Shoppertunities. Kerry Chipp 15 May 2014

Transcription

1 Shoppertunities Kerry Chipp 15 May 2014

2 Note of thanks to sponsor there is extensive shopper behaviour research conducted at the level of individual malls, but limited comparative data for the category. Primedia Unlimited Mall Division seeks to enable a better understanding of how consumer intent translates into shopper behaviour and retail sales

3 Background

4

5 Context With an estimated R407 billion* spent in shopping centres in 2013 Which accounts for 70% of all retail spend in 2013 And super regional and regional shopping centres attracting an average footcount of 800,000* consumers a month Understanding who these consumers are, how and what they buy and what influences their purchases is paramount *SACS2013 Fact Sheet *Average of audited foot counts across super regional and regional malls

6 Methodology Fieldwork conducted by AC Nielsen, overseen by Dr Clive Corder and Kerry Chipp 7 Super regional and regional malls in Gauteng, KZN and Western Cape Surveyed 4200 n = 600 per centre Sampled two weeks at the end Nov 2013, every day across 4 intervals each day Mall intercept questionnaire randomly sampled across entrances, time of day and day of week Two questionnaires one on entry and other on exit

7 Who did we speak to? Profiles

8 Spread across the main centres 100% 90% 80% 70% 60% 50% 40% 27% 28% 33% 30% 12% 20% 10% 0% Gauteng KZN Western Cape Pretoria Total n = Please note data weighted Un-weighted total 4200

9 Spread of ages, races and across week activity More females than males 100% 90% 80% 70% 63% 64% 60% 51% 50% 40% 30% 27% 33% 26% 36% 30% 20% 14% 10% 12% 14% 15% 10% 3% 0% Black White Indian Coloured Male Female Daily Weekly Monthly Less often Age Race Gender Frequency of visit

10 What did we ask? On Entry Visit frequency; visit timing (day, week, month) Overlap with other malls in the region Travel time, mode and origin Planned visits Reason for coming to mall On Exit (for a voucher) Types of stores visited Brands visited Purchase (planned and unplanned) and spend Reason for purchase Mall rating on list of criteria In mall advertising noticed Marketing activations noticed Shopper attitudinal statements Loyalty cards Cell phone questions (use, social media etc.) Standard demographics

11 The mall differentiators

12 The roles of Super-Regional vs. Regional malls are clearly differentiated by mall goers Super-Regionals Centred around EXPERIENCE Rated positively in terms of Accessibility Comfort Discovery of new products Socialising Regionals Centred around FACILITATION Rated positively in terms of Purpose driven event Directed purchase Functional engagement Ease of navigation is a strong influencer Super-regionals are more likely to be used for a wide variety of activities by mall goers Regionals are more likely to be frequented regularly for essential shopping and activities

13 The unintentional shopper

14 Mall goers buy a variety of items when shopping, a third outside of their original intention On average, mall goers visit 9 categories per visit 3 of 9 category visits are unintended at the outset

15 There are similarities between the top intended categories and top unintended categories visited Top Intended categories visited Food and household products Department Stores Clothing Banking Household groceries Top unintended categories visited Clothing Restaurants and coffee bars Food and household products Department stores Household groceries

16 Malls attract buyers, who buy things they didn t even know they needed 8 in 10 mall goers purchase during their visit 4 in 10 purchases are unintended at the outset This equates to R 13.5 billion a month being generated by unintended purchases

17 Marketing in the last mile contributes to the bottom line 36% of spend was attributed to the presence of in-mall advertising and marketing activations In a mall with an average of 800,000 monthly visitors, 288,000 purport to be influenced by the presence of in-mall advertising and marketing activations R 12.2 billion spend a month being generated by response to in-mall advertising and activations

18 Shopper behaviours

19 The research identified 5 distinct shopper behaviours Goal Directed Taking a Break Leisure Shopper General Shop Business Purpose

20 Goal Directed Less frequent visitors Spend on average 1h27 a visit Value mall navigation tools Notice in-mall advertising and marketing activations Although focused on what they have come to buy, they do make unintended purchases Top 5 intended categories Top 5 unintended categories Food and Household Clothing This group generates around R 48.3m in spend in an average mall a month Clothing Cellphone / electronics Department store Department Accessory / Luggage Restaurant / Coffee bar Cellphone / electronics Food and household

21 Taking a Break Spend on average 1h27 a visit Get involved with the demonstrations and engage in marketing events Go primarily for food and household goods, but often end up buying other categories. Higher propensity to make unplanned purchases This group generates around R41.6 m in spend in an average mall a month Top 5 intended categories Top 5 unintended categories Food and household Clothing Clothing Restaurants / coffee bars Department Stores Household groceries Household groceries Food and household Banking Department stores

22 Leisure Shopper Spend on average 1h42 per visit Prime purpose is socialising and entertainment Tend to travel distance to the mall for the occasion Open to in-mall advertising and demonstrations like new experiences Active on social media and utilise it extensively This group generates around R 18.3m in spend in an average mall a month Top 5 intended categories Clothing Clothing Top 5 unintended categories Food and household Restaurants / coffee bars Entertainment Food and household Department stores Department store Accessories / luggage Accessories / luggage

23 General Shop Less frequent visitors but travel from far Spend on average 1h31 per visit Higher propensity for visit intention to be vague at the outset Aware and interested in in-mall advertising and marketing activations This group generates around R 9.7m in revenue in an average mall a month Top 5 intended categories Food and household Clothing Top 5 unintended categories Clothing Restaurant / coffee bar Department store Food and household Banking Department store Household groceries Household groceries

24 The Business Purpose High frequency visits from local catchment High propensity to engage in unplanned purchases Significantly open to marketing activities and in-mall advertising Engaged actively in online and social media This group generates around R 3.9m in sales in an average mall a month Top 5 intended categories Top 5 unintended categories Food and household Clothing Clothing Food and household Department stores Department stores Banking Household groceries Household groceries Restaurants / coffee bar

25 Actions and Attitudes

26 store variety + extended browsing time available = log spend

27 Shoppers come to shop, but shoppers with time on their hands are a lucrative market R R R R R R R R R R R R 0 R R R R R R R R R R R R R R Purpose of visit

28 Shoppers tend to say and do very different things They say advertising gets them there They say they are cautious, but also that they are willing to use credit Few were brought in on the strength of an offer advertised outside the mall High propensity to visit stores not intended and purchase items not planned for They say they like to buy items on special They respond well to specials which shows they are deal prone They say advertising and special promotions influence them High propensity to only remember things they need once in the mall, which suggests that triggers in the local environment are effective

29 The importance of the last mile

30 In-mall advertising and marketing activations have a significant impact on consumer purchases Advertising and mall activations accumulate Mall activations create unplanned browsing (statistically significant correlation r =.256) Engaging in product demonstrations Receive store marketing messages Attend marketing events during visit Enter a promotion

31 In-mall advertising and marketing activations have a significant impact on consumer purchases Advertising and mall activations accumulate and explains 36% spend in malls Mall activations factors into spend (statistically significant correlation β =.223) Mall advertising factors into spend (statistically significant correlation β =.248) When combined in concerted campaigns an amalgam creates the impact so rather own a mall than spread efforts thinly across malls R 12.2 billion spend a month being generated by response to in-mall advertising and activations

32 In-mall advertising is recalled by those with unplanned visits and purchases to be influential Top 3 recalled in-mall advertising platforms 1. Escalator branding 2. Hanging banners 3. Lift door branding

33 The role of digital is significant in malls where the capabilities are higher In malls with digital capabilities, digital directories and video walls were within the top 5 recalled advertising channels

34 While smartphone penetration is high, the usage of devices for wifi in the malls isn t significantly high Smart Feature Basic 62% 12% 26% 71% currently don t have wifi enabled on their wifi enabled phones when coming to the malls

35 Online shopping penetration is low currently but with access and mobility increasing 8% of mall goers currently report to use online shopping

36 Key Take Outs

37 With consumers being deal prone and value conscious, in mall promotions work well to drive behaviour With a high propensity to engage in the mall environment for relaxation and socialising, mall demonstrations are attractive In-mall marketing activities play a far larger role in unplanned purchases than advertising In-mall marketing activities correlates to unplanned visits of mall retailers There is a direct correlation between amount of time spent in the mall and the presence of in-mall advertising to drive unplanned purchases

38 Implications for stakeholders

39 Mall Owners Aware of mall position and role it serves in lives of shoppers Store and occasion mix important Positioning of smaller occasion shops near big retail increases foot-traffic for large retail Clothing and department stores should remain as the anchor tenants Gauteng large malls are more of a social outing than coastal and smaller malls, so can capitalise on many shopping occasions Encourage browsing opportunities where ever possible as they are a key part of increased spend

40 Brand Owners Advertising needs to be coordinated between large scale above the line brand building and below the line sealing of the deal Differentiate between volume drivers below the line and brand symbolism above Opportunity to energise brand through experiential occasions when shoppers are at leisure

41 Retailers Be cognisant of positioning of refreshment occasions within large retail Business meetings and other activity generates a great deal of opportunistic spend for the mall Browsing is the second biggest event associated with spend underscoring the need for footfall Build on segments of shoppers and their needs

42 Thank you! Kerry Chipp