"captivating the consumer in an omni-channel world"
TRANSCRIPT
Captivating the Consumer in an Omni-Channel World: The State of Online Retail
Gian Fulgoni
Co-Founder & Chairman Emeritus
comScore, Inc.
© comScore, Inc. Proprietary.
Topics for Today
• E-Commerce Sales Trends
• The Digital Omnivore
• Digital’s Impact on In-Store
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Data sourced from comScore’s global panel
2 Million People: 360°View of Behavior
Web Visiting & Search
Behavior
Online Advertising Exposure
Demographics, Lifestyles & Attitudes
Media & Video Consumption
Transactions
Online & Offline
Buying
Mobile Internet Usage & Behavior
PANEL
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Total e-Commerce (desktop plus mobile) grew 13% in Q1 & registered the largest non-Q4 quarter of total online buying
$44.3 $43.2 $41.9 $56.8 $50.2 $49.8 $47.5
$63.1 $56.1
$4.5 $3.8 $4.6
$7.2 $5.9 $4.7 $5.8
$8.3 $7.3
Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014
Desktop Mobile
Desktop + Mobile Retail e-Commerce Dollar Sales ($ Billions)
Bill
ion
s ($
)
$71.4
$56.1 $64.0
$45.4 $47.0 $48.8
+21% +17% +17% +17% +15% +16% +14%
$54.5 $54.3
+12% +13%
$63.4
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Mobile commerce, which reached $7.3 billion, accounted for nearly 12% of total digital dollars in Q1
1.8% 2.4%
3.6%
5.8% 6.6%
8.8% 9.0% 9.3%
8.1%
9.8%
11.3% 10.5%
8.6%
10.8% 11.7% 11.5%
Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014
m-Commerce Share of Total e-Commerce Dollars
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When including both mobile and desktop spending, e-Commerce accounted for 13.2% of consumers’ discretionary spending in Q1 2014, with a possible acceleration in importance
*Note: e-Commerce share is shown as a percent of DOC’s Total Retail Sales excluding Food
Service & Drinking, Food & Bev. Stores, Motor Vehicles & Parts, Gasoline Stations and Health &
Personal Care Stores.
Desktop & Mobile e-Commerce Share of Corresponding Consumer Spending* Source: comScore & U.S. Department of Commerce (DOC)
e-C
om
mer
ce
Shar
e
7% 7%
8%
9%
8%
10%
10%
9%
11%
12%
11%
12%
13.2%
4%
4% 4%
5% 5%
4%
5%
5%
6%
5%
5%
6% 7%
6%
6%
7% 7%
7% 7%
8% 8%
7% 7%
8% 8%
7% 7%
8%
9%
8% 8%
9%
9%
9% 9%
11%
10% 9%
11%
11.7%
e-Commerce Share (desktop+mobile)
e-Commerce Share (desktop)
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Multi-Channel Retailers held a slight edge in market share in 2013
Pure Play Multi-Channel
47% 53%
Share of e-Commerce Dollar Sales in 2013
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Desktop computers
+5%
Led by apparel/accessories and CPG, nearly all e-Commerce categories showed double-digit growth versus Q1 2013
Q1 2014 Desktop e-Commerce Sales Growth vs. YA by Retail Category
Absolute Dollar
Rank Product Category
Q1 2014 Growth vs. YA
#2 Apparel & Accessories Very Strong
#3 Consumer Packaged Goods Strong
#11 Sport & Fitness Strong
#5 Digital Content & Subscriptions Strong
#10 Home & Garden Strong
#13 Flowers, Greetings & Misc. Gifts Strong
#7 Furniture, Appliances & Equipment Strong
#1 Computers/Peripherals/PDAs Strong
#14 Video Games, Consoles & Accessories Strong
#12 Jewelry & Watches Strong
#8 Event Tickets Strong
#4 Consumer Electronics (x PC Peripherals Strong
#6 Office Supplies Moderate
#9 Books & Magazines Moderate
Food and beverage
+15%
Growth rate definitions: Very Strong: +15% or higher Strong: +10-14% Moderate: +5%-9% Low: +1%-4%
Portable devices (e.g. tablets)
+14%
© comScore, Inc. Proprietary.
Source: BI Intelligence Estimates
Percent of Consumer Sales Attributable to Online in Selected Merchandise Categories is Expected to Soar
Emergence of the Digital Omnivore
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Source: comScore MobiLens/TabLens 3 month average ending February
The Brave New Digital World: Adoption of Smartphones & Tablets has dramatically changed the digital media landscape
0
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
120,000,000
140,000,000
160,000,000
180,000,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Nu
mb
er
of
Dev
ice
Ow
ne
rs
Number of U.S. Device Owners (Smartphone and Tablet)
163 MILLION +22% vs. YA
87 MILLION
+51% vs. YA
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Total digital media time spent has nearly doubled in the past three years due to the explosion of tablet and smartphone usage. But notice that desktop time has not declined.
401 429
131
442 532
124
Dec-10 Dec-13Desktop Smartphone Tablet
995 +83% +1040%
+237%
+7%
Total U.S. Time Spent by Digital Platform (Billion Minutes) Source: comScore Media Metrix Multi-Platform, U.S., Dec 2013
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Mobile has become the primary medium for consumers to engage with retail brands online
0
5,000
10,000
15,000
20,000
25,000
30,000
Desktop Smartphone Tablet
Total Minutes (MM) Spent in Retail Category by Platform Source: comScore Media Metrix and Mobile Metrix, U.S., Feb-2013 – Mar 2014
47% 38%
37% 43%
15% 19%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Mar-2013 Mar-2014
Desktop Smartphone Tablet
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About 30% of top retailers’ monthly audiences are mobile-only. Compared to multi-channel retailers, pure plays mobile traffic more reliant on apps than browser
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© comScore, Inc. Proprietary.
The Influence of Digital on Today’s In-Store Sales: 36¢ of Every In-Store Dollar
2013 2014
$1.1 Trillion
$1.5 Trillion
In-Store Sales Influenced by Digital Shopping
Source: Deloitte
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