emarketer webinar: online holiday shopping preview—what’s in store?

©2013 eMarketer Inc.

Online Holiday Shopping Preview—What’s in Store?

Krista GarciaAnalyst

SEPTEMBER 12, 2013

Sponsored by:


Ground we’ll cover today:

� The US digital holiday sales outlook

� How the 2012 holiday will inform this season

� Omnichannel retailing’s role in holiday sales

� How mobile is changing the in-store shopping experience

� Whether social media will have an impact on holiday sales

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The 2013 Outlook: Mostly Optimistic


Holiday season digital sales growth in the US has been strong for five years running


Mcommerce is now boosting US retail ecommerce to new highs


US consumers’ holiday spending intentions are similar to 2012

Gen X (34%) and baby boomers (32%) are expected to make up the largest shares of spending


US retail ecommerce sales were strong in the first half of 2013


A majority of US retailers forecast 2013 holiday sales will rise more than 10%

60%



Industry experts predict digital sales growth will range from mid-teens to 20%

“I would forecast that we’re going to see a stronger holiday this year than we did last year or in 2011 by a few percentage points.” —Eric Best, founder and CEO of Mercent

“Even though we expect shopping to start earlier, we’re still projecting heavy growth for the key dates like Thanksgiving, Black Friday and Cyber Monday.” —Jay Henderson, global program director at IBM Smarter Commerce

“What we’ve already seen, and is only going to continue in the holiday season, is continual significant growth in online sales.” —Jacob King, SVP and general manager at dunnhumby


A Look Back at 2012


US holiday ecommerce sales reached $42.3 billion in 2012, up 14% from 2011


Is couch commerce migrating to the dinner table?


Mobile commerce came into its own during the 2012 holiday season

“To a certain degree, the success of tablet shopping and couch commerce last year caught a lot of retailers off guard.”

—Jay Henderson, global program director at

IBM Smarter Commerce


US mcommerce spending has spiked around the holidays since 2011



What’s in Store for Holiday 2013?


What’s in store for 2013?

• Continued blurring of channels

• Mobile tools for both shoppers and salesassociates

• More fulfillment and delivery options

• Social media still a wild card for sales



Why omnichannel?

“We see that a multiscreen user is six times more valuable than a single-screen user.”

—Gerry McGoldrick, vice

president of marketing at

Rue La La, speaking at

eTail East, August 2013


At its core, omnichannel retailing is about the customer experience


Mobile: In-store for shoppers


In-store mobile offers: Timberland

In May, Timberland began testing a 20% off in-store-only discount at two stores in NYC and Boston. The Swirl app is opt-in.

Data source : Ad Age, “Timberland, Kenneth Cole Track Shoppers Who Opt-In For Deals,” August 26, 2013

Results:

� 72% of offers were opened

� 35% were redeemed


Mobile apps for shoppers: Lowe’s


Mobile point-of-sale systems are becoming more mainstream

27.9% have deployed mobile POS; 21.3% will test by end of 2013


Mobile for sales associates: Nordstrom

“At The Rack, mobile has been particularly impactful because it’s helped us eliminate wait times and lines, and that’s especially important in an off-price shopping experience.” —Colin Johnson, Nordstrom spokesperson


Showrooming … so 2012?


“Brick-and-mortar stores are going to come into the 2013 holiday better equipped to match prices on a phone against Amazon, apply a discount at the cash register and arm in-store associates with real-time data to be able to make better decisions that support the shopper converting in-store.”

—Eric Best, Mercent


More retailers are using their physical stores for online-order fulfillment


In-store order fulfillment: Urban Outfitters



Free shipping has become an accepted part of holiday promotional budgets.

48.9% of US retailers expect to increase free shipping in 2013.


Delivery is getting speedier


Social isn’t expected to make a strong direct impact on US holiday sales in 2013


Retailers are still struggling with attribution for social

“As we get more sophisticated, as the social channels themselves offer a better platform for tracking revenue, we’ll start to see social become more of a real channel.”—Marti Tedesco, senior director of marketing at Baynote


Facebook still dominates US retailers’ social media investments, but visually focused social platforms are gaining ground


In-store social: Nordstrom



Conclusions:

� Holiday ecommerce will continue to increase, with gains outpacing overall retail sales growth. Digital is growing organically and being driven by mobile.

� Mobile will be more pervasive for both shopping andselling. Tablets and smartphones will aid mobile shoppers in anylocation.

� Customer experience is at the core of omnichannel.Inventory transparency and new fulfillment and delivery models are important, but shoppers mostly care about getting the product they want when they need it.

� There isn’t a straight path from social media to sales, though attribution is getting better and retailers are becoming more creative.


Drive Conversions and Revenue

� Built for commerce: Conversions,

transactions and revenue

� Highly personal, relevant email

and cross-channel marketing

� Sophisticated made simple

Kevin Skurski | Director of Marketing Communications

Holiday Resource Center

A collection of tools and research,

including white papers, guides and

blog posts.

Top 12 Marketing Tips for the Holidays

2013 Holiday Planning Month-by-Month

Guide

Loading the Sleigh: Marketers’ Plans &

Expectations for the Holiday Season

bronto.com/holiday

Triggered Messages

Automate, Increase Engagement

& Drive Revenue with Triggered

Messages

� Content and creative best practices

� 7 Triggered message program examples

� A guide to defining business rules

bronto.com/resources

Tips & Tricks

� Expertise from the field

� White papers

� Customer success stories

� Blog posts

bronto.com/resources


Q&A Session

Online Holiday Shopping Preview—What’s In Store?

Sponsored by:

Bronto

You will receive an email tomorrow with a link to

view the deck and webinar recording.

Krista Garcia

Learn more about digital marketing with an eMarketer corporate subscription

Around 200 eMarketer reports are published each year. Here are some recent reports you may be interested in:

� Holiday Shopping Preview: Omnichannel’s Blurred

Lines

� Worldwide B2C Ecommerce: 2013 Forecast and

Comparative Estimates

� The US Retail Industry 2013: Digital Ad Spending

Forecast and Key Trends

� Key Digital Trends for Midyear 2013: The

Fragmentation of Mobile

� Multichannel Attribution: What Retailers Need to Know

To learn more: www.emarketer.com/products

800-405-0844 or [email protected]

emarketer webinar: online holiday shopping preview—what’s in store?

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