Google Canadian eCommerce June 6, 2011 from eCommerce-Camp-Toronto
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Transcript of Google Canadian eCommerce June 6, 2011 from eCommerce-Camp-Toronto
Google Confidential and Proprietary 1
Google Confidential and Proprietary
Where Are We Now And Where Are We Going
Sara Scurfield
eCommerce in Canada
Google Confidential and Proprietary 3
eCommerce Retail Sales in
Canada are about 1% of Total
Retail Sales
Source: Retailing in Canada, Euromonitor, April 2011
Google Confidential and Proprietary
But Expected to Double by 2015
444
$16.5$18.5
$21.1$24.1
$27.4$30.9
2010 2011 2012 2013 2014 2015
Spend in Billions
Source: eMarketer, Feb 2011 Canada
Google Confidential and Proprietary 5Source: eMarketer, Feb 2011 Canada
Of Canadians are Online
77%
Of Canadian Internet Users
Shop Online
82%
Of Canadian
Shoppers BuyOnline
57%
Google Confidential and Proprietary
In 2010, Online Shoppers
Averaged 6.5Purchases
6
Source: Ipsos Reid Interactive Digest, February 2011
= 6.9 = 6.1 = 7.4HH $75K+
Google Confidential and Proprietary
One Canadian in Three Who Bought Gifts This Past Holiday Bought Them Online
777
Source: Ipsos Reid Interactive Digest, February 2011
Google Confidential and Proprietary 888
Source: Ipsos Reid Interactive Digest, February 2011
Books 35% Apparel
33%
Toys/Games
28%
Top Three Categories Bought Online At The Holidays
DVDs/Video
Source: Ipsos Reid Interactive Digest, February 2011
Google Confidential and Proprietary 9
The Average Annual Spend
Per Online Buyer is $1446
How Much Do Canadians Buy?
Source: eMarketer, February 2011, Projected figure for 2011
Google Confidential and Proprietary
What Does The Future Hold?
101010
Google Confidential and Proprietary 11
In Q1, eCommerce Sales in the US were
8.6% of Total Retail Sales
eCommerce Growth Rate is Almost Double That of Overall Retail
Multi Channel Retailers Starting to Re-gain Share vs. Pure Plays in Q1
Source: ComScore, State of the U.S. Online Retail Economy in Q1 2011, May 2011
Google Confidential and Proprietary
Other Trends From Our Neighbours To The South
12
Mass Merchandisers & Drug Stores attract site visitors with eCommerce, Rx and Health informationNo such drivers to supermarkets in the US. In the UK, Tesco (grocery) is growing their e-Commbusiness.
Books/Mags, Computers/Peripherals, & Video Games saw Q1 growth rates higher than 15%
Consumer Electronics is the first category where online shopping is hurting the bottom line due to price transparency.
Source: ComScore, State of the U.S. Online Retail Economy in Q1 2011, May 2011
Google Confidential and Proprietary
And Never Underestimate the Power of …
13Source: ComScore, State of the U.S. Online Retail Economy in Q1 2011, May 2011
49% of all
purchases in Q4 2010 offered "free shipping”
61% at least
somewhat likely tocancel their entire purchase if there
was no free shipping
Google Confidential and Proprietary
And Some Trends Right Here in Canada…
1. Keeping it Local - Group Buying a Hit In Canada- Strong Multi Channel Retailing:Clicks to Bricks, Store Level Inventory online & Mobile
2. Mobile 10% of Search Queries in Canada now coming from Mobile Phones. Top Retailers with Top Apps- Promoting loyalty, extending customer service
3. US Retailers Want a Piece - US Store shipping to Canada (JC Penney, Abercrombie, Bloomingdales)- Border Agnostic Shoppers, strong CDN Dollar, go where the deals are found
14
Google Confidential and Proprietary
• Google Commissioned Ipsos OTX MediaCT to conduct research to better understand consumers’ shopping behavior in:
• Home Appliances• Home Furnishing Items• Home Improvement / Gardening Items• Clothing & Apparel
• Qualified Respondents Are:
• Canadian residents • Ages 18-64• Past Six Month Purchasers of categories listed above
• Each respondent assigned to one product category they qualified for & answered surveys specific to their category
• Interviews conducted in April, 1,000 respondents.
15
Google Talked To Canadians About Shopping
Google Confidential and Proprietary
What Did We Find?
16Source: Google Canada Retail Study, Ipsos/OTX, April 2011Q1E. How did you purchase your (CATEGORY)? (n=1003)
6%Purchased Online
Highest at 8% for Home Appliances;
Lowest at 4% for Home Improvement/Gardening
Google Confidential and Proprietary
4 in 10 Category Purchasers Went Onlineto Search For Information
17Source: Google Canada Retail Study, Ipsos/OTX, April 2011Q2A. Which of the following sources did you use to gather information about the (CATEGORY) you most recently purchased? (n=1008)Q2B. And, which of the following sources did you turn to first when you began your information gathering process?) (n=586)
Google Confidential and Proprietary
Where Are They Going Online?
18
Store or Retailer Websites 67%
Search engines 48%
Brand or manufacturer websites 39%
CATEGORY websites 28%
Review websites (e.g., CNET, ConsumerReview) 22%
Price comparison websites (e.g., Bizrate, Nextag) 15%
Online-only retailer websites (e.g., Amazon,
Overstock) 14%
Auction websites (e.g., eBay) 10%
Blogs, message boards or chat rooms 8%
Social networking sites (e.g., Facebook, Myspace) 7%
Coupon websites (e.g., Groupon, LivingSocial) 6%
Online video sites (e.g., Youtube, Yahoo! Video) 6%
General interest websites or portals (like AOL, MSN) 5%
Other websites 5%
Source: Google Canada Retail Study, Ipsos/OTX, April 2011Q3A. Which of the following online sources did you use as you researched and gathered information about the (CATEGORY) you most recently purchased? (n=404)
Google Confidential and Proprietary
And How Useful Are Those Sources?
19
1 Store or Retailer Websites 70%
2 Search Engines 68%
3 Online Video Sites 67%
Source: Google Canada Retail Study, Ipsos/OTX, April 2011Q3B. Overall, how useful do you think each of the following online sources were to you as you gathered information about your (Category)? (n=404)
Extremely / Very Useful
Google Confidential and Proprietary
One in Ten Who Used Search Bought Online
20Source: Google Canada Retail Study, Ipsos/OTX, April 2011Q3D_1. Now we would like to know how each of the following sources helped you as you researched and gathered information about the (Category) you most recently purchased. You may choose more than one statement for each source if you feel it applies.
Google Confidential and Proprietary
2 in 10 Mobile Information
Gatherers Bought Online
21Source: Google Canada Retail Study, Ipsos/OTX, April 2011Q3D_1. Now we would like to know how each of the following sources helped you as you researched and gathered information about the (Category) you most recently purchased. You may choose more than one statement for each source if you feel it applies)
Google Confidential and Proprietary
These Tablets Were Made for Shopping
Source: eMarketer, How the iPad is Transforming Retail, April 2011 (US Data); NPD Group, Tablet Sales Poised to Surpass eReader, May 2011; IDC - Canadian Media Tablet 2010–2014 Forecast: A First Look at the Hottest Devices in ICT, Jan 2011
“41% of consumers
who planned or were considering buying an iPad cited
shopping as a primary reason for their interest”*
*US Data
• 6% of Canadians own a tablet and half spend between 2 to 6 hours a day on their device
• Triple-digit growth in tablets by end of 2011, estimated 1.5M devices
Google Confidential and Proprietary
Key Takeaways
23
1Canadians Shop Online! Break Down the
Barriers Like We’re Doing
2 Think Local
3 Think Mobile … and Tablet too.
Google Confidential and Proprietary
Thank You
Sara Scurfield, Account Manager - [email protected]
Alexandra Cohn, Industry Analyst – [email protected]