G MOBILE SHOPPING TRENDS AND BEST PRACTICES TO WIN...

Boston| Dublin | London | Paris | Shanghai

P r e s e n t e d B y :

T i m B a r r e t t , G l o b a l R e t a i l i n g A n a l y s t , E u r o m o n i t o r I n t e r n a t i o n a l

D a n n y S i l v e r m a n , S V P C u s t o m e r S u c c e s s , C l a v i s I n s i g h t

GLOBAL MOBILE SHOPPING TRENDS AND BEST PRACTICES

TO WIN THE DIGITAL SHELF

#DigitalShelf

Global Mobile Shopping Trends and Best Practices to Win the Digital Shelf

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About Clavis Insight – The Global Hub of eCommerce Intelligence

Our technology visits online retailers anywhere in the world…

…captures anything the shopper might see…

…and delivers actionable insights to drive sales, protect brands and increase share

Technology Excellence

Comprehensive Analytics

Global Footprint

Thought Leadership

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About Euromonitor International

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Today’s Speakers

Tim Barrett is a Global Retailing Analyst at Euromonitor International who previously covered a number of FMCG categories across the US. Tim’s professional interests include the evolving grocery landscape and online marketplace growth.

Danny Silverman is Senior Vice President of Customer Success for Clavis Insight. In his role, Danny helps brands enhance equity and drive sales at online retailers with data driven insights and experience informed action.

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Internet Retailing Trajectory

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Sale

s (

Re

al $

US

bill

ion

s)

Global & Local E-commerce Sales

World USA

CAGR

16.6%

CAGR

12.7%

#DigitalShelf


Online Assortment is Changing

0%

5%

10%

15%

20%

2001 2003 2005 2007 2009 2011 2013 2015

Global Internet Retailing Share by Product Category, 2001-2015

Apparel and Footwear Consumer Appliances Media Products Consumer Electronics

+3.6% +2.6% -2.1% -4.9%

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Category Close-Ups: Consumer Electronics

2005 Sales 2015 Sales 2005 Share 2015 Share Share Change

$12.8 billion $37.8 billion 18.9% 13.9% -5%

• Maturity

Growth Limiters

• Product Cycles • Price Erosion

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Category Close-Ups: Food & Drinks in the US

2005 Sales 2015 Sales 2005 Share 2015 Share Share Change

$2.1 billion $7.6 billion 3.1% 2.8% -0.3%

• Expensive

Growth Limiters

• Not widespread • Fresh problems

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Still Early Innings for the Digital Revolution Globally…

0

2

4

6

8

10

12

14

16

18

20

2010 2015 2020

US$

Tri

llio

n

Global Retail Sales by Channel

M-commerce

E-commerce

In-store

#DigitalShelf


…but Asia Pacific is Leading the Way

75 80 85 90 95 100

Middle East and Africa

Latin America

Eastern Europe

Australasia

Western Europe

North America

Asia Pacific

% of Sales by Channel in 2020

In-Store

E-commerce

M-commerce

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The Smartphone Age is Upon Us…

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…and it’s Helping Drive Internet Retailing

-

100

200

300

400

500

600

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Sale

s (R

eal $

US

bill

ion

s)

US E-commerce & M-Commerce Sales

E-Commerce M-Commerce

CAGR

12.4%

CAGR

34.3%

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Which Means It’s Growing Ever More Important

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Sale

s (R

eal $

US

bill

ion

s)US M-Commerce Share of Total Ecommerce

E-Commerce

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How much of E-Commerce Growth is coming from Mobile?

Top Countries for Internet Retailing Growth, Absolute Growth in real US$ millions, 2016-2020

Country Internet Mobile % from Mobile

China 205,574 178,351 87%

USA 174,640 110,483 63%

Japan 35,513 24,950 70%

United Kingdom 27,083 25,675 95%

India 26,976 5,577 21%

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Mobile Usage is High and Getting Higher for Purchases

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

Never

0-3 hours

3-6 hours

6-8 hours

8+ hours

Daily Smartphone Usage by 15-29 Year Olds, 2013

10%

15%

20%

25%

2011 2013 2015

Global Internet Connected Users Buying At Least Weekly with their

Mobile Phone

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Mobile-First Marketplaces Spring to Life

•Easy to browse•Social components baked in•Makes purchasing easy

B2C

Cross Border

C2C

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Mobile First Doesn’t Mean Mobile Only

In-store experience supplements App-only experiments fail

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjL4vvvqunLAhUFHR4KHYI1DzcQjRwIBw&url=http://www.firstpost.com/business/corporate-business/myntra-bosses-turn-into-crorepatis-with-flipkart-deal-all-you-need-to-know-2007145.html&psig=AFQjCNG7XA7B9MgM7Mxkvyf8faDGk55USA&ust=1459459064012606

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjL4vvvqunLAhUFHR4KHYI1DzcQjRwIBw&url=http://www.firstpost.com/business/corporate-business/myntra-bosses-turn-into-crorepatis-with-flipkart-deal-all-you-need-to-know-2007145.html&psig=AFQjCNG7XA7B9MgM7Mxkvyf8faDGk55USA&ust=1459459064012606

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwiG252Cq-nLAhUCdR4KHV72CeoQjRwIBw&url=http://www.iamwire.com/2015/04/flipkart-start-selling-groceries-online-year/113664&bvm=bv.118443451,d.dmo&psig=AFQjCNFx0edscYcvJk6UBSiWqDUiepzhgQ&ust=1459459103999211

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwiG252Cq-nLAhUCdR4KHV72CeoQjRwIBw&url=http://www.iamwire.com/2015/04/flipkart-start-selling-groceries-online-year/113664&bvm=bv.118443451,d.dmo&psig=AFQjCNFx0edscYcvJk6UBSiWqDUiepzhgQ&ust=1459459103999211

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The Future of Functionality

Payment Social

Social StoresRewards

Diehards Geofencing

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The Future of Functionality

Search Seamlessness

Voice APIs & Deep Linking

Visual World Blending

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Key Takeaways

Mobile Usage Is Ubiquitous

• But mobile shopping habits aren’t

It is Accelerating E-Commerce

• And possibly cannibalizing it

It Needs to Make Life Easier

• In the entire path to purchase

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As an E-Commerce Manager, What do I Need to Know About the Mobile Shelf?

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Clavis R&D has Conducted Extensive Comparative Testing and Analytics

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In Mobile, the Fundamentals Remain the Same

• Copy & Content

• Ratings & Reviews

• Merchandising Media5. Engage

• Varies by retailer

• Varies by fulfillment

4. Get Assortment Right

• Title

• Product Information

• Image and Video

3. Ensure Accurate Fundamentals

• Navigation location

• Keyword search2. Be Discoverable

• Available to buy Online

• Available in Store only1. Get and Stay In-Stock

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In Mobile, the Fundamentals Remain the Same

• Copy & Content• Ratings & Reviews

• Merchandising Media

5. Engage

• Varies by retailer

• Varies by fulfillment

4. Get Assortment Right

• Title

• Product Information

• Image and Video

3. Ensure Accurate Fundamentals

• Navigation location

• Keyword search2. Be Discoverable

• Available to buy Online

• Available in Store only1. Get and Stay In-Stock

#DigitalShelf


But There are Differences!

Images are smaller!

Titles are shorter

Content fields may be shortened or missing

Search results may vary

Availability may vary

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Shoppers search primarily by scanning the images

On average the image for each product gets 70% (time on) of the attention• Title and other copy gets 30%

On mobile it’s even greater:

98% on online shoppers make the buy/add to basket decision from hero or

primary image only**

*Clavis, Sticky research on Amazon.com desktop

**Omniture Clickstream from Tesco.com (2.4 million shoppers)

On Average Visitors Scan the Search Page in 7 seconds*

September 20th, Chicago

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Do Conventional Pack Shots Work on Mobile? (EXERCISE)

• What is the brand? - MAYBE

• Is it shampoo or conditioner? - NO

• Is it 400 ML or 250 ML?

• Intensive Repair or Colour Care? - NO

- NO

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Unilever has been Pioneering Better Primary and Hero Images for Any Screen Size

before

afterHero Images highlight the BASICS:Brand, Type of product, Flavor or variant and Pack size / Pack count

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Do Hero Images Work on Mobile?

• What is the brand?

• Is it shampoo or conditioner?

• Intensive Repair or Colour Care?

• Is it 400 ML or 250 ML?

- YES

- YES

- YES

- YES

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Open Sourced Layered ArtworkGoogle: Cambridge E-Commerce Inclusive DesignLinkedIn: Oliver BradleyTwitter: @eCommerceULVR

October 5th, London

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Global Mobile Shopping Tends and Best Practices to Win the Digital Shelf

Titles are Truncated, Typically Based on Character Width-Not Count

Retailer Mobile App Mobile Web

Walmart ~50 ~70

Amazon ~59-125 ~59-125

Peapod Unlimited Unlimited

Ocado Unlimited 52

Asda ~28 per line Unlimited

Tesco Unlimited Unlimited

Yihaodian Unlimited Unlimited

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Features and Descriptions are Partly Hidden, Often Requiring a Tap or a Swipe, or Sometimes Missing Entirely

Mobile Web Mobile App

*Walmart feature bullets for apps are incorporated into description w/out bullets.

*Amazon tablet app did not support A+ content until recently

Mobile Web Mobile App

*Peapod app did not include Personal Care ingredients until recently

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What’s Happening When you Search for ‘Diapers’? (US)

DESKTOP: returns results

within Baby

1 2

1

2

APP: returns results within ‘All

Departments’

DESKTOP: ‘All Departments’

1

2

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What’s Driving the Differences: Technology, Not Insights!

• Retailers have a patchwork of back end technologies for each platform that do not share common features and functionality

• China may be the exception

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But it Doesn’t Have to Be that Way!

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Key Take-Aways

Fundamentals are the same across platforms

Images are smaller – winning brands will adopt new standards

Titles are shorter – prioritize the first few words

Content fields may be shortened or missing – lead with impactful copy

Search results may vary – test and learn to build understanding

Availability may vary – get in stock, stay in stock!

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Questions and Answers

Tim Barrett Global Retailing Analyst

Danny SilvermanSVP, Customer Success

#DigitalShelf

Insights via web-based solution…delivering actionable data, analysis & insights to drive sales and share.

Audit + Analysis…captures anything theshopper might see…

Portfolio/Availability

Content

Search & Menu Placement

Rating, Reviews & Sentiment

Media

Price/Promotions

Advanced Modules

(e.g. POS Correlation)

TechnologyVisits online retailers on desktop, mobile web and mobile app, anywhere in the world…

About Clavis Insight

#DigitalShelf

Questions and Answers

Tim Barrett Global Retailing Analyst

Danny SilvermanSVP, Customer Success

#DigitalShelf

Upcoming EventsClavis Insight 2016 Americas eCommerce Accelerator Summit

Thursday, September 15State RoomBoston, MA

Clavis Insight 2016 EMEA eCommerce Accelerator Summit

Wednesday, October 5Altitude London

Path-to-Purchase Institute eCommerce Symposium

Tuesday, September 20Donald Stephens Convention Center

Rosemont, IL

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Online Channel Jumpstart for Brands: 5 Steps to Success for

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G MOBILE SHOPPING TRENDS AND BEST PRACTICES TO WIN...

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