Digital drives online and in-store sales in Belgium

Annik Vandendriessche, Google Industry Manager Retail 2 Dec 2014

2020

THE NEXT 5 BNconsumers expected to come online over next 5 years

2014 World Population

7 BILLION

2 BILLION

2014 Internet Population

Since 2006

Global bandwidth usage increased

12x 2020

Will grow another 12x

ENABLER: Hyper-acceleration of technology

50Bn connected “THINGS” by 202050bn connected ‘things’ are on their way

Augmented reality - Buy on the fly

2014

A fundamental shift has happened with consumers - multi-screen connected world

MOBILE COMMERCE MATTERS

Smartphones strongly influence online and in-store sales - their effect will only increase

mCommerce

In-store

App download & in-app purchases

Call

Cross-device

Full Value of Mobile

25%

of all queries are on Mobile

40%* use smartphones

Also in Belgium, Smartphones are always-on , always with us

*Consumer barometer 2014

But many Belgian businesses are still under-serving this shift in consumer behaviour

SO WHAT?Market to people, not devices

30% purchase online, Belgian is still lacking behind in ecommerce

Electronics and fashion still the most popular retail categories bought online

Where did you make purchase? - Online by category

Highest Belgian income demographics spent larger share of their total shopping baskets online

Role of digital goes far beyond ecommerce - 27% in-store purchases are influenced by online research

46% of people in Belgium who researched online bought online, while 43% of them completed purchase in-store

Searches become increasingly product-focused when a user is in or near a store

90% of smartphone users conducted pre-shopping activities before going to the store

Likelihood that a search is product-related when a user is in-store

for key product category searches when a user is in-store

Everywhere else

Near store

In store

2

1.5

1

0.5

Product searches (indexed)

+86%

+800%

Google Internal Data, Jan 2014

10% of people who researched in-store purchased the product on-line

Online consumer behaviour in Belgium along the full online and in-store purchase funnel

Not suprisingly, higher income demographics are most active in online research

On-line is where most people hear about new products first

“The power of eCommerce extends far beyond the keyboard and onto the sales floor. Every $1 spent online influences $5.77 spent in the store”

— Terry Lundgren, CEO

At home

On the go

At the store

SO WHAT?Be where consumer is - Invest in digital assets and communication to protect and drive both online and in-store sales

Typical paths to purchase

IT IS NOT TOO LATE TO BE EARLY!I

HOW GOOGLE CAN HELPI

annikv@google.com

Thank You!