emma retail trends and insights · Combined with imaginative use of social media and mobile apps,...

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May 2015 emma retail trends and insights Having it all The in-store experience is still key to young Australian women’s shopping habits, creating opportunities for retailers.

Transcript of emma retail trends and insights · Combined with imaginative use of social media and mobile apps,...

Page 1: emma retail trends and insights · Combined with imaginative use of social media and mobile apps, retailers can take advantage of the higher frequency shopping and media habits of

May 2015

emma retail trends and insights

Having it allThe in-store experience is still key to young Australian women’s shopping habits, creating opportunities for retailers.

Page 2: emma retail trends and insights · Combined with imaginative use of social media and mobile apps, retailers can take advantage of the higher frequency shopping and media habits of

Numerous studies suggest Australian retailers rate multi-national online competitors as their biggest threat and in response are aggressively optimising online sales channels. One recent survey1 found more than 95% of retailers consider e-commerce the most effective means of sales conversion, compared to just 46% for bricks and mortar stores.

Despite perceptions to the contrary however a study using emmaTM data on the attitudes and behaviours of 25-35 year-old Australian women shows these key consumers still love the in-store experience: they shop at both online and traditional stores more frequently than their earlier generation sisters (45-65 year-olds) do.

What’s more, younger women voraciously consume digital content via mobile and social platforms, are ‘always connected’ and very accepting of geo-locational mobile apps.

Together, these shopping and media consumption profiles create opportunities for Australian department stores and specialty fashion retailers to engage younger women while they are out and about and in-store, to drive impulse purchasing and expand the range of products considered.

“...they shop at both online and traditional stores more

frequently...”

Generation buy

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Page 3: emma retail trends and insights · Combined with imaginative use of social media and mobile apps, retailers can take advantage of the higher frequency shopping and media habits of

Women of all ages love shopping. Four out of five Australian women aged 25-65 visit bricks and mortar department stores and fashion retailers at least once a year.

25-35 women however are more likely to be frequent visitors and shoppers at all the major department stores:

• Six in 10 younger women check out the mass retailers at least once every three months (20% more often than 45-65 year-old women).

• Younger women are 20% more likely to shop frequently at premium department stores and speciality fashion retailers.

25-35 women have also taken to online channels more eagerly than their older counterparts: in the past year one in four has bought fashion from an Australian online retailer, and one in 10 from an international outlet.

Whether in-store or online there are more opportunities for retailers to engage with their younger customers. The extent of consumer awareness and usage however varies by brand.

Of the pure fashion and clothing retailers, the same outlets feature in the top six for younger and older women alike, albeit in slightly different order.

Awareness and usage: major retailers bricks and mortar vs. online

40%

37%

32%32%

10%

15%

26%

32%

26%

37%

8%

2%

4%

1%

4%

1%

97%

98%

92%

94%

95%

96%

96%

97%

97%

98%

53%

45%

65%

59%

54%

60%

W25-35

W45-65

Bra

nd U

sag

eB

rand

Aw

are

ness

See it, want it…

3Source: emma™ Conducted by Ipsos Connect (Q1, Q2, Q3 and Q4 partial database), Sample of respondents women 25-35 n=3,138 | women 45-64 n=8,550

Younger women are far more likely to shop online for fashion yet continue to visit bricks and mortar outlets

Page 4: emma retail trends and insights · Combined with imaginative use of social media and mobile apps, retailers can take advantage of the higher frequency shopping and media habits of

Even as Australian retailers build their online sales channels, the in-store experience remains important to building loyalty and impulse purchasing, with 61% of 25-35 year-old women agreeing ‘I love to shop’ – with in-store a major element of the shopping ‘fix’.

And shopping habits, once established, are quickly entrenched. According to American Express2, 60% of Australian shoppers rarely visit more than 10 different retail and online shops. Just one in 10 of us impulse shops, only 22% do most spending online, and 85% of Australians always shop the same way.

Australian women of all ages buy clothing, shoes, fashion items and cosmetics, though shopping and spending patterns vary across generations – influenced by discretionary income, time and their media preferences.

Time for myself:

Less frequent, more leisurely shoppers

Just 25% have kids under 18 at home

OLDER WOMEN

Premium shoppers:

7% more likely to make higher-value in-store clothing purchases than the rest of the population

Spend 40% more on clothing  in-store

YOUNGER WOMEN

A fun, social occasion:

20% more likely to ‘love to shop’

45% more likely to enjoy shopping for cosmetics

Commando raiders:

Shop more often, but in shorter bursts

Time pressed: More than half have kids under 18 at home

Targeted spenders:

Spend as much in-store at mass retailers as older women

Frequent in-store shoppers spend more online – in some categories 50% of their total fashion spend

30% more likely than rest of population to spend less than $50 on clothing in-store

… buy it

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Source: emma™ Conducted by Ipsos Connect (Q1, Q2, Q3 and Q4 partial database), Sample of respondents women 25-35 n=3,138 | women 45-64 n=8,550

Page 5: emma retail trends and insights · Combined with imaginative use of social media and mobile apps, retailers can take advantage of the higher frequency shopping and media habits of

Average spend (last purchase) by segment instore and online

Ipsos SMXIn February 2015 Ipsos SMX – Social Intelligence compared consumer attitudes and motivations around department stores - both traditional and online – revealing a symbiotic relationship between in-store and online retail. It is well known that consumers visit stores to get the right size and colour choice and then buy online. But the reverse is equally common, with consumers frequently researching online and then visiting in-store to try on and then buy with a better discount or to meet an immediate need.

“Looked online & DJ’s are having a promo where

you get a full size $30 Weleda purchase! Will check

it out instore tomorrow.” beautyheaven.com.au

“You need to print the Target coupon

and take it in store to get the discount.”

saverscene.com.au

“What a disappointment there’s

no online layby.” essentialbaby.com.au

Bricks &Mortar

Clothing Shoes

Watches/Jewellery Fashion items

Online Bricks &Mortar

Online

Bricks &Mortar

Online Bricks &Mortar

Online

$118

$180 $168

$115 $118

$184

$105

$156

$83 $108

$149 $126

$89 $93

$165 $144

Bricks &Mortar

Clothing Shoes

Watches/Jewellery Fashion items

Online Bricks &Mortar

Online

Bricks &Mortar

Online Bricks &Mortar

Online

$118

$180 $168

$115 $118

$184

$105

$156

$83 $108

$149 $126

$89 $93

$165 $144

Bricks &Mortar

Clothing Shoes

Watches/Jewellery Fashion items

Online Bricks &Mortar

Online

Bricks &Mortar

Online Bricks &Mortar

Online

$118

$180 $168

$115 $118

$184

$105

$156

$83 $108

$149 $126

$89 $93

$165 $144

Bricks &Mortar

Clothing Shoes

Watches/Jewellery Fashion items

Online Bricks &Mortar

Online

Bricks &Mortar

Online Bricks &Mortar

Online

$118

$180 $168

$115 $118

$184

$105

$156

$83 $108

$149 $126

$89 $93

$165 $144W25-35

W45-65

5Source: emma™ Conducted by Ipsos Connect (Q1, Q2, Q3 and Q4 partial database), Sample of respondents women 25-35 n=3,138 | women 45-64 n=8,550

Women tend to spend slightly more online thanthey do instore on each fashion segment

Page 6: emma retail trends and insights · Combined with imaginative use of social media and mobile apps, retailers can take advantage of the higher frequency shopping and media habits of

Internet-connected mobile devices aren’t just part of women under 35’s lives but at the core of all their social activity. Compared to older women, 25-35s are far more likely to seek information, advice and entertainment on the go, and to use mobile locational apps.

Younger women also have larger social media networks than their Baby Boomer counterparts, which dramatically enhance word-of-mouth influence on their fashion purchasing.

Right here, right now

W25-35 W45-65

I make a lot of use of mobile phone apps that use my current location

I look at websites on laptop, tablet or phone whilst out and about

I use my mobile phone to get news and information

I feel comfortable using my mobile phone to pay for things in shops

I use social media to interact with a TV program

I encourage others to buy fashion based on my own experiences

I have been influenced by other buyers experiences in my fashion purchase decision

I have posted or shared positive comments about fashion products, services & experiences online

I am often asked about my opinions & knowledge on fashion products & services

32%

14% 6%

24% 11%

18% 9%

22% 11%

Social Media Influence on Fashion Purchases Social Network Size

The Connected Shopper

15%

60%

30%

37%

10%

19%

8%

28%

13%

164 158

103

142 146 135 127

285

6 Source: emma™ Conducted by Ipsos Connect (Q1, Q2, Q3 and Q4 partial database), Sample of respondents women 25-35 n=3,138 | women 45-64 n=8,550

Social media is a key platform to reach and influence younger fashion shoppers

Page 7: emma retail trends and insights · Combined with imaginative use of social media and mobile apps, retailers can take advantage of the higher frequency shopping and media habits of

MirandaBondi

JunctionChatswood Blacktown

Index Index Index Index

I shop online 105 114 108 102

I look for information on products and services online 102 110 108 99

I feel confident about my financial situation in the future 114 119 126 83

I’d feel lost without the internet 105 120 115 109

Accessed Facebook last 4 weeks 98 103 105 105

Accessed Instagram last 4 weeks 106 137 131 113

Accessed Twitter last 4 weeks 101 172 162 113

Household spend on clothing ($ p.a.) Index 106 138 121 89

Household spend on clothing ($ p.a.) $1,877 $2,446 $2,151 $1,576

Go shopping at a department store 103 102 104 102

Go shopping at a large shopping centre/ Complex 100 104 104 101

One size does not fit all

To engage younger women, retailers need different strategies for different areas. geoemma data – which offers attitudinal, consumer spend and media profiles by geographic region – shows why targeted communications that resonate with local attitudes, behaviours and beliefs will be more effective.

For example, households in Sydney’s eastern suburbs are more likely to be receptive to messages about shopping online and messages delivered via online platforms. They are also more engaged with social media  platforms such as Instagram and Twitter.

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Source: geoemma RDA Research (2015)

geoemma heat map of Sydney showing indices of annual spend on clothing. Bright red is highest index vs. green lowest index.

Page 8: emma retail trends and insights · Combined with imaginative use of social media and mobile apps, retailers can take advantage of the higher frequency shopping and media habits of

The hyper-connected 25-35 year-old Australian woman – with her love of shopping, the in-store experience and the social nature of shopping – is highly receptive to targeted retailer messaging and promotions.

New cross-platform audience measurement tools, such as Ipsos’s emmaTM survey, offer greater scope to track emerging behaviours, analyse the role of social media channels, and enable geo-targeted messaging in new ways.

Programmatic buying platforms that merge respondent level data from cross-platform audience surveys, combined with rapidly developing public space Wi-Fi services, will increasingly provide the means to target and reach the consumer at the optimum time.

Combined with imaginative use of social media and mobile apps, retailers can take advantage of the higher frequency shopping and media habits of young Australian women to engage these consumers wherever they are – whether in-store, out and about or online.

Closing that sale

Sources:1 SLI Systems Sydney. April, 2015.2 American Express Pattern Spending Report (Australia). February, 2015.

Explore and discoverThe observations and analysis in this short report are based on data from Ipsos’ emmaTM survey and geoemma/RDA research. The emmaTM survey is completed by 52,000 Australians per year and is accurately matched to total population across gender, location and demographic variables.

Detailed responses are collected across all aspects of consumers’ retail behaviour online and offline.

To find out more or to arrange a tailored presentation for your brand please contact [email protected] or visit emma.com.au

This report is published by Ipsos Australia. L13, 168 Walker Street North Sydney, NSW 2060 © Ipsos Australia, 2015. emmaTM is a trademark of The Readership Works