795533 trends in ecommerce hype vs reality
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7/26/2019 795533 Trends in ECommerce Hype vs Reality
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Hype vs. Reality – anevaluation of trends inmultichannel retail
Philip Dalzell-PayneMitch CohenElizabeth Murphy
August 2013
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L a s t M o d i f i e d
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P r i n t e d
McKinsey & Company | 1
Social selling
Crowd curation
Social transactions
Social recommendationSocial gifting
Cross retailer loyalty
Geo-location promotions Store navigationand promotions
Coupon aggregation
Promotion targeting
Social gaming
Crowdsourcing
Dynamicmerchandising
Merchandising tools
Local search
On-demand customer service
Local shopping
Mobile payments
Price scraping / watching
Personalization platform
Customer communities
Same day delivery(JD.com also – 360 Buy)
Delivery pickup points
Social engagement
Dynamic 3PL
Cross border logistics
Consider
Evaluate
Commit Buy
Bond
Technology is enabling many new business models and intermediaries
which are changing how consumers shop
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P r i n t e d
McKinsey & Company | 2
Key evolution areas of online and multichannel retailing
SOURCE: Team analysis
O n l i n e
S t o r e s
C
r o s s - c h a n n e l
a Digital marketing reallocation Crowd / Social integrationa Social / locala
Lockers / pickup points Analytics / personalization Dynamic 3PLe e e
b bCross border Next day/same day shipping b Social selling
c Extended aisle c Product personalization c Rise of the “mega
intermediary”
Geo—targeted marketingd dMobile commerce dThird party data
h Store as showroomsh Store size reduction/repurposing
h Demographic shifts
Happening now1
Likely coming2
Worth watching3
Mobile Paymentsf In store customer trackingff Show-rooming
g In-store technologygHybrid fulfillment g Intelligent route mapping
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P r i n t e d
McKinsey & Company | 3SOURCE: McKinsey Consumer Digital Excellence (CDE); eMarketer; June 2013
Shift in retail marketing spend to digitalHAPPENING NOW
1a
Winners:
▪ Companies that areahead of the adoptioncurve in overall digitalmarketing as % of sales
▪ Companies that are
investing in tools tooptimize digitalmarketing spend
▪ Companies that have apipeline of talent fordigital marketingexecution and strongintegration of digitalmarketing into theiroverall marketing group
US retail industry digital ad spending, 2011-2017
Billions, % of total digital ad spending and % change
$13.31$12.45
$11.48$10.42
$9.35$8.21
$7.17
22.0%22.0%22.1%22.1%22.3%22.3%
22.4%
201716151413122011
Digital and spending% of total digital ad spend
“For which digital marketing tactics are you spending more in 2013 than in
2012?”
32%
38%
49%
52%55%
63%
80%
Affiliate programs
Comparison-shopping engines
Social networks
Email to house list
FacebookNatural search optimization
Remarketing/retargeting
Note: CAGR (2012-17) = 10.2%; includes desktop, laptop , phones and tablets
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P r i n t e d
McKinsey & Company | 4SOURCE: McKinsey Consumer Digital Excellence (CDE)
Cross border ecommerceHAPPENING NOW
Winners:
▪ Retailers that moved early toimplement solutions likeFiftyOne
▪ Retailers in categories that are
hard to source in specificcountries (electronics,apparel)
▪ Companies that are globalmarketplaces (eBay, Amazon)
▪ Companies that enable crossborder transactions(fulfillment, customs enablers)
2020
6.8
2010
3.9
BtoC ParcelsBtoB Parcels
+75%
1b
Global eCommerce cross-border trade
$ bn
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P r i n t e d
McKinsey & Company | 5SOURCE: McKinsey Consumer Digital Excellence (CDE)
Extended aisle
Approximate
# of SKUs Category
Percent of SKUs by price
level
144
+1,928%
2,920
890
+263%
3,2285-7 yr
board
games
13%13%$25-50
85%62%<$25
1%8%$50-100
1%18%$100+
33%15%$25-50
6%3%<$25
48%28%$50-100
13%55%$100+
HAPPENING NOW
Winners:
▪ Retailers in “long tail
categories” (music, apparel)
who are moving fast toexpand assortment and
D2C warehouse capacity▪ Companies with successful
marketplace offer(e.g. LaRedoute)
▪ Retailers with assortmentmomentum (i.e. those thatare hubs for specificcategories and are
generating scale advantage)
1c
Men’s
coats
HAPPENING NOW
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P r i n t e d
McKinsey & Company | 6SOURCE: Amazon financials; McKinsey analysis
18
16
14
12
10
8
6
4
20
Q4Q3Q2Q1Q4Q3Q2Q1
2012
49
30
18
2011
35
24
11
Retail
Marketplace
2011 2012
62%
27%
38%
Marketplace is driving adisproportionate share ofGMV growth, with FBA
CAGR reportedly >75%
30% 31% 32% 34% 35% 37% 39% 40%
40% Marketplaceshare
Extended aisle – Amazon marketplace
US GMV split by Retail/Marketplace$ Billions
US GMV$ Billions CAGR
HAPPENING NOW
1c
HAPPENING NOW
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P r i n t e d
McKinsey & Company | 7SOURCE: McKinsey Consumer Digital Excellence (CDE)
Mobile commerce
% of users who have
made purchase with
their mobile phone or
tablet by category 12
20
DIY
Large Appliances
86.968.3
52.238.4
24.713.6
2012 2013 201520142011
+45% p.a.
2016
1 eMarketer, Jan 2013 (includes sales on tablets)
HAPPENING NOW
Users are increasingly open to using their mobile devices to
make purchases
US Retail mobile commerce sales1
$ Billions
Winners:
▪ The major winners areeBay and Amazon, due tohigh number of existingcustomers and onlinetransactions that are easilyexecuted (One click/Paypal)
▪ Also, companies who arein “browse” categories
where people will researchon mobile devices
▪ Others that are investing in
consumer enablementthrough their application
1d
HAPPENING NOW
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P r i n t e d
McKinsey & Company | 8SOURCE: McKinsey Consumer Digital Excellence (CDE)
Analytics/personalizationHAPPENING NOW
24
6
5
9
12
-1
Big boxretailers
Onlineretailers
Grocers
Revenue 1999-2010
11-year CAGR
Insight-driven companies out-perform peers
1e
Winners:
▪ Companies who have alegacy of data analytics,especially those with strongloyalty cards
▪Evidence that the company isusing data across the range ofpotential areas: assortmentplanning, segmentation andtargeting for marketing
▪ Companies with strong tieswith analytics companies orthe ability to hire store datascientist resources
HAPPENING NOW
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P r i n t e d
McKinsey & Company | 9
Tesco embeds customer insights across multiple functions and formats
Impact
Saved £300 million inpromotion expensewhile increasingmarket share
40% of shoppers are"loyal" (i.e., buy 70%+of their groceries atTesco)
Customer complaintsdecreased by 75%
Analytics/personalization – Tesco exampleHAPPENING NOW
Assortment
▪ Informs creation, tailoring and review of ranges based
on store-specific customer mix and product-specificroles by customer segment
Store
Development
▪ Site selection informed by customer attributes▪ New formats based on customer occasion insight
(potential for 8 formats)
Marketing
▪ Enables proactive targeting of customers who have
not recently shopped at a Tesco with loyalty incentives▪ Enables co-branded direct marketing campaigns, e.g.,
Nestle Purina services, advice and product offersmarketed with Tesco Pet Insurance
Pricing
▪ Informs pricing decisions and investments withcustomer-specific elasticity data, e.g., price cutsprioritized based on items purchased most frequentlyby the most price-sensitive of customers
Product
Development
▪ Informs new product launch decisions – e.g., launchof Tesco Finest using Clubcard customer profilessurpassed sales targets
1e
HAPPENING NOW
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L a s t M o d i f i e d 8 / 6 / 2 0 1 3 6 : 2 5 P M I n d i a S t an d ar d T i m e
P r i n t e d
McKinsey & Company | 10SOURCE: Multichannel pricing survey, January-February 2012 : Question 22
Show-rooming is a growing phenomenon which
significantly impacts customer behavior
1 Percent of respondents who claim that they used their cell phone or smart phone when doing price research in the last 6 months;average across CE and APP
50
13
+37
20122010
Mobile price checksare increasing …1
When do consumers use mobiledevice to compare prices
Percent
… they occur early in the consumer journey …
4
31
65
After I visit
the store
While I amat store
Before I go
to store
How use of mobile device in-store
changes customer action
Percent
… and have direct impact on behavior
17
18
65
Would notaffect purchase
or futuredecisions
Would buyitem, butimpact futuredecisions
Would delaypurchase/buy
elsewhere
9
-1
-8
HAPPENING NOW
Increasing
Decreasing
Change since 20101f
HAPPENING NOW
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P r i n t e d
McKinsey & Company | 11SOURCE: McKinsey Consumer Digital Excellence (CDE)
Show-rooming behavior is largely consistent across categories
Visited another
retailer’s Web site
Used a price com-
parison site/app
Visited the same
retailer’s Web site
29
25
22
36
29
33
42
24
19
20
26
34
1836
39
24
42
20
26
39
50
Home décor
Furniture
DIY
Office supplies
Household productsHealth and beauty
Clothing
Grocery
Video games
DVD/Video
Books
Electronics
Computer HW/SW
Music
Auto parts
Pets & pet supplies
Large appliances
Sporting goods
Jewelry
Footwear
Toys
29
39
27
43
16
34
41
30
37
25
45
4
3222
28
36
22
28
28
33
35
29
14
10
36
27
30
28
14
26
9
32
34
2215
16
20
41
34
24
37
44
HAPPENING NOW
Type of mobile research done while in Store
1h
Winners:
▪ The major winner is Amazon, due to existingcustomers base and lowprice perception
▪ Lowest price retailers inspecific categories willalso win due to “price
check” nature
▪ Loser are companies incommodity categoriesespecially when they arefailing to differentiate,e.g. through unique
products / bundling
HAPPENING NOW
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P r i n t e d
McKinsey & Company | 12
Cross-channel integration and fulfillment is
important to customers
6
8
6
20
16
34
34
44
29
49
42
5
100%
42
31
48
61
60
66
Important or extremely important
Somewhat important
Not important
% using service Importance to those using service
SOURCE: iConsumer 2012 - RT16bb
Importance of multichannel functions among survey participants
% of respondents; N = 4,877
7Used an online web siteto customize the products I buy
Access enhanced online content for
product research, purchase in-store
10
Buy online and returnthe item to the store
25
Buy online, butpickup in the store
37
Print coupons online
use them in a store
52
Check online to see if the store hasa certain item available
52
HAPPENING NOW
1g
HAPPENING NOW
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P r i n t e d
McKinsey & Company | 13SOURCE: McKinsey Consumer Digital Excellence (CDE)
Many retailers are using their store footprint to close the service gap
vs. Amazon’s Prime and free shipping offers
Buy
online instore
Buy
online,
return in-store
Reserve
online,
buy in-store
Same-
daydelivery
In-storepickup
Ship-
from-store
Winners:
▪ Fast movers, sincecomplexity of somesolutions takes time toimplement
▪ Apparel companieswhere returns are alarger proportion of thebusiness
▪ Companies servinglower incomeconsumers whereshipping costs are alarger consideration inchoice of retailer
1g
HAPPENING NOW
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McKinsey & Company | 14SOURCE: McKinsey Consumer Digital Excellence (CDE)
Store size reduction/repurposing of space is required by
retailers who are seeing sales slow in big box stores
49
85
25
33
162
166
6
68
168
220
4
64
111
10
16
43
56
152
131
120
1/3 rd of retai lers
are bui ld ing sm al ler
stores compared
to 5yrs ago
20112008
Average new store size
Square feet, 000
Winners:
▪ Companies with less leaseobligation, who have moreflexibility to downsize stores
▪ Companies who are instable categories (i.e. notmoving online too quickly)
▪ Companies that can useconsignment stores (e.g.dept. stores) or who can
increase ancillary usage ofexisting store space
1g
HAPPENING NOW
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P r i n t e d
McKinsey & Company | 15SOURCE: McKinsey Consumer Digital Excellence (CDE)
Changing demographics
Millennial
Spend (B)2
65+
Spend (B)1
Hispanic
Spend (B)1
2011
$370
$530
$360
2020
$1,120
$950
$680
% TTL
12%
17%
11%
% TTL
27%
23%
16%
Key demographics segments driving growth in US
retail spend
Winners:
▪ Companies with strongconnections to emergingdemographic shifts: e.g.drugstores/health & wellness
stores for boomers▪ Retailers who invest in new
formats tailored to the needsof emerging segments, e.g.hispanic grocery
▪ Companies moving to digital
social if focused onmillennial shoppers
1h
HAPPENING NOW
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P r i n t e d
McKinsey & Company | 16SOURCE: McKinsey Consumer Digital Excellence (CDE)
Image based social networks have dramatically higher
impact on shopper behavior
13
16
19
11
18
37
46
15
10
18
18
22
41
48
15
23
17
28
24
53
37
Pinned multiple itemsfor a wish list
Pinned somethingalready bought
Purchased onlineafter seeing pinned
Purchased in-storeafter seeing pinned
Pinned multiple itemsto plan an event
Pinned somethingwanted to buy
Did more reasearchon an item
All
Women
18-24
Impact on shopping among those using those Pinterest in the last 6 months
Percent of respondents (multiple response allowed)
71
29
Male
Female
Winners:
▪ Highly emotive productcategories, especiallythose with a high level ofconsumer “involvement”
or creativity (crafts,
homewares)
▪ Categories where visualelements are a natural fit(Apparel, beauty)
▪ Companies that areleveraging user base as
advocates for the brandand have clear socialstrategies
2a
HAPPENING NOW
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P r i n t e d
McKinsey & Company | 17SOURCE: McKinsey Consumer Digital Excellence (CDE)
Next day/same day shipping – Amazon has reached
sufficient scale to make this an affordable reality in the US
eCommerce avg.
eCommerce'leading edge'
1 Assumes one day handling time; Cost assumes UPS rates for a 2 –lb parcel with 40-70% discount volume dependent
Standard Ground(1-5 days)
Buy Monday, receiveWednesday (2 days)
N u m b e r o f e
D C s
Buy Monday, receive Tuesday (Next day)
$ 3.93
4 $ 4.02
$ 4.133
2 $ 4.32
1 $ 4.52
2.0x
$ 2.2635
30 $ 2.46
10 $ 3.38
6 $ 3.79
5
$4.22
$2.26
$3.79
+ service impact
$ 2.26
$ 3.79
$ 3.93
$ 4.02
$ 4.26
$ 5.44
$ 7.74
3.4x
$ 2.46
$ 3.38
$4.83
$3.79
$2.26
$ 3.65
$ 10.03
$ 3.17
8.5x
$ 14.53
$ 16.42
$ 17.46
$ 19.25
$ 23.39
$ 26.84
$21.26
$14.53
$3.17
Cost of promised ‘payment-to-doorstep’ delivery speed1 by number of eDCs, USD
96% require deliveryvia Overnight Air
2b
91% of shipments be
sent via Ground
S f fLIKELY COMING
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McKinsey & Company | 18SOURCE: Company documents, press releases; team analysis
Same day shipping – the rollout of Amazon Fresh, ship from store, and
third party fulfillment services will be the catalyst
▪ Amazon Fresh is slated to be in rollout mode, withadditional offers in California expected later this year
▪ Analysts have suggested Amazon Fresh will be in 20 MSAs by the end
of 2014
▪ Each Amazon Fresh warehouse includes over 100k of the fastest moving
non-food items to be delivered with grocery deliveries▪ 1 hour delivery window, can be either attended or not
▪ Your order can be picked and delivered in 6 hours if you order overnight
Technology that integrates with themerchant's ecommerce platform,connecting you with our network oflocal same-day carriers.
Shoppers in some geographies canuse eBay Now to order items fromhundreds of stores, including BabiesR Us, Best Buy, Free People.
Next day, and potentially same day are next on the
agenda led by potential Fresh rollout
Winners:▪ Amazon will be a
winner due to supplychain advantage
▪ Companies withsufficient scale tosupport ship from
store▪ Higher margin
retailers whichcourier type deliveryis economic
▪ Grocery players withonline pickup/
delivery might win asinstant fulfillment ofonline ordersbecomes expected
2b
P d t li tiLIKELY COMING
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P r i n t e d
McKinsey & Company | 19SOURCE: McKinsey Consumer Digital Excellence (CDE)
Product personalization2c
50% of shoes sold through Nike.comare personalized
NikeID.com representative
Winners
▪ Apparel categories withsufficient volumes andflexible enough supplychains to make theeconomics of customordering viable
▪ Strong brands withhighly engagedconsumers and anexisting direct toconsumer (storeoffering)
▪ Other “design”categories – home andconsumer electronics
Product personalization is catching the attention of
major brands
Incremental benefits
▪ Lowers channel conflict for brands selling direct
▪ Higher customer engagement▪ Increased customer information, especially for
assortment planning and optimization
“
Thi d t d t b d t t t t l ti d i thLIKELY COMING
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P r i n t e d
McKinsey & Company | 20SOURCE: McKinsey Consumer Digital Excellence (CDE)
Third party data can be used to contact customers real time during the
shopping experience
Visa’s Real-Time-Messaging service enables retailers
to reach customers real-time and on-location Winners▪ Large aggregators of
customer data: Socialnetworks, Phonecompanies
▪ Large aggregators of
cross retailersinformation: Creditagencies, payments
▪ Retailers who developcapabilities andrelationships early andexperiment
▪ Retailers with access tothe consumer to delivertargeted messaging
Susie grabs a lunchat the Westfield Malland pays with her
VISA card
The Gap in the mallis automaticallyalerted by VISA that
Susie is upstairs
Susie gets apersonalizedmessage from GAP!
Welcome to
Gap Mobile 4 U
Monica, come to our
store and enjoy 20% off
until 2 pm today!
2d
As in Europe lockers and pickup points will be increasingly adoptedLIKELY COMING
2
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P r i n t e d
McKinsey & Company | 21SOURCE: McKinsey Consumer Digital Excellence (CDE)
As in Europe, lockers and pickup points will be increasingly adopted
as categories continue to shift online, especially grocery
Grocery pickup point implementation in France Winners
▪ Amazon – alreadyinvesting in severallocker partnership(through 7-11 andStaples)
▪ Grocers who invest in“pickup locations” and
make non-food avai-lable to food buyers(30% uplift in non-foodsales for Amazon freshcustomers)
▪ Retailers or third partyowners of lockers whocan rent out space(Macy’s., Google)
1,599
1,072
524426
0
500
1,000
1,500
2,000
2012(end August)
201120102009
Shop Anywhere Online, ship parcelto your nearest BufferBox, pick upyour delivery using your PIN
2e
US consumers are open to mobile paymentsLIKELY COMING
2f
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P r i n t e d
McKinsey & Company | 22SOURCE: McKinsey Consumer Digital Excellence (CDE)
US consumers are open to mobile paymentsPercent of all respondents indicating a particular attitude1
Early
adopter
I’m an early adopter, I enjoy trying new things with
my mobile phone and payments is a big part of that
Resistant I’m resistant, I like the way I pay today and don’t
want to change anything
Indifferent I could care less, my current bank cards work fine.
Mobile payments don’t help me
Skeptical I’m skeptical, this is still new and I think there are
risks in making the transition
Open I’m open; if my phone has it and merchants accept
it, then I’ll give it a try
Selective
user
I’m selective; if mobile payments delivers value to
me, I’ll embrace it
Receptive
Open
Unreceptive
6
9
20
29
24
12
DescriptionType United States, %
1 <_________>
2f
Though the US still lags many developingLIKELY COMING
2f
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McKinsey & Company | 23SOURCE: McKinsey Mobile Payments Global Survey
Though the US still lags many developing
markets due to lack of need/common approach
1 Only owners of smart-phones included in analysis2 Question: “How frequently have you performed these types of mobile payments (never, rarely, occasionally, frequently)?”s
Frequently
Occasionally
Mobile PaymentActivities United States Brazil India
Winners
▪ Very hard to tell
▪ Likely to be the phonecompanies with somekind of consortiabacking, sincehardwareimplementation ismajor barrier toadoption
▪ Some software basedsolutions may take off,e.g. through codescanning
▪ Closed / proprietarysystems make sensefor regular purchases(Walmart / Starbucks)
Transact atPoint of Sale
15
4
11
Send PersonalPayments
154
11
Perform RemotePayments
246 18
Conduct MobileCommerce
399 30
Buy MobileContent
15 4631
Buy Applications
5820 38
13 30
7130 41
22 6139
3610 26
4316 27
4413 31
43
4417 27
5122
37
29
4821 27
6122 39
7233 39
6528
2f
Percent in category, Smartphone users-only
A range of technologies are enhancing the store experience that willLIKELY COMING
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McKinsey & Company | 24SOURCE: McKinsey Consumer Digital Excellence (CDE)
A range of technologies are enhancing the store experience, that will
enhance the user experience and increase productivity
Winners▪ Retailers that invest in
tech for store-operations will benefitas lower labor costs /higher sale productivitywill become
increasingly critical▪ Higher end apparel and
other high marginretailer will be able toinvest in store tech and justify the investment
▪ Companies that learn
to manage store techportfolio efficiently anddo not over-invest inlow ROI solutions
Productinformation
Extended
assortment
Augmented reality
Temporary andvirtual stores
Payments
Personalization
In-store
Out-of-store
Efficiency/
Productivity
Sales
driving
Mobile store reporting andmanagement tools
Mobile activity
management
Automated back rooms
Intelligent
shelf facings
Predictive queuemanagement
Next generationself check-out
Remote on-shelf visibility
Emerging store enablement technologies
2g
Store technology – Burberry’s London flagship is designed toLIKELY COMING
2g
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Store technology – Burberry s London flagship is designed to
resemble the brand’s website, with 100 screens in-store
“Burberry Regent Street bringsour digital world to life in aphysical space for the first time,where customers can experience
every facet of the brand throughimmersive multimedia contentexactly as they do online”
– CEO
“Store associates carry ipads sowe can order goods that are notin store. Currently in our Londonstore over 10% of orders areplaced using the iPads”
– Head of ecommerce
2g
Social / local gaming – check in platforms help driveWORTH WATCHING
3a
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Social / local gaming check in platforms help drive
traffic in local businesses
▪ Mobile game platform that allows players to goplaces, do challenges, earn points, share whatyou’re doing and where you are, and unlock
badges and rewards
▪ When players go to a place (e.g., restaurant,museum, store), they can check-in, takepictures, and complete an activity that will earn
rewards
▪ Challenges are easy, six-second fun things
▪ Rewards include things like free ice cream orcoffee, 10% off your dry-cleaning, etc. Localbusinesses build their own rewards and they canbe redeemed from the SCVNGR app
▪ Dunkin’ Donuts partnered with SCVNGR to offerguests the chance to win free lunch for a year
▪ ~2 million user base
“A game about doing challenges at places.”
3a
Local – Snapette allows users to share the content ofWORTH WATCHING
3a
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Local Snapette allows users to share the content of
local boutiques
▪ Launched in 2011, Snapette is a mobile shopping app
designed for discovering and sharing fashion productsavailable in nearby stores
▪ How it works:
– Users snap a photo on Snapette and upload it withbrand, price, and location information
– If user sees something they like on the app, they havethe option to "love" the item
– Pull up the item's store information and get directionsto the store
▪ For its brand and retailer partners, Snapette provides a
real-time and targeted marketing platform to drive foottraffic to stores and grow a loyal customer base
▪ Retailers can create profiles and display products and
information about promotions by sending pushnotifications specifically designed to alert users about anearby sale
▪ Now have 100+ retailers and boutiques on boardincluding Diane von Furstenberg and Vince Camuto
3a
Social commerce – leverage the “always on” consumerWORTH WATCHING
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Social commerce leverage the always on consumer
as your merchant …
▪ Social photo crowd-sourcing program that allowswebsites to collect, curate, and display photos theusers in their community are taking
▪ Acts as a technology platform that helps publishers,agencies, and e-commerce sites integrate photosfrom social media sites like Instagram and Twitter
▪ For e-commerce sites, Olapic provides a product-
specific widget enabling e-tailers to showcase usergenerated photos of the product in the page asphoto-reviews
▪ Internal tracking provides metrics that help retailersdetermine what item is driving more conversionsand sales than others
▪ Retailers using the system have found ~2-5% of the
conversions result from clicking on user-generatedcontent
▪ Growing customer base includes: Freepeople.com,lululemon, Conde Nast, Pepsi
“Now, we have proven it that by having photosin the e-commerce experience, browsers are
converting [into customers] at the rate of
two or three times more than people who
don’t interact with photos. That was one ofthe insights we had over the holiday season.”
– Jose de Cabo, co-founder
3b
Social commerce – enable transactions at any time, andWORTH WATCHING
3b
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y ,
from any platform
▪ Chirpify launched in 2012 and is the only in-stream payment platform that uses Twitter andInstagram to conduct transactions
▪ How it works
– User signs up for service and enters hisPayPal and shipping details
– Visit any item that is being sold via Instagram
– tagged with #instasale – and enter theword "buy" in the comments for an instanttransaction to take place
▪ Recently expanded the platform to include thesale of digital goods
▪ In addition to an e-commerce platform, Chirpifyalso enables peer-to-peer payments and
donations
▪ CEO says 50% of members have made
transactions on the platform
“We want to create aportable, frictionless wayto check out in atransaction," he said.
"We want to make itdead simple to buythings.”
– Chris Teso
3b
Geo-targeting marketing platformsWORTH WATCHING
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g g g p
1 Frost & Sullivan, 2012 North American Mobile Advertising Best Practices Research White Paper
▪Location-based advertising experience thatconnects advertisers to on-the-go-mobileaudiences using the world’s largest location-based interactive media channel
▪ Advertisers can identify and deliver ads to theirdesired audience segments based on a person’s
physical location
▪ Network consists of over 55 million users and250 global partners
▪ Beta testing partners have seen 30-40%
increase in clickthrough rates in ads that useLocation Graph data1
▪ JiWire’s Insights group found that 85% of
mobile consumers use their phone whileshopping in-store
3c
Geo-targeting marketing platformsWORTH WATCHING
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▪ Location-based push SMS product (ShopAlerts)
▪ Advertisers define a geographic boundary in whichusers who have opted-in would receive a push-SMS from the advertiser, typically in a form of apromotion or advertisement to visit the store
▪ Research study found that 42% of consumers 18 – 34 interested in text alerts from marketers1
▪ Over 10 million opt-in ShopAlerts users and130 participating brands
▪ 50% of consumers visit a location after receivingShopAlerts mobile offers2
▪ On average 22% of consumers make purchases
after receiving ShopAlerts mobile offers2
▪ 46% of ShopAlerts consumers find it easier toget offers, deals and information on their phonesvs. traditional coupons or emails2
g g g p
1 Placecast-Harris Poll, 2010 2 Placecast ShopAlerts Internal Data 2012
Continued rise of the “mega-intermediary” will lead to more WORTH WATCHING
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customer-centric enablement of shopping
Customer access - device
Customer access - search
Customer transaction data
Deep cross category assortment
Payments platform
Delivery network
Local commerce / search
User generated content
In addition to deep technology
skills, these players have:
Three players have the potential to
deliver customer-centric, cross-retailer &
category shopping experiences
Shipwire caters to small businesses with bigWORTH WATCHING
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shipping needs
▪ Founded in 2006, Shipwire operates sevenwarehouses in U.S., Canada, China and the UK,and plans to expand into Germany, Brazil and Australia
▪ Provides outsourced order fulfillment servicesfrom a network of global warehouses connectedby a software platform
▪ Integrates with a company’s existing order
capture systems—partners include eBay and Amazon—enabling customers to view real timeshipping rates as well as inventory status
▪ Offers same-day shipping, manages freightmovements, and is capable of providing
expedited delivery service▪ Shipwire works with major online storefront
solutions (e.g. BigCommerce, 3Dcart)
“A game about doing challenges at places.”
Store tracking through mobile (and face recognition)WORTH WATCHING3f
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Euclid analytics measures store traffic by tracking the wi-fi signals from
customers cellphones.Example real-world metrics they provide:
CAPTURE RATE: How well do your window displays pull shoppers intothe store? Find out your Capture Rate and actively improve it.
REPEAT VISITOR RATIO: Are most of your shoppers regular customersor first-timers? Optimize for the segment that drives the most sales.
WALKBYS: How much business is walking right by the door? Launchyour sales on the days with the highest Walkby traffic.
VISIT DURATION: How long do your shoppers spend in the store? Arethey engaging with staff or waiting in line?
VISIT FREQUENCY & RECENCY: How often do shoppers come in thedoor each month? Are your daily deals generating loyal customers?
ENGAGEMENT & BOUNCE RATES: Are shoppers staying long enoughto make a purchase? Or do they “bounce” in just a few minutes?Measure the percentage that stay for a period of time you specify.
Point inside helps users navigate malls and storesWORTH WATCHING3g
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▪ Mobile shopper engagement platform that adds
“store mode” capabilities to retailers’ brandedmobile apps
▪ Enhances shoppers’ experience through the
graphical presentation of exact product locationsand efficient routes through store to fulfill ashopping list. Personalized offers, productsuggestions, coupons and more are delivered in
real-time based upon each customer’ location,intent, activity and profile
▪ Provides deep customer insights to retailers anddelivers highly personalized content based oncurrent purchase intents, past purchasebehaviors and the shopper’s location in the store
▪ Drives 5x more shopper engagement thanidentical apps without in-store location andassociated store-centric features1
1 Press release, Point Inside, Feb 2013
Stores being used as showrooms for onlineWORTH WATCHING3h
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1 Press release, Point Inside, Feb 2013
▪ Shanghai-based homeware brand
homes-up.com has added two physicalstores to its online-only offering.
▪ Nothing can be bought and taken awayfrom the stores, instead they act as aweb-front to allow shoppers to see andtouch a curated selection of items soldonline.
▪ Items ordered online can also becollected in-store.
▪ Bonobos produces men’s made-to-order pants and is expanding
into other mens apparel lines (online)▪ Partnered with Nordstrom to provide “real world” access to clothes
▪ Also opened a series of “fitting stores” where customers can try on
clothes to get fit and then replenish online
▪ Fitting stores second floor offices, located in major cities