total retail 2014
TRANSCRIPT
Total Retail V SurveyUnited States (US)
October 2014
www.pwc.com
PwC
Introduction
PwC’s Global Retail and Consumer practice, in conjunction with the International Survey Unit (ISU),administered a global survey to understand and compare consumer shopping behaviours and the useof different retail channels across 19 territories: Australia, Belgium, Brazil, Canada, Chile, China/HongKong, Denmark, France, Germany, India, Italy, Japan, Middle East, Russia, South Africa, Switzerland,Turkey, UK and US.
A team of subject matter specialists representing each participating territory developed the surveybased on last year’s survey. The final survey for 2014 includes updated questions and answer options inaddition to new questions on payment methods. Where possible and appropriate, last year’s questionshave been retained in order to conduct year-on-year comparisons. Research Now, an external provider,carried out the survey in August and September 2014, resulting in 1,000+ completed responses inevery territory.
Chart packs are available for both global results and country-specific results and can be requestedthrough Claire-Louise Moore and Michael Brewster.
This document contains the results of the Total Retail V research conducted in United States (US).
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Contents
Page
Methodology 4
Section I - Demographics 7
Section II - Buying behaviours 11
Section III - Social media shopping 22
Section IV - Mobile shopping/Paymentmethods
27
Section V – Your favorite retailers 34
Section VI - The purchase journey 38
US specific questions 61
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Methodology
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Global research: Consumer shopping behaviour &activity across the world
1,000+ respondents in every country Slide 5October 2014
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Methodology
• 19,068 online interviews conducted across 19 territories duringAugust/September 2014.
• In order to survey the most appropriate audience, online surveyrespondents in each country are nationally representative by theResearch Now (RN) panel profile or online users for the followingdemographics: Age Gender Employment status Region
• The RN panel profile was used for the majority of the countries exceptUK, Denmark, France, Germany, India and Italy where the nationalonline user profiles were available and applied.
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Section I - Demographics
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45%55%
Gender
Male
Female
Demographic profile of respondents – United States (US)
23% 23%
18%
15%14%
8%
0%
5%
10%
15%
20%
25%
18 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65+
Age
13%
14%
8%
13%
7%
13%
33%
0% 20% 40%
Unemployed
Student
Retired
Housewife/husband
Self employed
Employed part time
Employed full time
Employment Status
Base: 1011
Demographics
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Region breakdown – United States (US)
Base: 1011
1%1%1%1%
2%2%2%2%2%2%2%2%2%2%2%
3%3%3%3%
5%5%5%
7%8%
9%12%
0% 5% 10% 15%
LouisianaMassachusetts
IndianaColorado
South CarolinaOregon
AlabamaWashington
WisconsinKentucky
VirginiaNew JerseyTennesseeMinnesota
ArizonaMichigan
GeorgiaMaryland
North CarolinaIllinois
PennsylvaniaOhio
New YorkTexas
FloridaCalifornia
Region
Demographics
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0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%
1%1%1%1%1%1%1%
0% 1% 1% 2%
WyomingVermont
South DakotaPuerto Rico
North DakotaAlaskaHawaii
District of ColumbiaMontana
Rhode IslandNew Mexico
New HampshireMaine
West VirginiaOklahomaNebraska
IowaIdaho
DelawareUtah
ArkansasMississippi
ConnecticutKansasNevada
Missouri
Region
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Household income breakdown - United States (US)
5%
2%
4%
8%
9%
16%
18%
20%
17%
0% 10% 20% 30%
Prefer not to disclose
$200,000 or more
$150,000 to $199,999
$100,000 to $149,999
$80,000 to $99,999
$60,000 to $79,999
$40,000 to $59,999
$20,000 to $39,999
Under $20,000
Household income
Base: 1011
Demographics
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Section II - Buying behaviours
Q6. On average, how often do you buy products online?
Q7. How long since you made your first ever online purchase?
Q8. Why do you buy products online instead of in-store?
Q9. Why do you buy products in-store instead of online?
Q10. Have you ever intentionally browsed products at a store, but
decided to purchase them online?
Q10b. What factors influenced your decision to intentionally browse
products in-store then purchase those products online?
Q11. Have you ever intentionally browsed products online but decided
to purchase them in-store?
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Q11b. What factors influenced your decision to intentionally browse
products online then purchase those products in-store?
Q12. Which of the following in-store technologies would make your
shopping experience better?
Q13. How often do you buy products using the following shoppingchannels?
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Q6. On average, how often do you buy products online?
6%
27%
39%
26%
2%
5%
23%
41%
28%
3%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Daily Weekly Monthly A few times ayear
Once a year
2014
2013
Please note: 40 respondents said they never shop onlineBase: 1011 (2014)
Buying behaviours
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1002 (2013)
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Q7. How long since you made your first ever onlinepurchase?
11%
8%
16%
31%
27%
8%8%
4%
11%
34% 34%
10%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Less than one year 1-2 years 3-4 years 5-9 years 10 years or more I don't remember
2014
2013
Base: 1011 (2014)
Buying behaviours
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1000 (2013)
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Q8. Why do you buy products online instead of in-store?
3%
1%
7%
7%
16%
18%
22%
27%
29%
44%
59%
3%
4%
4%
10%
11%
18%
20%
25%
30%
33%
40%
47%
52%
0% 10% 20% 30% 40% 50% 60% 70%
Other
Social media interactions via Facebook, Twitter, etc. (e.g. sharing alink, liking a brand, or posting a comment)
I have a wider variety of return options*
Better product information than in-store
Receiving a promotion via email or text/SMS message (e.g.coupons/vouchers)
Looking for a particular brand/product
Customer reviews of products available online
I can only get some products online
Easier to compare and research products/offers than in-store
Wider variety of products than in-store
No need to travel to a physical store*
I can shop 24/7 online
Lower prices/better deals than in-store
2014
2013
Base: 1011 (2014)
Note: Respondents had to rank their THREE most important factors.
*No 2013 comparison available
Buying behaviours
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1002 (2013)
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Q9. Why do you buy products in-store instead ofonline?
2%
4%
5%
13%
13%
12%
17%
30%
11%
27%
27%
60%
64%
1%
2%
5%
8%
9%
13%
13%
16%
16%
22%
23%
28%
29%
55%
56%
0% 10% 20% 30% 40% 50% 60% 70%
Other
I don't trust online payment methods*
My favorite retailers don't have an online store
It's easier to trust the brand/store
Store staff are very helpful*
I simply enjoy shopping in the physical store because of the atmosphere
I find the location convenient (e.g. close to public transport, parking, easy access from home orwork)
To support local retailers
To get the lowest price
I'm able to return items easily
Quicker delivery than if purchased online
I'm more certain about fit/suitability of the product
I'm more comfortable buying perishable products in-store
I'm able to see, touch and try merchandise
To get the product immediately
2014
2013
Base: 1011 (2014)Note: Respondents had to rank their THREE most important factors. Please approach 2013 comparisons with caution due to slight wording variations.*No 2013 comparison available
Buying behaviours
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1042 (2013)
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Q10 & Q10b. Have you ever intentionally browsedproducts at a store but decided to purchase them online?What factors influenced your decision?
68%
32%
Yes No
Base: 1011
5%
41%
49%
58%
76%
85%
0% 20% 40% 60% 80% 100%
Other
To seek advice from store staff
It is more convenient to have the itemdelivered to me rather than carry from the
store
The item was not in stock in store
I wanted to see/touch/try themerchandise before ordering online
Better prices online
Note: Question only asked to those who said ‘Yes’ at Q10Base: 684
Q10. Q10b.
Buying behaviours
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Q11 & Q11b. Have you ever intentionally browsedproducts online but decided to purchase them in-store?What factors influenced your decision?
73%
27%
Yes No
Base: 1011
3%
37%
41%
48%
51%
61%
61%
65%
0% 10% 20% 30% 40% 50% 60% 70%
Other
The item was not in stock online
Better prices in-store
To read reviews online
To compare prices of competitors
It is more convenient to have the itemimmediately than wait for delivery
I wanted to see/touch/try the merchandise
To avoid paying for delivery
Note: Question only asked to those who said ‘Yes’ at Q11Base: 734
Q11. Q11b.
Buying behaviours
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Q12. Which of the following in-store technologieswould make your shopping experience better?
33%
4%
8%
12%
10%
10%
15%
21%
21%
45%
16%
4%
7%
9%
11%
13%
16%
18%
19%
25%
36%
40%
0% 10% 20% 30% 40% 50%
None of the above
"Mirrors" that can share your picture with friends
Video walls that show the product(s) selected and/oravailable
QR codes that allow you to access additional content
Pay for an item through the store's app
Using your mobile phone to pay for your shopping
Sales associates with tablets to show you alternativeproducts
Sales associates who can take payment without going to thecash register
Real time, personalised offers*
In-store wifi with fast, simple, login
Self-service checkout*
Ability to check other store or online stock quickly
2014
2013
Base: 1011 (2014)
*No 2013 comparison available
Buying behaviours
Note: Respondents were asked to select up to THREE options.
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1002 (2013)
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8%
37%
30%
18%
3% 4%4% 5%8%
20%17%
47%
3% 4%6%
10% 9%
67%
5%
21%
38%
25%
5% 6%4%
9%
14% 13%
5%
55%
4%
9%
13% 14%
7%
53%
3% 4% 4% 4% 4%
80%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Daily Weekly Monthly A few times a year Once a year Never
In-store Catalogue/magazine
TV shopping Online via PC
Online via tablet Online via mobile phone or smartphone
Next generation wearables (watch, glasses, pens)
Q13. How often do you buy products using thefollowing shopping channels?
Buying behaviours
Slide 20October 2014Note: The definition provided for next generation wearables in the survey was (e.g. Google glass).
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Q13. Spotlight on online channels…
4%9%
14% 13%
5%
55%
2%5%
8% 10%
3%
72%
0%
10%
20%
30%
40%
50%
60%
70%
80%
4%9%
13% 14%
7%
53%
1%4%
8% 10%5%
71%
0%
10%
20%
30%
40%
50%
60%
70%
80%
5%
21%
38%
25%
5% 6%3%
19%
41%
29%
4% 5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
2014 2013
Tablet
PC
Mobile/smartphone
Buying behaviours
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Section III - Social media shopping
Q14. Which of the following have you done using social media...
Q14b. Has any interaction you have had with your favorite brands on
social media driven you to buy more?
Q15. What attracts you to go to a particular brand's social media page?
Q16. Which social media do you regularly use as part of your shopping
experience?
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37%
4%
8%
18%
21%
21%
22%
23%
34%
0% 10% 20% 30% 40%
None of the above
Purchased directly via social media
Connected with people like me who like a brand
Liked and shared products
Viewed videos about the brand/product
Provided positive or negative comments about myexperience with a product or brand
Researched a brand including reading others' feedback
Discovered brands I did not know or brands in which Ideveloped a particular interest
Followed some of my favorite brands or retailers
Q14. Which of the following have you done using socialmedia...
Base: 1011
Social media shopping
Note: Respondents were asked to select up to THREE options.
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Q14b. Has any interaction you have had with yourfavorite brands on social media driven you to buy more?
19%
36%
34%
10%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Yes in most cases Yes in some cases Not really Not at all
Base: 634Note: Question asked to respondents who selected anything other than ‘None of the above’ at Q14.
Social media shopping
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Q15. What attracts you to visit a particular brand'ssocial media page (e.g. on Facebook)?
10%
7%
11%
8%
15%
19%
13%
17%
28%
20%
27%
38%
61%
9%
9%
9%
11%
12%
12%
12%
15%
16%
19%
20%
21%
27%
33%
50%
0% 10% 20% 30% 40% 50% 60% 70%
Interested in interacting with the brand and its online followers
Brand contacted me through social media
The opportunity to influence product design*
To learn about and provide feedback on brand'ssocial/environmental commitment*
The brand provides customer service through social media
Flyer or recommendation in-store
Had a good or bad experience and wanted to provide feedbackthrough social media
Opportunity to participate in competitions through social media
Advertising (e.g. TV, outdoor, newspaper/magazine, website)
Friend's or expert's recommendation
Because I shop with them
To research products on social media before I buy them
Received a promotion via email or text/SMS message
Interested in new product offerings
Attractive deals/promotions/sales
2014
2013
Base: 937 (2014)*No 2013 comparison available.
Social media shopping
Note: Respondents had to rank their THREE most important factors.
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562 (2013)
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Q16. Which social media do you regularly use as partof your shopping experience?
27%
1%
1%
1%
1%
1%
2%
9%
10%
10%
12%
14%
22%
24%
50%
0% 10% 20% 30% 40% 50% 60%
None of the above
Q zone / QQ
Renren
Baidu
MySpace
Tumblr
Bing
Yahoo
YouTube
Google / Google Plus
Base: 1011
Note: Take caution when making comparisons as some options are not used globally.
Social media shopping
Note: Respondents were asked to select up to THREE options.
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Note: We have only shown options selected by United States (US) respondents. October 2014
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Section IV - Mobileshopping/Payment methods
Q17. Which of the following have you done using your
mobile/smartphone/tablet/pc?
Q18. Why don’t you use your mobile/smartphone/tablet/pc for
shopping?
Q19. Which payment method do you prefer?
Q20. So-called “digital” or “virtual” currencies such as Bitcoin could
enable users to pay for products and services electronically without
using the local established currency. Up until now, have you been aware
of these types of currencies?
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Q21. Could you see yourself using such a digital currency in the future?
Q22. Please indicate how strongly you agree or disagree with the
following statements:
o I am wary of having my personal credit information hacked using my mobile phoneo My mobile phone will become my main tool for which to purchase itemso I am willing to load credit onto my mobile phone to provide payment for productso I am happy to receive offers or coupons via my mobile phoneo I am happy for stores to establish my location through my mobile phoneo I am happy to store my payment and delivery information in an app on my mobile
phone
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Q17. Which of the following have you done using yourmobile/smartphone/tablet/pc?
29%
5%
10%
10%
12%
13%
14%
20%
21%
34%
35%
45%
46%
0% 10% 20% 30% 40% 50%
None of the above
Tweeted the retailer/brand about the product/offer
"Checked in" at store via social media (e.g. Foursquare or Facebookplaces)
Paid at the cashier
Received an offer based on proximity to store
Received recommendations based on previous purchases
Scanned QR codes
Checked funding available before purchasing
Accessed loyalty / reward programmes
Located store with my mobile phone
Used a coupon
Compared prices with competitors
Researched the products
Base: 1011
Mobile shopping/Paymentmethods
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10%
9%
7%
17%
33%
37%
32%
13%
5%
7%
14%
17%
27%
33%
38%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Other
I have a slow data connection
I did not have wifi access at the time of attempted purchase
Mobile websites are not easy to use*
I don't have a data plan
The screen is too small
I'm worried about security
I don't own a mobile/smart phone
2014
2013
Q18. Why don't you use yourmobile/smartphone/tablet/pc for shopping?
Base: 291 (2014)*No 2013 comparison available.
Note: Question only asked to those who selected ‘None of the above’ at Q17. Please approach 2013 comparisons with caution due to wording changes inthe question.
Mobile shopping/Paymentmethods
Note: Respondents were asked to select up to THREE options.
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712 (2013)
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Q19. Which payment method do you prefer?
Base: 1011
4%
1%
1%
15%
40%
40%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Other
Payment by invoice
Mobile phone
Cash
Credit card
Debit card
Mobile shopping/Paymentmethods
Note: Respondents were asked to select ONE option only.
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So called “digital” or “virtual” currencies such as Bitcoin could enable users to pay forproducts and services electronically without using the local currency.
63%
37%
Yes, I was aware of these
No, I was not aware of these
Base: 1011
28%
35%
37%
Yes No I'm not sure/Don't know
Base: 1011
Q21. Could you see yourselfusing such a digital currency inthe future?
Q20. Up until now, have you beenaware of these types ofcurrencies?
Mobile shopping/Paymentmethods
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Q22. Please indicate how strongly you agree ordisagree with the following statements?
25%
25%
14%
24%
23%
4%
19%
20%
9%
23%
24%
7%
21%
22%
16%
22%
25%
16%
19%
17%
28%
20%
16%
34%
12%
13%
30%
8%
8%
36%
4%
3%
3%
3%
5%
3%
0% 20% 40% 60% 80% 100%
I am happy to store my payment and deliveryinformation in an app on my mobile phone
I am happy for stores to establish my locationthrough my mobile phone
I am happy to receive offers or coupons via mymobile phone
I am willing to load credit onto my mobile phone toprovide payment for products
My mobile phone will become my main tool forwhich to purchase items
I am wary of having my personal credit informationhacked using my mobile phone
Strongly disagree Disagree Neither agree nor disagree Agree Strongly agree Don't know
Base: 1011
Mobile shopping/Paymentmethods
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Section V – Your favorite retailers
Q23. Thinking of your favorite retailer, why do you shop here?
Q24. Thinking of your favorite retailer, please specify if you have
purchased something through the following shopping channels.
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2%
4%
7%
7%
9%
11%
16%
18%
18%
24%
26%
32%
35%
36%
50%
71%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Other
They do really interesting stuff with their social media (Facebook, Tumblr, Twitter,etc.) which shows they understand my interests
They are a socially/environmentally responsible retailer
They have inspiring online content which catches my interest
They provide advice or help me choose products
Superior online customer reviews
They have a great loyalty programme (e.g. I get points/rewards)
They have fast/reliable delivery (e.g. same day delivery, pick up online purchasesin-store or designated pick up location, etc.)
I can check the in-store availability of a product online
Their website/mobile site is easy to use
They sell things I cannot find anywhere else
They have a good returns policy (e.g. free returns, return items to store whenpurchased online, etc.)
I like the store, its location and staff
I trust the brand
They usually have the items I want in stock
Their prices are good
Base: 1011
Q23. Thinking of your favorite retailer, why do youshop here?
Your favorite retailers
Note: Respondents were asked to select up to FIVE options.
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Q23c. Please select your top three favorite retailers?(top 10 mentioned)
10%
10%
10%
11%
12%
13%
15%
20%
34%
41%
Costco
The Home Depot
Walgreen
Lowe's
J.C. Penny
Macy's
Best Buy
Kohl's
Target
Walmart
2014 2013
Base: 1011
8%
8%
9%
11%
12%
13%
14%
29%
41%
52%
Home Depot
JC Penny
Costco
Macy's
Best Buy
Ebay.com
Khol's
Target
Walmart
Amazon.com
Base: 993
Your favourite retailers
Slide 36October 2014
Note: Please approach 2013 comparisons with caution, as 2014question used a combined list of retailers and pure players
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1%
15%
18%
68%
7%
10%
76%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Next generation wearables
Online via mobile phone or smartphone
Online via tablet
Online via PC
TV shopping
Catalogue/magazine
In-store
Q24. Thinking of your favorite retailer, please specify ifyou have purchased something through the followingshopping channels.
Base: 1011
Your favorite retailers
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Section VI - The purchase journeyQ25. What’s your FIRST step in researching a purchase?
Q26. Which method do you most prefer for RESEARCHING your purchases in
each of the following product categories?
Q27.Which method would you most prefer for BUYING your purchases?
Q28. Today, product manufacturers are increasingly offering products directlyto consumers, bypassing retailers. Thinking about your online purchases, doesit matter to you whether you purchase from a traditional retailer or a productmanufacturer?
Q29. Thinking about your last online purchase, did you buy from…
Q30. If you bypassed a retailer for your last online purchase, why did you buydirectly from the product manufacturer’s website?
Q31. Please indicate from which of these product categories you have boughtdirectly from a product manufacturer online.
Q32. for each of the following product categories, how many of your purchaseshave you made online over the least 12 months?
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Q33. Assuming you have free standard delivery, which of the following other
delivery options would you be willing to pay for?
Q34. Which are the most important return options for you when making a
purchase online?
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1%
2%
2%
2%
4%
14%
26%
49%
0% 10% 20% 30% 40% 50% 60%
Catalogue/magazine
Go to an online auction platform (e.g. Ebay)
Go to a retailer's or brand's app
Ask a friend and/or family member
Go to a social media site (e.g. Facebook)
Go to the physical store
Go directly to the retailer or brand's website
Go to a search engine (e.g. Google)
Q25. What’s your FIRST step in researching apurchase?
Base: 1008
The purchase journey
Note: Respondents were asked to select ONE option only.
Slide 39October 2014
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89%
6%5%
Online via PCOnline via tabletOnline via mobile/smartphone
Purchase
2%
23%
2%
73%
Catalogue/magazineIn-StoreTV ShoppingOnlineNext generation wearables
Research
2%
58%
2%
38%
89%
7%5%
Online channels breakdown
PurchaseResearch
Consumer electronics and computers
The purchase journey
Preferred shopping methods
Slide 40Note: Values in pie charts may total 99 or 101 due to rounding October 2014
PwC
Online channels breakdown
4%
68%
2%
26%
84%
9%
7%
5%
33%
2%
60%
Catalogue/magazineIn-StoreTV ShoppingOnlineNext generation wearables
87%
8%5%
Online via PCOnline via tabletOnline via mobile/smartphone
Research
Research Purchase
Purchase
Household appliances
The purchase journey
Preferred shopping methods
Slide 41Note: Values in pie charts may total 99 or 101 due to rounding October 2014
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83%
10%
8%
Online via PCOnline via tabletOnline via mobile/smartphone
5%
47%
4%
44%
Catalogue/magazineIn-StoreTV ShoppingOnlineNext generation wearables
Purchase
Online channels breakdown
2%
68%
4%
26%
1%
86%
9%5%
Research
Research
Purchase
Clothing and footwear
The purchase journey
Preferred shopping methods
Slide 42Note: Values in pie charts may total 99 or 101 due to rounding October 2014
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4%
19%
2%
75%
Catalogue/magazineIn-StoreTV ShoppingOnlineNext generation wearables
86%
9%5%
2%
33%
2%
62%
82%
10%
8%
Online via PCOnline via tabletOnline via mobile/smartphone
PurchaseResearch
PurchaseResearch
Online channels breakdown
Books, music, movies and video games
The purchase journey
Preferred shopping methods
Slide 43Note: Values in pie charts may total 99 or 101 due to rounding October 2014
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80%
13%
6%
Online via PCOnline via tabletOnline via mobile/smartphone
Online channels breakdown
68%
21%
11%
3%
76%
1%
20%4%
47%
2%
47%
Catalogue/magazineIn-StoreTV ShoppingOnlineNext generation wearables
Research
Research
Purchase
Purchase
Furniture and homeware
The purchase journey
Preferred shopping methods
Slide 44Note: Values in pie charts may total 99 or 101 due to rounding October 2014
PwC
3%
61%2%
34%
74%
11%
15%
82%
8%
10%
Online via PCOnline via tabletOnline via mobile/smartphone
Research
4%
36%
3%
57%
1%
Catalogue/magazineIn-StoreTV ShoppingOnlineNext generation wearables
PurchaseResearch
Purchase
Online channels breakdown
Sports equipment/outdoor
The purchase journey
Preferred shopping methods
Slide 45Note: Values in pie charts may total 99 or 101 due to rounding October 2014
PwC
Research
80%
11%
9%
Online via PCOnline via tabletOnline via mobile/smartphone
4%
48%
4%
43%
2%
Catalogue/magazineIn-StoreTV ShoppingOnlineNext generation wearables
Purchase
Online channels breakdown
4%
67%
2%
26%
1%
80%
10%
10%
Research Purchase
Jewelry/watches
The purchase journey
Preferred shopping methods
Slide 46Note: Values in pie charts may total 99 or 101 due to rounding October 2014
PwC
Research
80%
10%
10%
Online via PCOnline via tabletOnline via mobile/smartphone
4%
40%
3%
53%
1%
Catalogue/magazineIn-StoreTV ShoppingOnlineNext generation wearables
Purchase
4%
73%
2%
20%
1%
72%
16%
13%
Research PurchaseOnline channels breakdown
Do-it-yourself/home improvement
The purchase journey
Preferred shopping methods
Slide 47Note: Values in pie charts may total 99 or 101 due to rounding October 2014
PwC
2%
71%
3%
24%
1%
Catalogue/magazineIn-StoreTV ShoppingOnlineNext generation wearables
PurchaseResearch
Online channels breakdown
75%
14%
11%
Online via PCOnline via tabletOnline via mobile/smartphone
1%
87%
3%9% 1%
63%
25%
12%
Research Purchase
Grocery
The purchase journey
Preferred shopping methods
Slide 48Note: Values in pie charts may total 99 or 101 due to rounding October 2014
PwC
4%
32%
2%
62%
Catalogue/magazineIn-StoreTV ShoppingOnlineNext generation wearables
Purchase
82%
10%
8%
Online via PCOnline via tabletOnline via mobile/smartphone
Online channels breakdown
4%
49%
2%
45%
1%
82%
12%
6%
Research
Research
Purchase
Toys
The purchase journey
Preferred shopping methods
Slide 49Note: Values in pie charts may total 99 or 101 due to rounding October 2014
PwC
Research
78%
12%
10%
Online via PCOnline via tabletOnline via mobile/smartphone
Online channels breakdown
2%
69%
2%
27%
73%
20%
7%
2%
49%
3%
45%
1%
Catalogue/magazineIn-StoreTV ShoppingOnlineNext generation wearables
Research Purchase
Purchase
Health and beauty (cosmetics)
The purchase journey
Preferred shopping methods
Slide 50Note: Values in pie charts may total 99 or 101 due to rounding October 2014
PwC
Cross-channel shopping behaviourThose who do not research before purchasing
9%
18%
20%
18%
29%
25%
30%
26%
34%
35%
40%
4%
8%
8%
10%
12%
13%
16%
17%
22%
25%
28%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Consumer electronics
Household appliances
Clothing and footwear
Books, music, movies and video games
Grocery
Furniture and Homeware
DIY / Home Improvement
Health & Beauty
Jewelry / watches
Sports equipment / outdoor
Toys
2014
2013
The purchase journey
Slide 51October 2014
PwC
Cross-channel shopping behaviourResearch to purchase
20%
29%
43%
15%
44%
33%
42%38%
68%
27%
45%37%
36%22%
22%
58%
17%
30%20%
17%
7%
42%
24%
27%
35%
36%
20%
15%
28% 24%22%
32%
15%
18% 19%24%
2%3%
3%3% 2% 3%
4%2%
1%3% 3% 3%
7% 10% 12% 9% 9% 10% 13% 11% 8% 10% 9% 10%
Other
Store-to-web
Web-to-store
Web only
Store only
The purchase journey
Slide 52October 2014
PwC
25%
75%
Yes No
Q28. Thinking about your onlinepurchases, does it matter to youwhether you purchase from atraditional retailer or a productmanufacturer?
Base: 1011
Q29. Thinking about your lastonline purchase, did you buyfrom…
17%
68%
15%
0%
10%
20%
30%
40%
50%
60%
70%
80%
The productmanufacturer
A retailer I do not remember
Base: 1011
The purchase journey
Slide 53October 2014
PwC
2%
6%
8%
6%
32%
9%
7%
34%
44%
5%
6%
11%
20%
25%
26%
30%
42%
66%
0% 10% 20% 30% 40% 50% 60% 70%
Other
Better refund/exchange policy
Customization/personalization of product
Better experience
Good stock availability
Loyalty to brand
Better warranty/guarantee
Full range or more choice
Lower price
2014
2013
Q30. If you bypassed a retailer for your last onlinepurchase, why did you buy directly from the productmanufacturer’s website?
Base: 168 (2014)
Note: Question only asked to those who selected ‘The product manufacturer’ at Q29
The purchase journey
Note: Respondents were asked to select the THREE most important factors.
Slide 54October 2014
1002 (2013)
PwC
Q31. Please indicate from which of these product categoriesyou have bought directly from a product manufactureronline
Base: 168 (2014)
23%
10%
11%
7%
9%
16%
11%
12%
34%
53%
39%
11%
13%
14%
14%
14%
18%
20%
33%
34%
49%
51%
0% 10% 20% 30% 40% 50% 60%
Health & beauty (cosmetics)
Furniture and homeware
Grocery
Do-it-yourself/home improvement
Sports equipment/outdoor
Toys
Jewelry/watches
Household appliances (incl. freezers, microwavesetc.)
Books, music, movies and video games
Clothing and footwear (incl. sportswear, kids andbabies)
Consumer electronics (incl. cameras, TV, DVDplayers etc.) and computers
2014
2013
Note: Question only asked to those who selected ‘The product manufacturer’ at Q29
The purchase journey
Slide 55October 2014
698 (2013)
PwC
Q32a. Those who have not purchased online/at all over thelast 12 months for each of the product categories.
8%
28%
10%
5%
32%
26%
13%
21%
22%
21%
10%
11%
21%
21%
22%
27%
32%
35%
38%
42%
42%
60%
0% 20% 40% 60% 80%
Books, music, movies and videogames
Toys
Consumer electronics andcomputers
Clothing and footwear
Sports equipment/outdoor
Jewelry/watches
Health & beauty (cosmetics)
Household appliances
Do-it-yourself/home improvement
Furniture and homeware
Grocery
Don't purchase thiscategory ONLINE
Don't purchase thiscategory at all
The purchase journey
Slide 56October 2014
PwC
Q32b. For each of the following product categories, howmany of your purchases have you made online over the last12 months?
11%7% 7% 9%
4%12% 8% 8% 8% 10% 9%
14%
8% 7%10%
9%
14%
10% 9% 12% 8% 12%
10%
12%10%
9%
10%
13%
7% 9%10%
10%9%
9%17%
15%13%
18%
16%
12%14%
12% 14%14%
15%22%
20% 19%25%
19%
21%22% 22%
17%19%
41%33%
41% 40%34%
26%
41%37% 36%
41%36%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
A few purchases (1 - 20%)
Some purchases (21 - 40%)
About half of my purchases (41 - 60%)
Most of my purchases (61 - 80%)
Almost all of my purchases (81 - 99%)
Exclusively purchase online (100%)
The purchase journey
Slide 57October 2014
PwC
Q33. Assuming you have free basic delivery, which of thefollowing other delivery options would you be willing to payfor?
Base: 964
7%
15%
37%
38%
43%
58%
61%
0% 10% 20% 30% 40% 50% 60% 70%
Other
Locker/box collection (e.g. Amazon lockers)
90-minute delivery for store-based purchase
Can pick up purchase from a convenient location (e.g.local convenience store/FedEx)
Specific agreed-upon time frame for delivery (e.g. Monday8:00-8:30am)
One/two day delivery
Same day delivery
The purchase journey
Note: Respondents had to rank their THREE most important factors.
Slide 58October 2014
PwC
Q34. Which are the most important return options foryou when making a purchase online?
Base: 1000 (2014)
1%
5%
10%
28%
57%
79%
2%
15%
30%
61%
76%
86%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Other
Locker/box drop off (e.g. Amazon Lockers)
Specific agreed-upon time frame for pick up (e.g.Monday 8:00-8:30 am)
Can return purchase to a convenient location (e.g. localconvenience store)
Online purchase returns available in-store
Paid return label provided with shipment
2014
2013
Note: Please approach 2013 comparisons with caution due to slight wording variations.
The purchase journey
Note: Respondents had to rank their THREE most important factors.
Slide 59October 2014
996 (2013)
PwC
US specific questions
Q35. Which digital wallet do you use on your smartphone or tablet tomanage coupons or loyalty cards?
Q36. How important is "ship from store" option for getting the productsyou want delivered in the following categories?
PwC
Q35. Which digital wallet do you use on yoursmartphone or tablet to manage coupons or loyaltycards? (US specific question)
Base: 168 (2014)
73%
1%
3%
11%
17%
52%
2%
6%
25%
31%
0% 10% 20% 30% 40% 50% 60% 70% 80%
I do not use a digital wallet on my smartphone or tablet
Other (Please specify)
Lemon Wallet
Apple Passbook
Google Wallet
2014
2013
Country specific questions
Slide 61October 2014
391 (2013)
PwC
23%
48%
22%
7%
26%
43%
22%
8%
19%
39%
34%
8%
15%
37% 38%
10%
17%
41%
34%
8%
24%
42%
25%
9%
14%
39%37%
10%
16%
37% 38%
10%
15%
40%
34%
12%
22%
29%
37%
13%13%
34%
42%
11%
15%
35%
38%
11%
0%
10%
20%
30%
40%
50%
60%
Must have Nice to have Not important Not aware
Consumer electronics and computers Household appliances Apparel
Luxury clothing and footwear Books, music, movies and video games Furniture and homeware
Sports equipment/outdoor Jewelry/watches Do-it-yourself/home improvement
Grocery Toys Health & beauty (cosmetics)
Q36. How important is "ship from store" option for gettingthe products you want delivered in the following categories?(US specific question)
Country specific questions
Slide 62October 2014