Online and Mobile Shopping - US - March 2012

SCOPE AND THEMES
What you need to know
Definition
Data sources
Sales data
Consumer data
Advertising creative
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
The market
A future brighter than its already glowing past
Figure 1: Fan chart forecast of U.S. total online and mobile shopping sales, 2006-16
Market factors
Gifts, internet access, 3G/4G tablets drivers
Figure 2: Frequency of purchasing via tablet, by presence of data plan for tablet, December, 2011
Competing with brick-and-mortar retailers harder than it looks
Figure 3: Online and mobile shopping share of total retail sales, 2006-11
Selling the home page
Television buys require special motive
The consumer
Growth is in spend, not penetration
Store selection based on familiarity and pricing
Mobile shopping, mobile shopping apps most appreciated by Millennials
Figure 4: Categories purchased on PC vs. mobile, December, 2011
Whites, Asians, and married with children lead sales
What we think
ISSUES IN THE MARKET
Can mobile hardware be bad for online sales?
Can e-tailers stay a step ahead of the taxman?
In-person shopping: free entertainment?
The immediacy problem: Can e-tailers compete in consumables?
INSPIRE INSIGHTS
Inspire trend: Let’s make a deal
From chore to hobby
Hotwire and dynamic pricing
Inspire trend: Make it mine
One-size-fits-all mentality is dead
Personalized products, personalized imagery
MARKET SIZE AND FORECAST
Key points
The glorious future just around the corner
Figure 5: U.S. total online and mobile shopping sales, at current prices, 2006-16
Figure 6: U.S. total online and mobile shopping sales, at inflation-adjusted prices, 2006-16
Smartphone sales
Figure 7: U.S. Smartphone shopping sales*, at current prices, 2006-15
Fan chart forecast
Figure 8: Fan chart forecast of U.S. total online and mobile shopping sales, 2006-16
MARKET DRIVERS
Key points
Gift purchasing
Figure 9: Any online purchase, by category (net of PC, phone, and tablet), December 2011
Access to hardware and broadband
PC penetration comes to a standstill
Figure 10: PC penetration, 2008-11
Figure 11: PC penetration, by age, February-September 2011
Figure 12: Internet access at home, 2008-11
Figure 13: Internet access at home, by age, February-September 2011
Figure 14: Internet access at home, by household income, February-September 2011
Figure 15: Broadband access in online sample, December 2011
Figure 16: Broadband access in online sample, by household income, December 2011
Millennials still climbing aboard mobile hardware, online shopping
Figure 17: Smartphone, tablet, and PC penetration in online sample, by age, December 2011
Figure 18: Smartphone, tablet, and PC penetration in online sample, by household income, December 2011
Figure 19: Planned acquisition of first smartphone, tablet, or PC, by age, December 2011
Figure 20: First time buying presents online, by age, December 2011
Access to mobile internet
Figure 21: Internet usage on cell phone, by age, February-September 2011
Figure 22: Internet usage on cell phone, by household income, February-September 2011
Figure 23: Access to 3G or 4G mobile internet on cell phone or tablet, December 2011
Figure 24: Access to 3G or 4G mobile internet on cell phone or tablet, by age, December 2011
Figure 25: Access to 3G or 4G mobile internet on cell phone or tablet, by household income, December 2011
3G and 4G tablets game changers for tablet shopping
Figure 26: Online shopping via tablet, by access to mobile broadband for tablet, December 2011
Interest in remote shopping
Figure 27: Attitudes to shopping, by gender, December 2011
Figure 28: Attitudes to shopping, by age, December 2011
Credit/debit card possession
Figure 29: Credit card/debit card penetration, by age, February-September 2011
COMPETITIVE CONTEXT
Key points
Slim share of total retail growing annually
Figure 30: Online and mobile shopping share of total retail sales, 2006-11
Electronics, purchases for kids compete best against brick-and-mortar
Figure 31: Any online purchase by category (net of PC, phone, and tablet) vs. in-person purchase, December 2011
Subscriptions remain niche market
Figure 32: Online subscription for household consumables, by age, December 2011
Figure 33: Online subscription for household consumables, by household income, December 2011
PC vs. mobile: gains or cannibalization?
Figure 34: Frequency of online shopping via PC, Tablet, and phone, December 2011
INNOVATORS AND INNOVATIONS
Scan that ad
Scan that catalog
Online dressing rooms
LEADING COMPANIES
Key points
Only half of leaders general merchandisers
Figure 35: Online sales of top 10 internet retailers, 2009-10
Purchasing in past month at standard, auction, and daily deals sites
Figure 36: Traditional online stores shopped at in past month, by age, December 2011
Figure 37: Traditional online stores shopped at in past month, by household income, December 2011
Daily deals and other specialty sites
Figure 38: Daily deal and other specialty online stores shopped at in past month, by age, December 2011
Figure 39: Daily deal and other specialty online stores shopped at in past month, by household income, December 2011
Amazon’s moat: 1-Click, PayPhrases, Prime, and subscriptions
Figure 40: Amazon membership and feature usage, by age, December 2011
Figure 41: Amazon membership and feature usage, by household income, December 2011
Figure 42: Online shopping frequency by usage of Amazon or other subscription features, December 2011
MARKETING STRATEGIES
Key points
Sites themselves power marketing tools
Amazon
eBay
Walmart.com
QVC
Television campaigns
Overstock’s big winter sale
Figure 43: Overstock “Big Winter Sale,” December 2011 – January 2012
Zappos seeks out piece of the holiday pie
Figure 44: Zappos “Get your gift,” December 2011
QVC aims to be a verb
Figure 45: QVC “Holiday greetings,” December 2011
eBay is not your grandmother’s auction site
Figure 46: eBay “tighten up,” September 2011 – March 2012
Walmart wants your cyber dollars
Figure 47: Walmart “Cyberdeals,” November 2011
Amazon: Happiness is a barcode scanned
Figure 48: Amazon “Appalicious,” September-November 2011
ONLINE SHOPPING—PENETRATION, FREQUENCY, AND SPEND
Key points
Introduction
No increase in penetration for annual purchasing online
Figure 49: Any online shopping in past year, 2008-11
Women, young, high-income consumers more likely to shop online
Figure 50: Any online shopping in past year, by gender, February-September 2011
Figure 51: Any online shopping in past year, by age, February-September 2011
Figure 52: Any online shopping in past year, by household income, February-September 2011
Slow rise in monthly purchasing
Figure 53: Online shopping purchase and research in the past month, 2008-11
Figure 54: Online shopping and research, by gender, February-September 2011
Figure 55: Online shopping and research, by age, February-September 2011
Figure 56: Online shopping and research, by household income, February-September 2011
Rapid growth in expenditure per person
Figure 57: Amount spent online shopping in past year, 2008-11
Figure 58: Amount spent online shopping in past year, by gender, February-September 2011
Figure 59: Amount spent online shopping in past year, by age, February-September 2011
Figure 60: Amount spent online shopping in past year, by household income, February-September 2011
STORE SELECTION
Key points
Likes and dislikes of the online shopper
Auctions a tough sell, familiarity and lowest price critical
Figure 61: Factors in online store selection, December 2011
Convenience, familiarity, and price: highlights by age, gender, and income
Figure 62: Factors in online store selection, by age, December 2011
Figure 63: Factors in online store selection (strongly agree), by age, December 2011
Income not a significant determinant of online buying attitudes
Figure 64: Factors in online store selection (any agree), by household income, December 2011
Understanding attitudes based on disagreement
Figure 65: Factors in online store selection (any disagree), by gender, December 2011
Figure 66: Factors in online store selection (any disagree), by age, December 2011
Figure 67: Factors in online store selection (any disagree), by household income, December 2011
CATEGORIES PURCHASED ONLINE
Key points
Media leads, followed by women’s clothing
Figure 68: Types of product ordered online in past year, by age, February-September 2011
Figure 69: Types of product ordered online in past year, by household income, February-September 2011
Categories purchased: PC vs. mobile
Figure 70: Categories purchased by PC, phone, tablet, and in person, December 2011
MOBILE SHOPPING
Key points
Frequency of purchasing via mobile
Figure 71: Frequency of online shopping via smartphone or tablet, by gender, December 2011
Figure 72: Frequency of online shopping via smartphone or tablet, by age, December 2011
Frequency of shopping via tablet
Figure 73: Frequency of online shopping via tablet, by age, December 2011
Apps vs. browsers
Figure 74: Preference for apps vs. browsers for shopping on mobile devices, December 2011
Figure 75: Preference for apps vs. browsers for shopping on smartphones, by age, December 2011
Figure 76: Preference for apps vs. browsers for shopping on tablets, by age, December 2011
Figure 77: Preference for apps vs. browsers for shopping on tablets, by household income, December 2011
Barcode scanning
Figure 78: Frequency of barcode scanning, by age, December 2011
Local mobile couponing apps
Figure 79: Use of mobile couponing apps, by age, December 2011
Let’s get passive about mobile promotions
Figure 80: Attitudes to location-based promotions, by age, December 2011
Figure 81: Attitudes to location-based promotions, by household income, December 2011
Responses by brand of smartphone owned
Figure 82: Attitudes to shopping, by brand of smartphone owned, December 2011
Categories purchased via mobile
Figure 83: Any mobile purchase by category by phone or tablet, by gender, December 2011
Figure 84: Any mobile purchase by category, by age, December 2011
RACE AND HISPANIC ORIGIN
Key points
Internet access
Figure 85: Internet access at home, by race/Hispanic origin, February-September 2011
Figure 86: Internet and app usage on cell phone, by race/Hispanic origin, February-September 2011
Figure 87: PC penetration, by race/Hispanic origin, February-September 2011
Participation in online shopping
Figure 88: Any online shopping in past year, by race/Hispanic origin, February-September 2011
Figure 89: Amount spent online shopping in past year, by race/Hispanic origin, February-September 2011
Figure 90: Use of the internet for purchasing or research in past 30 days, by race/Hispanic origin, February-September 2011
Figure 91: Credit card/debit card penetration, by race/Hispanic origin, February-September 2011
Participation by Hispanics, by language spoken in the home
Figure 92: Credit card/debit card penetration, by language spoken in home, February-September 2011
Figure 93: Internet access at home, by language spoken in home, February-September 2011
Figure 94: Any online shopping in past year, by language spoken in home, February-September 2011
Figure 95: Online shopping, by language spoken in home, February-September 2011
CUSTOM CONSUMER GROUPS
Participation and spend among $100Ks by type of household
Figure 96: Incidence of online shopping in past year among over-$100Ks, by marital status, household income, and presence of children in household, February-September 2011
Figure 97: Amount spent online shopping in past year among those earning $100K+, by marital status, household income, and presence of children in household, February-September 2011
Market participation and spend among 35-44s by type of household
Figure 98: Incidence of online shopping among 35-44s, by marital status and presence of children, February-September 2011
Figure 99: Average amount spent online in past year among 35-44s, by marital status and presence of children, February-September 2011
APPENDIX: FREQUENCY OF PURCHASE IN ONLINE STUDY
Majority online make online purchases monthly
Figure 100: Online shopping via PC, tablet, or smartphone, December 2011
25-34s, those earning $50K+ drive sales
Figure 101: Frequency of online shopping via PC/tablet/smartphone, by age, December 2011
Figure 102: Frequency of online shopping via PC/tablet/smartphone, by household income, December 2011
APPENDIX: ADDITIONAL USEFUL TABLES
Broadband access
Figure 103: Broadband access in online sample, by gender, December 2011
Figure 104: Broadband access in online sample, by age, December 2011
Frequency of purchasing in online survey
Frequency of purchasing by PC
Figure 105: Frequency of online shopping via PC, by age, December 2011
Figure 106: Frequency of online shopping via PC, by household income, December 2011
Frequency of purchasing by tablet
Figure 107: Frequency of online shopping via tablet, by gender, December 2011
Frequency of purchasing by smartphone
Figure 108: Frequency of online shopping via smartphone, by gender, December 2011
Figure 109: Frequency of online shopping via smartphone, by age, December 2011
Figure 110: Frequency of online smartphone, by household income, December 2011
Frequency of shopping via smartphone or tablet
Figure 111: Frequency of online shopping via smartphone or tablet, by household income, December 2011
Category purchasing by hardware platform
Figure 112: Categories purchased, by PC, phone, tablet, and in person, December 2011
Category purchase by any online platform
Figure 113: Any online purchase by category (net of PC, phone, and tablet), by age, December 2011
Figure 114: Any online purchase by category (net of PC, phone, and tablet), by household income, December 2011
Category purchase via phone or tablet
Figure 115: Any mobile purchase by category (net of phone and tablet), by household income, December 2011
Category purchase via PC
Figure 116: Categories purchased by PC, by gender, December 2011
Figure 117: Categories purchased by PC, by age, December 2011
Figure 118: Categories purchased by PC, by household income, December 2011
Category purchase via smartphone
Figure 119: Categories purchased by smartphone, by gender, December 2011
Figure 120: Categories purchased by smartphone, by age, December 2011
Figure 121: Categories purchased by smartphone, by household income, December 2011
Category purchase via tablet
Figure 122: Categories purchased by tablet, by gender, December 2011
Figure 123: Categories purchased by tablet, by age, December 2011
Figure 124: Categories purchased by tablet, by household income, December 2011
Factors impacting store selection
Figure 125: Factors in online store selection, by gender, December 2011
Figure 126: Factors in online store selection, by age, December 2011
Figure 127: Factors in online store selection (any agree), by household income, December 2011
Figure 128: Factors in online store selection (strongly agree), by age, December 2011
Figure 129: Factors in online store selection (strongly agree), by household income, December 2011
Figure 130: Factors in online store selection (any disagree), by gender, December 2011
Figure 131: Factors in online store selection (any disagree), by age, December 2011
Figure 132: Factors in online store selection (any disagree), by household income, December 2011
Mobile shopping
Figure 133: Mobile shopping behavior, by gender, December 2011
Figure 134: Mobile shopping behavior, by household income, December 2011
Figure 135: Frequency of barcode scanning, by household income, December 2011
Figure 136: Use of mobile couponing apps, by gender, December 2011
Responses by race/Hispanic origin in online sample
Figure 137: Smartphone, tablet, and PC penetration in online sample, by race/Hispanic origin, December 2011
Figure 138: Broadband access in online sample, by race/Hispanic origin, December 2011
Figure 139: Attitudes to location-based promotions, by race/Hispanic origin, December 2011
Figure 140: Online shopping via PC/tablet/smartphone, by race/Hispanic origin, December 2011
Figure 141: Frequency of online shopping via tablet, by race/Hispanic origin, December 2011
Figure 142: Online shopping via PC, by race/Hispanic origin, December 2011
Responses by household type among 25-34s
Figure 143: Amount spent online shopping in past year by marital status, age, and presence of children in household, February-September 2011
Figure 144: Amount spent online shopping in past year, by marital status, age, and presence of children in household, February-September 2011
APPENDIX: TRADE ASSOCIATIONS