GfK's Map of the Month for June illustrates the 2016 regional distribution of purchasing power for consumer electronics and related products at the level of France's departments (data source: GfK Purchasing Power for Retail Product Lines, France 2016). Companies that sell these products can use these insights to align their sales and marketing strategies with the regional product potential.
As the summer of 2017 approaches in the US, there’s a veritable buffet for sports fans to enjoy. The Warriors and Penguins have been crowned champions but baseball, soccer, racing, golf and tennis now fill the schedule. I will be a part of the crowds this summer, heading to Connecticut to see the US national soccer team play Ghana, to Citi Field for Mets games, and to Billie Jean King National Tennis Center for the US Open.
It’s also a time of change for sports teams and brands, as multiple sources of entertainment compete for our attention. We have more options to consume sports than ever before. Sports programming on television alone has increased by 160% since 2005, and this does not include the voluminous streaming options from services like ESPN3.
Fans are also changing how we watch sports, using a mix of devices, and streaming this content now more than ever. GfK Consumer Life has found that one in five sports fans watch live events on their mobile phones (+14 pts from Americans overall). Additionally, sports fans are more likely to own streaming devices like Apple TV or Roku (34%, +10 pts).
Facing these challenges, sports franchises and brands need to think creatively to keep fans engaged; here are a few ways they can do that:
Using these strategies will help to strengthen relationships with sports fans and keep us coming to the stadium or tuning to whatever screen we prefer. By realizing that sports fans aren’t just customers – we can also be a team’s biggest advocate online, at the local sports bar, or in the stands – you can truly leverage the power of this group.
Adam Swift is a Senior Analyst on the Consumer Life team at GfK. He can be reached at email@example.com.
GfK has won the 2017 Innovation Prize awarded by Association of German Market and Social Researchers (BVM). The award recognizes GfK’s innovative approach that allows new product and service concepts to be tested using an analysis of verbal feedback. The prize was awarded at the 52nd Congress of German Market Research in Berlin on June 19th 2017.
Eight years ago, Starbucks developed its own app for mobile payments. Today, it’s still held up as the gold standard in the United States.
In Asia’s rapidly developing market, where mobile payment is eight to nine years ahead of the West, things are quite different.
In China, you can mobile pay for everything from a cab to a mojito or utility bill. In 2015, WeChat registered more financial transactions in one day than PayPal did during the entire 12 months.
But it’s not just China that’s adopting the trend. Mobile payment is also making massive inroads in Southeast Asia as shopping apps are gaining popularity. In Singapore alone, there are 30,000 retail points accepting contactless payment methods such as Apple Pay, Android and Samsung Pay.
In Indonesia, the most populous country in the region with 250 million people, most of the big traditional retailers are unveiling e-commerce plans of their own. In a recent GfK study: The Connected Asian Consumer, consumers in Singapore and Indonesia also reported fairly high usage incidence of shopping apps (37 and 35 percent respectively). This growth is fuelled by affordable smartphones, a massive young and tech-savvy population and efforts by governments and telco operators to expand and improve high-speed wireless networks.
The future has never been clearer. It’s only a matter of time before mobile payment goes mainstream.
Unfortunately for traditional retailers, the age of e-commerce has also produced a new consumer – we like to call them the ‘Connected Consumer’ – and their behaviors are shaping the future of retail.
In the GfK 2016 FutureBuy survey of 20,000 consumers in 20 markets, it was found that shoppers are becoming less loyal to any one retailer. Almost half (46%) of all consumers (14-65 year olds) stated they were less loyal when shopping. This figure rises among the youngest consumers to 53% of Gen Y (18-29 years), and six in ten (58%) of Gen Z (14-17 years).
For retailers who understand the Connected Consumer, there are opportunities to stay ahead of the competition – and mobile payments are a huge part of it.
Despite becoming less loyal, many Connected Consumers expect an omnichanel shopping experience when they interact with a brand. Connected Consumers in APAC seek the best of both worlds.
For example, shoppers in China are the most likely to embrace omnichannel shopping – seven in 10 (71%) shop both online and in-store while Australian shoppers are the most likely to shun online: almost two thirds (62%) shop exclusively in-store. In contrast, Indians lead the way in online shopping with almost one quarter (23%) shopping the category exclusively online.
Therefore it is important for retailers to understand the new reality of the omnichannel consumer, and know that the ‘whatever, whenever’ culture demands that user experience is seamless across all devices. If retailers don’t understand this, customers will simply delete their app and move on.
We predict that mobile payment could halt the current trend for a decline in shopper loyalty. It makes sense, really. There are numerous benefits for shoppers: avoiding queues, centralizing loyalty rewards, checking stock, ordering ahead, enjoying customized offers and easy price comparison.
At the same time, using customer and data analytics, retailers can receive customer data to offer more personalized services. In turn, this presents an opportunity to generate long-term relationships.
However, it is important to note that not all Connected Consumers are the same. For example, older consumers aren’t as comfortable with sharing personal information as younger consumers.
Understanding the shopper’s purchase journey is easier these days with research intelligence offering detailed information on the route shoppers take when making a purchase, and ways in which online and offline touchpoints influence their decisions. We believe that brands that understand, respect and protect consumers’ individual boundaries will deserve the loyalty they earn by doing so.
As mobile payments continue to grow in APAC, businesses in various sectors such as financial services, cybersecurity and telco stand to gain and can evolve to support the changing landscape.
For example, for telco operators, engaging with retail merchants and partners can help strengthen the overall service ecosystem to provide better end user experiences for consumers. Additionally, the design and development of payment services can also be integrated with other emerging technologies and competencies to offer differentiation to target audiences.
Loyalty is great, but to really retain customers in today’s omnichannel space, shopping experience is equally important.
To Connected Consumers, simplicity and convenience is paramount. Not only do they expect everything quickly, they also lose their patience faster.
For large retailers, mobile payment offers the opportunity to segment and target consumers much more effectively with highly personalized offers and incentives. Discounts and offers can be integrated into mobile payment, replacing the need for physical coupons and entering information into a terminal. Connected Consumers will wave goodbye to the traditional checkout queue and benefit from a wealth of customized rewards.
Mobile payment also offers a chance for small retailers to move into a new era of retailing. Freed from high transaction fees and with new ways to connect with consumers, small retailers can now embark on the kind of personalization and targeting that is usually the privilege of larger players.
With e-commerce here to stay, there is plenty of potential for retail businesses to leverage research intelligence to adequately design and develop strategies to target this group of consumers. Essentially, the key to success is to fully understand shopper behavior and be led by what consumers ultimately want, without being blinded by what the technology can do.
Karthik Venkatakrishnan is Regional Director at GfK. To share your thoughts, please email firstname.lastname@example.org or leave a comment below.
We help one of the world’s largest retailers improve its online shopping experience, increase sales and compete more effectively with digital rivals.
Special Session: Conquering Connected Shoppers - Maximizing Omnishopper Opportunities
Watch our video to explore the challenges, opportunities, research and benefits of identifying future consumer needs.
Watch our video to discover exactly what it takes to turn consumers into your brand browsers.
Watch our video to improve and optimize the conversion rate of brand browsers into your buyers.
Watch our video to maximize your sales and marketing investments by ensuring shopping baskets and carts are filled.
Watch our video to fine-tune and optimize your cross-channel pricing.
Meet your consumers’ escalating expectations of convenience, choice, price and experience with our toolkit and bonus guide.