The NPD Group, Inc.

| Proprietary and Confidential

Adapting Omni-Channel Strategies
to Modern Consumer Behaviour
Presented by: Sandy Silva, Fashion Industry Analyst
The NPD Group
Sponsored by MasterCard for Retail Council of Canada
June 3, 2014
The NPD Group, Inc. | Proprietary and Confidential
The image should fill up the entire space of the gray box, no gray should be seen
The NPD Group, Inc. | Proprietary and Confidential
2005
St. Peters Square
Change
The NPD Group, Inc. | Proprietary and Confidential
The image should fill up the entire space of the gray box, no gray should be seen
The NPD Group, Inc. | Proprietary and Confidential
2013
St. Peters Square
The NPD Group, Inc. | Proprietary and Confidential The NPD Group, Inc. | Proprietary and Confidential 4
EV LUTION OF RETAIL
1900s
Corner Stores
Limited choice
People walked

1900-1940s
Department Stores
Automobile: travel farther
In-home refrigeration: stock
more
1950-1970s
Malls
Time of the true mall
1990-2013
Ecommerce
1970-1990
Big Box Stores
Driving smaller merchants
out of business
The NPD Group, Inc. | Proprietary and Confidential The NPD Group, Inc. | Proprietary and Confidential
Retailers offer products,
hoping consumers buy them.
5
Whats changed is how we talk to
them before they get to the store.
The NPD Group, Inc. | Proprietary and Confidential The NPD Group, Inc. | Proprietary and Confidential 6
Conversion
300
75
Conversion Rate
25%
The NPD Group, Inc. | Proprietary and Confidential The NPD Group, Inc. | Proprietary and Confidential
Touch points
7
www.
STORE
www.
BRAND
IN-STORE
displays, product info,
store associates
RETAIL
FLYERS
STORE
WEBSITES
WORD OF
MOUTH
BRAND
WEBSITES
PRODUCT
REVIEWS
ONLINE STORES/
AUCTION SITES
The NPD Group, Inc. | Proprietary and Confidential
8
Bought a brand
Among first considered
74%
of purchases
are planned
18 Days
passed between first thought
of buying product and making purchase
52
Bought at Retailer
among first considered
73
1.4
2.2
Brands in mind
Retailers in mind
%
%
Snapshot of Path to
Winter Apparel Purchase
The NPD Group, Inc. | Proprietary and Confidential
9
24%
Touch points Usage
Canadians still rely on in-store to make their
winter apparel purchase decisions
42% 24%
20%
PC electronics
The NPD Group, Inc. | Proprietary and Confidential
10
Identified
additional brands
Ruled out
brands
Didnt learn
anything new
Impact on Brand Consideration
Word of Mouth information impacts brand consideration.
Consumers use online brand/product reviews to rule
brands out.
56
43
39
30
40
30
30
31
41
%
The NPD Group, Inc. | Proprietary and Confidential
11
Impact on Retail Consideration
Word of Mouth also impacts stores and websites
consideration.
Identified additional
stores/websites
Ruled out
stores/websites
Didnt learn
anything new
%
48
41
18
25
33
24
35
36
62
The NPD Group, Inc. | Proprietary and Confidential The NPD Group, Inc. | Proprietary and Confidential
How many days on average
did it take to make a
purchase?
Are you wondering why?
12
18
days
Remember this?
The NPD Group, Inc. | Proprietary and Confidential
13
Among the 42% who rely on
in-store information, their in-store
visit was not always the final step in
the path to purchase!
In-Store Visit
PRE IN-STORE POST IN-STORE
16
17
7
7
8
5
42%
The NPD Group, Inc. | Proprietary and Confidential
How Can Retailers Convert More Shoppers?
Good news: most consumers only consider two
retailers. If you have the right strategy, you should be able
to convert consumers

14
The NPD Group, Inc. | Proprietary and Confidential The NPD Group, Inc. | Proprietary and Confidential 15
1900s
Corner Stores
1900-1940s
Department Stores
1950-1970s
Malls
1990-2013
Ecommerce
1970-1990
Big Box Stores
Take It Back to Basics:
WORD
OF MOUTH!
01
The NPD Group, Inc. | Proprietary and Confidential
16
Word of Mouth Usage
Family, friends, and coworkers are the
most important followed by Facebook.
01
93
18
10
8
8
2
1
3
88
23
8
5
4
4
3
9
Talked to friend,
family or coworkers
Facebook
Pinterest
Professional Blogs
Personal Blogs
Twitter
Discussion Forums
All Other Sources
Talked to friend,
family or coworkers
Facebook
Personal Blogs
Discussion Forums
Professional Blogs
Twitter
Pinterest
All Other Sources
WINTER APPAREL PC ELECTRONICS
Total Digital
Touch points
The NPD Group, Inc. | Proprietary and Confidential
Provide access to interactive
digital displays in the store
to allow shoppers to learn more
about the brands and products
17
Optimizing Time In-Store
02
The NPD Group, Inc. | Proprietary and Confidential
18
Interactive
Display
Order from
Store Website
73
69
66
76
78
% of Yes
Winter Apparel
(698)
Personal Accessory
(555)
Beauty
(699)
PC/ Electronics
(793)
Beverage DA
(592)
53
58
52
66
71
Optimizing Time In-Store
02
The NPD Group, Inc. | Proprietary and Confidential
19
79
64
52
48
41
Prices, sales,
promotions

Product information
Availability
User reviews
Brand information
67
54
50
48
32
79
55
47
44
33
Prices, sales,
promotions


Shipping costs
Product information
User Reviews
Brand information
%
Product information

Prices, sales,
promotions

User reviews
Brand information
Availability
Types of Information Sought After (Top 3)
03
The NPD Group, Inc. | Proprietary and Confidential 20
METHODOLOGY:
Online survey fielded from Jan. 23 to Feb. 7, 2014 to a Canadian
representative sample of 3,337 panelists aged 18-64, representing
Canadian adult demographics.

To qualify, respondents indicated a planned purchase of one of the
following products in the past month:
i. Winter Apparel n=698 (Winter coat or jacket n=362, Winter boots n=336)
ii. Personal Accessory n=555 (Watch n=409, Handbag, purse or satchel n=146)
iii. Beauty n=699 (Face or beauty cream n=699)
iv. PC/ Electronics n=793 (Headphones n=403, Tablet computer n=212,
Notebook/ laptop/ desktop computer n=179)
v. Beverage Domestic Appliance (DA) n=592 (Single serve coffee machine
n=340, Juicer/ Juice extractor n=108, Espresso machine n=76, Soda maker
n=69)
The NPD Group, Inc. | Proprietary and Confidential
The image should fill up the entire space of the gray box,
no gray should be seen
The NPD Group, Inc. | Proprietary and Confidential 21
Early Retail
EV LUTION OF RETAIL
The NPD Group, Inc. | Proprietary and Confidential
The image should fill up the entire space of the gray box,
no gray should be seen
The NPD Group, Inc. | Proprietary and Confidential 22
EV LUTION OF RETAIL
Change
Are you ready?
The NPD Group, Inc. | Proprietary and Confidential 23
Contact us
Sandy Silva
Director, Client Development Fashion and Prestige Beauty
The NPD Group
sandy.silva@npd.com
647.723.7760

Silvia Xoyon
Director, Business Development Fashion and Prestige Beauty
The NPD Group
silvia.xoyon@npd.com
647.723.7765