Demandware Shopping Index

Transcription

1 Demandware Shopping Index 2015 Q2 Analyzing the activity of over 200 million shoppers, this report measures Digital Commerce growth, and the trends and sources that are driving that growth. As shoppers evolve their shopping patterns, it is critical for retailers to change their approach to servicing shoppers and guiding their experience. More than ever before, that experience must be seamless across channels and devices. Demandware Shopping Index 2015 Demandware, Inc. The shopping index is not indicative of Demandware s operational performance or its reported financial metrics including GMV growth and comparable GMV growth. This document contains archival information which should not be considered current and may no longer be accurate. Approved for unlimited distribution.

2 Demandware Shopping Index The Demandware Shopping Index measures digital commerce growth and is based on an analysis of the shopping activity of over 200 million shoppers worldwide. This index considers shopper frequency, conversion, average order values and net change in shoppers. Shopper Spend: 16% The product of shopper frequency, conversion and average order value, contributes 16% of the growth in digital commerce. 16% The product of shopper frequency, conversion and average order value contributes 16% of the growth in digital commerce. Shopping Attraction: 84% The change in number of shoppers visiting a site contributes 84% of the growth in digital commerce. 31% The change in number of shoppers visiting a site contributes 84% of the growth in digital commerce. 84% The shopping index is not indicative of Demandware s operational performance or its reported financial metrics including GMV growth and comparable GMV growth. The analysis reflects a comparison of digital commerce sites transacting in Q and Q and activity of registered users.

3 Phones Prosper Phones are the driving force of digital commerce growth. Shoppers do much more than browse; they are creating more baskets and ordering more than ever before, right from the palm of their hand. In fact, phones accounted for 94% of the year-over-year increase in traffic, 74% of the increase in basket creation and 47% of the order growth. Device Contribution on Digital Commerce Growth Metrics What Really Matters Clearly, the time to employ a mobile-first strategy is here. Retailers that force shoppers to pinch and zoom through their shopping journey are not only deteriorating their brand, they are missing a revenue opportunity. Visits Baskets Orders Phone Tablet and Computer The analysis reflects a comparison of digital commerce sites transacting in Q and Q

4 Phones Fuel Growth Phones are quickly becoming the device of choice for shopping. Here are some of the key metrics on the soon-to-be most popular shopping device. THE BATTLE BETWEEN OPERATING SYSTEMS LEVELS OFF The analysis reflects a comparison of digital commerce sites transacting in Q and Q

5 Device Trends The rapid migration of traffic from computers to phones continues, with the share on phones up 44% and order share growing even faster at 54%. Phones remain on track to becoming the most popular device for driving digital commerce traffic by the end of Interestingly, tablet shopping has cooled and shows signs of maturation, as order share dipped slightly on a worldwide basis. Phones are not simply taking share from computers, but tablets, too. 49% 13% 39% What Really Matters Retailers have effectively used phones to alleviate friction in the shopping process by distributing product information to shoppers anywhere, anytime. To best position for growth, retailers should identify and eliminate additional points of friction, such as payment, in the shopping journey. Also, phones unlock omni-channel shopping via the simplest of digital commerce utilities - the shopping basket. The basket is the ondemand wish list from home to store and in between. 65% 15% Global Traffic and Order Share by Device For country-specific values, see appendix. 19% The analysis reflects a comparison of digital commerce sites transacting in Q and Q Percentages are rounded and may not always sum to 100%.

6 Time on Site What were once idle moments, waiting for a train, sitting at the doctor s office or standing in line, are now filled with digital engagement. People spend these brief, quiet moments with their phone in their hand and, as a result, we continue to see a decrease in duration of shopping visits. What Really Matters AVERAGE TIME PER VISIT, Q (GLOBAL) 9.4 mins, down 28% % As visit duration falls, it is vital that retailers use their time with shoppers wisely. In particular, each shopper visit should pick up where the previous visit left off this means creating a more connected strategy for crossdevice shopping. Marketing can help get a jump on the shopper journey by effectively personalizing vehicles like messages, and ensuring that landing pages accelerate the journey deep into the shopping and site experience. AVERAGE TIME PER PHONE VISIT, Q (GLOBAL) 8.5 mins, down 37% % The analysis reflects a comparison of digital commerce sites transacting in Q and Q For country-specific values, see appendix.

7 Shopping Activity Shoppers continue to drive the aggregate key metrics higher. In particular, the surge in basket creation is a strong indicator of the health and growth of digital commerce. What Really Matters Cross-device shopping is up 10% year-over-year. This means more visits are being created by the same shopper. Forward-thinking retailers should reduce their reliance on metrics that are visit-focused, like conversion rate, and instead frame their business performance around shopper-focused metrics, like orders and visits per shopper. 21% 26% 22% Above metrics are global. For country-specific values, see appendix. The analysis reflects a comparison of digital commerce sites transacting in Q and Q

8 Order Value & Discounts Promotions creep and free shipping are (and have been for some time) a retail reality. Successful and profitable retailers will efficiently mix these to deliver relevant shopper-specific offers that increase customer lifetime value, through shopping frequency and average order values. Retailers should put their local points of distribution stores to work for them. Tactics like in-store pick-up drive footfall and decrease the impact of free shipping offers. 66% $134 12% Above metrics are global. For country-specific values, see appendix. The analysis reflects a comparison of digital commerce sites transacting in Q and Q Discount rate is calculated as the discount on merchandise purchased and does not include items previously marked down.

9 Operating System: Phones Apple s ipad holds a dominant position for tablet shopping. However, the operating system battle on phones is much more level. In addition to the lead in order share, ios also bests Android on Average Order Value, $96 to $107. What Really Matters As more retailers weigh the benefits of mobile app development, care should be taken to ensure market coverage of both ios and Android platforms. Additionally, expect payment to play a greater role in the adoption of mobile web and native app among shoppers. 42% 57% 42% 57% Global Traffic and Order Share, by Operating System For country-specific values, see appendix. The analysis reflects a comparison of digital commerce sites transacting in Q and Q Percentages are not exhaustive of all operating systems and do not sum to 100%. Android is a trademark of Google Inc. ios is a trademark of Apple Inc.

10 About the Shopping Index This comprehensive report analyzes activity of over 200 million shoppers worldwide to identify trends and opportunities for retailers to elevate the shopper experience and grow revenue. The Demandware Shopping Index measures the pace of digital shopping growth, assigning a numerical value to crucial shopper metrics. As a leader in enterprise digital commerce with more than 1,300 global retail sites running on Demandware Commerce and processing billions of dollars in gross merchandise value, Demandware is uniquely positioned to offer actionable insights into shopping behavior. The Demandware Shopping Index is published quarterly. Data footnotes are noted inline throughout the report to provide additional clarity on the analysis. The Shopping Index is not indicative of Demandware s operational performance or its reported financial metrics including GMV growth and comparable GMV growth.

11 2015 Demandware, Inc. This document contains archival information which should not be considered current and may no longer be accurate. Approved for unlimited distribution.

12 Appendix Device Trends Traffic and Order Share by Device, Q v. Q Traffic Share 2015 Q Q2 Country Computer Tablet Phone Computer Tablet Phone Computer - Tablet - Phone - Global 49% 13% 39% 59% 14% 27% -18% -10% 44% USA 48% 10% 42% 58% 12% 30% -17% -13% 38% UK 41% 21% 38% 51% 24% 25% -20% -10% 49% Germany 57% 13% 31% 66% 14% 20% -14% -6% 51% France 54% 11% 35% 68% 11% 21% -20% -4% 66% Canada 49% 17% 34% 59% 16% 24% -18% 3% 41% Vertical Computer Tablet Phone Computer Tablet Phone Active General Luxury Health & Beauty Computer - Tablet - 52% 9% 39% 64% 10% 26% -18% -11% 48% 49% 12% 39% 61% 13% 27% -19% -6% 47% 49% 12% 39% 56% 16% 28% -12% -25% 38% 45% 9% 46% 54% 11% 35% -16% -21% 33% Home 50% 17% 33% 64% 18% 19% -21% -3% 75% Phone -

13 Appendix Device Trends Traffic and Order Share by Device, Q v. Q Order Share 2015 Q Q2 Country Computer Tablet Phone Computer Tablet Phone Computer - Tablet - Phone - Global 65% 15% 19% 72% 16% 12% -9% -2% 54% USA 69% 12% 19% 74% 13% 12% -7% -8% 50% UK 51% 24% 25% 59% 23% 18% -14% 1% 45% Germany 72% 14% 14% 79% 13% 8% -8% 3% 73% France 75% 11% 14% 80% 12% 8% -7% -5% 75% Canada 68% 17% 15% 75% 16% 9% -9% 1% 71% Vertical Computer Tablet Phone Computer Tablet Phone Active General Luxury Health & Beauty Computer - Tablet - 70% 11% 18% 77% 12% 10% -9% -9% 76% 67% 15% 18% 73% 15% 12% -9% -2% 57% 66% 15% 19% 71% 18% 11% -7% -15% 65% 71% 12% 17% 76% 14% 11% -6% -12% 54% Home 59% 18% 23% 66% 17% 16% -11% 3% 41% Phone -

14 Appendix Time on Site, by device Visit Duration in Minutes, Q v. Q Country 2015 Q Q Q Q Q Q2 Global % % % USA % % % UK % % % Germany % % % France % % % Canada % % % Vertical 2015 Q Q Q Q Q Q2 Active General Luxury Health & Beauty % % % % % % % % % % % % Home % % %

15 Appendix Shopping Activity Q v. Q Country Visits Baskets Orders Vertical Visits Baskets Orders Global 21% 26% 22% USA 22% 27% 19% UK 25% 26% 28% Germany 2% 21% 16% Active General Luxury Health & Beauty 40% 39% 43% 14% 29% 23% 29% 17% 13% 32% 26% 20% France 33% 44% 37% Home 14% 19% 14% Canada 41% 47% 44% Order Value and Discounts, Q Country AOV Discount Rate-Merch Free Shipping Order Share Global $134 12% 66% USA $129 15% 59% UK 72 6% 70% Germany 149 7% 76% Vertical Active General Luxury Health & Beauty AOV Discount Rate-Merch Free Shipping Order Share $110 23% 73% $132 14% 64% $347 8% 71% $89 16% 76% France 88 17% 79% Home $107 10% 60% Canada $122 (CAD) 23% 60%

16 Appendix Operating System: Phones Traffic and Order Share by Operating System, Q v. Q Traffic Share 2015 Q Q2 Country Android ios Android ios Android - ios - Global 42% 57% 44% 56% -3% 3% USA 39% 61% 41% 59% -5% 4% UK 39% 60% 38% 60% 2% 0% Germany 58% 42% 60% 40% -3% 5% France 48% 52% 52% 47% -8% 10% Canada 36% 64% 33% 66% 9% -3% Vertical Android ios Android ios Active General Luxury Health & Beauty Android - ios - 49% 50% 54% 45% -9% 12% 42% 58% 43% 56% -3% 2% 25% 75% 26% 74% -4% 2% 41% 59% 43% 56% -5% 4% Home 45% 55% 42% 58% 8% -5%

17 Appendix Operating System: Phones Traffic and Order Share by Operating System, Q v. Q Order Share 2015 Q Q2 Country Android ios Android ios Android - ios - Global 42% 57% 43% 57% -1% 1% USA 38% 61% 38% 62% 1% -1% UK 40% 60% 41% 59% -2% 2% Germany 65% 35% 69% 31% -5% 12% France 49% 51% 53% 47% -8% 9% Canada 34% 66% 32% 67% 4% -1% Vertical Android ios Android ios Active General Luxury Health & Beauty Android - ios - 43% 57% 48% 52% -11% 10% 46% 54% 45% 55% 2% -2% 17% 83% 18% 82% -4% 1% 36% 64% 36% 64% 2% -1% Home 47% 52% 45% 54% 5% -4%