Fresh Connections: Netherlands

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1 Fresh Connections: Netherlands The Future of Retail: Trends to Watch in Global E-commerce Gaurav Sawhney April 29, 2015

2 Presentation: PMA 2015 Appeasing Grocery Shoppers Achieving omni- channel or what consumers call shopping April 2015 planetretail.net Gaurav Sawhney Senior Retail Analyst - E- commerce

3 Achieving Online Russia omni- channel 2013 or what consumers call shopping The shopper journey used to be simple Awareness What was once this. Interest Evaluation Commitment Loyalty View TV or Print AD Go to Store Compare options Choose best option Buy item Align with brand

4 Online Achieving Russia omni- channel 2013 or what consumers call shopping But it is now increasingly complex Has become this. Searc h Watch video on mobile Faceboo k Like Download Mobile App Compar e Shop Online View Print Ad YouTub e Video Ad Buy item Demo Produc t instore Read Blog Shop on Websit e View Banner Ad Read Review s Watch Tutorial

5 Achieving Online Russia omni- channel 2013 or what consumers call shopping Mobile devices are a vital component of the path- to- purchase Use device for shopping acdvides when buying groceries 8% 15% 6% 4% 9% are likely to shop online for groceries 2% via TABLET in the future 11% 4% 13% are likely to shop online for groceries via MOBILE 3% in the future 20% 5% 24% 17% would be encouraged to choose a retailer if it had a MOBILE and TABLET opnmised website NEED to cater for the touch- screen shopper 19%

6 Achieving Online Russia omni- channel 2013 or what consumers call shopping Mobiles are becoming the uldmate shopping companion Smartphones have equipped shoppers with a powerful tool when entering stores Grocery shoppers currently use their mobile to 31% log onto retailer s free instore Wi- Fi 33% find nearest store of a parncular retailer 26% get more info about a product when out shopping 22% downloaded a retailer s mobile app

7 Achieving omni- channel or what consumers call shopping Embrace the constantly connected consumer Be where the customer is at all Dmes Grocery shoppers currently use their mobile to 22% scan QR Codes to get info about products 32% 27% 14% have made a purchase online while in a retailers store 13% 22%

8 Online Achieving Russia omni- channel 2013 or what consumers call shopping Facilitate the use of mobiles for shopping Build soludons around the technology shoppers already have Grocery shoppers WANT to be able to use their mobile to 35% quickly and easily compare prices when out shopping 21% Received loyalty scheme offers via mobile 15% Redeemed loyalty scheme offers immediately when instore via their mobiles Used a mobile as a payment method

9 Achieving omni- channel or what consumers call shopping Facilitate the use of mobiles for shopping Build soludons around the technology shoppers already have Grocery shoppers WANT to be able to use their mobile to 33% use a barcode scanner app to view product informanon 23% want to use a barcode scanner app to scan and then pay for items when instore 45% 25%

10 Online Achieving Russia omni- channel 2013 or what consumers call shopping Using technology to enhance the instore experience SoluDons implemented must meet a need or solve a pain- point Instore technology being used by grocery shoppers... 49% have used a self- service check- out 69% 60% 21% have placed an order instore using the retailers stanonery kiosk/terminal/ipad 24% 17% 27% have used an interacnve display to search for product ideas, get product recommendanons and suggesnons 26% 37% 25% have used an instore kiosk to get more product informanon, view the retailer s website

11 Online Achieving Russia omni- channel 2013 or what consumers call shopping Shoppers are device and channel agnosdc Retailers should be providing seamless online experiences Regardless of device, online grocery shoppers want a website that... Grocery shoppers feel it is very important an online supermarket... 52% has good product info 53% Offers value for money and range of prices to suit my budget 49% is easy to use 49% Offers a wide choice of products 45% has good quality images 47% Always has items in stock 45% has clear product reviews

12 Online Achieving Russia omni- channel 2013 or what consumers call shopping Shoppers are demanding convenience over costs Retailers need to save customers Dme and money Top Influencers of Retailer Choice for grocery shoppers online: 54% 49% 46% 44% return unwanted items purchased made online to the nearest store same or next-day delivery for purchases made online flexible delivery times and options convenient collection points to pick up purchases made online

13 Achieving Online Russia omni- channel 2013 or what consumers call shopping Appeasing the online grocery shopper Nature of the shopping mission dictates factors of importance High Key to appeasing online grocery shoppers Range & choice Value Promotions, price and range architecture, quality credentials Importance Convenience Flexible delivery, free delivery, choice of fulfilment Unique prices & products Ease of shop Usability of website. Quick, easy experience and checkout process Low Influence High

14 Achieving omni- channel or what consumers call shopping Enrich customer reladonships Nurturing real brand advocate through combining content with commerce

15 Online Achieving Russia omni- channel 2013 or what consumers call shopping Social media is essendal in influencing purchasing decisions Retailers need to build closer and bejer reladonships with their customers Social Media is influencing spending decisions 27% read peer reviews and recommendanons when making a purchasing decision 21% have made a purchase aeer reading a customer review online 17% would like to use social media to communicate with retailers or get help from them 23% take informanon on social media into account when making a purchasing decision

16 Online Achieving Russia omni- channel 2013 or what consumers call shopping It is all about the final mile Providing convenience and choice when it come to fulfilment OpNons being used now. 58% 9% Home Delivery Click & Collect 8% Drives 31% 7% 3%

17 Online Achieving Russia omni- channel 2013 or what consumers call shopping Fulfilment is a key differendator when choosing a retailer Shortening distance and Dme between the customer and their online purchase essendal Choice of online supermarket influenced by 49% 31% 29% same or next day delivery ability to use Collection Lockers; Click & Collect; Reserve &Collect; Collection Points retailers accepting payments such as cash on delivery or collection

18 Achieving omni- channel or what consumers call shopping InnovaDve fulfilment soludons What can we expect retailers to deliver on? Temp controlled lockers Car Deliveries Crowdsourcing Alternative locations Shop & Go Freshly prepared

19 Achieving omni- channel or what consumers call shopping AlternaDve routes to market Providing choice, grandng complete transparency MySupermarket

20 Achieving omni- channel or what consumers call shopping The new business models Helping consumers live simpler, easier lives

21 Achieving omni- channel or what consumers call shopping The new kids on the block PotenDal game changer?

22 Author Gaurav Sawhney Senior Retail Analyst E-commerce All images Planet Retail Ltd unless otherwise stated.

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