The state of DIY. Mix Express DIY event Maarssen 14 mei 2014

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1 The state of DIY!! Mix Express DIY event Maarssen 14 mei 2014

2 Inleiding Mix press DIY sessie Maarssen 14 mei 2014 Deze presentatie is gemaakt voor het Mix DIY congres en gebaseerd op onze analyse van de internationale DIY e-commerce en Omni channel ontwikkelingen. Audit Voor deze analyse hebben we gebruik gemaakt van de ShopExperience Audit methode, onze tool die door internationale bedrijven gebruikt wordt om hun omni channel performance te benchmarken. Daarnaast wordt de audit ook gebruikt bij het jury proces van de Nederlandse Thuiswinkel Awards en de Europese E-commerce awards. Methodiek Voor deze gelegenheid is een groot aantal DIY spelers geanalyseerd via een quick scan (een vereenvoudigde versie van de audit). Bij alle partijen is gekeken naar het proces om een accu boormachine te kopen. Naast deze functionele proces analyse is gekeken wat de belangrijke onderliggende internationale Home Improvement ontwikkelingen zijn en welke conclusies op basis daarvan voor de Nederlandse DHZ wereld te trekken zijn. Internationaal De presentatie is vanwege het internationale karakter van de analyse verder in het Engels 2

3 ShopExperience Audit 5 stepsà 30 dimensionà 167 checkpointsà 400+ International benchmarks For each of the checkpoint details we looked for the international best practices. After validation by our network of experts and additional research by GfK we now use them as our benchmarks. These benchmarks represent the best in class performance on a specific aspect or functionality within one of the 30 dimensions. 3

4 General observations on-line retail Market trends The big boys dominate the game And grow fast In sales In number of qualified staff Brands started slow but now are catching up >70% own web store They are over the channel conflict idea They add experience to functionality Speed of on-line developments increases Innovations in all steps of the process Mobile User interfaces Content management Data intelligence Personalization Content targetting Payments Traditional retailers are struggling to keep with the speed of the developments No core focus Stick with their old business model To little e-commerce people, expertise, resources 4

5 5

6 We looked at these sites ww.homedepot.com Amazon Bol.com Coolblue Wehkamp Totaal markt Google shopping 3m Craftsman Black & Decker Bosch 6

7 DIY on-line overview 2 orientation assessments Functional Buying a cordless drill Added value What is there more than product and price Tips & tricks Inspiration & advice 7

8 Buying a cordless drill Massive numbers / price match /product specs / reviews 8

9 Buying a cordless drill Product range / expertise / selection filters / delivery time 9

10 Functional Buying a cordless drill Observations Tool selection is almost the same process at all stores Everybody uses the same often irrelevant (man with a drill) manufacturer pictures or video s Selection and buying is do it yourself and requires a lot of clicks Huge quality difference in product pages and quick view information On-line players have larger assortments On-line players at least match off line prices On-line players carry much larger assortments and offer much more choice Conclusions Many traditional DIY retailers struggle with assortment size, price level, delivery speed and are not really competitive with on-line retailers Innovative DIY retailers are matching the on-line competition but can not make the difference on a product proposition level This is not a cord less drill only situation but affects almost all product categories Dutch market conclusions The Dutch DIY retailers stay behind on the international competition and on the local on-line competitors 10

11 Added value Tips & tricks 11

12 Added value Tips & tricks 12

13 Added value Tips & tricks Observations You tube is the source for tips & tricks Well executed tips & tricks video create high reach and exposure Conclusions Tips & tricks are a sanity factor and promotional instrument They are not a true differentiator Dutch market conclusions Wish we had these American videos 13

14 Added value Inspiration 14

15 15

16 16

17 The support 17

18 18

19 Added value Inspiration Observations Some DIY retailers understand the value of content Inspiration is about home improvement Home improvement is focused on the outcome, about desire Its not about DIY as a functional activity or hobby but a way to create the desired result Achieved by a free (husband) or paid partner Content strategies are often about cooperation & partnerships Conclusions A content driven strategy offers room for differentiation and added value It s fundamentally different in its approach and not at all functional/tool/male oriented It requires a redesign of on-line and physical stores and a fundamentally different marketing and promotion approach Dutch market conclusions There is much room for improvement Especially compared with the leading international examples Dutch DIY stores are focused on promotions they are not inspirational and fun shopping environments There is very strong functional male DIY focus off-line and on-line 19

20 Retail evolution There is even more fundamental change ahead DIGITAL PRIVACY SOCIAL SHARING VERTICAL SEARCH singularity NICHES BIOMETRICS CONTEXTUAL WEB BIG 5 BRAND webshop BRAND STORE WEARABLES 5G INTERNET OF THINGS Market place MARKETING AUTOMATION ARTIFICIAL INTELLIGENCE Market place Robotics LOCATION BASED SERVICES EMPOWERED CUSTOMERS SUSTAINABILITY 1 CLICK BUY GLOBALIZATION CHANNEL INTEGRATION BRAND STORE LOCALIZATION BRAND STORE BRAND STORE BRAND webshop MOBILE FIRST INTERNET EVERYWHERE RESPONSIVENESS 20 3D PRINTING 24-7 BIG DATA UPGRADIA ADOPTION SPEED ACCESS vs. OWNERSHIP

21 The future of DIY Think out of the big box Observations On-line players are taking over significant product categories with More choice in products & models Better product information Matching prices Next or same day delivery The added value of most DIY stores in terms of expertise has eroded No or low qualified staff Self service instead of added value The inspirational level of most DIY stores is marginal No shopping destination Functional lay out Tools and materials instead of dreams, inspiration and results Conclusions The traditional big box retail concept is outdated The we select for you strategy does not work on-line Therefore the current buying power driven business models are eroding If the big boxes do not reinvent themselves they will become dinosaurs Dutch market conclusions Think out of the big box Re-invent your selves Internet is not going away. It will change your business Embrace the new omni-channel reality with focus, budget and expertise 21

22 The future of DIY Think out of the big box This is only the resume of the DIY analysis presented in Maarssen on may 14 th The full presentation contained 200 slides of screen dumps with examples of all observations. The actual international analysis consists of over 500 slides with details of all the mentioned sites/ stores and brands. If you want to find out more about our DIY findings or advice on Omni channel and customer marketing developments in general please feel free to contact me. Arjen Bonsing ShopExperienceconsltancy.com 22

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