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    • 10/16/19
    • Retail
    • Technology
    • Consumer Goods
    • Point of Sales Tracking
    • Global
    • English

    The importance of localizing your global e-commerce strategy

    One in every four US dollars spent on Technical Consumer Goods (TCG) today are for transactions made online, but it’s not a consistent global story of expansion. Therefore it’s time to rethink if your global e-commerce strategy on a local level. The growth of online shopping has slowed in some markets and where spend happens varies hugely by country and region. E-commerce share ranges from almost zero to more than one-third of turnover. The perception of online retail also varies, from a premium destination driven by promotion to a mass-market channel offering value-for-money solutions.

    In this article, we discuss the regional differences in sales dynamics, pricing and assortment to evaluate the characteristics of e-commerce.

    Global online shopping keeps growing, but…

    Where does the natural equilibrium between online and offline retail sit? There are already indications that growth is slowing in countries where online shopping is more mature. Globally in the first half of 2019, e-commerce increased to about 24% of total revenues (+1.6 percentage points), a flattening dynamic compared to past years, when almost three percentage points were gained annually.

    However, the global view masks local nuances. China is leading the online retail sector with a share of 36%. In the Chinese and other advanced markets, there’s a blurring of online and traditional retail concepts. For instance, e-commerce players have been moving from pure online stores and integrating traditional shops into their retail ecosystem to reach customers regardless of channel. Many brick and mortar retailers have been adding e-commerce operations and technology to add digital experiences to the traditional in-store shopping trip. Offering a seamless omnichannel approach is challenging the definitions of e-commerce and ‘traditional’ retail used today.

    Other regions are at a much earlier phase of the online retail evolution, such as Middle East/Africa and Emerging Asia (excluding China). Here, online sales account for about 5% compared to 36% of turnover in China.

     

    E-commerce pricing reflects a region’s socio-economic developments

    How online retailers are seen in different markets is not just about the assortment mix offered or their pricing, it’s about the socio-economic market situation and the adoption level of online shopping. In some markets, it’s predominantly the more affluent consumers whohave access to online shopping. Retailers have responded by offering premium items. This is the case in Brazil, where online retail offers a premium assortment mix and generates high average prices. Facilitated by online promotions, consumers buy premium product segments at an attractive price which is reflected in an above-average price index of almost 140% compared to the total market covering online sales.

    It’s a different story in the huge Chinese online market: internet shopping is highly adopted by consumers and online retailers employ a mass-market approach, facilitated by simple-to-use app-based payment systems, to sell lower-end product segments at entry-level prices. Hence, the price index is below 60%. For both markets, a convergence is visible – but they are still distant from a 100% price index average.

     

    Getting the assortment spot on: Balancing conflicting customer needs

    It’s not only socio-economic considerations adding to the challenge of creating the right e-commerce strategy – individual consumer needs and wants are also important. Where consumers are in their purchase journey determines how they view the product assortment on offer. For instance, shoppers in the exploration phase who are unclear about what to buy may perceive too many choices as a barrier for their decision-making. On average, shoppers have 2.7 times more choice online compared to what is offered by a traditional retailer. However, overwhelming choice is a common concern among consumers: 59% agree globally that “there are too many choices in many of the categories I shop” (GfK FutureBuy study, 2019). On the other hand, for a shopper who is at the end of a purchase journey and ready to buy, tan online retail store with a large assortment can maximize their advantage.

    Offering a choice of both touchable and digitally available products is the solution desired by the consumer. In-store, retailers need to offer the right assortment to make a directional decision about what to purchase. Should consumers want to access more product variants, this can be done via a virtual assortment of stock at the location, or at a central warehouse.

    There’s no one-size-fits all approach to e-commerce strategy

    It is essential to understand local and regional differences that affect your strategy: from the level of online shopping adoption to the assortment and pricing of your range, to how channel dynamics are changing, to where consumers are in the various stages of the purchase journey. GfK’s Point of Sales Tracking can help you keep up-to-date with how online and offline sales channels are developing at a country level. This will enable you to adapt your e-commerce strategy to stay relevant for consumers and the market—wherever that may be.

    Stay on top of sales channel dynamics

    with GfK’s POS Tracking

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  • GfK Webinar: The right way through the Touchpoint Jungle
    • 10/15/19
    • Retail
    • FMCG
    • Consumer Panels
    • Shopper
    • Global
    • English

    GfK Webinar: The right way through the Touchpoint Jungle

    How do you focus on the touchpoints in the shopper journey that really pay off?
    Join our experts on Nov 05 / 10 am (CET)

    • 10/09/19
    • Technology
    • Marketing Effectiveness
    • Global
    • English

    Ad-testing gets smarter for the multi-platform world

    For advertisers, the changing media landscape means there are more ways to reach consumers with advertising than ever before, with a steady shift to online formats. At the same time, ad budgets have barely grown and development timelines have reduced. In this demanding new environment, advertisers and agencies need fresh approaches to ad-testing in order to:

       

    • Boost efficiency (cost and time)
    • Leverage learnings across media
    • Mine insights across and within ads and campaigns
    • Accommodate new and emerging ad formats
    •  

    Advertisers now need earlier-stage, media agnostic ad concept tests and more efficient screening of final creative, with tighter integration of pre-testing and in-market performance learnings.

    Ad-testing that’s flexible, efficient in every way and just plain fast

    GfK has responded to these needs with a comprehensive and dynamic learning system, Ad Fit Optimizer. It is a breakthrough approach that combines speed, low cost and behavioural measurement.

    Using intuitive assessment criteria to deliver:

       

    • Early concept and creative evaluation
    • Low-cost, fast-turnaround screening of finished and semi-finished ads
    • A consistent framework for evaluating different advertising media in natural environments
    •  

    “This is the ad-testing breakthrough I was looking for – flexible, efficient in every way, and just plain fast. Kudos to GfK for delivering a truly digital solution.”

    –Josh Billig, Microsoft

    This flexible system accommodates not just TV ads, but all forms of online advertising, including video (pre-roll, in-text and in-banner), banners and rich media advertising.

    The screening is performed not only across a range of regular, mobile and social media online environments, but also:

       

    • Regular web page and mobile site environments to test a range of shapes and sizes of static, animated and rich media banners, as well as in-text video
    • A Facebook-like mobile environment to test a variety of social media ad formats
    • A pre-roll-type environment to test video ads across a range of screen sizes
    •  

    How is it different to ‘normal’ ad-testing?

    In line with the latest thinking in cognitive psychology, viewer exposure to ads in an Ad Fit test is unforced; respondents are free to disengage from the ads at any time, as they would be in real life.

    We can therefore measure how effective an ad is at ‘hooking’ consumers and ‘holding’ their attention. Most other ad pre-testing systems rely solely on a forced exposure methodology that will struggle to identify an ad’s real ability to break through the clutter in our multi-tasking world.

    At the end of the process, all stages of ad testing are integrated into a database, so you can get the bigger picture on what makes your campaigns successful.

    What have we learned from Ad-Fit Optimizer?

    Let’s not forget that we are approaching the end of the year, with Black Friday, Cyber Monday and Christmas making the intensely cluttered ad environment even more challenging.

    So, what are the do’s and don’ts for marketers and advertisers? We used our learnings from Ad Fit Optimizer to help you drive your campaigns with the ultimate guide for driving effective holiday advertising.

     

    Get your 6-step guide to driving effective seasonal ads

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  • Map of the Month: Online purchasing power for food, Germany 2019
    • 09/26/19
    • Fashion and Lifestyle
    • Financial Services
    • Media and Entertainment
    • Retail
    • Technology
    • Consumer Goods
    • Geomarketing
    • Geodata
    • Picture of the month
    • Global
    • English

    Map of the Month: Online purchasing power for food, Germany 2019

    GfK's Map of the Month for September illustrates the 2019 regional distribution of purchasing power for food purchases via online retail in Germany.

  • Decision by European Central Bank stimulates German Consumer Climate
    • 09/26/19
    • Press
    • Global
    • English

    Decision by European Central Bank stimulates German Consumer Climate

    Findings of the GfK German Consumer Climate Study for September 2019.

     

     

  • Munich residents spend the most online for food
    • 09/12/19
    • Fashion and Lifestyle
    • Retail
    • Technology
    • Consumer Goods
    • FMCG
    • Geomarketing
    • Geodata
    • Global
    • English

    Munich residents spend the most online for food

    GfK has released new purchasing power studies that include for the first time purchasing power potential for 17 product groups for both online and brick-and-mortar retail in Germany.

  • What shapes the one trillion-euro technical consumer goods market?
    • 09/04/19
    • Press
    • Global
    • English

    What shapes the one trillion-euro technical consumer goods market?

    GfK findings for the global TCG market to be released at IFA 2019 in Berlin. 

  • Small Domestic Appliances market grows to €24.3 billion in first half of 2019
    • 09/04/19
    • Press
    • Global
    • English

    Small Domestic Appliances market grows to €24.3 billion in first half of 2019

    GfK findings for the global SDA market to be released at IFA 2019 in Berlin. 

  • Three driving forces shaping the Major Domestic Appliances market
    • 09/04/19
    • Press
    • Global
    • English

    Three driving forces shaping the Major Domestic Appliances market

    GfK findings for the global MDA market to be released at IFA 2019 in Berlin.

  • Global audio market continues growth trajectory
    • 09/04/19
    • Press
    • Global
    • English

    Global audio market continues growth trajectory

    GfK findings for the global audio market to be released at IFA 2019 in Berlin.

  • Is e-commerce facing its limits?
    • 09/04/19
    • Press
    • Global
    • English

    Is e-commerce facing its limits?

    GfK findings for the global technical consumer goods retail markets to be released at IFA 2019 in Berlin. 

  • PC market declines slightly in first half of 2019
    • 09/04/19
    • Press
    • Global
    • English

    PC market declines slightly in first half of 2019

    GfK findings for the global PC market to be released at IFA 2019 in Berlin.