emma retail trends and insights
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1 emma retail trends and insights May 2015 Having it all The in-store experience is still key to young Australian women s shopping habits, creating opportunities for retailers.
2 ...they shop at both online and traditional stores more frequently... Generation buy Numerous studies suggest Australian retailers rate multi-national online competitors as their biggest threat and in response are aggressively optimising online sales channels. One recent survey 1 found more than 95% of retailers consider e-commerce the most effective means of sales conversion, compared to just 46% for bricks and mortar stores. Despite perceptions to the contrary however a study using emma TM data on the attitudes and behaviours of yearold Australian women shows these key consumers still love the in-store experience: they shop at both online and traditional stores more frequently than their earlier generation sisters (45-65 year-olds) do. What s more, younger women voraciously consume digital content via mobile and social platforms, are always connected and very accepting of geo-locational mobile apps. Together, these shopping and media consumption profiles create opportunities for Australian department stores and specialty fashion retailers to engage younger women while they are out and about and in-store, to drive impulse purchasing and expand the range of products considered. 2
3 See it, want it Women of all ages love shopping. Four out of five Australian women aged visit bricks and mortar department stores and fashion retailers at least once a year women however are more likely to be frequent visitors and shoppers at all the major department stores: Six in 10 younger women check out the mass retailers at least once every three months (20% more often than year-old women). Younger women are 20% more likely to shop frequently at premium department stores and speciality fashion retailers women have also taken to online channels more eagerly than their older counterparts: in the past year one in four has bought fashion from an Australian online retailer, and one in 10 from an international outlet. Whether in-store or online there are more opportunities for retailers to engage with their younger customers. The extent of consumer awareness and usage however varies by brand. Of the pure fashion and clothing retailers, the same outlets feature in the top six for younger and older women alike, albeit in slightly different order. Awareness and usage: major retailers bricks and mortar vs. online Brand Usage Brand Awareness 98 % 97 % 40 % 37 % 96 % 94 % 95 % 92 % 37 % 32 % 32 % 26 % 97 % 98 % % % 32 % 26 % 15 % 10 % W25-35 W % 60 % 59 % 53 % 54 % 45 % 8 % 4% 4 % 2 % 1 % 1 % Younger women are far more likely to shop online for fashion yet continue to visit bricks and mortar outlets Source: emma Conducted by Ipsos Connect (Q1, Q2, Q3 and Q4 partial database), Sample of respondents women n=3,138 women n=8,550 3
4 buy it Australian women of all ages buy clothing, shoes, fashion items and cosmetics, though shopping and spending patterns vary across generations influenced by discretionary income, time and their media preferences. YOUNGER WOMEN A fun, social occasion: 20% more likely to love to shop 45% more likely to enjoy shopping for cosmetics OLDER WOMEN Premium shoppers: 7% more likely to make higher-value instore clothing purchases than the rest of the population Spend 40% more on clothing in-store Commando raiders: Time for myself: Shop more often, but in shorter bursts Less frequent, more leisurely shoppers Time pressed: More than half have kids under 18 at home Just 25% have kids under 18 at home Targeted spenders: Spend as much in-store at mass retailers as older women Frequent in-store shoppers spend more online in some categories 50% of their total fashion spend 30% more likely than rest of population to spend less than $50 on clothing in-store Even as Australian retailers build their online sales channels, the in-store experience remains important to building loyalty and impulse purchasing, with 61% of year-old women agreeing I love to shop with in-store a major element of the shopping fix. And shopping habits, once established, are quickly entrenched. According to American Express 2, 60% of Australian shoppers rarely visit more than 10 different retail and online shops. Just one in 10 of us impulse shops, only 22% do most spending online, and 85% of Australians always shop the same way. Source: emma Conducted by Ipsos Connect (Q1, Q2, Q3 and Q4 partial database), Sample of respondents women n=3,138 women n=8,550 4
5 Average spend (last purchase) by segment instore and online $118 Online $115 Bricks & Mortar What a disappointment there s no online layby. essentialbaby.com.au $180 $168 Clothing You need to print the Target coupon and take it in store to get the discount. saverscene.com.au $118 Online $184 Shoes $105 Bricks & Mortar $156 Looked online & DJ s are having a promo where you get a full size $30 Weleda purchase! Will check it out instore tomorrow. beautyheaven.com.au $83 $108 Online Bricks & Mortar $149 $126 Watches/Jewellery $89 $93 Online Bricks & Mortar $165 $144 Fashion items Women tend to spend slightly more online than they do instore on each fashion segment W25-35 W45-65 Ipsos SMX In February 2015 Ipsos SMX Social Intelligence compared consumer attitudes and motivations around department stores - both traditional and online revealing a symbiotic relationship between instore and online retail. It is well known that consumers visit stores to get the right size and colour choice and then buy online. But the reverse is equally common, with consumers frequently researching online and then visiting in-store to try on and then buy with a better discount or to meet an immediate need. Source: emma Conducted by Ipsos Connect (Q1, Q2, Q3 and Q4 partial database), Sample of respondents women n=3,138 women n=8,550 5
6 Right here, right now Internet-connected mobile devices aren t just part of women under 35 s lives but at the core of all their social activity. Compared to older women, 25-35s are far more likely to seek information, advice and entertainment on the go, and to use mobile locational apps. Younger women also have larger social media networks than their Baby Boomer counterparts, which dramatically enhance word-of-mouth influence on their fashion purchasing. The Connected Shopper 15 % 32 % I make a lot of use of mobile phone apps that use my current location 10 % 37 % I look at websites on laptop, tablet or phone whilst out and about 30 % 60 % I use my mobile phone to get news and information 13 % 28 % I feel comfortable using my mobile phone to pay for things in shops 8 % 19 % I use social media to interact with a TV program Social Media Influence on Fashion Purchases Social Network Size 14 % 6 % I have posted or shared positive comments about fashion products, services & experiences online 18 % 9 % I am often asked about my opinions & knowledge on fashion products & services % 11 % I encourage others to buy fashion based on my own experiences 22 % 11 % I have been influenced by other buyers experiences in my fashion purchase decision W25-35 W45-65 Social media is a key platform to reach and influence younger fashion shoppers 6 Source: emma Conducted by Ipsos Connect (Q1, Q2, Q3 and Q4 partial database), Sample of respondents women n=3,138 women n=8,550
7 One size does not fit all To engage younger women, retailers need different strategies for different areas. geoemma data which offers attitudinal, consumer spend and media profiles by geographic region shows why targeted communications that resonate with local attitudes, behaviours and beliefs will be more effective. For example, households in Sydney s eastern suburbs are more likely to be receptive to messages about shopping online and messages delivered via online platforms. They are also more engaged with social media platforms such as Instagram and Twitter. geoemma heat map of Sydney showing indices of annual spend on clothing. Bright red is highest index vs. green lowest index. Miranda Bondi Junction Chatswood Blacktown Index Index Index Index I shop online I look for information on products and services online I feel confident about my financial situation in the future I d feel lost without the internet Accessed Facebook last 4 weeks Accessed Instagram last 4 weeks Accessed Twitter last 4 weeks Household spend on clothing ($ p.a.) Index Household spend on clothing ($ p.a.) $1,877 $2,446 $2,151 $1,576 Go shopping at a department store Go shopping at a large shopping centre/ Complex Source: geoemma RDA Research (2015) 7
8 Closing that sale The hyper-connected year-old Australian woman with her love of shopping, the in-store experience and the social nature of shopping is highly receptive to targeted retailer messaging and promotions. New cross-platform audience measurement tools, such as Ipsos s emma TM survey, offer greater scope to track emerging behaviours, analyse the role of social media channels, and enable geo-targeted messaging in new ways. Programmatic buying platforms that merge respondent level data from cross-platform audience surveys, combined with rapidly developing public space Wi-Fi services, will increasingly provide the means to target and reach the consumer at the optimum time. Combined with imaginative use of social media and mobile apps, retailers can take advantage of the higher frequency shopping and media habits of young Australian women to engage these consumers wherever they are whether in-store, out and about or online. Explore and discover The observations and analysis in this short report are based on data from Ipsos emma TM survey and geoemma/rda research. The emma TM survey is completed by 52,000 Australians per year and is accurately matched to total population across gender, location and demographic variables. Detailed responses are collected across all aspects of consumers retail behaviour online and offline. To find out more or to arrange a tailored presentation for your brand please contact info@emma.com.au or visit emma.com.au This report is published by Ipsos Australia. L13, 168 Walker Street North Sydney, NSW 2060 Ipsos Australia, emma TM is a trademark of The Readership Works Sources: 1 SLI Systems Sydney. April, American Express Pattern Spending Report (Australia). February, 2015.
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