Connected Life 2014 © TNS 2014

Retail everywhere Guénaëlle GAULT Chief Digital Officer TNS Southern Europe, France & Benelux

Connected Life 2014 © TNS 2014

Decision making in a connected world

If we understand

why people do what they do,

we can use this knowledge to develop strategies that

disrupt, create or reinforce behaviours

New channels and formats to experience and interact with brands

New ways to get better information

New ways to activate strategies

Connected Life 2014 © TNS 2014

As consumers accumulate more devices and access to more sources of information the number of digital touch points multiplies

5,6 5,7 6,4

7,8

Func

tiona

l

Con

nect

ors

Obs

erve

rs

Lead

ers

Number of online touchpoints Total touchpoints

Functional markets

Connector markets

Observer markets

Leader markets

Proportion of touchpoints accessed online 19% 23% 37% 32%

G1. Steps taken pre-purchase | G2. Touchpoints Base: Functional markets (6170) | Connector markets (4438) | Observer markets (16997) | Leader markets (4856)

6 Average number of touchpoints used by French consumers

Connected Life 2014 © TNS 2014

The consumer journey can become complex

Go to store

Buy offline

Milestone Online touch point Offline touch point

France Total no. of touchpoints used: 3

G1. Steps taken pre-purchase | G2. touch points | G3. Needs met by touch points Base: South Korea (1); Nigeria (1)

Post-purchase Discovering Planning Who Deciding

Leader (female, 24) wants to buy cosmetics

France Total no. of touchpoints used: 7

Buy online

Talked to friends and family for ideas and inspiration

$ Read product packaging

Functional (female, 40) wants to buy cosmetics $

Went online to find more information

Read consumer reviews online to compare brands and check product features and prices

Search for information in-store to look for the best deal and make a final decision

Checked the price of different products to make sure she got the best deal

Used a search engine to find out about brands and check prices and narrow the selection Go to

store

Visited brand site to find out more and compare products, and to check prices Spoke to store staff

to get ideas, find the best deal and make a final decision

Read product packaging

Connected Life 2014 © TNS 2014

Mobile is playing an increasing role in the journey

Incidence of mobile research in-store and mobile wallet

Weekly mobile research in-store

(The use of a mobile device to research products or

services whilst in a store) %

Weekly use of Mobile wallet

(A mobile device to pay for products or services)

%

26 22 25 19

29 37

18 12 8

Global France Male Female 16-24 25-34 35-44 45-54 55-65

C1. Digital activities Base: Global (54,775) | France (968)

20 15 19 10

23 28

13 4

Global France Male Female 16-24 25-34 35-44 45-54 55-65

Connected Life 2014 © TNS 2014

Cosmetics/ facial care Skin care

Personal hygiene

Over-the-counter medicines

Confectionery, snacks, treats

Clothes and Shoes

Music

Movies Software or Apps

Baby care - food, diapers / bodycare

Baby care - prams, mats /

toys

Holiday/travel

Credit cards

Insurance

Banking products

PC / Laptop Tablet

Mobile phone or smartphone

Camera

TV White goods and home appliances

e-Cigarettes

Relationship between research online and purchase online by category

A strong relationship exists between online research and online purchase

Purchase product offline

E3. Purchase made on/offline | E4. Pre-purchase research conducted on/offline Base: France (968)

Predominately online categories

Offline research driving online purchase (Showrooming)

Predominately offline categories

Purchase product online

Research online

No online research

Online research driving offline purchase (ROPO)

Connected Life 2014 © TNS 2014

22

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eCommerce penetration is driven by access, with four stages of development across markets

Total category (net) incidence of eCommerce (%)

E4. Purchase made on/offline Base: Global (54,701)

Access Lack infrastructure or payment mechanisms

Trust Security concerns, lack of trust!

Experience Prefer offline to guarantee quality!

Price / choice Developed, buy on or offline based on price

N.B. The development funnel has factored in internet penetration and is cross-referenced to eCommerce barriers.

Connected Life 2014 © TNS 2014

72 70

63 67 66

62 64

60 60

75 72

55 73

69

Home delivery Efficient process

No queues online Reputable retailer

Flexible, secure payment Buy direct from brand Online-only products

Exclusive products Good experience

Price or value Free delivery Bulk buying

Knowing you get the best price Product info

A range of barriers competing with eCommerce drivers in France

Global eCommerce drivers and barriers (%)

E5a. Reasons to purchase online | E6. Reasons not to purchase online Base: Global (54,775)

Convenience

Trust

Price

Choice / Exclusivity

Trust / security

Price

Personal experience

Convenience

Experience

Transparency

67 66

52 52

70 66

62 52

68 59

54 63

58

Easier to buy offline Want product straight away

Poor availability online Process too complex

Unsure of product quality Unsure if brand is genuine

Not secure Don’t trust websites

Prefer to touch products Prefer personal assistance

Prefer to shop w/friends Delivery costs

Not cheaper

eCommerce drivers eCommerce barriers

Connected Life 2014 © TNS 2014

Implication: Successful integration of on and offline channels has a demonstrable impact on sales

Case study: Macy’s omnichannel strategy