Total Retail 2014

63
Total Retail V Survey United States (US) October 2014 www.pwc.com

Transcript of Total Retail 2014

Page 1: Total Retail 2014

Total Retail V SurveyUnited States (US)

October 2014

www.pwc.com

Page 2: Total Retail 2014

PwC

Introduction

PwC’s Global Retail and Consumer practice, in conjunction with the International Survey Unit (ISU),administered a global survey to understand and compare consumer shopping behaviours and the useof different retail channels across 19 territories: Australia, Belgium, Brazil, Canada, Chile, China/HongKong, Denmark, France, Germany, India, Italy, Japan, Middle East, Russia, South Africa, Switzerland,Turkey, UK and US.

A team of subject matter specialists representing each participating territory developed the surveybased on last year’s survey. The final survey for 2014 includes updated questions and answer options inaddition to new questions on payment methods. Where possible and appropriate, last year’s questionshave been retained in order to conduct year-on-year comparisons. Research Now, an external provider,carried out the survey in August and September 2014, resulting in 1,000+ completed responses inevery territory.

Chart packs are available for both global results and country-specific results and can be requestedthrough Claire-Louise Moore and Michael Brewster.

This document contains the results of the Total Retail V research conducted in United States (US).

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Contents

Page

Methodology 4

Section I - Demographics 7

Section II - Buying behaviours 11

Section III - Social media shopping 22

Section IV - Mobile shopping/Paymentmethods

27

Section V – Your favorite retailers 34

Section VI - The purchase journey 38

US specific questions 61

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Methodology

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Global research: Consumer shopping behaviour &activity across the world

1,000+ respondents in every country Slide 5October 2014

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Methodology

• 19,068 online interviews conducted across 19 territories duringAugust/September 2014.

• In order to survey the most appropriate audience, online surveyrespondents in each country are nationally representative by theResearch Now (RN) panel profile or online users for the followingdemographics: Age Gender Employment status Region

• The RN panel profile was used for the majority of the countries exceptUK, Denmark, France, Germany, India and Italy where the nationalonline user profiles were available and applied.

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Section I - Demographics

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45%55%

Gender

Male

Female

Demographic profile of respondents – United States (US)

23% 23%

18%

15%14%

8%

0%

5%

10%

15%

20%

25%

18 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65+

Age

13%

14%

8%

13%

7%

13%

33%

0% 20% 40%

Unemployed

Student

Retired

Housewife/husband

Self employed

Employed part time

Employed full time

Employment Status

Base: 1011

Demographics

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Region breakdown – United States (US)

Base: 1011

1%1%1%1%

2%2%2%2%2%2%2%2%2%2%2%

3%3%3%3%

5%5%5%

7%8%

9%12%

0% 5% 10% 15%

LouisianaMassachusetts

IndianaColorado

South CarolinaOregon

AlabamaWashington

WisconsinKentucky

VirginiaNew JerseyTennesseeMinnesota

ArizonaMichigan

GeorgiaMaryland

North CarolinaIllinois

PennsylvaniaOhio

New YorkTexas

FloridaCalifornia

Region

Demographics

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0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%

1%1%1%1%1%1%1%

0% 1% 1% 2%

WyomingVermont

South DakotaPuerto Rico

North DakotaAlaskaHawaii

District of ColumbiaMontana

Rhode IslandNew Mexico

New HampshireMaine

West VirginiaOklahomaNebraska

IowaIdaho

DelawareUtah

ArkansasMississippi

ConnecticutKansasNevada

Missouri

Region

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Household income breakdown - United States (US)

5%

2%

4%

8%

9%

16%

18%

20%

17%

0% 10% 20% 30%

Prefer not to disclose

$200,000 or more

$150,000 to $199,999

$100,000 to $149,999

$80,000 to $99,999

$60,000 to $79,999

$40,000 to $59,999

$20,000 to $39,999

Under $20,000

Household income

Base: 1011

Demographics

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Section II - Buying behaviours

Q6. On average, how often do you buy products online?

Q7. How long since you made your first ever online purchase?

Q8. Why do you buy products online instead of in-store?

Q9. Why do you buy products in-store instead of online?

Q10. Have you ever intentionally browsed products at a store, but

decided to purchase them online?

Q10b. What factors influenced your decision to intentionally browse

products in-store then purchase those products online?

Q11. Have you ever intentionally browsed products online but decided

to purchase them in-store?

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Q11b. What factors influenced your decision to intentionally browse

products online then purchase those products in-store?

Q12. Which of the following in-store technologies would make your

shopping experience better?

Q13. How often do you buy products using the following shoppingchannels?

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Q6. On average, how often do you buy products online?

6%

27%

39%

26%

2%

5%

23%

41%

28%

3%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Daily Weekly Monthly A few times ayear

Once a year

2014

2013

Please note: 40 respondents said they never shop onlineBase: 1011 (2014)

Buying behaviours

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1002 (2013)

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Q7. How long since you made your first ever onlinepurchase?

11%

8%

16%

31%

27%

8%8%

4%

11%

34% 34%

10%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Less than one year 1-2 years 3-4 years 5-9 years 10 years or more I don't remember

2014

2013

Base: 1011 (2014)

Buying behaviours

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1000 (2013)

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Q8. Why do you buy products online instead of in-store?

3%

1%

7%

7%

16%

18%

22%

27%

29%

44%

59%

3%

4%

4%

10%

11%

18%

20%

25%

30%

33%

40%

47%

52%

0% 10% 20% 30% 40% 50% 60% 70%

Other

Social media interactions via Facebook, Twitter, etc. (e.g. sharing alink, liking a brand, or posting a comment)

I have a wider variety of return options*

Better product information than in-store

Receiving a promotion via email or text/SMS message (e.g.coupons/vouchers)

Looking for a particular brand/product

Customer reviews of products available online

I can only get some products online

Easier to compare and research products/offers than in-store

Wider variety of products than in-store

No need to travel to a physical store*

I can shop 24/7 online

Lower prices/better deals than in-store

2014

2013

Base: 1011 (2014)

Note: Respondents had to rank their THREE most important factors.

*No 2013 comparison available

Buying behaviours

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1002 (2013)

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Q9. Why do you buy products in-store instead ofonline?

2%

4%

5%

13%

13%

12%

17%

30%

11%

27%

27%

60%

64%

1%

2%

5%

8%

9%

13%

13%

16%

16%

22%

23%

28%

29%

55%

56%

0% 10% 20% 30% 40% 50% 60% 70%

Other

I don't trust online payment methods*

My favorite retailers don't have an online store

It's easier to trust the brand/store

Store staff are very helpful*

I simply enjoy shopping in the physical store because of the atmosphere

I find the location convenient (e.g. close to public transport, parking, easy access from home orwork)

To support local retailers

To get the lowest price

I'm able to return items easily

Quicker delivery than if purchased online

I'm more certain about fit/suitability of the product

I'm more comfortable buying perishable products in-store

I'm able to see, touch and try merchandise

To get the product immediately

2014

2013

Base: 1011 (2014)Note: Respondents had to rank their THREE most important factors. Please approach 2013 comparisons with caution due to slight wording variations.*No 2013 comparison available

Buying behaviours

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Q10 & Q10b. Have you ever intentionally browsedproducts at a store but decided to purchase them online?What factors influenced your decision?

68%

32%

Yes No

Base: 1011

5%

41%

49%

58%

76%

85%

0% 20% 40% 60% 80% 100%

Other

To seek advice from store staff

It is more convenient to have the itemdelivered to me rather than carry from the

store

The item was not in stock in store

I wanted to see/touch/try themerchandise before ordering online

Better prices online

Note: Question only asked to those who said ‘Yes’ at Q10Base: 684

Q10. Q10b.

Buying behaviours

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Q11 & Q11b. Have you ever intentionally browsedproducts online but decided to purchase them in-store?What factors influenced your decision?

73%

27%

Yes No

Base: 1011

3%

37%

41%

48%

51%

61%

61%

65%

0% 10% 20% 30% 40% 50% 60% 70%

Other

The item was not in stock online

Better prices in-store

To read reviews online

To compare prices of competitors

It is more convenient to have the itemimmediately than wait for delivery

I wanted to see/touch/try the merchandise

To avoid paying for delivery

Note: Question only asked to those who said ‘Yes’ at Q11Base: 734

Q11. Q11b.

Buying behaviours

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Q12. Which of the following in-store technologieswould make your shopping experience better?

33%

4%

8%

12%

10%

10%

15%

21%

21%

45%

16%

4%

7%

9%

11%

13%

16%

18%

19%

25%

36%

40%

0% 10% 20% 30% 40% 50%

None of the above

"Mirrors" that can share your picture with friends

Video walls that show the product(s) selected and/oravailable

QR codes that allow you to access additional content

Pay for an item through the store's app

Using your mobile phone to pay for your shopping

Sales associates with tablets to show you alternativeproducts

Sales associates who can take payment without going to thecash register

Real time, personalised offers*

In-store wifi with fast, simple, login

Self-service checkout*

Ability to check other store or online stock quickly

2014

2013

Base: 1011 (2014)

*No 2013 comparison available

Buying behaviours

Note: Respondents were asked to select up to THREE options.

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1002 (2013)

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8%

37%

30%

18%

3% 4%4% 5%8%

20%17%

47%

3% 4%6%

10% 9%

67%

5%

21%

38%

25%

5% 6%4%

9%

14% 13%

5%

55%

4%

9%

13% 14%

7%

53%

3% 4% 4% 4% 4%

80%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Daily Weekly Monthly A few times a year Once a year Never

In-store Catalogue/magazine

TV shopping Online via PC

Online via tablet Online via mobile phone or smartphone

Next generation wearables (watch, glasses, pens)

Q13. How often do you buy products using thefollowing shopping channels?

Buying behaviours

Slide 20October 2014Note: The definition provided for next generation wearables in the survey was (e.g. Google glass).

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Q13. Spotlight on online channels…

4%9%

14% 13%

5%

55%

2%5%

8% 10%

3%

72%

0%

10%

20%

30%

40%

50%

60%

70%

80%

4%9%

13% 14%

7%

53%

1%4%

8% 10%5%

71%

0%

10%

20%

30%

40%

50%

60%

70%

80%

5%

21%

38%

25%

5% 6%3%

19%

41%

29%

4% 5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

2014 2013

Tablet

PC

Mobile/smartphone

Buying behaviours

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Section III - Social media shopping

Q14. Which of the following have you done using social media...

Q14b. Has any interaction you have had with your favorite brands on

social media driven you to buy more?

Q15. What attracts you to go to a particular brand's social media page?

Q16. Which social media do you regularly use as part of your shopping

experience?

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37%

4%

8%

18%

21%

21%

22%

23%

34%

0% 10% 20% 30% 40%

None of the above

Purchased directly via social media

Connected with people like me who like a brand

Liked and shared products

Viewed videos about the brand/product

Provided positive or negative comments about myexperience with a product or brand

Researched a brand including reading others' feedback

Discovered brands I did not know or brands in which Ideveloped a particular interest

Followed some of my favorite brands or retailers

Q14. Which of the following have you done using socialmedia...

Base: 1011

Social media shopping

Note: Respondents were asked to select up to THREE options.

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Q14b. Has any interaction you have had with yourfavorite brands on social media driven you to buy more?

19%

36%

34%

10%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Yes in most cases Yes in some cases Not really Not at all

Base: 634Note: Question asked to respondents who selected anything other than ‘None of the above’ at Q14.

Social media shopping

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Q15. What attracts you to visit a particular brand'ssocial media page (e.g. on Facebook)?

10%

7%

11%

8%

15%

19%

13%

17%

28%

20%

27%

38%

61%

9%

9%

9%

11%

12%

12%

12%

15%

16%

19%

20%

21%

27%

33%

50%

0% 10% 20% 30% 40% 50% 60% 70%

Interested in interacting with the brand and its online followers

Brand contacted me through social media

The opportunity to influence product design*

To learn about and provide feedback on brand'ssocial/environmental commitment*

The brand provides customer service through social media

Flyer or recommendation in-store

Had a good or bad experience and wanted to provide feedbackthrough social media

Opportunity to participate in competitions through social media

Advertising (e.g. TV, outdoor, newspaper/magazine, website)

Friend's or expert's recommendation

Because I shop with them

To research products on social media before I buy them

Received a promotion via email or text/SMS message

Interested in new product offerings

Attractive deals/promotions/sales

2014

2013

Base: 937 (2014)*No 2013 comparison available.

Social media shopping

Note: Respondents had to rank their THREE most important factors.

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562 (2013)

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Q16. Which social media do you regularly use as partof your shopping experience?

27%

1%

1%

1%

1%

1%

2%

9%

10%

10%

12%

14%

22%

24%

50%

0% 10% 20% 30% 40% 50% 60%

None of the above

Q zone / QQ

Renren

Baidu

MySpace

LinkedIn

Tumblr

Instagram

Bing

Yahoo

Twitter

Pinterest

YouTube

Google / Google Plus

Facebook

Base: 1011

Note: Take caution when making comparisons as some options are not used globally.

Social media shopping

Note: Respondents were asked to select up to THREE options.

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Note: We have only shown options selected by United States (US) respondents. October 2014

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Section IV - Mobileshopping/Payment methods

Q17. Which of the following have you done using your

mobile/smartphone/tablet/pc?

Q18. Why don’t you use your mobile/smartphone/tablet/pc for

shopping?

Q19. Which payment method do you prefer?

Q20. So-called “digital” or “virtual” currencies such as Bitcoin could

enable users to pay for products and services electronically without

using the local established currency. Up until now, have you been aware

of these types of currencies?

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Q21. Could you see yourself using such a digital currency in the future?

Q22. Please indicate how strongly you agree or disagree with the

following statements:

o I am wary of having my personal credit information hacked using my mobile phoneo My mobile phone will become my main tool for which to purchase itemso I am willing to load credit onto my mobile phone to provide payment for productso I am happy to receive offers or coupons via my mobile phoneo I am happy for stores to establish my location through my mobile phoneo I am happy to store my payment and delivery information in an app on my mobile

phone

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Q17. Which of the following have you done using yourmobile/smartphone/tablet/pc?

29%

5%

10%

10%

12%

13%

14%

20%

21%

34%

35%

45%

46%

0% 10% 20% 30% 40% 50%

None of the above

Tweeted the retailer/brand about the product/offer

"Checked in" at store via social media (e.g. Foursquare or Facebookplaces)

Paid at the cashier

Received an offer based on proximity to store

Received recommendations based on previous purchases

Scanned QR codes

Checked funding available before purchasing

Accessed loyalty / reward programmes

Located store with my mobile phone

Used a coupon

Compared prices with competitors

Researched the products

Base: 1011

Mobile shopping/Paymentmethods

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10%

9%

7%

17%

33%

37%

32%

13%

5%

7%

14%

17%

27%

33%

38%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Other

I have a slow data connection

I did not have wifi access at the time of attempted purchase

Mobile websites are not easy to use*

I don't have a data plan

The screen is too small

I'm worried about security

I don't own a mobile/smart phone

2014

2013

Q18. Why don't you use yourmobile/smartphone/tablet/pc for shopping?

Base: 291 (2014)*No 2013 comparison available.

Note: Question only asked to those who selected ‘None of the above’ at Q17. Please approach 2013 comparisons with caution due to wording changes inthe question.

Mobile shopping/Paymentmethods

Note: Respondents were asked to select up to THREE options.

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712 (2013)

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Q19. Which payment method do you prefer?

Base: 1011

4%

1%

1%

15%

40%

40%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Other

Payment by invoice

Mobile phone

Cash

Credit card

Debit card

Mobile shopping/Paymentmethods

Note: Respondents were asked to select ONE option only.

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So called “digital” or “virtual” currencies such as Bitcoin could enable users to pay forproducts and services electronically without using the local currency.

63%

37%

Yes, I was aware of these

No, I was not aware of these

Base: 1011

28%

35%

37%

Yes No I'm not sure/Don't know

Base: 1011

Q21. Could you see yourselfusing such a digital currency inthe future?

Q20. Up until now, have you beenaware of these types ofcurrencies?

Mobile shopping/Paymentmethods

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Q22. Please indicate how strongly you agree ordisagree with the following statements?

25%

25%

14%

24%

23%

4%

19%

20%

9%

23%

24%

7%

21%

22%

16%

22%

25%

16%

19%

17%

28%

20%

16%

34%

12%

13%

30%

8%

8%

36%

4%

3%

3%

3%

5%

3%

0% 20% 40% 60% 80% 100%

I am happy to store my payment and deliveryinformation in an app on my mobile phone

I am happy for stores to establish my locationthrough my mobile phone

I am happy to receive offers or coupons via mymobile phone

I am willing to load credit onto my mobile phone toprovide payment for products

My mobile phone will become my main tool forwhich to purchase items

I am wary of having my personal credit informationhacked using my mobile phone

Strongly disagree Disagree Neither agree nor disagree Agree Strongly agree Don't know

Base: 1011

Mobile shopping/Paymentmethods

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Section V – Your favorite retailers

Q23. Thinking of your favorite retailer, why do you shop here?

Q24. Thinking of your favorite retailer, please specify if you have

purchased something through the following shopping channels.

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2%

4%

7%

7%

9%

11%

16%

18%

18%

24%

26%

32%

35%

36%

50%

71%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Other

They do really interesting stuff with their social media (Facebook, Tumblr, Twitter,etc.) which shows they understand my interests

They are a socially/environmentally responsible retailer

They have inspiring online content which catches my interest

They provide advice or help me choose products

Superior online customer reviews

They have a great loyalty programme (e.g. I get points/rewards)

They have fast/reliable delivery (e.g. same day delivery, pick up online purchasesin-store or designated pick up location, etc.)

I can check the in-store availability of a product online

Their website/mobile site is easy to use

They sell things I cannot find anywhere else

They have a good returns policy (e.g. free returns, return items to store whenpurchased online, etc.)

I like the store, its location and staff

I trust the brand

They usually have the items I want in stock

Their prices are good

Base: 1011

Q23. Thinking of your favorite retailer, why do youshop here?

Your favorite retailers

Note: Respondents were asked to select up to FIVE options.

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Q23c. Please select your top three favorite retailers?(top 10 mentioned)

10%

10%

10%

11%

12%

13%

15%

20%

34%

41%

Costco

The Home Depot

Walgreen

Lowe's

J.C. Penny

Macy's

Best Buy

Kohl's

Target

Walmart

2014 2013

Base: 1011

8%

8%

9%

11%

12%

13%

14%

29%

41%

52%

Home Depot

JC Penny

Costco

Macy's

Best Buy

Ebay.com

Khol's

Target

Walmart

Amazon.com

Base: 993

Your favourite retailers

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Note: Please approach 2013 comparisons with caution, as 2014question used a combined list of retailers and pure players

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1%

15%

18%

68%

7%

10%

76%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Next generation wearables

Online via mobile phone or smartphone

Online via tablet

Online via PC

TV shopping

Catalogue/magazine

In-store

Q24. Thinking of your favorite retailer, please specify ifyou have purchased something through the followingshopping channels.

Base: 1011

Your favorite retailers

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Section VI - The purchase journeyQ25. What’s your FIRST step in researching a purchase?

Q26. Which method do you most prefer for RESEARCHING your purchases in

each of the following product categories?

Q27.Which method would you most prefer for BUYING your purchases?

Q28. Today, product manufacturers are increasingly offering products directlyto consumers, bypassing retailers. Thinking about your online purchases, doesit matter to you whether you purchase from a traditional retailer or a productmanufacturer?

Q29. Thinking about your last online purchase, did you buy from…

Q30. If you bypassed a retailer for your last online purchase, why did you buydirectly from the product manufacturer’s website?

Q31. Please indicate from which of these product categories you have boughtdirectly from a product manufacturer online.

Q32. for each of the following product categories, how many of your purchaseshave you made online over the least 12 months?

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Q33. Assuming you have free standard delivery, which of the following other

delivery options would you be willing to pay for?

Q34. Which are the most important return options for you when making a

purchase online?

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1%

2%

2%

2%

4%

14%

26%

49%

0% 10% 20% 30% 40% 50% 60%

Catalogue/magazine

Go to an online auction platform (e.g. Ebay)

Go to a retailer's or brand's app

Ask a friend and/or family member

Go to a social media site (e.g. Facebook)

Go to the physical store

Go directly to the retailer or brand's website

Go to a search engine (e.g. Google)

Q25. What’s your FIRST step in researching apurchase?

Base: 1008

The purchase journey

Note: Respondents were asked to select ONE option only.

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89%

6%5%

Online via PCOnline via tabletOnline via mobile/smartphone

Purchase

2%

23%

2%

73%

Catalogue/magazineIn-StoreTV ShoppingOnlineNext generation wearables

Research

2%

58%

2%

38%

89%

7%5%

Online channels breakdown

PurchaseResearch

Consumer electronics and computers

The purchase journey

Preferred shopping methods

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Online channels breakdown

4%

68%

2%

26%

84%

9%

7%

5%

33%

2%

60%

Catalogue/magazineIn-StoreTV ShoppingOnlineNext generation wearables

87%

8%5%

Online via PCOnline via tabletOnline via mobile/smartphone

Research

Research Purchase

Purchase

Household appliances

The purchase journey

Preferred shopping methods

Slide 41Note: Values in pie charts may total 99 or 101 due to rounding October 2014

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83%

10%

8%

Online via PCOnline via tabletOnline via mobile/smartphone

5%

47%

4%

44%

Catalogue/magazineIn-StoreTV ShoppingOnlineNext generation wearables

Purchase

Online channels breakdown

2%

68%

4%

26%

1%

86%

9%5%

Research

Research

Purchase

Clothing and footwear

The purchase journey

Preferred shopping methods

Slide 42Note: Values in pie charts may total 99 or 101 due to rounding October 2014

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PwC

4%

19%

2%

75%

Catalogue/magazineIn-StoreTV ShoppingOnlineNext generation wearables

86%

9%5%

2%

33%

2%

62%

82%

10%

8%

Online via PCOnline via tabletOnline via mobile/smartphone

PurchaseResearch

PurchaseResearch

Online channels breakdown

Books, music, movies and video games

The purchase journey

Preferred shopping methods

Slide 43Note: Values in pie charts may total 99 or 101 due to rounding October 2014

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PwC

80%

13%

6%

Online via PCOnline via tabletOnline via mobile/smartphone

Online channels breakdown

68%

21%

11%

3%

76%

1%

20%4%

47%

2%

47%

Catalogue/magazineIn-StoreTV ShoppingOnlineNext generation wearables

Research

Research

Purchase

Purchase

Furniture and homeware

The purchase journey

Preferred shopping methods

Slide 44Note: Values in pie charts may total 99 or 101 due to rounding October 2014

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PwC

3%

61%2%

34%

74%

11%

15%

82%

8%

10%

Online via PCOnline via tabletOnline via mobile/smartphone

Research

4%

36%

3%

57%

1%

Catalogue/magazineIn-StoreTV ShoppingOnlineNext generation wearables

PurchaseResearch

Purchase

Online channels breakdown

Sports equipment/outdoor

The purchase journey

Preferred shopping methods

Slide 45Note: Values in pie charts may total 99 or 101 due to rounding October 2014

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PwC

Research

80%

11%

9%

Online via PCOnline via tabletOnline via mobile/smartphone

4%

48%

4%

43%

2%

Catalogue/magazineIn-StoreTV ShoppingOnlineNext generation wearables

Purchase

Online channels breakdown

4%

67%

2%

26%

1%

80%

10%

10%

Research Purchase

Jewelry/watches

The purchase journey

Preferred shopping methods

Slide 46Note: Values in pie charts may total 99 or 101 due to rounding October 2014

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PwC

Research

80%

10%

10%

Online via PCOnline via tabletOnline via mobile/smartphone

4%

40%

3%

53%

1%

Catalogue/magazineIn-StoreTV ShoppingOnlineNext generation wearables

Purchase

4%

73%

2%

20%

1%

72%

16%

13%

Research PurchaseOnline channels breakdown

Do-it-yourself/home improvement

The purchase journey

Preferred shopping methods

Slide 47Note: Values in pie charts may total 99 or 101 due to rounding October 2014

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PwC

2%

71%

3%

24%

1%

Catalogue/magazineIn-StoreTV ShoppingOnlineNext generation wearables

PurchaseResearch

Online channels breakdown

75%

14%

11%

Online via PCOnline via tabletOnline via mobile/smartphone

1%

87%

3%9% 1%

63%

25%

12%

Research Purchase

Grocery

The purchase journey

Preferred shopping methods

Slide 48Note: Values in pie charts may total 99 or 101 due to rounding October 2014

Page 50: Total Retail 2014

PwC

4%

32%

2%

62%

Catalogue/magazineIn-StoreTV ShoppingOnlineNext generation wearables

Purchase

82%

10%

8%

Online via PCOnline via tabletOnline via mobile/smartphone

Online channels breakdown

4%

49%

2%

45%

1%

82%

12%

6%

Research

Research

Purchase

Toys

The purchase journey

Preferred shopping methods

Slide 49Note: Values in pie charts may total 99 or 101 due to rounding October 2014

Page 51: Total Retail 2014

PwC

Research

78%

12%

10%

Online via PCOnline via tabletOnline via mobile/smartphone

Online channels breakdown

2%

69%

2%

27%

73%

20%

7%

2%

49%

3%

45%

1%

Catalogue/magazineIn-StoreTV ShoppingOnlineNext generation wearables

Research Purchase

Purchase

Health and beauty (cosmetics)

The purchase journey

Preferred shopping methods

Slide 50Note: Values in pie charts may total 99 or 101 due to rounding October 2014

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Cross-channel shopping behaviourThose who do not research before purchasing

9%

18%

20%

18%

29%

25%

30%

26%

34%

35%

40%

4%

8%

8%

10%

12%

13%

16%

17%

22%

25%

28%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Consumer electronics

Household appliances

Clothing and footwear

Books, music, movies and video games

Grocery

Furniture and Homeware

DIY / Home Improvement

Health & Beauty

Jewelry / watches

Sports equipment / outdoor

Toys

2014

2013

The purchase journey

Slide 51October 2014

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Cross-channel shopping behaviourResearch to purchase

20%

29%

43%

15%

44%

33%

42%38%

68%

27%

45%37%

36%22%

22%

58%

17%

30%20%

17%

7%

42%

24%

27%

35%

36%

20%

15%

28% 24%22%

32%

15%

18% 19%24%

2%3%

3%3% 2% 3%

4%2%

1%3% 3% 3%

7% 10% 12% 9% 9% 10% 13% 11% 8% 10% 9% 10%

Other

Store-to-web

Web-to-store

Web only

Store only

The purchase journey

Slide 52October 2014

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PwC

25%

75%

Yes No

Q28. Thinking about your onlinepurchases, does it matter to youwhether you purchase from atraditional retailer or a productmanufacturer?

Base: 1011

Q29. Thinking about your lastonline purchase, did you buyfrom…

17%

68%

15%

0%

10%

20%

30%

40%

50%

60%

70%

80%

The productmanufacturer

A retailer I do not remember

Base: 1011

The purchase journey

Slide 53October 2014

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PwC

2%

6%

8%

6%

32%

9%

7%

34%

44%

5%

6%

11%

20%

25%

26%

30%

42%

66%

0% 10% 20% 30% 40% 50% 60% 70%

Other

Better refund/exchange policy

Customization/personalization of product

Better experience

Good stock availability

Loyalty to brand

Better warranty/guarantee

Full range or more choice

Lower price

2014

2013

Q30. If you bypassed a retailer for your last onlinepurchase, why did you buy directly from the productmanufacturer’s website?

Base: 168 (2014)

Note: Question only asked to those who selected ‘The product manufacturer’ at Q29

The purchase journey

Note: Respondents were asked to select the THREE most important factors.

Slide 54October 2014

1002 (2013)

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PwC

Q31. Please indicate from which of these product categoriesyou have bought directly from a product manufactureronline

Base: 168 (2014)

23%

10%

11%

7%

9%

16%

11%

12%

34%

53%

39%

11%

13%

14%

14%

14%

18%

20%

33%

34%

49%

51%

0% 10% 20% 30% 40% 50% 60%

Health & beauty (cosmetics)

Furniture and homeware

Grocery

Do-it-yourself/home improvement

Sports equipment/outdoor

Toys

Jewelry/watches

Household appliances (incl. freezers, microwavesetc.)

Books, music, movies and video games

Clothing and footwear (incl. sportswear, kids andbabies)

Consumer electronics (incl. cameras, TV, DVDplayers etc.) and computers

2014

2013

Note: Question only asked to those who selected ‘The product manufacturer’ at Q29

The purchase journey

Slide 55October 2014

698 (2013)

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PwC

Q32a. Those who have not purchased online/at all over thelast 12 months for each of the product categories.

8%

28%

10%

5%

32%

26%

13%

21%

22%

21%

10%

11%

21%

21%

22%

27%

32%

35%

38%

42%

42%

60%

0% 20% 40% 60% 80%

Books, music, movies and videogames

Toys

Consumer electronics andcomputers

Clothing and footwear

Sports equipment/outdoor

Jewelry/watches

Health & beauty (cosmetics)

Household appliances

Do-it-yourself/home improvement

Furniture and homeware

Grocery

Don't purchase thiscategory ONLINE

Don't purchase thiscategory at all

The purchase journey

Slide 56October 2014

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PwC

Q32b. For each of the following product categories, howmany of your purchases have you made online over the last12 months?

11%7% 7% 9%

4%12% 8% 8% 8% 10% 9%

14%

8% 7%10%

9%

14%

10% 9% 12% 8% 12%

10%

12%10%

9%

10%

13%

7% 9%10%

10%9%

9%17%

15%13%

18%

16%

12%14%

12% 14%14%

15%22%

20% 19%25%

19%

21%22% 22%

17%19%

41%33%

41% 40%34%

26%

41%37% 36%

41%36%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

A few purchases (1 - 20%)

Some purchases (21 - 40%)

About half of my purchases (41 - 60%)

Most of my purchases (61 - 80%)

Almost all of my purchases (81 - 99%)

Exclusively purchase online (100%)

The purchase journey

Slide 57October 2014

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PwC

Q33. Assuming you have free basic delivery, which of thefollowing other delivery options would you be willing to payfor?

Base: 964

7%

15%

37%

38%

43%

58%

61%

0% 10% 20% 30% 40% 50% 60% 70%

Other

Locker/box collection (e.g. Amazon lockers)

90-minute delivery for store-based purchase

Can pick up purchase from a convenient location (e.g.local convenience store/FedEx)

Specific agreed-upon time frame for delivery (e.g. Monday8:00-8:30am)

One/two day delivery

Same day delivery

The purchase journey

Note: Respondents had to rank their THREE most important factors.

Slide 58October 2014

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PwC

Q34. Which are the most important return options foryou when making a purchase online?

Base: 1000 (2014)

1%

5%

10%

28%

57%

79%

2%

15%

30%

61%

76%

86%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Other

Locker/box drop off (e.g. Amazon Lockers)

Specific agreed-upon time frame for pick up (e.g.Monday 8:00-8:30 am)

Can return purchase to a convenient location (e.g. localconvenience store)

Online purchase returns available in-store

Paid return label provided with shipment

2014

2013

Note: Please approach 2013 comparisons with caution due to slight wording variations.

The purchase journey

Note: Respondents had to rank their THREE most important factors.

Slide 59October 2014

996 (2013)

Page 61: Total Retail 2014

PwC

US specific questions

Q35. Which digital wallet do you use on your smartphone or tablet tomanage coupons or loyalty cards?

Q36. How important is "ship from store" option for getting the productsyou want delivered in the following categories?

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PwC

Q35. Which digital wallet do you use on yoursmartphone or tablet to manage coupons or loyaltycards? (US specific question)

Base: 168 (2014)

73%

1%

3%

11%

17%

52%

2%

6%

25%

31%

0% 10% 20% 30% 40% 50% 60% 70% 80%

I do not use a digital wallet on my smartphone or tablet

Other (Please specify)

Lemon Wallet

Apple Passbook

Google Wallet

2014

2013

Country specific questions

Slide 61October 2014

391 (2013)

Page 63: Total Retail 2014

PwC

23%

48%

22%

7%

26%

43%

22%

8%

19%

39%

34%

8%

15%

37% 38%

10%

17%

41%

34%

8%

24%

42%

25%

9%

14%

39%37%

10%

16%

37% 38%

10%

15%

40%

34%

12%

22%

29%

37%

13%13%

34%

42%

11%

15%

35%

38%

11%

0%

10%

20%

30%

40%

50%

60%

Must have Nice to have Not important Not aware

Consumer electronics and computers Household appliances Apparel

Luxury clothing and footwear Books, music, movies and video games Furniture and homeware

Sports equipment/outdoor Jewelry/watches Do-it-yourself/home improvement

Grocery Toys Health & beauty (cosmetics)

Q36. How important is "ship from store" option for gettingthe products you want delivered in the following categories?(US specific question)

Country specific questions

Slide 62October 2014