THE TRUTH ABOUT CONSUMERS - BRC · THE TRUTH ABOUT CONSUMERS Paul Martin, UK Head of Retail 23rd...
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THE TRUTH ABOUT CONSUMERS Paul Martin, UK Head of Retail 23 rd March 2017
Transcript of THE TRUTH ABOUT CONSUMERS - BRC · THE TRUTH ABOUT CONSUMERS Paul Martin, UK Head of Retail 23rd...
THE TRUTH ABOUT CONSUMERS Paul Martin, UK Head of Retail
23rd March 2017
2© 2017 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in
Hong Kong.
Document Classification: KPMG Confidential
About the surveyKPMG International commissioned Intuit Research to conduct a survey of global online
shoppers regarding their purchase behaviours, purchase drivers, and perceptions and
attitudes towards online shopping.
The sample consisted of consumers aged 15 to 70 years old who had made at least
one online purchase in the past 12 months, and who were within the top 65 percent of
income-earners in their country.
The survey was conducted using an online questionnaire. A total of 18,430 qualified
responses were received from 51 different countries. Within each country, the sample
was weighted to the same age distribution to ensure that country comparisons showed
behavioural differences rather than those caused by difference in demographic make-
up of the population surveyed in each country.
The full report can be downloaded online at www.kpmg.com/onlineconsumers
Our global online consumer report
3© 2017 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in
Hong Kong.
Document Classification: KPMG Confidential
10+1 key trends shaping the retail landscape
FulfilmentDeclining margins Internationalisation InnovationDiscounters
ConveniencePlatform PlayBusiness model Omni-channel Consumer power
Artificial intelligence
£€
$
4© 2017 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in
Hong Kong.
Document Classification: KPMG Confidential
The customer is changing…..
1950s 1970s 1990s 2000 2017 2027
Limited
choice
Only route
to market
Distribution
Scale
Power of
brand
Private
label
Consolidation
Consumer
data
Global
sourcing
Internationalisation
M & E commerce
Social media
Technology
Consumer data
Direct to consumer
Holistic view of
consumer data
Who
holds
the power?Retailer Manufacturer Retailer
Consumer+
Manufacturer
Data
aggregator
5© 2017 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in
Hong Kong.
Document Classification: KPMG Confidential
5
Consumers expect retailers to integrate their physical and digital environments to
provide a much broader, deeper experience.
Today’s state-of-the-art store is no longer a simple ‘retail outlet’ but an inviting, highly
designed ‘urban space’ that functions as a store, showroom, activity area and warehouse.
The result is a new spirit of ‘collaboration over competition’ among developers and retailers.
These players are sharing data and market intelligence as never before to develop and apply
new technologies that converge digital and physical shopping, ultimately creating a highly
unified, intuitive, personalized customer experience.
Physical or digital? Both!
6© 2017 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in
Hong Kong.
Document Classification: KPMG Confidential
Stages of the purchase journey
3
Consideration:
Product and
company research2
1 Awareness:
Triggers and
influencers
Conversion:
Where and when
to buy
Evaluation:
Experience and
feedback4
7© 2017 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in
Hong Kong.
Document Classification: KPMG Confidential
Awareness: channels where consumer saw product first before purchasing
Any online
channel: 59%
30%
15% 15%
10%
7%
10%
Online shop Social media post or blog
Any offlinechannel: 52%
22%
15%
13%
9%8%
12%
Physical shop Saw a friend with it
Source: Global Online
Consumer Report, KPMG
International, 2017
Talking to friends
Talking to family
Print magazine or newspaper
On TV or in a movie
Online
advertisement
Online review
Email promotion
Online article or magazine
8© 2017 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in
Hong Kong.
Document Classification: KPMG Confidential
Consideration: factors driving purchase decisionsDecision factors by region
Consumers in Australia, New Zealand, Canada, France, Belgium and South Africa were most likely to be influenced by price or promotions. In
these countries, more than 38 percent of consumers said price and promotions were the factors that drove their most
Factors driving purchase decisions — by region
Australia or
NewZealand
Price/promotions
Product features
Brand
Online reviews
Other
Asia NorthAmerica EasternEurope or
Russia
Latin AmericaWesternEurope Africa and
Middle East
19%
23%
24%
22%
12%
30%
25%18%
16%
11%
29%
25%
24%
13%
9%
34%
17%24%
16%
9%
38%
19%
22%
9%
12%15%
27%
15%
26%
17%
13%22%
29%17%
19%
Source: Global Online Consumer
Report, KPMG International, 2017
27% Price/promotions
23% Product features
22% Brand
17% Online reviews
5% Newest trends or arrivals
4% Peer influences/recommendations
2% complementary products
Source: Global Online Consumer
Report, KPMG International, 2017
Factors driving purchase decisions
9© 2017 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in
Hong Kong.
Document Classification: KPMG Confidential
Conversion: deciding where and when to buyMost important attributes when deciding
where to buy
Best price
Preferred website
Best delivery
options/price
Stock availability
Peer advice
Returns policy
36%
30%
17%
14%
2%
1%
Source: Global Online Consumer
Report, KPMG International, 2017
Purchase duration by product category and price (%)
The same day
Less than 1week
1-2weeks
2-4weeks
1-3months
More than 3months
ElectronicsCosmetics Fashion Food
29
46
15
5 416 4
17
41
21
11 32
42
531
17
1
47
37
9
42
Below US$100Luxury US$100-$500 Over US$500
51
31
39
17
7 53
36
41
14
5 21
25
40
8
20
83
20
34
14
21
Source: Global Online
Consumer Report, KPMG
International, 2017
10© 2017 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in
Hong Kong.
Document Classification: KPMG Confidential
Evaluation: experience & feedback
Type of feedback most recently shared online
92% Positive
2% Negative
6% Neutral
Source: Global Online Consumer Report, KPMG
International, 2017
Sites where consumers shared feedback (%)
47
31
18
17
12
11
10
9
4
21
Seller’s website
Manufacturer or brand website
Online forum
Blogs
YouTube
Snapchat
Other
Source: Global Online Consumer
Report, KPMG International, 2017
3
3
11
11© 2017 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in
Hong Kong.
Document Classification: KPMG Confidential
What’s driving the shift to online
Reasons consumers shop online instead of in stores
Ability to shop 24/7
Ability to compare prices
Online sale/better prices
Greater variety/selection
To avoid crowds
Products are not sold in my
city/country
To avoid checkout lines
Reasons consumers shop in stores instead of online
I want to see/touch item first
I want to try the itemon
Concerned products look different
Delivery takes too long
Shipping costs are too high
Product is too valuable to buyonline
Enjoy the experience of going to theshops
I have to go to the shop anyway
I want to verify the authenticity
Return process is too complicated
Do not trust online security
I want to talk to asalesperson
Touch/try product
Shipping
Enjoy experience
Other
56%
55%
41%
34%
25%
24%
23%
16%
15%
14%
13%
11%
Source: Global Online
Consumer Report, KPMG
International, 2017
To save time
Convenience of not going
to shops
Convenience
Price-related
Push fromoffline
Ease ofselection
Freeshipping
Only option tobuy
58%
54%
46%
40%
39%
29%
29%
27%
20%
15%
15%
11%
Source: Global Online
Consumer Report, KPMG
International 2017
12© 2017 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in
Hong Kong.
Document Classification: KPMG Confidential
Transforming from omni-channel to an omni business
Omni-channel:
Seamless integration across channels
Omni- business model:
Seamless integration of all functions enabled by digital
technology and with the customer at the center
13© 2017 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in
Hong Kong.
Document Classification: KPMG Confidential
13
Serving today’s consumer
Put the
customer
first
Make
it easy
Win hearts to
win minds
Welcome
to the
machine
Moving to
OMNI
business
Dream big.
Start small.
Take a
different
view
© 2017 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity. All rights reserved. Printed in Hong Kong.
Remember…
A desk is a very dangerous
place from which to view the
world!
– John Le Carre –
KPMG UK LLP
15 Canada Square
London
E14 5GL
United Kingdom
Paul MartinUK Head of Retail, KPMG UK LLP
+44 7551 152088
The information contained herein is of a general nature and is not intended to address the
circumstances of any particular individual or entity. Although we endeavour to provide accurate and
timely information, there can be no guarantee that such information is accurate as of the date it is
received or that it will continue to be accurate in the future. No one should act on such information
without appropriate professional advice after a thorough examination of the particular situation.
