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Retail vertical insightsbing AustraliaLandscape, key trends and recommendations
Top trends Customer expectations Opportunities for SEM From mass merchandise to personal merchandise Context Analytics From the company’s channel to “my channel” Consistent Device responsive From standard to standout Innovation Competition Australian retail industry Australian retail online ABS & Citi analysis Nielsen & Bing Retail industry overview and trends
Australian retail industry Overview
FY 2014 saw Food and Household categories perform well What is driving the growth? Weakening dollar makes domestic goods more attractive Cheap credit and lower fuel prices increase disposable income Feb 2015 saw the second solid month gain (5-6%) 1. Craig Woolford, CFA | Senior Analyst; Retail Sector; Citi Research – March 2015. 2. www.tradingeconomics.com | Australian Bureau of Statistics. Retail spending is up according to recent data from the ABS and CiTi
How big is the online retail market? Online retailers are actively reclaiming lost market share 1. NAB Online Retail sales Index Survey. 2: Hitwise Paid v Organic traffic Feb 2015 3: CiTi research Feb 2015 Retail online
Ama in page views, sessions and audience Brand retailers are in the second leader group the Nielsen Top 100 Retailers 3 Clear leaders 8 Bignames Amazon Coles Woolworths 1. Nielsen trend Report March 2015 “Retail Sector”. Retail online: dominated by the top 3
Ama Retail online: international trends 50%-60% of Media, Hobbies and Electronics are forecast to be purchased online in 2020 Media, Hobbies and Electronics 1. Nielsen trend Report March 2015 “Retail Sector”.
1. Bing Ads Intelligence Data March 2015. Food and grocery 2014: search trends
1. Bing Ads Intelligence Data March 2015. Home and garden 2014: search trends
Personal From mass merchandise to personal merchandise
The numbers do not add up to 100% as an individual can fall into more than one profile. 1. American Express Pattern Spending Report, conducted in February 2015, polling 1,993 Australian consumers. There is no “typical retail customer”
Seasons Apparel SeasonsSpring: Women Aug Summer: Men Nov Back to school: Mar Jewellery: Dec Impulse shoppers Sales EOFY sales New Year sales Black Friday 65% 25-54 age group Highest traffic session 60% Rarely venture beyond 10 retail brands (Bricks & Mortar stores + Online Stores) ~10% with 85% sticking to the same spending patterns 1. Bing Ads Competitor Data 2014 – Nielsen Landscape Report 2014. Retail: when and who are buying online
Online: by retail generic keywords (age 25-34) 1. Bing Ads Intelligence – Age and Gender – March 2015.
Online: by retail generic keywords (age 35-49) 1. Bing Ads Intelligence – Age and Gender – March 2015.
How can Bing help? Retailers provide a more personalised customer experience. Use different keyword searches and Use different devices when they search Enhance your keyword search terms Change bids on higher performing keywords Target the appropriate device at the most appropriate time
Seamless Meet consumer demand by seamlessly connecting the brick-and-mortar and online experience (often referred to as Omni-Channel)
Social Search Web Site Visit Contact Centre In Person “Bricks & Mortar” Australian retail customer journey 1. Hitwise Paid v Organic traffic Feb 2015. 2. comScore qSearch Explicit Core Search, June 2014. / AU: Nielsen, September 2014. 3. Online Retail Sales Index: In depth report – January 2015. 4. SMH march 2014; 'Click and collect' boost Australian online retailers.
Now Available: App Extensions Coming Soon: Product Ads Call Extensions Improve the search experience Sitelink Extensions Enhanced Sitelinks Location Extensions Shorten the distance between intent and purchase Providing a far more cost effective model for both CPC & CPA Unified Device Targeting How can Bing help retailers? Provide a more seamless customer experience.
Home and garden 1. Bing Ads Intelligence Data March 2015.
Toys and hobbies 1. Bing Ads Intelligence Data March 2015.
Apparel and accessories 1. Bing Ads Intelligence Data March 2015.
Differentiated From standard to standout
Occasionsare driving increased sales Click & collectkeeps people in control Data Driven innovation New entrants Some emerging trends 1. Bing Ads Intelligence Data March 2015.
In clothing over the past 20 years: Per capita spending is up 77% ($695 to $1,231) Prices are up 2% Per capita volume is up 74% How much bigger is the wardrobe? When retail increase the “occasions” to purchase we tend to buy more often Innovation needs to return to lift retail spending Weaker retail innovation globally is stunting retail sales growth 1:: CiTi research Feb 2015
Emerging new business model - “click & collect” Where the store and the online presence work together to drive sales Click & collect keeps people in control. Humans when you need them. Technology when you don't. Myer David Jones Woolworths Coles 1. SMH; March 2014.
Everyday Rewards customer loyalty program Use patterns of aggregated customer behaviour to improve offerings and services 1. http://www.adnews.com.au/news/woolies-and-quantium-to-launch-dsp-with-australian-first 2. http://www.cmo.com.au/article/553618/quantium_helps_woolworths_get_personal_customers_ceo_says/ Woolworths – innovating with customer analytics
1. Nielsen: Retail Data: Jan 2014 – Feb 2015 The market can be disrupted by online innovationHere we see reaction to a new entrant
1. The Guardian. The market can be disrupted by online innovationHere we see reaction to a new entrant
1. Bing Ads Intelligence – Retail Competitors – March 2015. Competitor analysis
1. The Global Innovation 1000: Top 20 R&D Spenders 2005-2014.
Personal Seamless Differentiated Top 3 trends From mass merchandise to personal merchandise From the company’s channel to “my channel” From standard to standout Customer expectations How can Bing help? Conclusion