Is the e-commerce shopper journey truly digital?

SAJINEE SRICHAWLA
PUREE ACKARAPOLPANICH
IS E-COMMERCE SHOPPER
JOURNEY TRULY DIGITAL?

Copyright©2012TheNielsenCompany.Confidentialandproprietary.
2
Is e-commerce
shopper journey
truly digital?
MARKET DEVELOPMENTS
of online vs offline retail
WHAT DRIVES CONSUMER
in shopping online vs offline
What we will be discussing today
WORKSHOP
Future Trends of Online
Shopping Behavior

MARKET DEVELOPMENTS
OF ONLINE VS OFFLINE RETAIL

4
3.1
6.2
5.1
15.3
5.3
2.7 2.6
0.7
-0.4
0.9 1.0
2.1
3.0
2.7
2.9 2.8
3.2
7.3
2.8
0.9
3.0
Thailand Real GDP Growth (%)
Q1’16 GDP marks the fastest growth in 12 quarters
Thailand GDP shows a sign of recovery with a strong performance in Q1’16 -
government spending/investment and tourism support the improvement
Source: National Economic and Social Development Board May 16, 2016 (* Estimated)
Note: GDP = private consumption + gross investment + government spending + (exports − imports)
Private
Consumption
+2.3
Private
Investment
+2.1
Government
Spending
+3.9
Government
Investment
+11.7
Export -1.7
Import -4.6
3.0 – 3.5
Forecast 2016*

5
Thais face more pressure in spending power
Thais shows less intention to allocate spending for Technology products and wealth
management
Source: Nielsen Online Survey (Q1’16: n=510)
64
45
30
26
22
28
33
25
21
7
66
45
39
26 28 30
39
29 29
5
64
41
33
21 22 23
30
24 23
4
60
44
35
23
19
25
29
23 23
7
66
44
35
16
21 23
27
23
20
7
Putting into
savings
Holidays /
vacations
Paying off
debts / credit
cards / loans
New
technology
products
Home
improvements
/ decorating
New clothes Investing in
shares of stock
/ mutual funds
Out of home
entertainment
Retirement
fund
I have no
spare cash
Q1'15 Q2'15 Q3'15 Q4'15 Q1'16
Thailand - Spare Cash Spending Allocation

6
FMCG grows in 2015 with market consumption
improvement
Value growth accelerates in Q1’16, yet with slight cooldown of consumption
Source: Nielsen Retail Index, ending March 2016, Thailand
● Value % Growth vs YA
● Volume % Growth vs YA
● Price/Volume % Growth vs YA

7
RETAIL OUTLETS IN THAILAND
456,412

8
Traditional Trade remains large in contribution, but
Convenience Stores lead in term of growth
Competition between offline stores remain; what’s the implication for online stores?
Source: Nielsen Retail Index, March 2016, Thailand
25%
26%
50%
SUPER/HYPERMARKET
TRADITIONAL
TRADE
CONVENIENCE
STORE
+2.1%
+3.1%
+7.9%
Thailand Offline Retail
Trade Channel Contribution as of 2015
TOTAL THAILAND
+4%

9
Super/Hypermarket Convenience Store
31x → 29x
Time/Year
401 → 393
Spending/Time (Baht)
26x → 27x
Time/Year
118 → 120
Spending/Time (Baht)
FY 2014 vs. 2015
Consumer purchase momentum growing towards CVS
All super categories in Nielsen Basket report HIGHER shopping frequency and basket
size in CVS, while shopping frequency apparently declines in Super/Hyper
Source: Nielsen Consumer Panel, Thailand

10
ONLINE STORE OWNERS
According to Department of Business Development (DBD), Thailand
1,005,000

11Source: www.internetworldstats.com, www.internetlivestats.com
6%
7% 9% 11%
15%
17%
20%
24%
27%
30%
38% 37% 39%
41%
56%
0%
10%
20%
30%
40%
50%
60%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Thailand Internet Penetration
As % of total population
Thailand Smartphone
Penetration (2014-2015)
4958%
Source: Nielsen Smartphone Insight
Over half of Thais already have access to internet

12*Thailand Urban
of ‘online’ Thais
shop online
according to e-Commerce
Landscape Report (Q4’15)*
22%

13
58%
41% 38% 32% 32% 30%
Fashion Grocery Electronics Travel Health
Products
Cosmetics
WHAT PRODUCTS THAIS SHOP ONLINE?
Fashion still lead followed by Grocery
Source: Nielsen e-Commerce Landscape Report Q4’15, Thailand
KEY PRODUCT TYPES SHOP ONLINE
(Thai Online Shoppers – Q4’15)

14
WHAT DRIVE CONSUMER
IN SHOPPING ONLINE VS OFFLINE

15
PRE-STORE IN-STORE PURCHASEDEMAND LOYALTY
Consumers’ journeys used to be simple with limited
components that could impact consumers judgement…

16
Digital TV
Connected
Experience
PRE-STORE IN-STORE PURCHASEDEMAND LOYALTY
They are not that simple anymore…

17
Blurred boundary between Physical and Digital
Worlds, including HOW WE BUY
“ROBO”
WEBROOMING
Research Online
Buy Offline
SHOWROOMING
Research Offline
Buy Online
CONNECTED COMMERCE

18
Consumer’s journey can be altered at critical phases
Retailers need to ensure consumers navigate within their ecosystems – their physical
and online stores. Brands also need to ensure their products are presented both
places.
Research Online
Want to buy
COFFEE BEANS
Go to store Buy at store
Buy online
RESEARCH
PHASE
BUYING
PHASE

19
Consumers do research online, but still “want to see
and try before they buy”- there comes WEBROOMING
Source: Nielsen e-Commerce Landscape Report Q3’15, Thailand
59%
Wants to see and try before
purchasing products online
7 in 10
of Thai Online Shoppers relied
on RETAILER WEBSITES for
information to choose which
sites to shop
“For both retailers and brand
owners, offline and online
channel teams need to work
together to form cohesive
‘CONNECTED COMMERCE’
strategy”
Opportunity to LEVERAGE online
stores to LEAD CONSUMERS to
physical stores

20
MALES CAN’T MULTITASK; FEMALES CAN AND THEY
ARE BIG PICTURE THINKERS
A smaller corpus collosum,
the nerve fibers that
connect the two brain
hemispheres.
A smaller
hippocampus, the
center for memory
storage.
Larger corpus colossus
Big picture thinking and
multi-tasking

21
FEMALE VS MALE
SOCIAL
EMPATHETIC
VERBAL
MULTI-TASK & BIG PICTURE
THINKER
GUIDED BY EMOTIONAL MEMORY
INDEPENDENT
IMPULSIVE
COMPETITIVE
CONCRETE/FACTUAL
SEXUAL

22
WHAT ARE THEY WATCHING?
Drama/Soap Opera Movie
News/Current
Affairs/Panel
Discussion Shows
News/Current
Affairs/Panel
Discussion Shows
SportsSitcoms
Music show Music Show

23
IN SUMMARY
ECOMMERCE WILL ACCELERATE THE RETAIL INDUSTRY
THAI’S ARE HUNGRY FOR CONVENIENCE
BE PRESENT IN OFFLINE AND ONLINE
KNOW YOUR SHOPPERS AND TAILOR YOUR STRATEGIES
TO DRIVE TRIGGERS AND OVERCOME BARRIERS

WORKSHOP SESSION
FUTURE TRENDS OF ONLINE
SHOPPING BEHAVIOR

25

26
The Macro Trends

27
SAJINEE SRICHAWLA
Digital Strategy Director
Sajinee.Srichawla@Nielsen.com
PUREE ACKARAPOLPANICH
Digital Strategy Manager
Puree.Ackarapolpanich@Nielsen.com

Is the e-commerce shopper journey truly digital?

Is the e-commerce shopper journey truly digital?

Recomendados

Recomendados

Mais conteúdo relacionado

Mais procurados

Mais procurados (20)

Destaque

Destaque (15)

Semelhante a Is the e-commerce shopper journey truly digital?

Semelhante a Is the e-commerce shopper journey truly digital? (20)

Último

Último (20)

Is the e-commerce shopper journey truly digital?