webloyalty world cup 2014 consumer research

LOOKING AHEAD… FOOTBALL AND RETAIL UK CONSUMER SPENDING

WEBLOYALTY & CONLUMINO

JUNE 2014

Introduction

© 2014 Webloyalty & Conlumino [email protected] | 020 7291 8720

Looking ahead ... The World Cup June 2014

Webloyalty 19-21 Great Portland Street W1W 8QB 020 7291 8720 [email protected] www.webloyalty.co.uk

Conlumino 7 Carmelite Street, London EC4Y 0BS 020 7936 6654 [email protected] www.conlumino.com

This research has been commissioned by Webloyalty to provide retailers with insight into the FIFA World Cup. About Webloyalty Webloyalty is a leading reward programme provider working with major online retailers to help them build stronger, more profitable relationships with their customers. Through our membership programmes we help our online retail partners’ customers save hundreds of pounds a year while providing the partner with an additional revenue stream. As well as incentivising customers to make repeat purchases at the partner’s site, members can also earn cashback and get great deals on everything from fashion to electronics to travel at hundreds of top online stores. Webloyalty was established in the UK in 2007 and has since expanded into France, Germany, Spain, Italy, Ireland, Brazil and the Netherlands. About Conlumino Conlumino is a retail research agency and consulting firm. Our work focuses on all aspects of retailing and consumer behaviour, which we deliver through bespoke reports, projects and presentations. We work with many of the world’s leading retailers, property firms and those in the financial sector to help them maximize success through developing a thorough understanding of the sector and its likely future performance.

Foreword

The world cup Consumer views and behaviour

The World Cup



World Cup summary

A captive audience With over half the population intending to actively watch the World Cup, retailers have a captive audience to which they can cater. Given the timing of the games, this is all the more so since the majority of people are intending to watch from home – which means they are likely to buy snacks, food and drink to consume while watching.

Get a new TV set With a lot of recent investment in new televisions (thanks to thinner screens, digital upgrades and new technological advances) it is not surprising that relatively few people are planning to buy a new television for the World Cup. Nevertheless, 1% does translate into a sizeable opportunity for retailers.

Overpriced There is a widely held view that replica shirts are overpriced. Almost 79% of those likely to buy shirts say that they have been deterred by the high price points. When asked what a reasonable price for a shirt would be, the majority of consumers think below £30 is fair. On average, they believe £20 is a fair price point. 78% of us wouldn’t have bought one regardless of price.

A boost to retail Overall, we estimate that the spending around the World Cup will be worth £814m. Most of this will be on food and drink. Naturally, some of this will be spend that is reallocated from other areas – for example normal food spend – however, there will be an overall boost to retail spending thanks to the tournament.

The World Cup



Views on the World Cup

What is your attitude to watching the World Cup? All figures are percentages

Almost 18% will actively avoid watching the World Cup

5.0

22.3

14.5

4.3 5.8

8.8

21.6

17.8

I plan to watch every game

I’ll be following it as much as I can

I’ll just watch the England games

I’m most interested in watching the semis and the

finals

I’ll watch a few games socially

with friends

It will be on at home but I’m not that interested in

it

I will not be watching any of the World Cup

I will actively go out of my way to avoid seeing the

World Cup

Just over half of people (51.9%) are actively interested in the World Cup and plan to watch it, at least socially. Almost 9% will have the World Cup on in the background but are not that interested in it. Around 39% will not watch the World Cup or will actively go out of their way to avoid seeing it.

The World Cup



Viewing locations

Where will you watch the games? All figures are percentages

Most people will watch the games at home

93.9

23.1 18.5

2.9 2.5 1.9 1.0

At home At a pub At family or friends’ places

At work At a club Other location At a cafe

The vast majority of people will watch at least some of the games at home. A quarter will watch at the pub, while around 19% will visit friends or family to watch some of the games.

The World Cup



Viewing medium

How will you be watching the games? All figures are percentages

Very few people will watch the games on a mobile device

93.4

29.3

7.8 2.8

6.7

Live on TV Highlights package on TV On a computer/laptop On a mobile device I’ll record a game / games to watch after they are

played live

Most people will be watching the games live on TV. Viewing on mobile devices will be relatively limited, with just under 3% saying they will use this method.

The World Cup



Buying activity

What sort of things will you buy for the World Cup? All figures are percentages

A fifth will buy snacks to eat at home, but only 1% will buy a TV

Snacks to consume at home 20.4

Alcoholic drinks to consume at home 17.9

Alcoholic drinks consumed out of home 10.0

Pizza and other fast food to consume at home 8.7

Non-alcoholic drinks to consume at home 7.5

Snacks consumed out of home 6.2

Ready meals to consume at home 3.8

Other food and drinks to consume at home 3.8

Pizza and other fast food consumed out of home 2.9

Non-alcoholic drinks consumed out of home 2.8

Other meals and food consumed out of home 2.6

Replica football shirts/kit 2.0

Official stickers 1.7

Tournament or team themed Tshirts 1.4

Official books or guides 1.0

Tournament or team themed mugs 1.0

A new TV to watch games on 1.0

Tournament or team themed scarves 0.8

Tournament or team themed sweatshirts/other shirts 0.7

Tournament or team themed posters 0.7

Other tournament or team themed souvenirs 0.7

A new laptop/computer to watch games on 0.7

Other homewares or furniture items 0.7

Other tournament or team themed clothing 0.5

Tournament or team themed keyrings 0.3

A new sofa to sit and watch the games on 0.3

Tournament or team themed ties and accessories 0.2

The World Cup



World Cup spending

Breakdown of World Cup spending All figures are percentages

In total, people will spend £814m on the World Cup

Total World Cup spend:

£814m

World Cup food spend:

£271m

World Cup electricals spend:

£359m

World Cup clothing and souvenirs spend:

£184m

In total, we forecast that consumers will spend some £814m on the World Cup. Although relatively few people will buy electrical items, the high value of purchases means this category will see a solid boost in spending to the tune of £359m. Food will also be a major beneficiary with consumers splashing out £271m on snacks and drinks.

The World Cup



Football shirts

How much do you think it is fair to charge for a replica football shirt? All figures are percentages

Most people think that paying under £30 for a shirt is fair

25.2

29.7

25.4

13.4

4.4

1.0 0.3 0.1 0.0 0.5

0.0

5.0

10.0

15.0

20.0

25.0

30.0

Less than £10

£10-£19.99 £20-£29.99 £30-£39.99 £40-£49.99 £50-£59.99 £60-£69.99 £70-£79.99 £80-£89.99 £90-£99.99

On average, people think that £20.05 is a fair price to pay for a replica football shirt. Very few people think that paying above £40 is reasonable.

£20.05

The World Cup



Price of football shirts

Has the price of the England replica shirt deterred you from buying one? All figures are percentages

18% of people have been deterred from buying a shirt by the price

17.7% 4.8%

Yes No Would not have bought anyway

77.5%

Overall, just under 18% of consumers say that they have been put off buying a replica England shirt because of the cost.

Methodology About the research

Methodology



Methodologies and sources

•  A combination of consumer research, secondary research and market forecasting were used to compile this report.

•  Consumer research in this report is based on a survey conducted with a UK nationally representative poll of consumers. Over 2,000 consumers were interviewed during early May 2014 and questioned about their views on the World Cup and their intentions for this.

•  All numbers relating to expenditure and forecast expenditure of gadgets are taken from Conlumino’s own retail model. This is updated on an ongoing basis with inputs from official sources (such as the BRC and ONS), retailers’ results and trading updates, other secondary sources and industry surveys, Conlumino’s ongoing programme of research into consumer spending and habits, and underlying economic drivers and trends. Conlumino analysts both model and interpret this information to provide guidance on the likely future direction of retail expenditure at an overall, sector and category level.

•  Unless otherwise stated, all sources of information are derived from Conlumino’s own research and should be referenced to Webloyalty/Conlumino.

Conlumino

020 7936 6654 [email protected]

7 Carmelite Street, London EC4Y 0BS

Webloyalty

020 7291 8720 [email protected]

19-21 Great Portland Street, London

webloyalty world cup 2014 consumer research

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