How To Get A Better Online Experience

Transcription

1 OMNICHANNEL RETAIL 2015 OCTOBER 1,

2 PRESENTER Claude de Jocas Intelligence Group Director 2 2

3 BUSINESS INTELLIGENCE FOR DIGITAL Where are you today? What you need to do to get better? How to hold team/vendors accountable? RESEARCH BENCHMARKING EDUCATION 3

4 UPCOMING RESEARCH Digital IQ Index : BEAUTY: CHINA Digital IQ Index : BEVERAGES: BRAZIL Digital IQ Index : CONSUMER ELECTRONICS Digital IQ Index : SPECIALTY RETAIL Digital IQ Index : AUTO Intelligence Report: AMAZON Digital IQ Index : PERSONAL CARE Intelligence Report: SOCIAL PLATFORMS 4

5 OMNICHANNEL 2015 INTRODUCTION

6 THE OPPORTUNITY Digital Influence Projections: Percent of Sales Influenced by Digital E PERCENTAGE OF IN-STORE SALES INFLUENCED BY DIGITAL 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 14% 36% 49% 0% YEAR Source: Deloitte Digital, Navigating the New Digital Divide, May % DIGITAL INFLUENCE PROJECTION 6

7 INFLUENCE RUNS BOTH WAYS Importance of Select Channels When Making a Purchase According to Digital Shoppers, Worldwide June 2014 Digital Channels Traditional Store Experience Site In-Store Technology Mobile App / Mobile Web Social Media Call Center 31% 36% 42% 48% 53% 67% 72% Robust digital investments are important to driving online sales Source: Capgemini, Digital Shopper Relevancy Report 2014, September

8 INFLUENCE RUNS BOTH WAYS Importance of Select Channels When Making a Purchase According to Digital Shoppers, Worldwide June 2014 Digital Channels Traditional Store Experience Site In-Store Technology Mobile App / Mobile Web Social Media Call Center 31% 36% 42% 48% 53% 67% 72%..but digital shoppers consider in-store experience the most influential channel. Source: Capgemini, Digital Shopper Relevancy Report 2014, September

9 OMNICHANNEL EQUATION Net Sales Given Omnichannel Capabilities Source: ICSC, Shopping Centers: America s First and Foremost Marketplace,

10 PRIORITIES VARY BY MARKET Hybrid Fulfillment Capabilities, by Market Grocery, Hypermart and Big Box Retailers, June 2015 Market with Highest Adoption Market with Lowest Adoption Click & Collect Curbside Pickup Return In-Store In-Store Inventory Free Shipping Same-Day Delivery Delivery Pass Program n=15 n=14 n=13 n=11 n=14 66% 20% 73% 87% 100% 0% 7% 79% 21% 57% 57% 29% 21% 0% 62% 8% 54% 62% 38% 23% 23% 45% 0% 18% 27% 9% 9% 0% 43% 14% 43% 36% 21% 7% 0% Source: L2 Inc., Omnichannel Retail 2015, July

11 SECOND WAVE OF E-COMMERCE? UK Click-and-Collect Sales Select UK Click-and-Collect Outliers 2014 vs % of Digital Retail Sales % Digital Retail Sales % Total Retail Sales % 17.0% 70% 91% 63% 59% 1.7% 2.2% 54% % Source: Mintel, UK Consumer Trends 2015, October 2014 Source: Company Annual Reports and Press 11

12 SCALE CHALLENGES Home Delivery 46% There is a huge logistical operation behind this system and quite frankly it s unsustainable. -Andy Street, John Lewis MD July 2015 Click and Collect 54% 2008: 350K packages / year Today: 6M packages / year 12

13 THE STUDY L2 Intelligence Report: Omnichannel 2015 Methodology L2 Intelligence Report: Omnichannel Retail 2015 Third annual report to be published in September Benchmarks omnichannel capabilities of 116 US retailers + 52 EU retailers across 8 categories SITE INTEGRATION SHIPPING & LAST MILE IN-STORE & MOBILE THE OMNICHANNEL ORGANIZATION 13

14 BRAND LIST APPAREL & ACCESSORIES EU BRANDS SPORTSWEAR A X Armani Exchange Abercrombie & Fitch Aéropostale ALDO American Eagle Outfitters Ann Taylor Anthropologie Banana Republic Brooks Brothers Burberry Calvin Klein Chanel Chico s Club Monaco Coach Cole Haan Desigual Diane von Furstenberg Dior Express Forever 21 Gap Gucci Guess H&M Hugo Boss J.Crew Joe Fresh Kate Spade Kenneth Cole Lacoste LOFT Louis Vuitton Marc Jacobs Michael Kors Nine West Prada Ralph Lauren Rebecca Minkoff Salvatore Ferragamo Steve Madden Stuart Weitzman Talbot s Tommy Hilfiger Tory Burch UNIQLO Urban Outfitters Victoria s Secret White House Black Market Zara Alcampo Aldi Auchan Argos Asda B&Q Boots Carrefour Consum Darty Decathlon Dia E Leclerc Edeka Hipercor IKEA Intermarché Kaufland Leroy Merlin Lidl Media Markt Mercadona Monoprix Morrison s Penny Market Rewe Sainsbury s Sports Direct Super U Tesco Waitrose Adidas Athleta Eastern Mountain Sports Eddie Bauer L.L.Bean Lululemon Nike North Face Oakley Patagonia REI Under Armour Vans DEPARTMENT STORES Barneys New York Bergdorf Goodman Bloomingdale s JCPenney Macy s Neiman Marcus Nordstrom Saks Fifth Avenue Sears WATCHES & JEWELRY Alex and Ani Cartier Fossil Montblanc Swarovski Swatch Tag Heuer Tiffany & Co. Tourneau BIG BOX Bed Bath & Beyond Best Buy CVS Home Depot Lowe s Office Depot Pet Smart Petco Rite Aid Staples Target Walgreens Walmart HOME Crate & Barrel Ethan Allen Pier 1 Pottery Barn Restoration Hardware Sur La Table West Elm Williams-Sonoma BEAUTY Bath & Body Works Benefit Cosmetics Kiehl s L OCCITANE en Provence Lush M.A.C Cosmetics Origins Sephora The Body Shop Ulta Apple Bose Samsung Tumi OTHER 14

15 OMNICHANNEL 2015 KEY FINDINGS PREVIEW

16 ONLINE / OFFLINE METHODOLOGY E-Commerce vs. Brick-and-Mortar Incentives Fulfillment / Integrated Inventory Online Purchase / Reservation / Store Pick-up SMS Alerts For Pick-up Online Purchase / In-Store Return Real-Time In-Store Inventory Curbside Pick-Up Preferred Store / Inventory Filter by Inventory Ship-From-Store Events & Services Promoting In-Store Services Book Online Appointment Promoting In-Store Events / RSVP Online Events Space In Store Locator Store Locator In Homepage Header / Linked From Product Page Use Of Geolocation Filter By Product Category / Services / Store Type Availability Of Contact Information & Store Hours On-Site Mapping & Directions Inclusion Of Retailers / Outlet Send Directions To / SMS Individual Store Social Handles / Photos Account Functionality Wishlist / Shopping List / Registry Synchs With In-Store Inventory E-Commerce Exclusives Online Pre-Order Online Exclusive Products Online Customizable Products Online Exclusive Sales / Promotions Free Shipping Expedited Free Shipping / ShopRunner Partnership Availability Of Express Payment Options (e.g. Paypal) Google Shopping Vendor / In-Store Inventory 16

17 LUXURY: DIGITAL LIFE RAFT 17

18 PRESTIGE: RESHUFFLING 18

19 MASS: ALL ABOUT STORES 19

20 UK: FAST OMNICHANNEL PROGRESS 20

21 LUXURY: DIGITAL LIFE RAFT E-Commerce vs. Brick & Mortar Incentives Luxury Pricepoint, June 2015, n=14 brands E-COMMERCE FOCUSED E-Commerce Incentives 10 OMNICHANNEL AWARE Average 4 Brick & Mortar Incentives 2 OMNICHANNEL LAGGARDS Source: L2 Inc., Omnichannel IN-STORE FOCUSED 21

22 PRESTIGE: RESHUFFLING E-Commerce vs. Brick & Mortar Incentives Prestige Pricepoint, June 2015, n=35 brands E-COMMERCE FOCUSED E-Commerce Incentives 10.0 OMNICHANNEL AWARE Average 4.0 Brick & Mortar Incentives 2.0 OMNICHANNEL LAGGARDS Source: L2 Inc., Omnichannel IN-STORE FOCUSED 22

23 MASS: ALL ABOUT STORES E-Commerce vs. Brick & Mortar Incentives Mass Pricepoint, June 2015, n=15 brands E-COMMERCE FOCUSED E-Commerce Incentives 10.0 OMNICHANNEL AWARE Average Brick & Mortar Incentives OMNICHANNEL LAGGARDS Source: L2 Inc., Omnichannel IN-STORE FOCUSED 23

24 UK: FAST OMNICHANNEL PROGRESS E-Commerce vs. Brick & Mortar Incentives UK Brands, June 2015, n=8 brands E-COMMERCE FOCUSED E-Commerce Incentives 10.0 OMNICHANNEL AWARE Average Brick & Mortar Incentives 2.0 OMNICHANNEL LAGGARDS Source: L2 Inc., Omnichannel IN-STORE FOCUSED 24

25 LEADERS: CLOSING MORE STORES Omnichannel: Percentage of Store Closed YoY Percentage of Stores 2014 to 2015, n= % 2.82% Leaders Scored in top 40% for E- commerce and Brick and Mortar incentives Laggards Scored in bottom 40% for E-commerce and Brick and Mortar incentives Source: Company Annual Reports for Brands Reporting Data 25

26 BUT MORE EFFICIENT STORE SPACE Omnichannel: Same-Store Sales YoY Growth Percentage of Brands 2014 to 2015, n=19 Positive YoY Same Store Sales Negative YoY Same Store Sales Leaders Scored in top 40% for E- commerce and Brick and Mortar incentives 11% 89% Laggards Scored in bottom 40% for E-commerce and Brick and Mortar incentives 50% 50% Source: Company Annual Reports for Brands Reporting Data 26

27 CUSTOMER IS OMNICHANNEL Important Omnichannel Retail Capabilities for US Digital Shoppers September 2014 Check in-store availability online 82% Buy online/via mobile, pick up in-store Option to receive in-store receipt via Easy access to profile data across channels Consistently personalized shopping experience across channels Sophisticated mobile site 57% 51% 50% 47% 43% Usage of social media for access across channels 24% Best-in-class omnichannel solutions provide convenience, transparency, and personalization. Source: The E-Tailing Group, "Holiday 2014 Omni-Channel Gift Behavior, October

28 TIPPING POINT Real-Time In-Store Inventory by Pricepoint, Year-Over-Year March 2013 vs. May 2014 vs. June % 100% 0% 50% 52% 41% 34% 32% 20% 50% 46% 8% 8% N/A N/A 0% N/A N/A US Mass, n=8 US Aspirational, n=32 US Prestige, n=25 US Luxury, n=13 UK Brands, n=8 EU Brands, n=52 Source: L2 Inc., Omnichannel Retail 2015, July

29 IN-STORE FILTERS 29

30 CLICK & COLLECT: SLOWER Click & Collect by Pricepoint, Year-Over-Year March 2013 vs. May 2014 vs. June % 100% 88% 88% 60% N/A 25% 25% 20% 24% 23% 13% 12% 15% 15% N/A N/A N/A US Mass, n=8 US Aspirational, n=32 US Prestige, n=25 US Luxury, n=13 UK Brands, n=8 EU Brands, n=52 Source: L2 Inc., Omnichannel Retail 2015, July

31 UNCOVERING BEST PRACTICES: 2015 BUY Online, Pick-Up In-Store RESERVE Online, Pick-Up In-Store 31

32 AEO: RESERVE, TRY & BUY New Reserve, Try & Buy feature is exclusive to the AEO Aerie app. 32

33 CURBSIDE GAINING GROUND Consumers call or text when approaching one of 20 Nordstrom pilot stores offering curbside pickup, launched in May Sears and Kmart promise curbside delivery in 5 minutes or less, trackable via in-app stopwatch. Consumers receive coupons for longer waits. 33

34 WALMART S TEST KITCHEN Click & Collect Pick-Up DriveThru Tube Station Lockers Cold-Storage Lockers Fall 2012 April 2013 November 2013 March 2014 Not Yet Launched Not Yet Launched Fall 2014 October

35 GOLIATH BATTLE LINES # of U.S. FCs # of SFS Locations Free Shipping Min. Same Day Shipping Member Shipping Curbside Pick- Up 1-Hour Shipping 66 N/A $35 Prime: free over $35; 14 markets $99/year, 2- day; media Audi trunk delivery pilot $7.99 or free 2-hour; 7 markets $25 $10 for 20 items max; 3 markets REDcard nothreshold free shipping 11 markets; California N/A $50 $4-$9 for grocery only; 5 markets $50/year, 3-day shipping 5 markets; grocery N/A $99 $5 if over $99; select markets N/A N/A N/A 35

36 AMAZON OMNICHANNEL PLAYS 2015 February 2015 March 2015 March 2015 Ongoing Amazon Campus Amazon Dash Patent Applications Kindle Trucks First staffed pick-up / drop-off location (Amazon@Purdue) Co-branded purdue.amazon.com Wireless-enabled button to restock household essentials Pre-stocked pick-up kiosks Food-truck style for retailing Kindles and other electronics Checkout-less stores via cameras, sensors and RFID Free one-day shipping 36

37 OMNICHANNEL 2015 CONCLUSIONS 37

38 4 TENSIONS Localization vs. Scale New vendors are building local omnichannel ecosystems, and are ripe for highly subsidized experimentation yet most still operate in just a handful of markets. Speed vs. Convenience E-commerce pureplays are eager to mimic the immediacy offered by stores via expedited shipping options but the model is capital constrained. Flash vs. Function Retailers are eager to signal omnichannel savvy yet have sacrificed foundational investments for for flashier PR plays. One-Off vs. Integrated Omnichannel, Digital and Customer Experience officers are cropping up across organizations yet these inherently siloed roles may be counter-productive. 38

39 This should be the closing slide on every webinar deck FOR FOR MEMBERSHIP MEMBERSHIP INQUIRIES INQUIRIES PLEASE 39