THE MOBILE LOVE AFFAIR
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1 THE MOBILE LOVE AFFAIR How Mobile Is Shaping The Future Of Grocery Shopping 27th November 2012
2 Czech Rep Hungary Russia Poland Denmark GB Ireland Sweden Italy Spain France Netherlands Germany MOBILE PENETRATION IS AT SATURATION, WITH SMARTPHONE PENETRATION GROWING BY 13% FROM 2010 TO Overview Mobile Penetration Smartphone Penetration 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Source: nvision 2012
3 WE WENT GLOBAL TO UNDERSTAND EVERYDAY USAGE TO SIMPLIFY THE PROCESS FOR CONSUMERS, WE STARTED WITH A DEEP DIVE IN GROCERY SHOPPING GROCERY RESEARCH: Focus Groups In-home Interviews Accompanied Shopping trips Online Quantitative GROCERY RESEARCH REPLICATED IN 10 COUNTRIES: US UK BRAZIL KOREA JAPAN FRANCE ITALY GERMANY RUSSIA TURKEY FOCUS ON SMART PHONE POWER SHOPPERS 3
4 WE SPOKE WITH 361 CONSUMERS ACROSS FIVE MARKETS VIA DIGITAL AND FACE-TO-FACE RESEARCH We blogged, chatted, taped, typed, scanned, filmed, and texted! And quantified our findings with 7,000 online surveys across the ten markets 4 Source: Mobile Love Affair, Spring 2012
5 I have the iphone 4s which I'm obsessed with, would never have another phone and use it for everything, from talking and texting to social networking, shopping, ebay, games, music etc...everything!!! Hannah, 35, London I love my apple imac, my iphone and ipod. I could not live without this technology or maybe that sounds a bit sad but life would not be as interesting! Joanna, 38, London
6 THE HOLY TRINITY: TECHNOLOGY LEARNINGS
7 SMART PHONES REPRESENT THE LOVER ARCHETYPE THE SAGE THE LOVER THE WIZARD 7 Source: Microsoft s Meet the screens, 2011 and The Mobile Love Affair, Spring 2012
8 SMART PHONES WIN OUT IN THE HOLY TRINITY Among those who own all 3 Computerlaptop Which one device would they give up first All Brazil Japan Korea UK US 34% 38% 34% 22% 41% 34% In all markets, shoppers would give up their tablets before any other Tablet 55% 49% 60% 55% 54% 61% Smart phone 11% 13% 7% 24% 5% 6% And their smart phone last 8 Source: The Mobile Love Affair, Spring 2012 Base: All respondents
9 EVOLUTION OF THE SMART PHONE SHOPPER 50% Currently have a Feature Phone 50% Currently have a Smart Phone I would like to be able to have some of the newer technology, I just don't want to pay for the newer technology... It is a big expense that seems like an extra since I am home quite a lot and can use my desktop for almost everything I need. Ten years ago 100% of my grocery and personal goods shopping was done in person - I predict that by the end of 2012, I will be doing 70% online. Non-Adopter Pre-Adopter Tinkerer Savvy User 25% 25% 16% 34% I can't stand what this society has become, constantly texting or doing something on their phones. I don't LOVE anything about my phone. I just got my Samsung Fascinate about 6 months ago and its my first smart phone, so I'm not totally "smart" yet and haven't figured out about a lot of apps yet. 9 Source: Mobile Love Affair, Spring 2012
10 SHOPPING MIGRATES FROM COMPUTER TO MOBILE FOR ALL THE ONLINE SHOPPING YOU DO, TELL ME WHICH YOU USE MOST? CONSUMERS WITHOUT TABLETS CONSUMERS WITH TABLETS 80% 76% 80% 74% 70% 72% 70% 60% 60% 50% 50% 53% 40% 40% 30% 20% 10% 0% 24% 14% 14% 1% Computer Cell Phone Don't shop for this online 30% 20% 10% 0% 19% 1% 19% 14% 12% Computer Cell Phone Tablet Don't shop for this online 9% Smartphone Owner Feature Phone Owner Smartphone Owner Feature Phone Owner 10 Source: The Mobile Love Affair, Spring 2012 Base: Smart phone & Feature Phone Owners
11 SMART SHOPPERS USE PHONES ACROSS THE BOARD HOW MUCH DO YOU USE YOUR MOBILE IN RESEARCHING & SHOPPING FOR THESE PRODUCTS? 80% Savvy 70% 69% Tinkerers 70% 62% 59% 60% 56% 53% 52% 52% 50% 50% 47% 42% 38% 41% 39% 39% 38% 40% 36% 36% 33% 29% 28% 30% 20% 10% 0% 17% 19% 14% 13% 14% 11% 8% 10% 10% 12% 6% 8% 4% 6% 0% 0% 0% 0% 0% 11 Source: The Mobile Love Affair, Spring 2012 Base: Tinkerer & Savvy Respondents Top 2 boxes
12 MOBILE RETAIL: THE STATE OF PLAY
13 MOBILE RESEARCH DOMINATES PRE-STORE PURCHASE PURCHASE PRE-STORE IN-STORE THE HEARTLAND OF MOBILE RETAIL Research Planning Value-seeking USAGE IN STORE Ad hoc planning with family Voice, stickies Ongoing shopping cart total Some photo sharing Some barcode/qr scanning 13 Source: The Mobile Love Affair, Spring 2012
14 MOBILE DISRUPTS TRADITIONAL FAMILY HABITS My family uses Google Calendar to share each others schedules. I also made up a calendar just for Dinners so when I look at the application, I can see all of those and plan meals and make lists. I also use CloudList on my smart phone and share a list with my husband, so he can pick things up.. I've been using Google Calendar to plan dinners for the past year. For me, it's a key step in planning my shopping list. Preferred activities when shopping on smart phone: 94% browse, search for info and compare prices 87% make purchases via an app, retailer or other shopping site 67% shares directly with family or friends 14
15 MOBILE HAS A ROLE THROUGHOUT THE FUNNEL HOW FREQUENTLY DO YOU USE YOUR CELL PHONE TO DO THE FOLLOWING ACTIVITIES? 80% 70% 60% 60% 56% Before Purchase During Purchase After Purchase 71% 69% 54% 67% 57% 67% 66% 67% 50% 40% 44% 44% 42% 43% 43% 40% 37% 40% 42% 39% 37% 37% 33% 35% 35% 35% 31% 30% Savvy 20% 15 Source: The Mobile Love Affair, Spring 2012 Base: Savvy Respondents Top 2 boxes
16 ACCESS THE GROUPON OR AMAZON WEBSITE/ APP WHILE GROCERY SHOPPING 25% 40% 33% 47% 51% 37% Source: OMD Snapshots Fieldwork: August September, 2012 across 5 countries Sample: Smartphone users only Q16 Which websites or applications do you use on your mobile or computer to help you in grocery shopping? *Only valid sample sizes have been included
17 OPPORTUNITIES IN MOBILE RETAIL
18 THE WAY WE SHOP IS CHANGING RADICALLY FROM TO LINEAR The weekly shop Fill-in shop Physical QUANTUM Journeys co-exist Multiple journeys Multiple entry points 18 Source: The Mobile Love Affair, Spring 2012
19 MOBILE RETAIL IS CURRENTLY SPEAKING MORE EXCLUSIVELY TO THE HEAD HEART HEAD SHOPPING SHOPPING MOBILE CURRENTLY MORE ABOUT Data Computation Transaction Quantitative FUNCTION MOBILE CURRENTLY LESS ABOUT Moments Connections Trade Qualitative EXPERIENCES 19 Source: The Mobile Love Affair, Spring 2012
20 MOBILE IS WELL-PLACED TO ENGAGE THE HEART GROCERIES a highly EMOTIONAL category MOBILE a highly EMOTIONAL technology MY LOVED ONES MY LOVER 20 Source: The Mobile Love Affair, Spring 2012
21 SHOPPERS WANT MORE FROM THIS RELATIONSHIP! We want loyalty cards which tailor offers for you. Also, something which introduces offers for a health plan period. So you get 8 weeks on a diet, with things on offer You put in your weekly meal planner and the app itself generates the shopping list. We want an app where all the family members feed in what they want to one central list. A sat nav for the store! A kind of weight watchers calorie counter, that could tell you when you should put stuff back! 21
22 THE FUTURE OF MOBILE DEVICE GROCERY RETAILING 65% 24% Will be purchasing groceries via mobile 17% 20% Are interested in interacting with brands while shopping Look forward to accessing entertainment from brands while shopping 30% of shoppers would like a shopping cart that connects to their smart phone 22 Source: The Mobile Love Affair, Spring 2012 Base: All respondents
23 A TYPICAL EXPRESSION OF THE MOBILE RETAIL EXPERIENCE IT S ALL ABOUT THE HEAD Home, Store Finder, Offers Where can I buy it? What s cheap? THERE S NO HOME HERE Home is just another batch of offers No warmth, no personality 23
24 OPTIMISED FOR MOBILE IS NOT JUST ABOUT LAYOUT AND NAVIGATION! It s about what you GAIN, as much as what you LOSE eharmony Understand cell phone as Lover: An intimate, dynamic technology The New York Times Understand the Tablet as Wizard: A place of immersion, surprise and delight 24 Source: The Mobile Love Affair, Spring 2012
25 25
26 THE OPPORTUNITY LIES IN ACCESSING THE DEEPER EMOTIONAL WORLD AROUND SHOPPING NOT ONLY Where can I buy it cheapest? Pragmatism Chore Routine Function The street / store BUT ALSO What shall we have? Excitement Pleasure Variety Experience The home For brands and retailers this means a race to the bottom Lower margins + less consumer contact For brands and retailers this means an opportunity to build meaningful relationships Ongoing contact + real estate on Mobile 26 Source: The Mobile Love Affair, Spring 2012
27 THANK YOU!
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