Retail vertical insights (Bing Australia)

Transcript

• 1. Retail vertical insights BING AUSTRALIA Landscape, key trends and recommendations
• 2. Top trends Customer expectations Opportunities for SEM Personal From mass merchandise to personal merchandise Context Analytics Seamless From the company’s channel to “my channel” Consistent Device responsive Differentiated From standard to standout Innovation Competition Overview Australian retail industry Australian retail online ABS & Citi analysis Nielsen & Bing Retail industry overview and trends
• 3. Australian retail industry Overview
• 4. 0.1 -0.1 -0.5 0.6 0.4 1.3 0.4 0.1 0.2 0.5 0.7 -0.6 -0.4 -0.2 0 0.2 0.4 0.6 0.8 1 1.2 1.4 -0.6 -0.4 -0.2 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 Australia Retail Sales MOM 2 Change month over month Apr / 14 Jul/ 14 Oct / 14 Jan / 15 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%) Retail spending growth for 12 months to December 2014 1 6.1% 5.4% 12.2% 3.7% -0.1% 3.9% 8.4% 9.7% 6.3% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% Supermarket Liquor Cafes & restaurants Clothing stores Department stores Electronics Furniture Hardware Other recreational goods Food retail Shopping centres Large format retailers 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
• 5. Retail online
• 6. How big is the online retail market? 6.9% of total retail spending is now online or $16.6 billion Online retailers are actively reclaiming lost market share 10% of non-food shopping in Australia is online (similar to the U.S.) Online sales growth is leveling off after a few years of 20-30% growth 75% of total online sales are through domestic online retailers1 Online retail search ads 21% 10% vs drive above average traffic 4 of cutting costs, retailers are now beginning to invest After years 1. NAB Online Retail sales Index Survey. 2: Hitwise Paid v Organic traffic Feb 2015 3: CiTi research Feb 2015 Retail online
• 7. in page views, sessions and audience Brand retailers are in the second leader group the Nielsen Top 100 Retailers 3Clear leaders 8Big names Amazon Coles Woolworths 1. Nielsen trend Report March 2015 “Retail Sector”. Retail online: dominated by the top 3
• 8. 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”.
• 9. Clicks / week 62 33 41 56 83 Keywords Gourmet pizza Healthy snacks Protein shakes Dark chocolate Grilled chicken of the Australian urban population changed their lifestyle and search style in food and grocery in FY-14 1. Bing Ads Intelligence Data March 2015. Food and grocery 2014: search trends
• 10. 1. Bing Ads Intelligence Data March 2015. Home and garden 2014: search trends
• 11. Personal From mass merchandise to personal merchandise
• 12. The numbers do not add up to 100% as an individual can fall into more than one profile. Planners 20% Plan their spending. Visit a wide variety of stores. Middle aged. 28% Most spending done very soon after payday Paydayers 29% Always spend in the same shopping strips or shopping centres Localists 24% Always shop with the same store brands or websites Loyalists 21% Spend at the same time each week Clock watchers 22% Most spending done online rather than in a shop Cyber spenders 10% of Australians have varied spending patterns, which are much more difficult to track. They spend at a wide variety of locations and stores, and at varied times. The rest 1. American Express Pattern Spending Report, conducted in February 2015, polling 1,993 Australian consumers. There is no “typical retail customer”
• 13. Seasons Apparel Seasons Spring: 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 Month to focus Age Loyalty 1. Bing Ads Competitor Data 2014 – Nielsen Landscape Report 2014. Retail: when and who are buying online
• 14. Male • Split between PC & Tablet • “Cool” gadgets and things Female • Predominantly tablet • Discount perfume, engraving and phone Online: by retail generic keywords (age 25-34) 1. Bing Ads Intelligence – Age and Gender – March 2015.
• 15. Female • Predominantly tablet • Fashion, internet shopping sites & pens Male • Smartphone & tablet • “Cool” gadgets & cufflinks Online: by retail generic keywords (age 35-49) 1. Bing Ads Intelligence – Age and Gender – March 2015.
• 16. How can Bing help? Retailers provide a more personalised customer experience. Men and women tend to Your account manager can help you optimise your campaigns • 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
• 17. Seamless Meet consumer demand by seamlessly connecting the brick-and-mortar and online experience (often referred to as Omni-Channel)
• 18. Step 1 2 3 4 5 6 7 8 9 Social Search Web Site Visit Contact Centre In Person “Bricks & Mortar” Recommendation Intent Organic search AD Content 20% click on relevant paid retail search Ads 1 Call centres $16.6 bn Purchased online 3 ~7% of all AU retail sales Local stores 33% Additional re-search in-store 2 Share on social media 4 M Unique AU Bing Searchers 2 Click & Collect 15-50% of online sales 4 Purchase In Store 93% of all retail sales 3 Share on social media 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.
• 19. 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.
• 20. 83% of Home and Garden related searches are on a desktop 10% of Home and Garden related searches are on a smartphone 7% of Home and Garden related searches are on a tablet Top keyword categories • gardening • living room furniture • major kitchen appliances Home and garden 1. Bing Ads Intelligence Data March 2015.
• 21. 89% of searches for Toys and Hobbies are on a desktop 8% of searches for Toys and Hobbies are on a smartphone 3% of searches for Toys and Hobbies are on a tablet Toys and hobbies 1. Bing Ads Intelligence Data March 2015.
• 22. 81% of searches for Apparel and Accessories are on a desktop 11% of searches for Apparel and Accessories are on a smartphone 8% of searches for Apparel and Accessories are on a tablet Apparel and accessories 1. Bing Ads Intelligence Data March 2015.
• 23. Differentiated From standard to standout
• 24. Occasions are driving increased sales Click & collect keeps people in control Data Driven innovation New entrants Some emerging trends 1. Bing Ads Intelligence Data March 2015.
• 25. 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? Clothing replacement cycle compression has driven over three-quarters of growth When retail increase the “occasions” to purchase we tend to buy more often Craig Woolford, CFA | Citi Research Senior Analyst Retail Sector “Best innovation opportunities in lifting frequency of occasion and enticing shoppers to trade up” Creating new “occasions” Innovation needs to return to lift retail spending Weaker retail innovation globally is stunting retail sales growth 1:: CiTi research Feb 2015
• 26. 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. Australian traditional retailers have been investing greater funds in their omni-channel platforms in the past two years, seeking to make use of their physical stores (which were once seen as an impediment to online sales) as pick-up points for parcels bought online. Click & collect Tipped to hit 50% penetration 15% of online sales Myer David Jones Woolworths Coles 1. SMH; March 2014.
• 27. 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
• 28. Etsy briefly took the top spot in the middle of last year 1. Nielsen: Retail Data: Jan 2014 – Feb 2015 The market can be disrupted by online innovation Here we see reaction to a new entrant
• 29. 1. The Guardian. The market can be disrupted by online innovation Here we see reaction to a new entrant
• 30. Competitive 1. CPC 2. Spend 3. Position 1. Bing Ads Intelligence – Retail Competitors – March 2015. Competitor analysis
• 31. 1. The Global Innovation 1000: Top 20 R&D Spenders 2005-2014.
• 32. For Bing, the future of search is not about more search boxes – it’s about building a platform that enables applications and devices to empower people with knowledge and help them do more, not just search more. Bing Blog April 2nd 2015 Cortana
• 33. 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 Context and content From intent to purchase Continued innovation How can Bing help? Conclusion
• 34. Thank you
• 35. © 2015 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.