ThinkNow Retail 2017 Report Innovations in technology expected to ignite a boon for retailers this holiday season
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1 ThinkNow Retail 2017 Report Innovations in technology expected to ignite a boon for retailers this holiday season
2 ThinkNow Retail What is it? ThinkNow Retail is a nationwide survey that examines the holiday shopping behavior of Americans. The study looks at the market as a whole and by key race/ethnic segments. Methodology Survey Method Online via ThinkNow Research s Omnibus Study Field Timing August, 2017 Regional Coverage National Screening Criteria years of age Base Sizes 303 Hispanics 509 Hispanics 1,287 Total 257 Non-Hispanic Whites 255 African- Americans 266 Asian- Americans 2
3 Who We Are An authority on creating and managing research products that help clients gather insights about rapidly changing consumer segments. Conduct online, in-person and telephone research. Research experience specifically in the Hispanic, African American, Asian and Total markets. Experience in hard-to reach demographic sub-groups. Only full-service market research company that owns & operates an inhouse Hispanic panel. Servicing Fortune 500 clients, ad agencies, nonprofits and other market research companies. 3
4 Our Services ONLINE MARKET RESEARCH COMMUNITIES QUANTITATIVE QUALITATIVE MIXED MODE CONCEPT AND COPY TESTING ADVERTISING EFFECTIVENESS ONLINE PANEL BUILDING ONLINE PANEL INTERCEPTS PHONE WEBSITE USABILITY STUDIES OMNIBUS SURVEYS ATTITUDES & USAGE BRAND TRACKING PRODUCT TESTING ONLINE & OFFLINE QUALITATIVE 4
5 Research Results
6 3-in-10 consumers say they will be spending more during the upcoming holiday season compared to last year Hispanics and African-Americans in particular are the most likely to spend more this year. Holiday Spending: 2017 vs More 30% 33% 27% BD 39% 28% Same 52% C 50% C 56% 39% C 52% Less 17% 16% 17% 22% 19% Total Market Hispanics (A) Whites (B) African-Americans (C) Asians (D) Letters indicate statistically significant difference (95% confidence) Do you plan on spending the same, more or less this year for Christmas shopping compared to last year? Base: Total Market (n=1187) Hispanics (n=486), Whites (n=229), African Americans (n=231), Asians (n=241) 6
7 More disposable income and great deals are the top reasons for the anticipated increase in holiday spending For Hispanics and Asians in particular, technology/innovation are significant factors as well. Top Reasons for Spending MORE For Holidays This Year Among Those Who Will Be Spending More 47% 47% 46% 49% 51% 45% 44% 44% 44% 42% C 39% C 44% C 40% 32% 29% 26% 30% 28% 31% 22% Have more disposable income Deals are good/better Technology/ Innovations make me spend more Credit conditions are good/better Total Market Hispanics (A) Whites (B) African Americans (C) Asians (D) Letters indicate statistically significant difference (95% confidence) Why do you plan on spending MORE this year for Christmas gifts compared to last year? Among those who will spend more this year Base: Total (n=400) Hispanics (n=171), Whites (n=64), African Americans (n=95), Asians (n=70) 7
8 Overall, consumers expect to spend an average of $576 during this holiday season Amount Will Spend For Holiday Season Average $576 $536 $578 $537 $515 $1,000 or more 19% 14% 19% 16% 14% $500 - $999 D 25% 28% 25% 24% 24% $100 - $499 D 45% 47% 46% 45% 47% Under $100 11% 12% 10% 15% 15% Total Market Hispanics (A) Whites (B) African-Americans (C) Asians (D) Letters indicate statistically significant difference (95% confidence) Approximately how much money are you planning to spend for this holiday season?. Base: Total Market (n=1187), Hispanics (n=486), Whites (n=229), African Americans (n=231), Asians (n=241) 8
9 Hispanic consumers are the most likely to have children and siblings on their holiday shopping list A large share of African-Americans and Asians will be shopping for themselves People on Holiday Gift List Total Market Hispanics (A) Whites (B) African- Americans (C) Asians (D) Parent(s) 63% 67% C 64% C 51% 64% C Spouse or partner 55% 61% C 54% C 39% 55% C Children under 18 years of age 52% 57% CD 51% 49% 41% Siblings 51% 56% C 50% 43% 51% Friends 43% 41% C 44% C 27% 56% ABC Other family members 29% 22% 32% AC 22% 29% Adult children (18+) 27% 23% D 30% AD 26% D 17% Yourself 25% 27% B 19% 39% AB 38% AB Co-workers 16% 15% 15% 12% 25% ABC D Grandparent(s) 13% 13% 12% 11% 14% Neighbors 12% 9% 13% C 7% 8% Letters indicate statistically significant difference (95% confidence) Which of the following groups are on your holiday list this year? Base: Total (n=1187) Hispanics (n=486), Whites (n=229), African Americans (n=231), Asians (n=241) 9
10 More consumers find holiday gift ideas online than in-person. Hispanics are more likely to find gift idea through advertising than other groups. Sources for Gift Ideas Ask people what they want Search Online 44% 34% 48% AD 41% 36% Browse in Stores Advertising 27% 30% 26% C 24% 34% Sales catalogs Other 16% 19% 13% 16% 16% 10% 6% 7% 6% 3% 7% BC 5% 2% 3% 7% 4% 3% 4% 5% 4% Total Market Hispanics (A) Whites (B) African Americans (C) Asians (D) Letters indicate statistically significant difference (95% confidence) Where do you get most of the ideas for the gifts that you are planning to buy? Base: Total Market (n=1187), Hispanics (n=486), Whites (n=229), African Americans (n=231), Asians (n=241) 10
11 The most popular holiday gifts this year will be clothing, gift cards, toys and electronics. Differences exist by race/ethnic segments. Items Planning to Buy as Gifts Top Items Shown Total Market Hispanics (A) Whites (B) African Am. (C) Asians (D) Clothing 51% 57%C 49% 47% 53% Gift Cards 50% 47% 50% 42% 58% AC Toys 41% 45% C 42% 33% 38% Electronics 40% 39% BD 40% 37% 39% Money 34% 30% 32% 41% 39% Jewelry/Watch 31% 30% 31% 30% 27% Cologne/Perfume 31% 40% BCD 27% 32% 24% Video Games 30% 39% BCD 26% 32% 27% Sweet food items (cakes, chocolates, cookies, etc.) 29% 29% C 31% C 18% 30% C Alcoholic beverages (wine, beer, hard liquor, etc.) 25% 26% CD 26% CD 16% 17% Books 24% 23% C 26% C 16% 25% C Shoes 24% 34% BD 20% 27% 21% Cosmetics 23% 30% BC 21% 17% 27% C Home accessories (blankets, towels, pillows, etc.) 23% 20% 23% 18% 23% Music 22% 21% D 23% D 17% 14% Gifts I make myself 21% 14% 26% ACD 12% 15% Purse/Wallet 19% 24% B 16% 19% 20% Small household appliances (juicer/blender, microwave, etc.) 17% 14% 18% 15% 18% Baby items (clothing, baby toys,etc.) 15% 20% D 14% 16% 12% Food baskets 15% 13% 14% 15% 16% Sports/Exercise equipment 13% 11% D 14% D 10% 6% Work tools (chainsaw, drill, etc.) 13% 10% 15% 4% 8% Which category items are you likely to give as gifts this year? Base: Total (n=1187) Hispanics (n=486), Whites (n=229), African Americans (n=231), Asians (n=241) 11
12 On average, about 40% of all holiday gift purchases will be made online. This is nearly as high as in-person purchases (44%). Asians are the only segment that are less likely to shop in-person than online. How Will Buy Gifts (Mean Proportion) Over the Phone 3% 4% 3% 4% 4% 4% 3% 3% 2% 6% 7% 6% 8% 9% 10% By Mail 39% 35% 40% 34% 44% Mobile App Online 44% 46% 45% 43% 40% In Person / In Store Total Market Hispanics (A) Whites (B) African Americans (C) Asians (D) Letters indicate statistically significant difference (95% confidence) Thinking about all the holiday gifts that you will buy this year, please write the percentage of gifts you plan on making by each of the following methods. Base: Total Market (n=1187), Hispanics (n=486), Whites (n=229), African Americans (n=231), Asians (n=241) 12
13 Aside from the added convenience and lack of crowds, consumers like to shop online for gifts because they are able to take their time and are able to find better deals. Reasons For Shopping Online Among those who buy gifts online Total Market Hispanics (A) Whites (B) African Am (C) Asians (D) Easier/faster 58% 55% 59% 57% 63% No crowds or lines 52% 49% 51% 57% 58% Better prices 51% 58% 49% 50% 61% BC Can take my time 51% 50% 50% 51% 52% Wider selection 44% 44% 45% 42% 44% Can compare items 43% 38% 46% 38% 46% Can read reviews 43% 42% 44% 34% 58% ABC More availability of products 42% 40% 42% 35% 51% AC Can send gifts to others more easily 33% 24% 35% A 29% 32% Less pressure than in-person shopping 27% 33% B 24% 34% B 37% B Letters indicate statistically significant difference (95% confidence) What are the main reasons why you purchase holiday gifts online? Among those who will shop online for holidays Base: Total (n=1032) Hispanics (n=432), Whites (n=189), African Americans (n=190), Asians (n=221) 13
14 2/3 say they will shop at Amazon for the holidays the highest of any retailer Asian consumers in particular are likely to shop via Amazon. Walmart ranks second overall; Target third. Retailers Planning to Shop for Holidays Amazon 66% 64% C 67% C 55% 72% AC Walmart 55% 59% D 53% D 62% D 41% Target 41% 49% BC 37% 41% 46% Best Buy Toys 'r Us Macy's 29% 26% 25% 30% 26% 32% BC 28% 27% 21% 27% 23% 20% 35% 21% 39% BC Kohl's 24% 22% C 26% C 14% 23% C JC Penney Victoria's Secret Bed, Bath & Beyond 21% 20% 19% 30% BCD 19% 17% 20% 20% 18% 16% 18% 23% 18% 17% 24% Home Depot 13% 12% 15% 9% 12% Costco 12% 14% C 11% C 5% 25% ABC Walgreen's 11% 12% 10% 11% 8% Sears 10% 15% 10% 6% 11% Nordstrom 10% 8% 10% 8% 15% AC Kmart 9% 12% BD 7% 13% D 5% Lowe's 8% 7% C 10% CD 3% 4% CVS Pharmacy 8% Total Market 9% C Hispanics (A) 8% Whites (B) 5% AA (C) 12% C Asians (D) Letters indicate statistically significant difference (95% confidence) Which of those retailers are you planning to shop at for the holiday seasons (to buy presents, holiday decorations/wrapping paper/cards, etc.)? Base: Total Market (n=1187), Hispanics (n=486), Whites (n=229), African American (n=231), Asians (n=241), 14
15 Laptop will be the most commonly used device for making holiday purchases Hispanic consumers over-index on smartphone purchases Devices Used for Online Holiday Purchases 60% 59% 62% B 62% 59% 53% 54% 50% 46% 54% 47% 42% 50% 40% 44% 33% 38% 30% 35% 33% Laptop / Notebook Smartphone Desktop Computer Tablet Total Market Hispanics (A) Whites (B) African Americans (C) Asians (D) Letters indicate statistically significant difference (95% confidence) For holiday purchases you make online, which of these devices do you use?. Base: Total Market (n=1187), Hispanics (n=486), Whites (n=229), African Americans (n=231), Asians (n=241) 15
16 Debit card is the most utilized method of payment. Among Asians, however, credit card usage is much higher. Payment Methods for Holiday Purchases Debit Card Credit Card D 34% D 41% D 34% D 38% 16% Cash PayPal 27% 24% ABC 26% 18% ABC 51% Gift Cards Loyalty Cards Other D 21% D 24% 9% 6% 5% 4% D 21% 28% 16% 11% 9% 7% 6% 5% 8% Total Market Hispanics (A) Whites (B) African-American (C) Asians (D) Letters indicate statistically significant difference (95% confidence) How do you plan to pay for MOST of your holiday purchases? Base: Total Market (n=1187), Hispanics (n=486), Whites (n=229), African Americans (n=231), Asians (n=241), 16
17 Demographics
18 Gender Hispanics Whites African-American Asian Males, 51% Males, 50% Males, 48% Males, 47% Females, 49% Females, 50% Females, 52% Females, 53% Base Size: Hispanics n=509, Whites n=257, African-American n=255, Asian n=266 18
19 Age 37 Mean Age Hispanics Whites African-American Asian Hispanics Whites African-American Asian 18-34, 46% 18-34, 34% 18-34, 41% 18-34, 39% 35-64, 54% 35-64, 66% 35-64, 59% 35-64, 61% Base Size: Hispanics n=509, Whites n=257, African-American n=255, Asian n=266 19
20 Other Employed College Graduate or More Median Household Income 67% 67% 63% 69% $67K $78K 65% $46K $38K 38% 41% 25% Hispanics Whites African-American Asian Hispanics Whites African-American Asian Hispanics Whites African-American Asian Base Size: Hispanics n=509, Whites n=257, African-American n=255, Asian n=266 20
21 Demographic Profile, Hispanics n=509 English- Dominant, 33% Home Language Use Spanish- Dominant, 33% More Acculturated, 30% Acculturation Level Less Acculturated, 19% Country or Origin Dominican, 3% Cuban, 6% Central American, 6% South American, 11% Mexican or Mexican American, 64% Bilingual, 34% Bicultural, 51% Puerto Rican, 11% 21
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