3. OMNICHANNEL RETAIL
75%
of total retail spending occurs
15 miles from home
Source: UPS 2012
80%
of eBay buyers would buy cross-
border for the right product
Source: eBay research 2012
£5 Billion
m-commerce
estimated sales for UK in 2013
Source: Deloitte research August 2013
MOBILE – LOCAL - GLOBAL
4. GLOBAL ONLINE
MARKETPLACE
eBay connects buyers and sellers
worldwide
BUY IT NEW AND
BUY IT NOW
eBay works with 100+ high street
retailers and brands
19.5 75%of the items are
sold at fixed
prices
70%of the items
are new
Source: eBay.com quarterly results Q4-2013 and internal research 2012-13 unless stated
149
MILLION
active users in UK & Ireland
ANYTIME AND
ANYWHERE
eBay Mobile is a shopping
universe in your pocket
$22 BN
global mobile sales in 2013
260+
MILLION
eBay Inc. app downloads worldwide
40%
of eBay transactions
are touched
by mobile
MILLION
active users worldwide
6. Is there an eBay effect?
What’s the future of the store?
Are omnichannel customers
worth pursuing?
Does online cannibalise offline?
RETAILERS ARE ASKING:
DOES ONLINE COMPLIMENT OFFLINE?
7. How can retailers realise the omnichannel
opportunity?
Are leading retailers benefiting from an
omnichannel approach?
Is there value in serving omnichannel
consumers?
STUDY: THE OMNICHANNEL OPPORTUNITY
UNLOCKING THE POWER OF THE OMNICHANNEL CONSUMER
3
2
1
8. STUDY: THE OMNICHANNEL OPPORTUNITY
METHODOLOGY
Interviews with leading retailers across
Europe
Econometric analysis of store and non-
store sales, and the impact of a broad
presence across channels
Survey of 2000 adults in the UK and
Germany
9. DELOITTE EXAMINED THE UK MARKET FOR WOMEN’S
DRESSES FROM 2009 TO 2013
Generating
£1.5bn
annual sales
With
54%
of market
17 RETAILERS
10. DELOITTE FINDING:
OMNICHANNEL RETAILING HELPS CAPTURE INCREMENTAL SALES
For every £100
spent through non-store channels
Based on UK women’s dresses market
£95
is incremental to store sales.
Level of cannibalisation is just
5%
11. PRESENCE ON EBAY
DRIVES TRAFFIC TO
OTHER CHANNELS
USED BY THE BRAND
“We found that
promotions we run on
eBay.co.uk have a
positive impact on sales
on our own website, and
also more surprisingly, in
store.”
Andy Harding,
Executive Director of Multichannel,
House of Fraser
1.2%
INCREASE
in store sales from
a presence on eBay
DELOITTE FINDING:
A PRESENCE ON EBAY INCREASES IN-STORE SALES
12. IS THERE VALUE IN SERVING OMNICHANNEL CONSUMERS?
CONNECTED CONSUMERS ARE BLURRING THE ON/OFFLINE BOUNDARIES
How do we shop in UK?
31%
of people visited a store prior to
making a recent online purchase
34%
of people used online channels
before making a purchase in store
1 in 3
people already use multiple
channels when shopping
Findings from Deloitte’s survey of 1000 adults in UK Q3/4-2013
13. IS THERE VALUE IN SERVING OMNICHANNEL CONSUMERS?
CONNECTED CONSUMERS ARE INFLUENCED BY A WIDE RANGE OF SOURCES
69%
said that visiting the high
street store had a big
influence on their shopping
72%
are influenced by friends
and family
What influences shopping behaviour?
2/3
are influenced by customer reviews, and
slightly higher by price comparison sites
1/2
reported that they were influenced by
social media and blogs
43%
Reported that they were influenced in
their shopping by apps
14. IS THERE VALUE IN SERVING OMNICHANNEL CONSUMERS?
TECHNOLOGY IS DRIVING SHOPPING BEHAVIOUR
Over 80%of tablet owners have used their
tablet for shopping
35%
use their
smartphone to
find nearby stores
34%
take a picture of a
product to retrieve
information on it
23%
recognise their
location and
provide
information on
local offers
23%
scan barcodes in
order to access
additional
information
What influences shopping behaviour?
15. IS THERE VALUE IN SERVING OMNICHANNEL CONSUMERS?
They are almost 2x
as likely to use mobile
as part of their purchase journeys
50%
A NEW BREED OF CONSUMER HAS EMERGED – THE SUPER SHOPPER
Shoppers who behave in an omnichannel
way are more valuable to retailers,
spending more money and shopping
more frequently
The value of these
purchases through
multiple channels can
be up to 50% more
than those purchased
through a single
channel
These shoppers are
30%
more likely to
research online
before visiting store
18%
of shoppers
account for around
70%
of retail spending
in the UK
16. OFFERING FLEXIBLE DELIVERY
OPTIONS, USING THE STORE
AS A COLLECTION POINT
BEING PRESENT AT ANY STAGE
OF THE SHOPPING JOURNEY
ALLOW CUSTOMERS TO USE THE
CHANNEL OF THEIR CHOICE
HOW CAN RETAILERS REALISETHE OMNICHANNELOPPORTUNITY?
ADOPT A VARIETY OF STRATEGIES THAT BLUR ONLINE/OFFLINE
17. What was your reason for completing your purchase in-store?
What was your reason for completing your purchase online?
HOW CAN RETAILERS REALISETHE OMNICHANNELOPPORTUNITY?
OFFER FLEXIBILITY AND SPEED ACROSS INTEGRATED CHANNELS
I did not want to wait for delivery
I wanted to try out or test the product I was buying
I wanted to see the range available in store
20%
30%
25%
The product was cheaper online
Special offer that was only available online
I find online shopping more convenient
40%
27%
30%
Recent years have seen the blurring of OFFLINE which is undergoing a changing commercial landscape (particularly with retailers)
with ONLINE which is driving a radical change in customer behaviour.
At the heart of this shift is the consumer.
Through the power of mobile the consumer is rewriting the rules. And with a mobile in hand the consumer is always at the centre of the global marketplace.
In the consumer’s mind it’s no longer Online Verses Offline , it’s just shopping
I really liked the quote from one of the sellers that sums up a great approach to this
“Customers engage with the brand rather than the channel”
I know we have a quite a diverse audience this morning so I can‘t assume you all know where eBay stands today so very quickly here are some figures
Obviously the 1st block of figures are around the fact that eBay is one of the largest Global Online marketplaces. Whilst I look after UK marketplace and the 22 million online visitors per month I also want to point out the huge opportunity Globally where we have 124 million customers. I‘ll talk about that later in trends for 2014
On the right hand side you‘ll see some facts as to how we have changed as a marketplace over the past few years to the point where you can buy almost anything via eBay and these items are predominately new and fixed price. The days of retailers using eBay for distressed stock and selling via auction format have gone. Nowadays it‘s all about how eBay plays a part in a retailer‘s overall Omnichannel strategy and I‘ll be addressing this too.
And as I mention Omnichannel, as we heard from both Ian and the Google team this is been driven by mobile and no more so than at eBay where very early into the growth we put mobile at the heart of our strategy and from the figures in the middle column you can see we have a strong business via mobile. It now drives everyting we do as a company and the mobile connected customer is at the heart of our business.
