Meta anlysis of 5 spanish ropo studies minerva overview 2013 (1)

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Overview 2013 Meta analysis of Spanish ROPO studies_ Minerva

Google Market Insights Spain March 2014

Google Confidential and Proprietary

CONTENTS

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1 Research summary

2 Background & Methodology

3 Research results

3.1 Presence of internet in the path to purchase

3.2 Drivers and barriers of online purchase

3.3 The role of mobile

1. Research summary


Research summary Key insights

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1 Role of Internet in the path to purchase is mainly focus on research , with ROPO (research on, purchase off) being a common purchase behavior.

2 Lack of shopping ritual is the main barrier to online purchase with different impact across categories

3 Online purchase is gaining relevancy for verticals such as travel and apparel : convenience, range and price are key drivers for online purchase

4 Use of smartphone for searching is widespread, while travel and apparel are the first verticals jumping to mobile purchase

5 Table penetration is growing really fast, and in parallel the device is gaining presence in the path to purchase with a more similar-to-desktop usage pattern than smartphones (more suitable to finish the purchase)

Google Confidential and Proprietary 5

• Reassuring e-commerce: improve the clarity of conditions, allow to talk or chat to a person throughout the purchase process…

• Improve and widen the online range of products to better attract segments driven by range and price, not just convenience

• Provide more “trust certificates” to overcome the fear of getting pirate or fake copies.

• Improve the “experiential” atmosphere of the websites to attract segments of consumers who are eager to try new products and who want to enjoy the purchase process instead of just buying for price.

• Better integration of online and offline channels in order to increase the traffic of clients from one to another.

• Improve the “experiential atmosphere” at the websites and try to reproduce the shopping experience by exploiting the advantages of the internet (creating an online shopping ritual)

• Better adaptation of ecommerce to mobile devices: fewer steps before the final purchase, easier ways of payment…

Research summary Learnings & Business opportunities

In all categories purchasers demand adaptation of the webs to mobile devices. And also…

INSURANCE

TRAVEL

APPAREL

BEAUTY (Prem.)

H&G

1. Background & methodology


Background and methodology Study approach

• This report is a meta analysis of 5 consumer orientation studies done in 2013 by Added Value (www.added-value.com)

Those studies were locally labbeled as “Minerva” ROPO research platform

• The report aims to describe the role of Internet in the path to purchase and compares main data points that are available for a comparison of the 5 verticals

• The study is survey based and looks at total (offline & online) Spanish population

• More than 4.800 interviews were conducted assuring a minimum sample size of 300 purchasers by vertical

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Background and methodology Technical details (I)

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Telephonic interviews at random (landline and

mobile)

Fieldwork between December 2012 and

November 2013

General Population (offline&online) more

than 16 years old

Representative on gender, age and region

1.500 1.400 600 529 775

1.252 1.386 300 320 318

Total Interviews

Number of purchasers (1)

CATEGORIES

(PREMIUM)

(1) See on next page definition of each category purchaser

Technical specifications


Background and methodology Technical details (II)

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Has bought or has considered buying (or renewed but taking into account other options) a car/motorbike insurance, life insurance, private healthcare insurance or house insurance within the last 12 months

Has bought a piece of furniture / garden / beds, lamps or complements for home in the last 12 months.

Has bought at least one product of the brands within the premium segment in the last 6 months.

Has bought any piece of clothing within the last 12 months

Has travelled out of its town spending at least one night of accommodation in the last 12 months

(PR

EMIU

M)

Definition of category purchaser


Background and methodology Minerva´s positioning vs “Consumer Barometer” research

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Provides insight into how consumers use online and offline information sources in their purchase process

MINERVA

A LOCAL further step to develop deeper insights on search and purchase of SPECIFIC CATEGORIES WITH KEY RELEVANCE IN THE MARKET (such as Insurance, Apparel, Beauty Premium Range, Travel and Home & Garden)

A methodology that allow us to have a BROADER VIEW OF THE FULL SPANISH POPULATION (not only onliners)


Background and methodology Minerva´s positioning vs “Consumer Barometer” research

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• Data collection: CAWI Interviews collected among internet panellists (questionnaire: similar themes but different structure)

• Target: 18 y/o or older

• ROPO figures referred to “last purchase

of the category”

• Latest fieldwork collected in 2012

• Data collection: CATI Interviews collected over the phone among representative Spanish population (questionnaire: similar themes but

different structure)

• Target: 16 y/o or older

• ROPO figures referred to “has ever used online

in the path to purchase”

• Fieldwork collected in 2013

MINERVA 2013

…But all in all overall indicators related with the presence of online in the purchase process are in line in both researches

3. Research results


Research results 3.1 Presence of internet in the path to purchase (I)

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69% 98% 32% 59% 47% Category penetration

INSURANCE TRAVEL APPAREL BEAUTY (Premium)

HOME&GARDEN Find definition for each category on the

“methodology” section

77% 52% 41% 49% 46%

16,5M 17,3M 4,1M 9M 6,7M

Presence of internet in path to purchase (Research and/or purchase) [*]

Absolutes (Individuals)

Base: Category purchasers

[*] Have ever used internet in the path to purchase for the category

Average: 53%

On average, one out of two category purchasers use Internet in their path to purchase. Looking at verticals, Internet usage is particularly intensive for travel (77%)


Research results 3.1 Presence of internet in the path to purchase (II)

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34%

43%

34% 33% 38% 36% ROPO: Search online/

purchase offline

Online purchase

INSURANCE TRAVEL APPAREL BEAUTY HOME&GARDEN

77% 57% 41% 49% 46% Presence of

internet in the path to purchase

(TOTAL)

7,2M 10,3M 3,3M 7M 5,3M

23% 8% 11% 10%

(PREMIUM)

Base: “Have ever used internet in the process of search and purchase of the category”

Online is overall more present in the research than in the purchase, working as a source of inspiration and comparison. Online purchase is gaining relevancy is verticals such as travel and apparel

Average: 35%

Average: 18%


Research results 3.2 Barriers to online purchase

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AP

PA

REL

H

&G

IN

SUR

AN

CE

69% 33% 9%

54% 42% 21%

50% 27% 17%

34% 42% 13%

Cannot see the product Enjoys going shopping

Does not trust the payment method Doesn’t like to give personal details

Difficult reimbursement Doesn’t know if it will be available immediately

Prefers seeing the product Doesn’t trust the information given

Does not trust the payment method Doesn’t like to give personal details Fear of fake copies

Expensive shipping costs Difficult reimbursement

Prefers seeing the product Cannot fit in / don’t know if it will fit well

Doesn’t find it trustworthy Does not trust the payment method

Difficult reimbursement Expensive shipping costs

Prefers to talk to a person

Doesn’t like to give personal details

Doesn’t find the information needed Prefers to handle it through another person

BEA

UTY

(P

rem

ium

)

1. Shopping ritual (avg: 52%) 2. Distrust (avg: 36%) 3. Logistics (avg: 15%)

Base: Have never bought online

* Data for TRAVEL are not shown since this precise question was not included in this survey (since the study in this sector had different research objectives that the other sectors)

Lack of shopping ritual outstands as the main barrier to online purchase, with different impact across verticals


Research results 3.2 Barriers to online purchase_ Additional learnings

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• The lack of a shopping ritual is the primary barrier for the most ludic and “experiential” categories (sus as apparel or beauty) where purchasers miss the playful nuances of a playful shopping

• Lack of trust towards the internet proved to be more relevant for beauty and insurance

Beauty premium range purchasers fear to buy false copies of the products (not original brands)

For insurance, purchaser are not totally comfortable by having to give personal information through the web, and also miss some “personal” support to guide the purchase process

• Logistics problems derived from the products shipment and reimbursement are quite commonly referred fears in home&garden


Research results 3.3 Drivers of online purchase

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1. Convenience (avg: 63%) 2. Range (avg: 61%) 3. Price (avg: 57%)

Base: Have never bought online

* Data for TRAVEL are not shown since this precise question was not included in this survey (since the study in this sector had different research objectives that the other sectors)

Convenience, range and price are the most important drivers of online purchase, but deeper insights can be gotten by looking at different impact for vertical

Do it from home

Anytime 78%

Internet has a wider range

Get something difficult to

find 78%

Find better

prices 66%

Do it from home

Home delivery 43%

Find products difficult to

find around your place 48% Find better

prices 60%

Do it from home

Anytime 85%

Find products difficult to find

Wider range for choice 52% Find better

prices 32%

Do it from home

Anytime 46%

Coverage and price

comparisons 67%

Find better

prices 73%

AP

PA

RE

L

BE

AU

TY

(Pre

miu

m)

H&

G

INS

UR

AN

CE


Research results 3.3 Drivers of online purchase_ Additional learnings

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• Convenience is more important in home&garden:

Purchasers here especially values the convenience of being able to shop from home, avoiding the trip to shop and queues, and taking the (usually big and

heavy) goods home.

• Balance of convenience, range and price drive online purchase in apparel

Internet allows purchasers to buy easily from home, being able to select among a wide range of products and to take advantage of big discounts.

• Price is the key driver in beauty (premium range)

Purchasers here understands that, being aware of fakes, Internet is a good place to get the best deals.

• Price is also particularly relevant in insurance

Internet is perceived as the perfect channel to find the company and product that best fits their needs and economic expectations.


Research results 3.4 The role of mobile_ Smartphone&tablet penetration on total ES population

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Smartphone penetration in Spain is skyrocketing while tablet´s shows a x3 positive YoY evolution

33.0

4.0

44.0

7.0

55.0

21.0

Smartphone penetration Tablet penetration

2011 2012 2013

x 1.6

x 3.0

Source: Google, Enumeration Survey (TNS)


Research results 3.4 The role of mobile_ smartphone´s presence in the path to purchase

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High smartphone penetration among category purchasers give us an idea of the potential of mobile. Smartphone usage in the path to purchase is particularly high for travel and apparel

(*) Source: Google, Enumeration Survey (TNS)

55%

Penetration of devices among General Population (*)


HOME&GARDEN

61% 67% 72% 76% 72%

9,6M 1,8M 4,5M 2M 7,4M Individuals

47% 25% 32% 19% 57%

Smartphone penetration among category purchasers (%)

% of smartphone owners who used the device in the path to purchase


Research results 3.4 The role of mobile_ smartphone usages

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1. Find info (avg: 61%) 3. Share (avg: 14%) 2. Buy (avg: 17%)

Base: Category purchasers who have ever used the device in the path to purchase for

Use of smartphone for searching is widespread, while travel and apparel are the first verticals jumping to mobile purchase

Addresses, timetables, product information…

Send pictures, videos, comments…

Finalise the purchase

INSURANCE

TRAVEL

APPAREL

BEAUTY (Prem.)

H&G

59%

66%

65%

55%

61%

34%

0%

15%

0%

20%

20%

10%

16%

9%

28%


Research results 3.4 The role of mobile_ tablet´s presence in the path to purchase

22 (*) Source: Google, Enumeration Survey (TNS)


HOME&GARDEN

9,6M 1,8M 4,5M 2M 7,4M Individuals

54% 21% 34% 25% na

Smartphone penetration among category purchasers (%)

% of tablet owners who used the device in the path to purchase

21%

na 22% 30% 32% 35%

Despite lower penetration, usage of tablets in the path to purchase among owners is even higher than smartphones for categories such as apparel and home &garden


Research results 3.4 The role of mobile_ tablet usages

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1. Find info (avg: 61%) 3. Share (avg: 5%) 2. Buy (avg: 18%)

Base: Category purchasers who have ever used the device in the path to purchase for

Tablet follow a more similar-to-laptop usage pattern, being perceived as more suitable to finish purchases while pictures or videos sharing s is not so popular

Addresses, timetables, product information…

Send pictures, videos, comments…

Finalise the purchase

INSURANCE

TRAVEL

APPAREL

BEAUTY (Prem.)

H&G

57%

63%

69%

64%

na

8%

0%

11%

0%

na

2%

na

30%

20%

20%

thank you!

Meta anlysis of 5 spanish ropo studies minerva overview 2013 (1)

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