havas worldwide: digital and the new consumer
DESCRIPTION
After more than a decade of tracking consumers’ use of digital technology, global communications company Havas Worldwide has undertaken a major study to explore emerging paths to purchase around the world. Working with research partner Market Probe International, we surveyed 10,219 adults in 31countries, representing a combined population of more than five billion. As e-commerce extends to mobile technologies, growing numbers of hyper-connected consumers are making smartphones a regular part of their purchasing processes. This worldwide trend is moving fastest in certain emerging markets, where switched-on consumers are proving more apt to embrace m-shopping than are their developed-market peers.Our research shows that just 16 percent of US online consumers have used a smartphone to shop online, far short of the 50 percent in China, 48 percent in Singapore, and 42 percent in India who have done so. Many consumers are using multiple devices for their e-shopping, although desktop computers are still the main go-to device in all countries. Overall, 80 percent have shopped through a home computer, 24 percent through a work computer, 25 percent through a smartphone or other mobile device, and 14 percent through a tablet. The Digital and the New Consumer study was created by Havas Worldwide and fielded as an online survey by Market Probe International. The 10,219 respondents are ages 18 and older and live in 31 markets across the globe: Argentina, Australia, Belgium, Brazil, Canada, Chile, China, Colombia, the Czech Republic, the Dominican Republic, Finland, France, Germany, India, Italy, Japan, Kazakhstan, Kuwait, Malaysia, Mexico, Russia, Saudi Arabia, Singapore, South Africa, Spain, Taiwan, Turkey, Ukraine, the United Arab Emirates, the United Kingdom, and the United States.TRANSCRIPT
Summer 2013
A dozen years ago, Havas Worldwide starting tracking an emerging cohort we call Prosumers
Key characteristics
• Embrace innovation
• Constantly seek out info + new experiences
• Enthusiastic adopters of technology
• “Human media” who transport attitudes + ideas
• Marketing savvy + demanding of brand partners
• Highly influential
Image credit: Fernando H. C. [email protected]
We also were studying the rapid changes in the digital world…
Telecommuting!
Smart homes! Interactive TV!
…and most especially the emerging field of e-commerce
(At the time, only 4% of US households had broadband access)
12 years later, we’re still tracking Prosumers…but in a world that has undergone a digital explosion
So we decided to explore how digital is reshaping consumption across the globe
Our Latest Global Study: Digital and the New Consumer
Extensive online survey created by Havas Worldwide and fielded by Market Probe International
31 countries
n=10,219
Around the globe, consumers fall within four categories of
digital integration
As mobile becomes more ubiquitous, people are
creating their own unique consumption mixes
Factors favoring e-commerce far outweigh
those against it
Consumers regard social media as a direct
communications pipeline to brands
What we’ll cover
• 4 degrees of digital integration
• Mobile in the mix
• Shopping is social
• Brands in social media
• Implications for today
• Looking ahead to 2025
4 Degrees of Digital Integration
From dissociated…
to integrated
to experimental… to divided…
Digitally Dissociated
Shoppers who stick to traditional face-to-face purchasing, either because they don’t have access to or choose not to use digital tools
Image credit: michael [email protected]
12% of our global sample made no online purchases in the past year
Digitally Dissociated
Why shop in-store rather than online?
BEING ABLE TO TOUCH/ FEEL/ TRY ON ITEMS
GET PRODUCTS FASTER
SALESPERSON’S HELP
Respondents selected up to three answers
Shopping over the Internet is still perceived to carry greater risk
Digitally Dissociated
% who worry about online security
“I worry about my financial security every time I shop online”
Digitally Dissociated
Those who regard the digital world as a separate sphere they access via a computer at home or work. They are happy to shop online but not via a mobile phone.
Digitally Divided
Image credit: Media-Saturn-Holding [email protected]
Occasional purchasers: Around 4 in 10 e-shoppers bought fewer than 10 items online in past year
Digitally Divided
FOR MAJOR PURCHASE DECISIONS, MY FIRST STOP IS USUALLY THE INTERNET
Even among infrequent e-purchasers, the Internet has become vital to the shopping process
Digitally Divided
SHOPPING ONLINE CAN SOMETIMES BE OVERWHELMING
The availability of consumer info online comes at a price
No group is immune from the stress—not even those who thrive on information (Prosumers) or those have grown up with digital (millennials)
What’s in those e-shopping carts?
PERSONAL ELECTRONICS CLOTHING/ SHOES/ACCESSORIES
ACCESSORIES
BOOKS TRAVEL (E.G., BOOKED A HOTEL, AIRLINE, OR TRAIN TICKET, CRUISE) TICKET, CRUISE)
MOVIES/MUSIC/ VIDEO GAMES
MUSIC/ VIDEO GAMES
The most popular categories of online purchases span from electronics to travel—with Prosumers most apt to buy in each category
Product Types Purchased Online Over the Past Year
This group is made up of e-shoppers who find digital intriguing and still a bit of an adventure. They are open to trying out what’s available and exploring what’s possible but have not yet fully integrated digital into their consumer lives.
Digitally Experimental
Image credit: Official BlackBerry [email protected]
Nearly 1 in 5 global respondents made 25+ e-purchases in last year
Digitally Experimental
But brick-and-mortar is still part of the shopping process
I SOMETIMES GO TO A STORE TO SEE/TRY OUT A PRODUCT BEFORE BUYING IT ONLINE
Digitally Experimental
Why buy online rather than in-store?
24/7 ACCESSIBILITY CONVENIENCE BETTER PRICES/DEALS EASY PRICE COMPARISON
Respondents selected up to three answers
Digitally Experimental
Savings is a big driver
Over the course of a year, shopping online… 78%: …saves me money by helping me get better deals/avoid rip-offs
vs.
22%: …causes me to spend more money than I normally would because it’s so much faster and easier to buy things
Image credit: [email protected]
Another plus: Anonymity
1/3 of the global sample—and 4 in 10 millennials—purchase certain items online to avoid the embarrassment of buying them in person
Digitally Experimental
THERE ARE SOME ITEMS I PREFER TO BUY ONLINE BECAUSE I WOULD BE EMBARRASSED TO BUY THEM IN A LOCAL STORE
Those who blend online and offline without making a conscious distinction between the two; digital anytime/ anywhere is simply part of where and how they live.
Digitally Integrated
Image Credit: Sergio [email protected]
Looking for a seamless blend of online and offline retail choices and interactions
Digitally Integrated
IT FRUSTRATES ME WHEN A RETAIL COMPANY DOESN'T HAVE AN ONLINE STORE
Mobile in the Mix
As long as going online required being tethered to a computer indoors, it had limited utility for shopping
That’s changing as widespread wireless connectivity and powerful mobile devices change who goes online—and when and where
Mobile changes everything
Strategy Analytics estimates there were more than 1 billion smartphones worldwide as of Q3 2012
Morgan Stanley forecasts that by late 2013, Internet will be accessed more by mobile devices than by desktop PCs
HOME COMPUTER WORK COMPUTER MOBILE DEVICE
For now, mobile is more about researching/ communicating than purchasing
Main Devices for Shopping Online
% OF RESPONDENTS WHO HAVE USED A SMARTPHONE TO SHOP ONLINE
But shopping via smartphones is catching on
And mobile devices have been embraced as a shopping tool
WHEN SHOPPING FOR A PRODUCT IN A STORE I HAVE USED A SMARTPHONE TO CHECK FOR A BETTER PRICE OR FOR CUSTOMER REVIEWS ONLINE
All signs point to more m-commerce in near future
I AM COMFORTABLE PURCHASING PRODUCTS AND SERVICES THROUGH MY SMARTPHONE
Digital Shopping Is Inherently Social
I DO LOTS OF CUSTOMER RESEARCH ONLINE
Websites, blogs, and social media are influencing purchase decisions
And the most relied upon influencers aren’t experts but peer consumers
I TRUST CUSTOMER REVIEWS MORE THAN “EXPERT” REVIEWS
On the “buy” side, nearly 1/2 of consumers have read about a product online and gone directly to another website to buy it I HAVE READ ABOUT A PRODUCT ONLINE AND GONE DIRECTLY TO ANOTHER WEBSITE TO BUY IT
On the “don’t buy” side, nearly 4 in 10 say a single negative comment can dissuade them from making a purchase…
EVEN A SINGLE NEGATIVE COMMENT ONLINE CAN STOP ME FROM PURCHASING A PRODUCT
OVER THE LAST YEAR, NONBRANDED BLOGS OR SOCIAL MEDIA MADE ME CHANGE MY MIND ABOUT A PRODUCT OR SERVICE I HAD INTENDED TO BUY
…and around 1/3 say social media has changed their mind about a purchase
Most people talk about brand/product experiences on social media
I SHARE INFORMATION ONLINE ABOUT BRANDS/PRODUCTS I USE
Contrary to conventional wisdom, people are more likely to share good experiences than bad
MORE LIKELY TO SHARE GOOD
EXPERIENCES
MORE LIKELY TO SHARE
BAD EXPERIENCES
I SHARE BOTH ABOUT THE SAME
Brands in Social Media: Yes, No, and OK
Around 1/2 of consumers interact with brands via social media
I INTERACT WITH BRANDS VIA SOCIAL MEDIA (E.G., "LIKE" THEM ON FACEBOOK, FOLLOW THEM ON TWITTER)
Social media can build brand connections…
I FEEL MORE CONNECTED TO CERTAIN BRANDS TODAY BECAUSE I CAN LEARN MORE ABOUT THEM AND INTERACT WITH THEM ONLINE
…and is an increasingly important engagement channel—especially for Prosumers
I FEEL ENGAGED WITH AT LEAST ONE COMPANY OR BRAND ON A SOCIAL MEDIA SITE
A social media presence can boost sales
I AM MORE LIKELY TO PURCHASE FROM A COMPANY/BRAND THAT IS ACTIVE ON SOCIAL MEDIA SITES
Pinterest hits the sweet spot
PINTEREST INFLUENCES MY SHOPPING BY GIVING ME IDEAS AND LINKING ME TO PRODUCTS I LIKE
And, as in the offline world, brands have an important role to play as guarantors of quality and trustworthiness online
But tread carefully…a sizeable minority believe social networking sites should be off-limits to brands
BRANDS ON SOCIAL MEDIA SITES ARE INTRUSIVE
I DON'T THINK COMPANIES/BRANDS BELONG ON FACEBOOK OR OTHER SOCIAL NETWORKING SITES; THESE SHOULD JUST BE FOR INDIVIDUALS
I DON'T THINK COMPANIES/BRANDS BELONG ON FACEBOOK OR OTHER SOCIAL NETWORKING SITES; THESE SHOULD JUST BE FOR INDIVIDUALS
STRONGLY AGREE SOMEWHAT AGREE NEITHER AGREE NOR DISAGREE
SOMEWHAT DISAGREE STRONGLY DISAGREE
The split on these statements suggests lots of wiggle room
BRANDS ON SOCIAL MEDIA SITES ARE INTRUSIVE
STRONGLY AGREE SOMEWHAT AGREE NEITHER AGREE NOR DISAGREE
SOMEWHAT DISAGREE STRONGLY DISAGREE
The split on these statements suggests lots of wiggle room
Acceptance is predicated on how you behave…
Brands on social media are expected to be especially responsive
COMPANIES ARE MORE RESPONSIVE TO CUSTOMERS WHEN THEY COMPLAIN VIA SOCIAL MEDIA
Consumers expect brands to listen and respond quickly and appropriately on social sites…
…and social media users are annoyed when brands fall short
IT ANNOYS ME IF I DON’T GET A FAST RESPONSE FROM A COMPANY OR BRAND I CONTACT VIA FACEBOOK, TWITTER, OR ANOTHER SOCIAL MEDIA CHANNEL
For some, it’s all about the quid pro quo
I ONLY ENGAGE WITH BRANDS ON SOCIAL MEDIA IF THEY OFFER DISCOUNTS OR PRIZES
Bottom line: Do be useful and responsive
Do share interesting information
Do offer engaging experiences
Do convey a sense of the real human beings behind the brand
Do offer tangible rewards
Do let them play a role in the company and brand
Don’t be on social media just for the sake of being there
Source: buzzfeed.com
Don’t be tone deaf
Source: Facebook via mUmbrella
Implications for Today
Smarter in-store tactics to battle online shopping and “showrooming”
Staples is experimenting with a retail format that incorporates a business lounge with meeting space and mobile workstations
Fashion eyewear retailer Warby Parker is opening brick-and-mortar showrooms but requires that all prescription purchases be made online
Rethinking the role of in-store employees
Source: Google Shopper Marketing Council
Combining commerce and community
Woot.com promotes shopper banter in real time
Personalized shopping: Delivering individualized value
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Retailers and others are introducing improved Prosumer apps for smart shopping
Mobile as first screen
More focus on responsive design as retailers strive to accommodate every point of access
Image source: Martin [email protected]
Smarter mobile marketing
Meat Pack Hijack : Guatemala retailer uses app that detects when shopper is entering competitor’s store and flashes alert offering 99% discount—which decreases by 1% each second
Apps to improve brick-and-mortar retail experience
Instant discounts
The race for speed—for retailers online and off
Finding new ways to target online influencers
What Can We Expect in 2025?
The end of cash?
In 2012, cash comprised just 2% of point-of-sale payments for US households earning more than $60K a year [McKinsey]
The world as our computer—interactive surfaces anywhere and everywhere
Image credit: Houzz.com
Intelligent household devices—to automate chores and household purchases
Already, we’re seeing the start of functional window shopping
No store—just a window display; pay via PayPal and items are delivered by courier within the hour
Wearable technology—to make life easier and consumption more seamless
In the market for a new car? Your personalized curator will narrow down options based on a wide range of collected data, including typical number of passengers, driving style, entertainment and style preferences, area weather patterns, and more.
Personalized curation
As buying decisions become more complex, we’ll maintain individualized databases of preferences and needs to make smarter—and simplified—choices
Competing on apps
Currently, around 80 % of m-commerce purchases take place via apps. Took for more apps to get “smarter” through use, giving consumers reason to remain loyal.
For more insights from Havas Worldwide research—and to download the “Digital and the New Consumer” white paper—visit http://www.prosumer-report.com/blog/
And follow us on Twitter (@prosumer_report)