UK Laptop Category Report

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2 _UK LAPTOP CATEGORY REPORT 2 UK consumers spent 570mn on Laptops in 2015 With the Back to School season in full swing, Clavis Insight looked at the growing online laptop market. Online category share has risen from 18% in 2010 to over 30% in 2015, and is projected to top 40% of total sales by As more laptop sales move online and a greater proportion of offline sales are influenced by the digital channel, we analysed the UK market to establish which brands are positioning themselves for success?

3 _UK LAPTOP CATEGORY REPORT 3 Key Insights

4 _UK LAPTOP CATEGORY REPORT 4 UK consumers spent big on laptops in Euromonitor valued the market at just under 2bn with almost a third of all purchases, 570mn, completed online, or digitally influenced Big brands dominate the Clavis Insight CI 2 rankings, with Asus, Apple and HP cementing their offline dominance in the online market. There was little to choose between the top five brands however, reflecting the highly competitive nature of the category. Even for standout brands there is opportunity to improve performance Asus is the only brand to score above the category average across each Clavis Insight metric.

5 _UK LAPTOP CATEGORY REPORT 5 The Top Performing Laptop Brands Clavis Insight ranks each brand against the category average for each key metric RANK BRAND NAME AVAILABILITY IMAGE CONTENT RATINGS & REVIEWS SEARCH CI2 SCORE 1 ASUS APPLE HP ACER MSI

6 _UK LAPTOP CATEGORY REPORT 6 Winners Asus claims top spot in the UK laptop category by scoring above the category average against each Clavis Insight metric, closely followed by rivals Apple and HP. MSI may not be an offline market leader, yet this niche brand which focusses on gaming laptops has, become somewhat of an online native.

7 _UK LAPTOP CATEGORY REPORT 7 Availability

8 _UK LAPTOP CATEGORY REPORT 8 Is the product in-stock and available for sale? The Clavis Insight Availability Score: Is based on whether a brand s item were in stock at the time of analysis, and available to purchase online A strong performance on Availability is key to minimising lost sales. With plenty to choose from, consumers can easily find an alternative product to meet their needs if your brand is not available. MSI ranked #1 for Availability, with 100% of products in stock. Acer, with 11% of products out of stock, rounded out the top 5 for this metric. Brands need to monitor Availability daily, so that they can be alerted to, and react quickly to stock/supply chain issues. Average Availability: CATEGORY TOTAL TOP 5 LAPTOP 95% 94%

9 _UK LAPTOP CATEGORY REPORT 9 Ratings & Reviews Is the average consumer review rating for product positive and do I have sufficient reviews?!

10 _UK LAPTOP CATEGORY REPORT 10 ipad 9:45 AM Apple ranks 1st on Ratings & Reviews. 50% of Apple products analysed achieved a minimum rating of 4 stars and more than 20 reviews, or above, across the stores analysed. Ratings & Reviews are critically important in driving add to basket according to SearchEnginelNad, 88% of people trust online reviews as much as personal recommendations while 70% read consumer reviews before making a purchase. The Ratings & Reviews Score: Is based on whether an item has a minimum of a 4.0 star rating and more than 20 reviews. Amazon considers reviews of a 4.0 and higher to be a good score.

11 _UK LAPTOP CATEGORY REPORT 11 Top Rated Brands RANK BRAND NAME RATINGS & REVIEWS 1 APPLE ASUS ACER HP MSI 91 Top Spot : Apple 4.6 Average Stars reviews across 90 products

12 _UK LAPTOP CATEGORY REPORT 12 What can Brands do? Address Negative Reviews to Minimise Lost Sales Retailers such as Amazon give brands the ability to respond to reviews in real time. Quickly identifying negative reviews can help minimise the impact to sales. ipad 9:45 AM 20 reviews! Set a Minimum Target Brands should look to continuously grow their number of product reviews Clavis Insight recommends a minimum of 20 reviews against each product to engage shoppers, and drive conversion. Brands can fortify and improve their online performance by boosting consumer sentiment. For an example of how to do this see How to Increase Product Ratings and Reviews at Online Retailers.

13 _UK LAPTOP CATEGORY REPORT 13 Search Rank: The key differentiator for top performing laptop brands.

14 _UK LAPTOP CATEGORY REPORT 14 HP comes out on top on Search with 28% of its 250+ products returning on the first page across UK retailers. However a low score on Availability due to Out of Stocks impacts the brands overall CI2 rankings. Being present on the first page of Search returns puts your brand in that key shopper consideration set - According to Millard Brown Digital, less than 30% of Amazon shoppers ever click beyond the first page of Search results. Clavis Search Score: The Clavis Insight Search score is based the amount of first page results achieved across the 15 terms used in this analysis To further help boost Search results, make sure your brands are optimizing ecommerce Search Performance.

15 _UK LAPTOP CATEGORY REPORT 15 Brands Winning on Search Top Spot : HP RANK BRAND NAME CI2 SCORE HP 28 % Of items appeared on the first page of search results 17 % Category average is only 17% while top 5 average is 23% 1 HP APPLE ASUS MSI ACER 100

16 _UK LAPTOP CATEGORY REPORT 16 Product Content Integrity Which brands are generating an engaging shopping experience?

17 _UK LAPTOP CATEGORY REPORT 17 All top five brands over-index on Image, meaning that each product had a minimum of two associated images. Leading brands are aware of which retailers support multiple images, and they are taking full advantage. The Clavis Insight Image Score: The Clavis Insight Image score is based on how many products had at least one or two images depending on the retailers. HP leads the way with 97% of its product range (200+ skus) having multiple Images closely followed by Asus with 96%.

18 _UK LAPTOP CATEGORY REPORT 18 MSI ranks first on Content an impressive performance for a smaller, more niche brand. For Apple, adding greater detail, and more descriptive titles to their range would see them leapfrog the competition. The Clavis Insight Content Integrity Score: The Clavis Insight Content Integrity score is based on how many products had an adequate product description available. Enhanced Content will be necessary to win for brands videos of consumers using laptops for different needs will help build additional brand integrity. Brands should look to recreate the experience of holding and seeing a product in person by using rich digital media. In the online world, content is your brand s opportunity to shine. Is your product content best in class?

19 _UK LAPTOP CATEGORY REPORT 19 Methodology Leading brands within the laptop category were ranked based on The Clavis Insight Index (CI2), a proprietary benchmark of online retail store presence and performance for consumer products brands. The score is calculated based on key performance indicators (KPIs) that are critical drivers in the online path-to-purchase. This analysis was conducted based on data collected from five UK online Stores including Amazon, TescoDirect.com, Currys.co.uk, Johnlewis.com and Littlewoods.co.uk. The analysis includes 18 brands and over 2,000 products. The category search terms used for the purpose of this analysis were: laptops, desktop laptops, 2-in-1, HD laptops, preowned laptops, personal laptops, business laptops, gaming laptops, mini laptops, traditional laptops, notebook laptops, cheap laptops, refurbished laptops, and 3D laptops. To produce the Clavis Insight Index, CI2, product level performance is calculated and weighted against key metrics (Availability, Content Integrity, Image Presence, Search, Ratings & Reviews), which are aligned to each step of the online shopping journey. An adjustment is made for the breath and depth of Portfolio. Brand (summation of product) performance for each Clavis Insight metric is benchmarked versus the average score for the category to produce the Clavis Insight Index, CI2, for each brand. Brands indexing greater than 100 outperform the category average; those that score less than 100 underperform relative to category. Data for this research was collected in July 2016, using the Clavis Insight online store audit and analytics platform.

20 _UK LAPTOP CATEGORY REPORT 20 Online Key Metrics Availability Track your portfolio s state of availability by retailer, category, brand, and manufacturer to optimize your range, maximize distribution, and improve sell-through. Search Rank Understand where your products rank in search results for specific search terms to ensure your products are discoverable. Content Integrity Monitor compliance of product content for individual SKUs by category and online retailer so that you can make sure your products are optimized to win the digital shelf. Ratings and Reviews Set targets for total number of product reviews and average rating score to help drive omnichannel sales. Media Tracking Monitor online media placements for compliance and effectiveness; track category competitors. Price and Promotions Tracking Monitor pricing and promotions for your products and your competitor s products to make sure your Sku s are optimizied to win the digital shelf. Category Placement Understand where your products rank in search results for search terms within target categories to ensure specific product sets are discoverable.

21 _UK LAPTOP CATEGORY REPORT 21 Thank You To learn more about the Clavis Insight Index, CI2, and to find out how our Insight will enable you to maximise your digital channel performance please contact: About Us Clavis Insight is at the forefront of the ecommerce revolution, delivering ecommerce insights and online retail store analytics to a broad range of consumer products brand leaders around the world. Our Insights are designed to enable you to optimise your distribution, content integrity and online placement in the digital channel in order to protect your brand online and grow your sales. BOSTON 46 Farnsworth St, 1 st Floor, Boston, MA LONDON #610, 6 th floor, 22 Upper Ground London, SE1 9PD SHANGHAI Room 965, ECO CITY No Nan Jing Road West, Jing An District, Shanghai, China DUBLIN 7 th Floor, O Connell Bridge House, D Olier Street, Dublin 2, Ireland