1 © GfK April 18, 2016 | Futurebuy APAC Webinar
FUTUREBUY 2015: Use of digital in the shopping journey
in APAC
Norrelle Goldring, March 2016
2 © GfK April 18, 2016 | Futurebuy APAC Webinar
GfK Futurebuy 2015 Overview
APAC countries are Australia, China, India, Japan, Korea
25 Countries … 15 Categories …
Australia
Canada
Mexico
US Romania
Germany Poland
Spain
France
Russia
Bulgaria
Columbia
Argentina
Brazil
Korea China Japan
Futurebuy is GfK’s proprietary survey of shopper attitudes and behaviours- run annually since
2009
FMCG Consumer Durables
Beauty and Personal Care
Packaged Food/Bev
Household Washing and
Cleaning products
OTC Healthcare
Consumer Electronics
Mobile Phones
Home Appliances
Services Specialty Retail
Financial Services
Healthcare Services
Meals at Restaurant
Automotive
Toys
Apparel
Home Improvement
Home and Garden
20
minute
Online Survey N = 1000 per country (18+)
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Definitions for this survey
By ‘shopping’ we mean:
The entire process of
browsing, comparison shopping,
information gathering, or the
actual purchase of products and
services.
By ‘omnichannel’ we mean”
Shopping process across
both online and physical store
channels.
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Agenda
1
2
3
Omnichannel shopping expectations and behaviours
The role of mobile devices in shopping
Shopping tasks, touchpoints and influences
4 Spotlight on payment methods
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Consumers can access multiple choices and walk away when price, choice, service
or delivery fall short.
Shoppers expectations are rising, businesses must find
new routes to connect and influence
% Australia China India Japan Korea
I am now less loyal to any one brand as I need to shop around more to find the best value
63 64 76 39 45
Retailers, advertisers, and brands have less influence on my purchase decisions than ever before
47 51 66 34 40
My social networks have become as important as other information sources for me to make the best product choices
31 64 70 23 43
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Shoppers desire to move towards online, particularly in India and
China
% Shoppers Agreeing (T2B) with Statement
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.
66
74 71
65
50
70
47 42
26
42 37 36
43 43 46
0
10
20
30
40
50
60
70
80
Traditional retail stores are much lessimportant in my shopping than a few
years ago
I can see a future where traditionalretail stores are not a big factor in how I
shop
I can shop for nearly 100% of theproducts/services I need online
INDIA CHINA JAPAN KOREA AUSTRALIA
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APAC leads world in FMCG categories while NA leads in high ticket durables –
LATAM low across board
Omni-channel shopping has different contours across global regions
LATAM North America APAC
10% 13% 40%
8% 14% 34%
25% 31% 49%
LATAM North America APAC
37% 55% 46%
29% 43% 34%
24% 44% 27%
Food & Beverage
Cleaning Products
Beauty & Personal Care
Consumer Electronics
Mobile Phones
Auto
% Reporting Omni-Channel Shopping
Q1/Q2: Which of the following types of products or services have you shopped for in the past 6 months for yourself or other members of your household? And have you shopped for each
exclusively online, exclusively in store or both?
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% shoppers reporting omni-channel shopping
People expect a seamless shopping experience across all categories
39 21 16 22 12 15 19 19 12 15 9 11 9 8
65
49 53 30 36 30 27 27
27 22 13 13 9 11
39
28 13
14 14 18 12 13 12 10
5 9 8 4
23
17
16
18 8 9
7 6 8 8
9 4 4 4
50
33 45
17 29
11 14 12 13 17
7 4
6 2
Clothing /
fashion
Beauty &
personal
care
Packaged
food &
beverage
Consumer
electronics
Cleaning
products
Mobile
phones
Toys Home
appliances
Financial
Services
Furniture &
furnishings
OTC
healthcare
Home
improve-
ment
Healthcare
services
Lawn &
garden
Korea
Japan
India
China
Australia
Q1/Q2: Which of the following types of products or services have you shopped for in the past 6 months for yourself or other members of your household? And have you shopped for each
exclusively online, exclusively in store or both?
base: have shopped for each category in the past 6 months
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Financial services, mobile phones, consumer electronics and home
appliances are the categories with the highest online-only shopping process.
Q2_c1s2 For these categories, have you shopped for each of the below exclusively online, exclusively in a store or both?
% online only shopping process
32 21 18 12 11 7 9 9 6 6
17 4 4 3
27 29
22 23
15 10 8 14 12 7
7
7 3 5
31 49
35 36
24 21 25 13 18 23
14
12 9 13
42 25
26 26
22
14 16
13 7 11 11
5 7 4
21 20
34 30
19
20 14 17 23 17 12
16 3 5
0
20
40
60
80
100
120
140
160
180
Korea
Japan
India
China
AUS
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Is a more enjoyable experience
19% instore 14% online
Recommended by people I trust
16% instore 17% online
Better after sales service
10% instore 6% online
Best advice on what to buy
8 % instore 7% online
Good relationship with retailer
6% instore 4% online
Community connection
5% instore 3% online
Pay with mobile device
5% instore 8% online
Physical stores are about tangibility, returns, supporting loca businesses.
Online stores perceived as cheaper, more delivery and payment options
51 9
37 32
33 14
32 16
25 19
19 6
17 8
12 5
See and feel the
products before I buy
Shopping is easier
Returns are more
hassle-free
Routinely shopping
there already
Can buy other things at
the same time
Let me support local
businesses
Can get products
sooner
Is a more social
experience
Advantage Instore Advantage Online
6 12
15 29
13 23
11 19
27 59
17 24
Q4_A. Thinking about the last time you were deciding whether to purchase something online versus in a store, and decided to purchase in a store/online, what factors
were most important in driving your choice to purchase there?
Save money (better pricing,
deals)
Better delivery options
Shopping is faster
Better payment options
Already have account set
up
Better selection
NB: Australia data but similar trends across other APAC countries
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Macy’s creating a seamless omni-channel world
• Virtual access to loyalty offers and
coupons –through app or the POS
system using Macy’s card
• Check store inventory (via site or
in-app) buy online and pick up in-
store (and vice versa)
• App: wayfinding in-store, barcode
scan, image search, virtual wallet
• Handheld tablets for associates
• In-store large touchscreen
lookbooks to access catalog
Whether shopping online, in-app, in-store, or browsing an in-
store kiosk, shoppers’ experience is consistent and connected
with access to the same personal information.
Source: GfK FutureBuy® 2015
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Q19 How important would each of the following factors be in getting you to make more online purchases in the next year?
Free delivery the top factor for getting shoppers to make more online
purchases. Deals and personalised offers also figure highly for most
40 18 20 16 17 10 11 22 13 9
74
66 58 60 53 61 58 58
58 51
87
74 76 75 71 73 80 72 69
63
46
6 8 4 5 3 2 5
7 3
79
60 50 50 59 57 53 46 55
40
Free delivery Holiday/seasonaldiscounts
Discounts onbulk purchases
Moredaily/weekly
deals
Same daydelivery
Personalizedoffers based onyour shopping
behavior
Professionalproduct reviews
Better loyaltyprograms
More userreviews
Ability to makepayments with
my mobiledevice
Korea
Japan
India
China
Australia
Free delivery generally more important than speed of delivery.
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Top reason not to purchase online most commonly revolve around credit
card security, cost of delivery, lack of tangibility, and difficulty of returns
Delivery cost number one barrier, echoed in free delivery to buy more
Q19C Reasons not to buy online
Korea
Japan
India
China
Australia 49
31 41 35
22 22
18 33 15 35
19 14
45 32
34 28
29 23
39
41 33 22
10 15
26
29 34
25
18 15
Cost of delivery Credit card / Personal detailssecurity
Prefer to see the product you’re buying in-person
Difficult to return items Reliability of delivery I enjoy shopping in-store
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Instant everywhere: Seven & I Holdings available just about
everywhere
omni7 from Seven & I Holdings allows
customers to seamlessly switch between
online and offline shopping.
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China, Korea and India lead in use of mobile devices for shopping tasks
Q12 Which of the following devices have you used to help you shop for a product in the past 6 months?
80 41 29 16 2 6
80
83
33 46
3 1
70
70
22 32
3 2
91
26
13 12
1 2
84
83
22
51
2 1 0
50
100
150
200
250
300
350
400
450
Computer at home Smartphone Tablet Computer at work Wearables Didn't use a device
Korea
Japan
India
China
AUS
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40%
16%
29%
7% 4%
Computer at home Computer at workSmartphone TabletOther
Q11 What percent of your total time spent shopping online is represented by each of the following?
Likewise China, India, Korea have the higher amounts of time spent on
shopping tasks on their smartphones
80%
5%
9% 4%
Computer at home Computer at workSmartphone TabletOther
39%
24%
30%
5% 2%
Computer at home Computer at workSmartphone TabletOther
38%
20%
29%
9% 2%
Computer at home Computer at workSmartphone TabletOther
59% 7%
14%
10% 3%
Computer at home Computer at workSmartphone TabletOther
Estimated share of shopping activity by device type:
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In APAC countries, although PC is still the major device used, the continued
growth of shopping via mobile devices is at the expense of PCs
Australia
88
24
23
15
Computer at home
Computer at work
Smartphone
Tablet
2013
81
17
34
24
2014
80
16
41
29
2015
%
Q12 Which of the following devices have you used to help you shop for a product in the past 6 months?
20 © GfK April 18, 2016 | Futurebuy APAC Webinar
Webrooming and Showrooming confirm the need for a seamless shopping
experience. Mobile devices are enabling both.
Webrooming is the dominant behaviour. Showrooming incidence similar, whether friendly or hostile
Q17 During any of your shopping occasions over the past 6 months, have you used your (device) for any of the following?
Smartphone shoppers reporting webrooming/showrooming behaviours:
40
20
17
Webroom
Hostile Showroom
Friendly Showroom
30
30
29
40
35
37
42
16
17
34
24
28
Australia China India Japan Korea
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Shopping tasks, touchpoints & influences
Or, why it’s not only where they purchase, it’s about what they need to get to the purchase
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The shopping activities receiving increasing shopper energy suggest
an ongoing “digital revolution” in shopping
Top 5 Reported Shopping Activities
“Doing More of” in 2015 vs. YAG
Source: GfK FutureBuy® 2015
Q7: Below are different statements about shopping. Compared to a year ago, would you say that you are doing more, less or about the same as it relates to your shopping experiences in general across the many
kinds of products and services you shop for?
AUSTRALIA CHINA INDIA JAPAN KOREA
Comparing prices 39 37 45 28 33
Researching products on the internet 47 47 45 37 36
Using the Internet to find the products I want 45 51 48 38 40
Using the Internet to purchase products 38 58 48 35 37
Using Google or other search engines as a shopping tool 37 28 44 20 20
Using a smartphone or tablet to help me shop 20 41 36 14 31
Making payments using mobile devices 15 48 31 9 27
Shopping with my smartphone at home 16 42 35 9 30
Using coupons received in e-mails 19 36 37 11 25
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JCPenney’s visual search simplifies shopping research
From the JCP app, users can tap
the “Scan” button within the search
bar to scan an item and the app
will find a similar item on JCP.com
or the catalog for purchase
Source: GfK FutureBuy® 20165
24 © GfK April 18, 2016 | Futurebuy APAC Webinar
Source: GfK FutureBuy® 2015
Smartphones used mostly for what, when, where, how much. Some
countries more likely to use for reviews.
Q16: Let’s focus on the last time you used your [device] to help you shop for [category]. In which of following ways did you use your [device} when shopping? (select all)
26
26
17
17
16
14
12
Search product info
Compare prices
Check product availability
instore
Locate a store
Access product reviews
Pay online for product
Buy product via app
Australia China India Japan Korea
26
34
14
11
25
28
22
26
31
28
20
27
23
33
25
18
7
13
10
6
8
25
29
9
14
23
26
18
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UNIQLO provides omni-channel app
UNIQLO provide a smartphone app which we can search a
product and inventories in each stores.
We can find clothes which we want to have very easily.
Source: GfK FutureBuy® 2015
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Info at shelf and instore displays are vital touchpoints, but reviews and
recommendations and deals/coupons are important and increasing
Nascent technologies naturally of less overall importance. NB this table for Australia but was similar across APAC countries.
Q8 When shopping for [category] how important was each of the following factors in your shopping decisions? Top 2 Box, average across categories
AVE %
Brand/item experience 57
Retailer experience 57
Info at shelf 48
Instore displays 42
AVE %
Opinions of family/friends/colleagues 39
Retailer websites 38
Product samples/demos 37
Brand websites 36
Online expert reviews 36
Price comparison/discount websites 35
Online reviews from other shoppers 35
Product packaging 34
Store circulars/flyers 33
Coupons 33
Consumer opinion websites 32
Brochures/flyers 32
TV or print advertising 31
AVE %
General shopping sites 29
Online advertising 29
Pay using mobile device online 28
Social media 26
Manufacturer apps 24
Pay using mobile device in a store 24
Location-enabled 'apps' to find best
deals 24
Retailer apps 23
Shopping apps 23
VITAL IMPORTANT INFLUENTIAL
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Dan Murphy’s: using local customer reviews to influence at
shelf and online the wine shoppers buy
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Mobile device payments are low in a number of markets and haven’t moved
much. This may be partially due to a lack of consolidated platforms
%
Q18B Thinking about all of the products and services you buy on a regular basis, what percentage of transactions do you estimate you pay for using each method below?
35
38
49
53
24
28
26
20
42
44
30
13
20
1
21
4
21
8
2
10
4
2
3
2
1
AUS
China
India
Japan
Korea
Cash Credit Card Debit Card Mobile device Other
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Whilst mobile payments have positives around speed, convenience and
efficiency, more than half have security and privacy concerns
28
28
26
25
21
20
Making payments with mymobile device is faster than…
Having all my payment methodstogether in one place on my…
Making payments on my mobiledevice makes my shopping…
Making payments with mymobile device is easier than…
Making payments with mymobile device is more secure…
I prefer to make payments withmy mobile device whenever…
59
44
23
I’m worried about my personal information when using a mobile
payment app
Mobile payment is more of agimmick today than a major part
of how I pay
I am confident that my mobiledevice payments are 100%
secure
Making payments with my mobile device is
faster than other methods
Having all my payment methods together in
one place on my mobile device is a major
convenience for me
Making payments on my mobile device
makes my shopping more efficient
Making payments with my mobile device is
easier than other methods
Making payments with my mobile device is
more secure than other methods
I prefer to make payments with my mobile
device whenever possible
I’m worried about my personal information
when using a mobile payment app
Mobile payment is more of a gimmick
today than a major part of how I pay
I am confident that my mobile device
payments are 100% secure
Positives Negatives
Q18F Thinking about your experience with mobile payments in general, how much do you agree or disagree with…
Positives and negatives relativity were very similar across APAC countries although the incidence of
negatives was lower in China and Korea. The data above is for Australia.
31 © GfK April 18, 2016 | Futurebuy APAC Webinar
Biometric security authorization for payments and Apple
Pay partnership with banks are only the beginning of
securing new payment options. Citi’s app also pushes out
a notification any time a charge is made to your card.
Apple Pay biometrics authentication options
Source: GfK FutureBuy® 2015
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GfK FutureBuy® 2015 key takeaways
In-store Vs. Online Loyalty Issues
MOBILE migration Mobile PAYMENTS treading water
• Omnichannel shopping is everywhere
• But the physical store plays a strong role in tangibility and
experience
• Digital is omnipresent in shopping journeys
• Role of smartphones is pragmatic what, when, where
• Digital as much or more about prestore search and
webrooming as instore
• Gen Z and Gen Y are marginally ahead in
adopting smartphone shopping
• Interest in mobile payments is increasing
• However payment platforms and thus
behaviour hasn’t moved in some markets so
behaviour doesn’t reflect desire or expectation
• Receptivity to mobile is significantly higher
among LEC’s
Source: GfK FutureBuy® 2015
• Loyalty harder to come by – showrooming is increasing
• Retailers need to harness their advocates, particularly LECs
• Personalisation and co-collaboration with shoppers will
help increase loyalty
• Social media platforms and reviews should be leveraged.
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For example:
• YOY for 3 years for several categories
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THANK YOU
Ask us about:
• Futurebuy custom reports and
portal subscriptions
• ConsumerLife and Trendkey
reports
Norrelle Goldring
Shopper Lead, APAC
M: +61 437 335 686
Further reading:
• Deloitte ‘Navigating the Digital
Divide’, 2015
• IBM ‘Smarter Consumer Study,
2015
• Deloitte ‘Mobile Retail Influence
Factor’, 2012