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17th September 2015Craig Henry
CRACKING THE CONNECTEDDIGITAL CONSUMER ENGAGEMENT
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“ ”In retailing we should cater to the individual
rather than the masses. Specialize by product, lifestyle, pursuit, service or convenience.
The Times, Oct 17, 1985
WE ARE MANY THINGS
54% 44% 90%
Increasingly urban Connected anytime,anywhere
In-store
194,000Households access Branded CPG Retail
96%
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AN EVOLVING POPULATIONSA’s population is growing, becoming more mature,
affluent and urbanized
:Source: AMPS 2011 and 2014
Maturing Urbanising Affluent
CONNECTIVITY IS OUR UNIVERSAL DNA
Online
42%World
Access
2 Billion2015
Influence
73%Global Consumers Trust
Online Comments
Source: internetworldstats.com and Nielsen online Dec 2013
33% Use mobile to shop
CONNECTIVITY DRIVING THE GROWTHIN DIGITAL RETAILING
Over 1,000,000,000global consumers willing to grocery shop online
25% already grocery shopping online
THE DISCERNING SHOPPER
Loyalty
Price sensitive
Promo sensitive
Private Labels
GLOBAL CONSUMER CONFIDENCE REMAINS STABLE
45 78 87 99 101 107 108 120 122 131
IndiaIndonesia
PhilippinesUAE
China
USA
UK
SA
Denmark
South Korea
Global consumer confidence remains very stable, led by APac
LATAM declined 3 points driven by Chile and Brazil
Tier II DevelopingTier I Developing Developed
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CLAIMED IMPACT ON PURCHASE BEHAVIORPrice remains the priority
34% (Increased from 25%)
buy in BULK to get lower prices
85% actively look to buy
groceries at the lowest prices
1 in 4 downgrades to
CHEAPER BRANDS
54% cut down on LUXURY
categories
Nielsen Retail Measurement Data; Value in USD Adjusted for Inflation – Latest 12 Month
Europe
8%6%
17%
4%
11%4% 1%
Large SupermarketHypermarketTraditionalConvenienceSmall SupermarketDrugHard DiscounterOtherBarKioskSpecialty
25%
24%
12%
19%
35%
12%
6%
14%
China
33%
4%
LatinAmerica
Africa /Middle East
13%
11%
34%1%
18%
9%
4%
6%5%
1%
42%
4%
6%5%
4% 1%
CHANNEL PREFERENCES ARE REGIONAL
NorthAmerica
41%
32%
20%
7% 1%
North America
TOTAL CONSUMER WALLET DEVELOPED REGIONS
Housing 25%
Food & Beverage19%
Communication Services
11%
Europe
Housing 25%
Food & Beverage20%
Transportation9%
Latin America Africa/Middle Eastern Asia Pacific
DEVELOPING REGIONS
Housing 11%
Food & Beverage22%
Education 11%
Food & Beverage15%
Education 10%
Savings 12%
Food & Beverage 17%
Housing 12%
Education 12%
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NEW SHOPPER AGENDA
:Source: AMPS 2011 and 2014
Different
NOW Wellness
FLEXIBLE RETAILING IS ABOUT ADDING VALUE AND DIFFERENTIATION
Retail (B&M)
Add value Make it easy
Consider channel
differences
Know your shoppers
R/D Digital
THROUGH AN UNDERSTANDING OF WHAT DRIVES CONSUMERS
Retail (B&M) R/D Digital
Catalysts:• 68% Price• 61% Enjoyable• 55% Quality• 46% Convenience • 36% Selection
Catalysts:Anytime, anywhere,Digital touch points
Finding storesMaking lists
Checking pricesResearching
SharingPurchasing
DIFFERENTATION OFTEN PROVIDED BY DIGITAL TOOLS
Hand held barcode scanner
Login to WIFI while in-store to get more
offers
RETAIL + DIGITAL
Use in-store computers to
view extended retailer
ranges online
Scan QR code with mobile
while in-store
Download retailer
app/loyalty program to
phone to receive offers while in-store
Order online and use
drive thru pick-up
Virtual Supermarket
DIGITAL
Order online for delivery
to home
Order online pick-up curb
side
Online automatic
subscription
Order online pick-up in-store
Self check-out
RETAIL
Online ormobile shopping
lists
Online or mobile coupons
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90% BELIEVE GOING TO THE GROCERY
STORE IS AN
ENJOYABLE AND ENGAGING
EXPERIENCE
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ONLINE OR MOBILE COUPONS (18%) AND MOBILE SHOPPING
LISTS (15%) ARE THE MOST CITED FORMS OF IN-
STORE DIGITAL ENGAGEMENT AMONG GLOBAL RESPONDENTS
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&
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Winners will find the harmony between R & D
Solutions vs product will create distinction
Format relevance will have to rethink itself
‘Connected’ Shoppers will be the reason you succeed
lines between B&M and Digital will continue to blur
THE RETAIL ROAD AHEAD
