THE STATE OF MOBILE. Kasey Lobaugh. January Deloitte Digital Copyright 2015 Deloitte Consulting LLP. All rights reserved.
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1 THE STATE OF MOBILE Kasey Lobaugh January 2015
2 Times they are a changin Bob Dylan
3 MOBILE EVERYTHING 50% Share of Media Consumption 40% 30% 20% 10% 0% TV Online Radio Print Mobile Source: emarketer, April
4 SMARTPHONE USER GROWTH 100% US Smartphone Penetration 75% 50% 25% 0% Source: Deloitte State of Mobile Consumer, Asymco, 2014 Actual Forecasted
5 DATA USAGE 16 Usage by Device Exabytes E 2015E 2016E 2017E 2018E Source: Cisco, February 2014 Smartphones Tablets Laptops
6 RETAIL GROWTH Holiday Sales Growth (Initial Read) 43% 15% 5.5% Total Retail E-Commerce M-Commerce Source: ComScore, MasterCard, & PayPal, January 2015
7 M-COMMERCE BY DEVICE Share of Spending Spending Per User $56.87 $60 $47.17 $40 37% 63% $20 $- Smartphone Tablet Source: ComScore, August 2013 Smartphone Tablet
8 PLATFORM DIFFERENCES Market Share 6.1% $93.94 Average spend per ios user 42.4% Android ios Other 51.5% $48.10 Average spend per Android user Source: ComScore, September 2014 Source: Business Insider, December 2013
9 WEB VS. APPS Share of Retail Time Spent 44% 78% 56% 22% Smartphone Tablet Source: ComScore, August 2013 Mobile Browser Mobile App
10 Blurred Lines
11 DEVICE BLURRING
12 US RETAIL INDUSTRY IN 2018 $5,552B Retail Sales $492B E-Commerce Sales $133B M-Commerce Sales Source: emarketer, April 2014
13 MOBILE INFLUENCE $159B $593B $1,183B * 5% 19% 25% Actual Forecasted Non-Mobile Source: Deloitte, The New Digital Divide, April 2014 * 2014 market size sourced from emarketer, April 2014; 2012 and 2013 market size sourced from US Census Bureau
14 DEVICE DIFFERENTIATION 60% Most Likely Used Device 40% 20% 0% Before going to store At the store After going to the store Smartphone Tablet Laptop Source: Deloitte, The New Digital Divide, April 2014
15 THE METRICS Conversion by Device 3.11% 2.59% 1.01% Smartphones Tablet Laptop/Desktop Source: Smart Insights, March 2014
16 DIGITAL INFLUENCERS 40% higher conversion when digital used 84% use digital during shopping journey Source: Deloitte, The New Digital Divide, April 2014
17 Opportunity is missed by most people because it is dressed in overalls and looks like work. Thomas Edison
18 MOBILE INFLUENCE ON RETAIL IN 2018 ~$4,500B Mobile Influenced Sales $5,552B Retail Sales $492B E-Commerce Sales $133B M-Commerce Sales Source: Deloitte, The New Digital Divide, April 2014; emarketer, April 2014
19 CUSTOMER PREFERENCES Look up item price Get product Information Check item availability Checkout/ make payment Own device 59% 52% 48% 47% Unmanned device (e.g. kiosk, digital display) 25% 28% 28% 33% Sales Associate 17% 20% 24% 22% Source: Deloitte, The New Digital Divide, April 2014
20 CATEGORY DIFFERENCES Preference to Shop Without Associate Shoes 24.60% Beauty 43.20% Home Improvement 49.40% Baby 76.30% Source: Deloitte, January 2015
21 CUSTOMER REASONS Top Reason for Making Purchase Furniture COMPLIMENTARY ITEM Apparel DISCOUNT OR COUPON Baby REVIEWS & RECOMMENDATIONS Source: Deloitte, January 2015
22 DIGITAL OMNIVORE Source: Deloitte, Digital Democracy, April 2014
23 The future ain t what it used to be. Yogi Berra
24 MOBILE TRENDS TREND ONE Mobile will play the role of an advanced in-store assistant TREND TWO Tablets and smartphones will provide an extended experience TREND THREE Sensors will act as an enabler for personalized shopping TREND FOUR Mobile will make shopping increasingly social TREND FIVE Advertising via mobile channels will become more interactive TREND SIX Mobile will become an integrated part of sales enablement
25 New Mobile Study The dawn of mobile influence Discovering the value of mobile in retail The New Digital Divide Retailers, shoppers, and the digital influence factor 2015 To be released in March
26
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