Niq Global Intelligence Plc · NYSE:NIQ
Niq Global Intelligence — GfK — FutureBuy Australia Webinar June 2017
43 slides from Niq Global Intelligence's conference presentation, Jun 16, 2017
Slide 1: Australian Shopping Behaviour
Australian Shopping Behaviour GfK FutureBuy : H2, 2016 data © GfK June 16, 2017 | FutureBuy Australia Webinar June 2017 Webinar, June 2017 1
Slide 2: Agenda
Agenda 1 2 3 Channels Devices Touchpoints © GfK June 16, 2017 | FutureBuy Australia Webinar June 2017 2
Slide 3: Channels: Online is where the upfront journey happens
CHANNELS Online is where the upfront journey stuff happens © GfK June 16, 2017 | FutureBuy Australia Webinar June 2017 January 2017 3
Slide 4: Globally, omni-channel shopping predominant in big ticket consumer electronics
Globally, omni-channel shopping predominant method in big ticket consumer electronics category Channels shopped: Consumer Electronics 46% 44% 48% 40% 50% 46% Both Excl in physical store 32% 30% 32% 27% 27% Excl online 39% 24% 24% 25% 27% 23% 15% World APAC Europe Latin America North America META Whe
Slide 5: Apparel has higher incidence of omnichannel shopping journeys
Apparel has higher incidence of omnichannel shopping journeys (than CE) but also higher instore purchase – need to try it on Channels shopped: clothing & fashion 53% 54% 44% 48% 46% 58% Both Excl in a store/ location Excl online 37% 28% 37% 48% 44% 50% 10% 14% 9% 9% 8% 4% World APAC Europe Latin Ame
Slide 6: APAC shift to omni and online shopping in beauty and personal care
APAC shift to omni and online shopping particularly evident in beauty and personal care Channels shopped: beauty and personal care 35% 32% 26% 27% 28% 47% Both Excl in a store/ location 59% 64% 68% 70% 67% Excl online 41% 6% 12% 4% 6% 3% 4% World APAC Europe Latin America North America META Where pu
Slide 7: Even FMCG has a 1 in 5 incidence of omnichannel journeys
Even FMCG has a 1 in 5 incidence of omnichannel journeys. Online purchase for grocery channels led by China and Korea Channels shopped: packaged food and beverage 22% 16% 12% 13% 14% 39% Both Excl in a store/ location 82% 85% 85% 83% 75% Excl online 56% 3% 4% 2% 3% 2% 2% World APAC Europe Latin Amer
Slide 8: Australia more likely exclusively physical store for CE shopping
Australia more likely exclusively physical store and less likely exclusively online for CE shopping journeys than other markets However, omnichannel (ie webrooming) equal to other markets 46% 44% 47% 40% 48% 50% 50% Both Excl in a store/location 32% 20% 32% 30% 27% 27% Excl online 42% 24% 24% 25% 30
Slide 9: MDA has more omnichannel shopping than SDA
MDA has more omnichannel shopping than SDA And for Australia, higher exclusively online journeys than for CE 38% 35% 40% 40% 39% 43% 44% Both Excl in a store/location 44% 47% 39% 24% 40% 39% 47% Excl online 31% 18% 18% 17% 21% 20% 13% World APAC Australia Europe UK Latin America North America n= 5,0
Slide 10: Omnichannel journeys are increasing across the board
Omnichannel journeys are increasing across the board, even in the lower involvement categories 18.6 14.3 21.2 30.2 26.5 40.8 37.4 37.4 36.5 Both 47.3 44.8 42.6 49.6 Exclusively Physical Store 32.8 81.2 41.8 65.3 75.9 79.5 40.5 54.2 54.2 65.5 41.7 47.8 Exclusively Online 41.7 26.5 21.7 16.9 8.7 11 7.
Slide 11: Online purchases still highest for higher involvement categories
Online purchases still highest for higher involvement categories, but increasing across the board 1.1 2.2 1.5 1.8 1.7 1.9 5.3 5.4 3.6 3.6 3.2 3.9 6.8 6.9 8.3 4.3 11.4 12.7 13.1 14.4 10.6 11.2 5.7 8.9 14.9 8 24.8 10 9.4 14.8 43.5 18.7 23.5 36.5 18.8 30.7 23.6 Did not make a 29.3 purchase 37.2 Over th
Slide 12: Around 4 in 10 show a desire to move most purchasing online
Around 4 in 10 show a desire to move most purchasing online 39% 44% 51% 35% 24% I would be more loyal to a brand/retailer that lets me give input or help shape the products/services I buy 46% 46% 51% 43% 44% Retailers, advertisers, and brands have less influence on my purchase decisions than ever be
Slide 13: Showrooming rates appear to be dropping in APAC, LATAM and META
Showrooming rates appear to be dropping in APAC, LATAM and META – and particularly Australia % of shoppers reporting showrooming on mobile device (any category) This year 2015 26% 29% 25% 23% 23% 23% 20% 24% 24% 22% 16% 18% 19% 18% World APAC Australia Europe UK Latin America North America n= 13,265
Slide 14: Webrooming incidence is more than double that of showrooming
Webrooming incidence is more than double that of showrooming – the dominant behaviour, and growing Hostile Showrooming Webrooming (saw product in-store then purchased (saw product on device and later went online elsewhere) to physical store to purchase) 23% 16% 23% 37% 2014 2016 2014 2016 LECs also
Slide 15: Top reasons for buying in physical stores versus online stores
Top 5 reasons for buying in physical stores versus online stores: Physical stores about tangibility; online about money, range, ease n=1,000 Store All Categories CE SDA MDA n=1,000 Online All Categories CE SDA MDA See product before buy 48% 44 42 39 Save Money 56% 56 53 51 Get products sooner 33% 31
Slide 16: Free delivery still the top reason to buy more online
Free delivery still the top reason to buy more online next year 92% Free delivery 83% Better loyalty programs 81% More daily/weekly deals 79% Holiday/seasonal discounts 79% Discount on bulk purchases 76% Same day delivery 72% Professional reviews 71% More user reviews 65% Personalised offers n=1,000
Slide 17: Biggest barrier to online shopping is still cost of delivery
…therefore the biggest barrier to online shopping is still the cost of delivery 51% Cost of delivery 43% Prefer to see the product in-person 35% Difficult to return items 29% Personal details security 26% I enjoy shopping in-store 24% Reliability of delivery 17% I have no reservations about shopping
Slide 18: Key takeouts for omnichannel shopping
Key takeouts for omnichannel shopping 1 2 3 Omnichannel journeys are The physical store is not going Online stores are about price, increasing, particularly search away – it’s about tangibility and range, information and convenience stages experience Role for third party reviews and Online is where
Slide 19: Devices, and how they are being used: Search on mobile, buy on PC
DEVICES, AND HOW THEY ARE BEING USED Search on mobile, buy on PC © GfK June 16, 2017 | FutureBuy Australia Webinar June 2017 January 2017 19
Slide 20: Smartphone penetration rivals laptop ownership incidence
Smartphone penetration rivals that of laptop ownership incidence, and doesn’t vary much among generations X, Y and Z n= All respondents 1,000 Generation Z 187 Generation Y 314 Generation X 262 Boomers 238 Slert & GI 90% 89% All respondents 82% 80% 81% 83% 81% 77% Generation Z Generation Y 68% 68% 64
Slide 21: Continued growth of shopping via mobile devices at the expense of PCs
The continued growth of shopping via mobile devices is at the expense of PCs. Gens Y and Z higher on smartphones. Tablets for shopping are slowing as their growth slows. 2013 2014 2015 2016 Computer at home 88 81 80 82 Computer at work 24 17 16 18 Smartphone 23 34 41 41 % Tablet 15 24 29 23 Q12 Whic
Slide 22: Two thirds of Australians' shopping time on devices is on a computer at home
Two thirds of Australians’ shopping time on devices is on a computer at home, but smartphones are rising as a % of shopping time Share of total online shopping time spent on device 3% 3% 3% 2% 3% 2% 9% 7% 8% 11% 11% 9% 14% 13% 20% 15% 14% 27% Through another device Through my tablet Through my smart
Slide 23: In consumer electronics, laptops bigger than desktop PCs for online purchasing
In consumer electronics, laptops are bigger than desktop PCs for online purchasing in western markets. Developing markets more smartphone based. 4% 4% None of these Cell phone (calls, texts only) 30% 39% 45% 36% 44% Laptop 52% 58% Desktop computer 36% Wearables 36% 36% 36% 36% Tablet 6% 25% 33% Smar
Slide 24: In SDA, desktops still bigger for online purchases in Australia
Where in SDA, interestingly in Oz desktops are still bigger for online purchases. For MDA, the global and Oz pattern is very similar to this. 4% None of these 3% Cell phone (calls, texts only) 29% 39% 34% 37% 39% 46% Laptop 51% Desktop computer 36% Wearables 34% 41% 37% 40% 32% 23% Tablet 5% 7% 5% S
Slide 25: Millennials and shopping behaviour
Millennials and shopping behaviour Millennials are 1.5x more likely to And their time spent shopping on use their smartphone for shopping smartphones versus other devices is than other generations also 1.5x that of other generations Millennials vs. Aus +17 +13 +12 +10 Average My social networks My m
Slide 26: What shoppers say they are doing more of is the same across generations
But what shoppers say they are doing more of is the same across the generations And the % of ‘more’ behaviours is starting to plateau YOY. ALL Z Y X Boomer Researching products on 1 = Finding products on Net = = Internet = 2 Finding products on internet = Research on Net = 3 Price comparisons = Goog
Slide 27: Mobiles are used to make the purchase journey easier
Mobiles are used to make the purchase journey easier – to minimise ‘running around’ physical stores Top ways of using smartphones when shopping (all categories) 20% 20% 16% 15% 15% Compare prices Gather information Locate a store Check availability Check reviews of about the product/ in store the pr
Slide 28: Australia's love affair with one-tap payment methods leads the world
Australia’s love affair with one-tap payment methods leads the world (albeit contactless credit cards, not yet mobile payment platforms): no major shift to paying with mobile device yet World Australia UK US 39 35 35 30 26 26 24 20 18 17 16 15 15 14 11 8 9 7 6 7 5 2 3 2.5 3 2 2 2.5 Cash Credit card
Slide 29: Key takeouts for devices
Key takeouts for devices • Use of mobile devices for shopping in THIS MEANS YOU NEED TO: Australia has doubled in the past 3 years, at the expense of laptops and • Ensure your mobile optimisation includes desktop PCs the most-performed searches and tasks – and include payments • The top shopping tas
Slide 30: Touchpoints: We're all influencers and deal-seekers now
TOUCHPOINTS We’re all influencers and deal-seekers now © GfK June 16, 2017 | FutureBuy Australia Webinar June 2017 January 2017 31
Slide 31: Deal seeking behaviours increasing, shifting from paper to electronic
Globally, deal seeking behaviours are increasing overall, and shifting from paper based (coupons) to electronic Nett Checking store circulars for deals and/or coupons 23% 51% 13% 12% +10 Clipping coupons in the newspaper, magazines, register receipts, and/or received in the mail 15% 42% 18% 25% -3 U
Slide 32: Usage of shopping apps and online purchase is increasing rapidly
Usage of shopping apps and online purchase is increasing rapidly Nett Relying on friends and family to help me make the right shopping and purchasing decisions 13% 54% 18% 16% +5 Using blogs or other sites written by other shoppers 16% 39% 13% 33% +3 Using the Internet to purchase products 40% 46% 9
Slide 33: In Australia, shoppers doing more of Google, coupons, deal-seeking tools
In Australia, shoppers are doing and using more of Google, coupons, and various deal–seeking tools. Degree of planning has been increasing Using 27% UsingGoogle Googleororother othersearch searchengines enginesasasa ashopping shoppingtool tool 37% 21% Making Makingshopping shoppinglists listsbefore
Slide 34: Role of touchpoints in decision making
Role of touchpoints in decision making: 3rd party opinions in some categories stronger than traditional media and equal to instore Consumer electronics Traditional Media In store 3rd party opinions Retailer websites 45% Information at shelf 46% Online reviews from other shoppers/users 54% Product Br
Slide 35: Reliance on social networks highest in APAC and LATAM
Reliance on social networks to inform shopping decisions highest in APAC and LATAM % agreeing - my social networks have become as important as other information sources for me to make best product choices - (top 2 box) Europe World 38% n=8,000 25% n=20,003 UK n=1,000 35% APAC n=6,002 50% Latin Ameri
Slide 36: Reviews for everyone: increasing importance of reviews and ratings
Reviews for everyone: The increasing importance of reviews and ratings! GfK FutureBuy: Important shopping touch points (all categories) Retailer experience 60% +3 V i Brand/item experience 54% -3 18% t a Info at shelf 46% -2 l Instore displays 44% +2 I Online expert reviews +8 42% 18% say they go ou
Slide 37: Loyalty comes from experiences and input into products and services
Loyalty comes from experiences and input into products and services. Deal seeking behaviour is decreasing loyalty to brands and retailers 66% 56% 56% 52% 50% Concerned about security of my Now less loyal to any one Now less loyal to any one brand Too many choices in many of Would be more loyal to a
Slide 38: Key Takeouts - Touchpoints
Key Takeouts - Touchpoints Deal seeking behaviours are increasing THIS MEANS YOU NEED TO: • Be continuously available 24/7 online from However, deal seeking is decreasing moment of trigger, at all stages of the loyalty to retailers and brands. Loyalty journey comes from co-creation • Social listenin
Slide 39: About GfK FutureBuy
ABOUT GfK FUTUREBUY © GfK June 16, 2017 | FutureBuy Australia Webinar June 2017 JUNE 2017 40
Slide 40: GfK FutureBuy: A window on tomorrow's shoppers
GfK FutureBuy®: A window on tomorrow’s shoppers – How they buy today and what they expect of retail tomorrow Running since 2009 … in Australia since 2013 20+ Countries… 16 Categories… Australia Indonesia Russia Belgium India South Africa Brazil Italy South Korea Canada Japan
Slide 41: Benefits of GfK FutureBuy insights
Benefits of GfK FutureBuy® insights Turbo-Charge Your A Smart Starting More Bang for Buck Know Before You Go A Look Over Horizon Shopper Marketing Point Help to focus resources Provide immediate shopper Profiles the preferred Early visibility to the Enables you to develop against the shopper landsca
Slide 42: GfK FutureBuy 2016 offerings and pricing (ex GST)
GfK FutureBuy® 2016 offerings and pricing (ex GST) Data Portal Access Custom Presentations Live interface access to all FutureBuy® survey data spanning 20 countries and 16 categories Includes 2016 and 2015 data Global Access Fully prepared, custom category and/or market-specific insights 1 year
Slide 43: Thank you! Questions?
Thank you! Questions? © GfK June 16, 2017 | FutureBuy Australia Webinar June 2017 June 2017 44