NPD Group, Inc. | Proprietary and Confidential
How many days on average did it take to make a purchase? Are you wondering why?
18days
Remember this?
The NPD Group, Inc. | Proprietary and Confidential 13
Among the 42% who rely on in-store information, their in-store visit was not always the final step in the path to purchase!
In-Store Visit
PRE IN-STORE POST IN-STORE
16
17
7
7
8
5
42%
The NPD Group, Inc. | Proprietary and Confidential 14
How Can Retailers Convert More Shoppers?
Good news: most consumers only consider two retailers. If you have the right strategy, you should be able to convert consumers…
The NPD Group, Inc. | Proprietary and Confidential 15The NPD Group, Inc. | Proprietary and Confidential
1900sCorner Stores
1900-1940sDepartment Stores
1950-1970sMalls 1990-2013
Ecommerce
1970-1990Big Box Stores
Take It Back to Basics:
WORD OF MOUTH!
01
The NPD Group, Inc. | Proprietary and Confidential 16
Word of Mouth Usage Family, friends, and coworkers are the most important followed by Facebook.
01
Series1 93
18
10
8
8
2
1
3
Series1 88
23
8
5
4
4
3
9
Talked to friend, family or coworkers
Professional Blogs
Personal Blogs
Discussion Forums
All Other Sources
Talked to friend, family or coworkers
Personal Blogs
Discussion Forums
Professional Blogs
All Other Sources
WINTER APPAREL PC ELECTRONICS
Series1 Series1
Total Digital Touch points
The NPD Group, Inc. | Proprietary and Confidential 17
Provide access to interactive digital displays in the store to allow shoppers to learn more about the brands and products
Optimizing Time In-Store
02
The NPD Group, Inc. | Proprietary and Confidential 18
Interactive Display
Order from Store Website
73
69
66
76
78
% of Yes
Winter Apparel(698)
Personal Accessory(555)
Beauty(699)
PC/ Electronics(793)
Beverage DA(592)
53
58
52
66
71
Optimizing Time In-Store02
The NPD Group, Inc. | Proprietary and Confidential 19
Se-ries1
79
64
52
48
41
Prices, sales, promotions
Product information
Availability
User reviews
Brand information
Se-ries1
67
54
50
48
32
Se-ries1
79
55
47
44
33
Prices, sales,promotions
Shipping costs
Product information
User Reviews
Brand information
%
Product information
Prices, sales, promotions
User reviews
Brand information
Availability
Types of Information Sought After (Top 3)03
The NPD Group, Inc. | Proprietary and Confidential 20
METHODOLOGY:
Online survey fielded from Jan. 23 to Feb. 7, 2014 to a Canadian representative sample of 3,337 panelists aged 18-64, representing Canadian adult demographics.
To qualify, respondents indicated a planned purchase of one of the following products in the past month:
i. Winter Apparel n=698 (Winter coat or jacket n=362, Winter boots n=336)
ii. Personal Accessory n=555 (Watch n=409, Handbag, purse or satchel n=146)
iii. Beauty n=699 (Face or beauty cream n=699)
iv. PC/ Electronics n=793 (Headphones n=403, Tablet computer n=212,
Notebook/ laptop/ desktop computer n=179)
v. Beverage Domestic Appliance (DA) n=592 (Single serve coffee machine
n=340, Juicer/ Juice extractor n=108, Espresso machine n=76, Soda maker
n=69)
The NPD Group, Inc. | Proprietary and Confidential
The image should fill up the entire space of the gray box, no gray should be seen
The NPD Group, Inc. | Proprietary and Confidential 21
Early Retail…
EV LUTION OF RETAIL
The NPD Group, Inc. | Proprietary and Confidential
The image should fill up the entire space of the gray box, no gray should be seen
The NPD Group, Inc. | Proprietary and Confidential 22
EV LUTION OF RETAIL
Change
Are you ready?
The NPD Group, Inc. | Proprietary and Confidential 23
Contact usSandy SilvaDirector, Client Development – Fashion and Prestige BeautyThe NPD Groupsandy.silva@npd.com647.723.7760
Silvia XoyonDirector, Business Development – Fashion and Prestige BeautyThe NPD Groupsilvia.xoyon@npd.com647.723.7765
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