«Demystifying the Swiss online shopper»

Olivier Colomb, PwC

ORGANISATOR: www.bergzucker.com

PARTNER:

ÜBER DEN REFERENTEN Olivier Colomb ist Manager bei PwC am Sitz in Genf im Bereich Strategy & Operations. Über die letzten 8 Jahre hat

Olivier mit verschiedenen Detailhändlern und FMCG Produzenten an ihren digitalen Herausforderungen

gearbeitet. Zudem ist Olivier Mitarbeiter der Retail & Consumer Multichannel Initiative in der Schweiz und ein aktives

Mitglied des Digital Transformation Central Team bei PwC.

ORGANISATOR: www.bergzucker.com

PARTNER:

Demystifying the Swiss online shopper PwC @ Social Hub– 5 September 2013 Olivier Colomb / Erica Dubach-Spiegler

PwC 4

PwC

United States

Brazil

UK

France

Netherlands

Switzerland

Germany

China & HK

Turkey

Canada Russia

11 000 online

interviews of online shoppers

across 11

countries in 2012

Field research carried out in

July and August 2012 Online survey respondents in France, Germany and the UK are nationally representative of online users in those countries. In other countries they are representative nationally of the Research Now (RN) panel of online users' profile for the following demographics: Age, Gender, Employment status and Region

A global piece of research

South Africa

India

Italy

Middle East

5

PwC

Three major findings that demystify the Swiss online shopper

6

Swiss consumers behaviours

The digital revolution is still to come

Strategies: multichannel vs Total Retail

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Swiss consumers behaviours

The digital revolution is still to come

Strategies: multichannel vs Total Retail

PwC

Swiss consumers feel far more confident about buying online

8

11%

8%

22%

35%

18%

6%

5%

17%

37%

31%

5%

5%

How long have you been shopping online? How often do you shop online?

I don't remember

10 years or more

5-9 years

3-4 years

1-2 years

Less than 1 year

Never Once a year

A few times per year

Monthly

Weekly

Daily

PwC

Behaviours are dramatically different across countries

9

Consumer behavior online and in-store. Global Full sample, 11’067 online shoppers

On

lin

e b

eh

av

ior

In store behavior

Practical user

Bargain hunter

Social addict

Shopping lover Bargain hunter Practical shopper

PwC

0%

5%

10%

15%

20%

25%

0% 10% 20% 30% 40% 50% 60% 70%

Top 3 Factors (% of shoppers mentionning)

What does practical mean?

10

Key needs

Nice-to-have

Important to some shoppers

What factors attract you to shopping online?

Lower prices / better deals than in-store

More convenient than shopping in-store (fast checkout, 24/7 etc.)

Home delivery option

Easier to compare and research products/ offers than in-store

Wider variety of products than in-store

Easier to find my favourite brands online

Customer reviews of products available

Better product information than in-store

Most important factor (% of shoppers selecting)

PwC

Three major findings that demystify the Swiss online shopper

11

Swiss consumers are practical

The digital revolution is still to come

Strategies: multichannel vs Total Retail

PwC

Appetite for social media varies significantly across countries

74%

of Swiss online

shoppers use social media

27%

interact with

brands or retailers via social media

4%

buy online through a social media platform

Use of social media

0% 100% 10% 80% 20% 30% 40% 50% 60% 70% 90%

Proportion of people using social media

12

PwC

Only 5% of Swiss online shoppers shop through a social media platform monthly or more

13

27%

15%

15%

8%

4%

58% 7% 2%

38%

14%

32%

47%

21%

34%

8%

87%

In Store Online via PC Online via social media

Daily Weekly Monthly Less than once a month Never

1% 3%

3% 2%

Follow brands or retailers

Provide positive or negative comments

Discover some brands I didn’t know

Purchase products as a result of information on social media

Purchase an item though a social media platform

I do not follow brands or retailers through social media

I have used social media to… How often do you go shopping?

Categories? Reasons to visit

brands?

PwC

Tablets and smartphones still behind PCs

14

11%

7%

4% 4%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

In Store Online via PC Online via Tablet Online via mobile orsmartphone

Less Same More Never use this shopping channel

How do you think the frequency of your shopping behavior will change over the next 12 months?

What happened in 2013?

PwC

57% average for store purchasing

2%

2% 1%

2%

1%

2%

2%

2%

1%

2%

2% 1%

2%

1%

1% 2%

1%

2%

2% 1%

1% 1%

1%

1%

1%

1%

1%

2% 1%

1% 1%

2% 1%

2% 1%

Consumer electronics and computers

Household appliances

Clothing and Footwear (incl. Sportswear)

Books, Music, Movies

Furniture and Homeware

Sports/Equipment/Outdoor

Jewelry/ Watches

DIY Grocery Toys Health and Beauty

Stores remain a centerpiece of Swiss consumers’ purchase journeys across most product categories Which method would you most prefer for researching and buying?

Ø 57%

29%

39% 41%

12%

50%

42% 44% 43%

55%

32%

43%

20%

23% 16%

16%

18%

15% 13%

12%

13%

15%

14% 2%

2%

3%

1%

3%

2% 2% 2%

1%

2%

1%

39% 16% 21%

56%

8%

13% 10%

8%

9%

17%

16%

3% 3%

3%

5%

15% 11%

7%

17% 24%

27% 31%

19%

30%

20%

Store only Web-to-Store Catalogue-to-Store Web only Store-to-Web Catalogue-to-Web Catalogue only Other Don't research

15

PwC

The rise of new retail spaces – Experience as a key element

• Digital in stores? Yes, if convenient

• Showrooming

• Mix traditional store/ high street

• Social Media in Store

• Google? Amazon? E-Bay? Ricardo?

16

PwC

Three major findings that demystify the Swiss online shopper

17

Swiss consumers are practical

The digital revolution is still to come

Strategies: multichannel vs Total Retail

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5%

7%

7%

8%

9%

13%

13%

14%

21%

27%

Mediamarkt

Tchibo

Ikea

Interdiscount

Digitec

Nespresso

Weltbild

Apple

Coop

Migros

6%

6%

10%

10%

11%

11%

17%

19%

30%

34%

Denner

Orell Füssli

Ikea

Tchibo

Digitec

Interdiscount

Nespresso

Apple

Coop

Migros

The Swiss multichannel landscape: local and regional players hold their ground

2012 2011

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42%

58%

Yes No

19%

33%

56%

52%

43%

38%

29%

25%

23%

19%

14%

12%

5%

3%

Lower price

Full range or more choice

That's all I needed - onebrand

Love of brand / loyalty

Good stock availability

Better warranty / guarantee

Better service

Customisation/personalisation of product

Better experience

Other

What made you choose to buy directly from the brand website?

The Swiss multichannel landscape: the rise of direct-to-consumer models Have you ever bought from a website that sells only products from one brand?

PwC

20% 17% 18%

15% 15% 10%

9%

6% 8%

6%

6% 4%

45% 50%

54%

4% 6% 7%

First Second Third

20

First favorite retailer

Second favorite retailer

Third favorite retailer

The Swiss multichannel landscape: online retail is not cannibalizing sales Do you think you have spent more with your favorite retailer since you started shopping across multiple channels?

No - my spending has decreased

Substantially more (over 50% more)

A lot more (25-50%)

More (10-25%)

A little more (up to 10%)

No - my spending has been broadly

the same

44% 50%

40%

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Early and/or exclusive access to products

Innovative products

Innovative approach to marketing

Personalization of website

Fast and reliable delivery

Return to store

I trust the retailer

I like the staff

Easy to use website

Click & collect

Free returns

Most significant drivers

The key multichannel drivers of consumer spending differ considerably by country

Total Retail…the way forward

PwC

Decade of change

0

25

50

75

100

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

% U

K a

cti

ve

ad

ult

po

pu

lati

on

Traditional Consumer Transitionals Digital Natives

New and different types of customer behaviours are emerging – A decade of disruption is beginning

Up to 2013 Traditional consumer behaviour is the majority

2013–2019 Transitional behaviour

is the majority

2020 and beyond Digital native

behaviour dominates

23

PwC

It all comes down to the customer

People expect a connected experience

Consumers compare experiences across industries and think “if I can do that on Amazon, why can’t I do this with you?”

People expect to participate

Consumers expect to be able to find reviews and give feedback, have their views taken into account and collaborate with their favourite brands

People make smarter decisions

Consumers are better informed than ever, which means they make smarter decisions that lead to better personal outcomes

People have an innovation appetite

The rapid evolution of personal technology has created consumer thirst for innovative new services and products

24

PwC

Trust the fundamentals: placing customers at the centre of the R&C business

Total Retail acknowledges that customer, experience and product are at heart of the business; and channels are simply the way customers prefer to buy a specific purchase, at a given point in time.

25

PwC 26

Supply chains: be flexible and get customers what they want, when and where they want it while increasing your profitability

Digital intelligence: make sense of multichannel consumers

Store innovation: engaging and connected, flawless store-level execution

“Success is neither magical nor mysterious. Success is the natural consequence of consistently applying the basic fundamentals.” Jim Rohn

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ORGANISATOR: www.bergzucker.com

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