state of the retail q2 2012 - texas cable associationstate of the u.s. online retail economy in q3...

November 2012 State of the U.S. Online Retail Economy in Q3 2012

Gian Fulgoni, Chairman, comScore, Inc. Andrew Lipsman, VP Industry Analysis, comScore, Inc. Ian Essling, Research Manager, comScore, Inc.

Note: A copy of this presentation will be sent to all attendees within three business days of today’s webinar

2 © comScore, Inc. Proprietary. #SOR12

Data sourced from comScore’s global panel of 2 million Internet users via behavioral tracking and custom surveys

E-Commerce data includes all worldwide buying on U.S. sites (excluding mobile and tablets unless otherwise stated)

Unless explicitly stated otherwise, the term e-Commerce refers to online retail spending, as measured by comScore, which excludes travel, autos and auctions

Behavioral activity through September 2012

Survey conducted week of October 22, 2012 (n=1989)

Consumer Measurements: – Online Buying – Attitudes and Sentiment – Site Visitation – Demographic Segments – Mobile and Tablet e-Commerce

2 million person panel 360°View of Consumer Behavior Analysis Parameters


Topics for Today

Review of Key Macroeconomic Trends Consumer Perceptions of the Economy Retailer and Product Category Overview The Consumers’ Path to Purchase The Digital Endcap: Retailers as Publishers Looking Back at Holiday 2011… … and a Look Forward to Holiday 2012 Key Takeaways Q & A


Validation of comScore Sales Data: Comparison of comScore data to U.S. Department of Commerce

Bill

ions

($)

Dept. of Commerce (DOC) comScore Estimate of DOC

Quarterly U.S. e-Commerce Sales* ($ Billions) Source: comScore & U.S. Department of Commerce (DOC) Quarterly U.S. e-Commerce Growth* vs. YA

Source: comScore & U.S. Department of Commerce (DOC)

% G

row

th v

s. Y

A

Dept. of Commerce (DOC) comScore Estimate of DOC

*Note: To be consistent with DOC, comScore estimate excludes travel and event tickets but includes auction fees and autos.

comScore Estimate of Mobile e-Commerce

-10%

0%

10%

20%

30%

40%

50%

2005

- Q

1 20

05 -

Q2

2005

- Q

3 20

05 -

Q4

2006

- Q

1 20

06 -

Q2

2006

- Q

3 20

06 -

Q4

2007

- Q

1 20

07 -

Q2

2007

- Q

3 20

07 -

Q4

2008

- Q

1 20

08 -

Q2

2008

- Q

3 20

08 -

Q4

2009

- Q

1 20

09 -

Q2

2009

- Q

3 20

09 -

Q4

2010

- Q

1 20

10 -

Q2

2010

- Q

3 20

10 -

Q4

2011

- Q

1 20

11 -

Q2

2011

- Q

3 20

11 -

Q4

2012

- Q

1 20

12 -

Q2

Correlation: 0.92


State of the Economy A Review of Key Macroeconomic Trends


$42 $53 $67 $82 $102 $123 $130 $130 $142 $162 $129 $30

$40 $51

$61 $69

$77 $84 $80 $85

$94

$80

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Q1-Q3 2012

$72 $93

$117 $143

Retail

Travel

+26%

+33%

+26%

+28%

+20%

+24% +24%

+13%

$171 $200

+20%

+12%

+6%

+9%

Retail e-Commerce spending is up +16% Y/Y, posting $209 billion in sales through September 2012

$214

0%

-5%

$209

U.S. e-Commerce Dollar Sales Growth ($ Billions) Source: comScore e-Commerce Measurement

+10%

+6%

$228

+16%

+9%

$209

+29% +26%

+22%

+19%

+17% +7%

-2% +9%

+12% +13%

$256

+14%

+11%


Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12

Retail e-Commerce dollar sales have posted double-digit gains in every quarter since Q4 2010 and remain well ahead of pre-recession levels

Bill

ions

($)

Retail e-Commerce Dollar Sales ($ Billions) Source: comScore e-Commerce Measurement

0% -1% -2% +3% +10% +9% +9% +11% +12% +14% +13% +14% +17% +15% +16%

% Chg vs. YA

$31.0 $30.2 $29.6

$39.0

$33.9 $32.9 $32.1

$43.4

$38.0 $37.5 $36.3

$49.7

$44.3 $43.2 $41.9


*Note: The U.S. Department of Commerce calculation includes total retail and food service sales, which also includes motor vehicles and parts dealers.

3% 3% 3% 3% 2% 2% 1%

-5% -5% -6% -6%

0% 4% 5% 6% 7% 6% 4% 4% 3%

6% 2% 2%

Q1 2007

Q2 2007

Q3 2007

Q4 2007

Q1 2008

Q2 2008

Q3 2008

Q4 2008

Q1 2009

Q2 2009

Q3 2009

Q4 2009

Q1 2010

Q2 2010

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Q3 2011

Q4 2011

Q1 2012

Q2 2012

Q3 2012

Quarterly Retail & Food Services Sales Growth vs. YA (excluding autos, gas and food/beverage)

4% 4% 3% 5% 4% 2% 1%

-8% -10% -9% -7%

2% 6% 7%

5%

8%

7% 7% 7% 5%

8% 4% 3%

Q1 2007

Q2 2007

Q3 2007

Q4 2007

Q1 2008

Q2 2008

Q3 2008

Q4 2008

Q1 2009

Q2 2009

Q3 2009

Q4 2009

Q1 2010

Q2 2010

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Q3 2011

Q4 2011

Q1 2012

Q2 2012

Q3 2012

17% 23% 23%

19%

11%

13%

6% -3% 0% -1% -2% 3%

10%

9% 9%

11% 12% 14%

13%

14% 17%

15% 15%

Q1 2007

Q2 2007

Q3 2007

Q4 2007

Q1 2008

Q2 2008

Q3 2008

Q4 2008

Q1 2009

Q2 2009

Q3 2009

Q4 2009

Q1 2010

Q2 2010

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Q3 2011

Q4 2011

Q1 2012

Q2 2012

Q3 2012

In Q3, online sales growth continued to outpace offline, with online retail posting a 15% year-over-year growth rate, which was more than 7x greater than the apples to apples offline retail rate

Quarterly e-Commerce Sales Growth vs. YA Source: comScore e-Commerce Measurement

Quarterly Retail & Food Services Sales Growth* vs. YA Source: U.S. Department of Commerce (DOC)


4.3%

3.7% 4.0%

4.6%

5.1%

4.3% 4.5%

5.3%

5.9%

5.0% 5.3%

6.4% 6.7%

5.9% 6.3%

7.4% 7.3%

6.5% 6.6%

7.6% 7.7%

6.8% 6.9%

7.7% 8.1%

7.1% 7.1%

8.0% 8.6%

7.7% 7.6%

8.9%

9.4%

8.7%

8.7%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

The channel shift appears to be accelerating, with e-Commerce representing nearly 9% of all discretionary dollars spent in Q3 2012, an increase of 1.1 points compared to 2011

*Note: e-Commerce share is shown as a percent of DOC’s Total Retail Sales excluding Food Service & Drinking, Food & Bev. Stores, Motor Vehicles & Parts, Gasoline Stations and Health & Personal Care Stores.

e-Commerce Share of Corresponding Consumer Spending* Source: comScore for e-Commerce & U.S. Department of Commerce (DOC) for Retail

e-C

omm

erce

Sha

re

e-Commerce share peaks in colder seasons (Q4 & Q1)


Consumer Perceptions of the Economy


Consumer sentiment improved this quarter compared to July, with 48% rating the economy as ‘poor’ (the best rating in four years)

Percent of Consumers Who View The Economy as Poor

Q. How would you rate economic conditions today? Source: comScore Surveys

77% 68% 66% 61% 61% 59% 62% 61%

52% 59% 60% 60%

54% 49% 56%

48%

Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12

Baby Boomers (50%) remain significantly more concerned about economy than Millennials (39%)


Concern over rising prices remains the primary economic issue for consumers (45%), followed by unemployment at 34%

Percent of Respondents Citing Their One Most Important Issue

46%

40% 42%

50%

42% 44% 45%

36%

27%

37% 38%

31%

26%

33% 34% 28%

32% 32%

29%

33% 30%

29%

42%

54%

37% 37%

43%

48% 44% 45%

15% 13% 13%

9% 10%

13%

9% 7% 7%

12% 12%

10% 11% 10%

10%

8% 8% 8%

7% 9%

8%

10% 11%

7%

8% 9%

10% 11%

8% 8%

Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12

Unemployment / Job Security

Rising Prices

Financial Markets

Real Estate / Home Values

Q. Based on your current situation, which one of the following economic conditions most concerns you? Source: comScore Surveys


Retailer and Product Category Overview


Compared to 2011, every key e-Commerce metric has increased. 16% growth in dollar sales driven equally by buyers and buying rate

Metric Q3 2011 Q3 2012 % change

Dollar Sales ($ Billions) $36.3 $41.9 +16%

Dollars per buyer $200 $217 +8%

Buyers (Millions) 182 194 +7%

Average Order Value $85 $90 +6%

Transactions (Millions) 429 467 +9%

Transactions per Buyer 2.36 2.41 +2%

Buyer Penetration (Total Internet) 74% 75% +2%

Key e-Commerce Buyer and Transaction Measures Q3 2012 vs. YA

Source: comScore e-Commerce Measurement


Desktop computers +8%

Audio/video equipment (e.g. TVs) +12%

Mobile phones and tablets are among the fastest growing e-Commerce sub categories – portable devices are growing at more than double traditional desktop computers

Q3 2012 e-Commerce Sales Growth vs. YA by Retail Category Source: comScore e-Commerce Measurement

Product Category Q3 2012 Growth vs. YA

Digital Content and Subscriptions Very Strong Consumer Electronics (x PC Peripherals) Very Strong Event Tickets Very Strong Apparel & Accessories Very Strong Video Games, Consoles & Accessories Very Strong Flowers, Greetings & Misc. Gifts Very Strong Jewelry & Watches Very Strong Computers/Peripherals/PDAs Strong Books & Magazines Strong Consumer Packaged Goods Strong Sport & Fitness Strong Office Supplies Strong Home & Garden Strong Furniture, Appliances & Equipment Strong

Mobile phones and plans +27%

Growth rate definitions: Very Strong: +15% or higher Strong: +10-14%

Portable devices (e.g. tablets) +20%


Since 2008, Apparel & Accessories has been an effective bellwether for total Retail e-Commerce

y = 0.7227x + 0.0271 R² = 0.7168

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

-20% -10% 0% 10% 20% 30%

e-Commerce Growth 2008-2011

y = 0.2951x + 0.1419 R² = 0.3536

0%

5%

10%

15%

20%

25%

30%

35%

40%

-20% 0% 20% 40% 60% 80%

e-Commerce Growth 2004-2008

Correlation of Total Retail e-Commerce Sales Growth vs. e-Commerce Sales Growth of Apparel & Accessories Category


* X- axis = Apparel & Accessories, Y-axis = Total Retail E-Commerce


Apple and Wal-Mart both posted another quarter of strong growth versus year ago, with Amazon continuing to lead the category in visitors

Avg. Monthly Unique Visitors (MM) on Select Retail Sites in Q3 2012 Source: comScore Media Metrix, U.S.

+4%

+15%

+12%

-3%

+6%

+34%

+43%

+17%

-41%

+3%

+15%

+27%

+21%

-13%

Y/Y Change

104.6

47.5

43.1

25.4

20.1

15.1

15.1

13.3

12.7

12.6

11.5

11.0

11.0

Amazon Sites

Apple Sites

Wal-Mart

Target Corporation

Best Buy Sites

Ticketmaster

The Home Depot

Macy's

Hewlett Packard

Sears.com

Lowes.com

Kohls.com

JCPenney Sites


As visitors to Groupon via mobile continue to outpace PC traffic, the gap between mobile and fixed visitors grew this past quarter

Avg. Monthly UVs (MM) on Select Coupon Sites in Q3 2012

Source: comScore Media Metrix, U.S.

+4%

N/A

+10%

-7%

N/A

+28%

N/A

-16%

+56%

+34%

Y/Y Change

* - WhaleShark Media includes RetailMeNot.com, Deals2Buy.com, CouponShare.com and CouponsEven.com

Unique Visitors to Groupon in Sep-2012 Source: comScore Media Metrix & Mobile Metrix, U.S.

Groupon (via PC)

12.8 million

Groupon (via mobile*)

19.9 million

* includes mobile web and mobile app

1.6

1.6

1.7

2.0

2.1

2.6

6.7

7.5

9.2

13.0

MyPoints Sites

FATWALLET.COM

COUPONALERT.COM

FREEBIEGROCERIES.COM

DEALSPL.US

DEEDORGREED.COM

Coupons, Inc.

LivingSocial

WhaleShark Media

Groupon


Most flash sale sites continue to see growth in unique visitors, with Totsy.com the fastest growing property

Avg. Monthly UVs (000) on Select Flash Sale Sites in Q3 2012 Source: comScore Media Metrix, U.S. Y/Y Change

+70%

+40%

+39%

+11%

+43%

+14%

+436%

+24%

-36%

-7% 660

665

666

774

825

929

972

1,239

2,292

3,182

BEYONDTHERACK.COM

IDEELI.COM

RUELALA.COM

TOTSY.COM

ONEKINGSLANE.COM

MYHABIT.COM

HAUTELOOK.COM

Gilt Groupe

WOOT.COM

ZULILY.COM


The Consumers’ Path to Purchase


The Shopper’s Multi-Channel Journey Today: Not so much a funnel, more like a flight map

Source: Google ZMOT Handbook


Consumers were asked to rate a number of shopping tools, including “traditional” tools such as newspapers and TV, as well as digital and mobile shopping tools

“Traditional” Shopping Tools

Digital Shopping Tools

Mobile Shopping Tools

• Direct mail • Magazines • Newspapers • Radio • Recommendations from

friends and family • Television

• Deal of the day sites • Digital coupons • Facebook • Online circulars • Online customer

reviews/ratings • Online search engine • Printable shopping lists • Retailer or manufacturer

email • Retailer website • Twitter

• Mobile brand websites • Mobile coupons • Mobile location-based

services • Mobile payments • Mobile retailer websites • Mobile search • Retailer smartphone app • Scannable QR codes • Text alerts from a retailer • Use of a smartphone in a

physical store

Shopping Tools Evaluated Source: comScore Survey – September 2012


About half of consumers agreed that digital coupons will save them money – online search engines were also a top choice

49% 44%

43% 40% 39% 39%

38% 38%

37% 33%

30% 28% 27%

23% 23%

22% 22% 22%

21% 21%

21% 20% 20%

20% 20%

16%

Digital coupons Online search engine

Newspapers Retailer or manufacturer email

Recommendations from friends and family Retailer website Deal of the day Online circular

Direct mail Online customer reviews/ratings

Printable shopping lists Television

Mobile coupons Use of a smartphone in a physical store

Magazines Mobile search

Text alerts from a retailer Radio

Mobile retailer websites Scannable QR codes

Retailer smartphone app Mobile location-based services

Facebook Mobile brand websites

Mobile payments Twitter

% of All Respondents

Percent of Consumers Who Agree Tool… (%Top-2 Box, 7-pt scale)

Source: comScore Survey – September 2012

“Saves Me Money”


Compared to 2010, consumers are increasingly comfortable receiving coupons online; nearly 1 in 3 respondents stated their preference for online coupons over another format

Q. Would you rather receive coupons online rather than any other format? Source: comScore Surveys - October 2010 & April 2012

23%

47%

30%

Yes

No

Not sure

2010 32%

45%

24%

Yes

No

Not sure

2012


19% 23% 27% 25% 22%

36% 40%

45% 48% 56%

45% 37% 29% 27% 22%

25 to 34 35 to 44 45 to 54 55 to 64 65 or older

About 1 in 3 consumers would rather receive coupons online than via any other format – nearly half of those ages 25-34 prefer an online format

Q. Would you rather receive coupons online rather than any other format? Source: comScore Survey – April 2012

32%

45%

24%


Retailer websites, recommendations from friends/family and online search engines were among the top tools chosen by consumers for the metric “Helps Me with New Ideas”

42% 42% 41%

40% 39%

38% 38%

35% 35% 35%

35% 34%

28% 27%

24% 24% 24% 23%

23% 23%

23% 22% 22% 22%

21% 18%

Retailer website Recommendations from friends and family

Online search engine Television

Retailer or manufacturer email Direct mail

Online circular Online customer reviews/ratings

Digital coupons Magazines

Newspapers Deal of the day

Printable shopping lists Radio

Text alerts from a retailer Mobile coupons

Facebook Mobile search

Retailer smartphone app Mobile retailer websites

Use of a smartphone in a physical store Scannable QR codes

Mobile brand websites Mobile location-based services

Mobile payments Twitter

% of All Respondents

Percent of Consumers Who Agree Tool… (%Top-2 Box, 7-pt scale)


“Helps Me with New Ideas”


Amazon.com indexed favorably against retail websites in general, including indices of 1.5 or higher for on-site search options & consumer reviews

Q. In general, when thinking of retail websites, how satisfied are you with the following elements of these sites?

% Top-2 Box, 7-pt scale Source: comScore Survey – October 2012

60%

54%

50%

46%

45%

Product availability

Product information

On-site search options

Promotions and deals

Consumer reviews

1.34

1.38 1.38

1.50

1.38

1.62

Amazon Index

Ratings for Amazon.com* were significantly higher than the

general retail numbers

* (among Amazon.com shoppers) Q. When thinking specifically of Amazon.com, how

satisfied are you with the following elements of that site?


Overall, online search engines were considered the most valuable tool for shopping, followed by retailer websites and recommendations from family and friends

Overall Rankings for Each Tool, by Statement (Ranking among tools, % Top-2 Box, 7-pt scale)


(shown in order of average overall ranking)

“Saves Me Money”

“Saves Me Time”

“Helps Me With New Ideas”

#1 - Online Search Engine 2nd 1st 3rd #2 - Retailer Website 6th 2nd 1st #3 - Recommendations from family / friends 5th 4th 2nd

#4 - Digital Coupons (excluding deal of the day) 1st 3rd 9th

#5 - Retailer Email 4th 8th 5th #6 - Newspapers 3rd 11th 11th


The Digital Endcap: Retailers as Publishers


$994

$9,905

$1,263

$11,550

Online Offline Unexposed Exposed

Dollar Sales Lift Among Households Exposed to Online Advertising

% Lift: 17%

% Lift: 27%

Despite click rates of only 0.1%, comScore research has shown that display ads can successfully lift retailer sales – both online and offline

Source: “Whither the Click?” 139 comScore studies in the June 2009 Journal of Advertising Research

Exposure to display ads doesn’t just impact online sales – it lifts in-store sales as well The absolute dollar lift in offline sales is 5x higher than the lift in e-commerce sales The click is misleading as a measure of campaign effectiveness

Conclusions


The Digital Endcap: Growth up 46% in the past year, driven by 135% increase at Amazon Sites

Digital Endcap Growth: Impressions Delivered (MM) Source: comScore Ad Metrix, U.S., Q3 2012 vs. Q3 2011

Amazon.com

Walmart.com

0

5,000

10,000

15,000

20,000

25,000

Q3 2011 Q3 2012

Amazon Walmart Gilt Groupe Netflix Best Buy Other

+46%

*Amazon excludes ads on IMDB


The Digital Endcap: Amazon & other retailers are beginning to focus on the advertising opportunity in front of them

Amazon’s Value Proposition as a Publisher/Ad Platform

Scale: 105 Million Monthly Visitors

Qualified Audience: Already demonstrating purchase intent by visiting Amazon

Targeting: Potential to reach people with product purchase history; also ability to target valuable lifestyle segments like Moms

Build Category Purchase Online: CPG, Autos and other traditionally offline channels


Looking Back at Holiday 2011


$19.6

$24.6

$29.2 $28.0 $29.1 $32.6

$37.2

+26%

+19%

-4%

+4%

+12% +15%**

$0.0

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

$35.0

$40.0

-10%

-5%

0%

5%

10%

15%

20%

25%

30% Holiday Season $ in Billions Y/Y Growth Rates

The 2011 U.S. e-Commerce holiday season surpassed all previous years in sales and grew 15% versus 2010

* Holiday Season includes November and December **Percentage change includes seasonal adjustment to account for unequal number of weekdays and weekend days in 2010 and 2011

Holiday Season* Retail e-Commerce Sales ($ Billions) Growth vs. YA


2005 2006 2007 2008 2009 2010 2011


Last year’s holiday season was highlighted by several key e-Commerce spending days, including Cyber Monday and Green Monday

$-

$200,000,000

$400,000,000

$600,000,000

$800,000,000

$1,000,000,000

$1,200,000,000

$1,400,000,000

2011 U.S. Online Holiday Spending by Day Source: comScore e-Commerce Measurement, 2011

Black Friday +26%

Cyber Monday +22% Green Monday

+19% Free Shipping Day +14%

Thanksgiving+18%


Of all milestone holiday spending days, Thanksgiving Day is growing the fastest in the past five years

Key Holiday Season e-Commerce Days vs. 2006 Source: comScore e-Commerce Measurement

5-Year % Chg

Thanksgiving Day +128%

Black Friday +88%

Cyber Monday +106%

Green Monday +71%

Full Season +51%


$484

$608

$733

$846 $887

$1,028

$1,251

2005 2006 2007 2008 2009 2010 2011

For the second consecutive year, Cyber Monday was the highest spending day of the holiday season

Cyber Monday U.S. Online Spending in Millions (% growth vs. YA)

Source: comScore E-commerce Measurement, 2005-2011

+16% +5%

+15% +21%

+26%

+22%

8

12

9

3 2

1 1

0

2

4

6

8

10

12

14

2005 2006 2007 2008 2009 2010 2011

Spen

ding

Day

Ran

k

Cyber Monday - Spending Day Rank

Cyber Monday - Spending Day Rank Source: comScore E-commerce Measurement. 2005-2011


During the 2011 holiday season, the percentage of transactions involving free shipping hit an all-time high of 52% in Q4

39% 40% 41% 49% 47% 43% 40% 52% 49% 47% 43%

61% 60% 59% 51% 53% 57% 60% 48% 51% 53% 57%

Q1 2010

Q2 2010

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Q3 2011

Q4 2011

Q1 2012

Q2 2012

Q3 2012

% Transactions with Free Shipping % Transactions with Paid Shipping

Percentage of e-Commerce Transactions with Free Shipping


54% of consumers stated in a recent survey* that if they reached the end of an e-Commerce transaction and free shipping was not offered, they would cancel their purchase at that retailer

*comScore survey – October 2012


A Look Forward to Holiday 2012


Key 2012 Holiday Theme: The Four S’s

Social Commerce Smartphones Sit-Back Shopping Showrooming

What is substantially different between holiday 2011 and holiday 2012?


Social Commerce: Pinterest has shown significant growth in unique visitors since 2011

0.0

20.0

40.0

60.0

80.0

100.0

120.0

0

5,000

10,000

15,000

20,000

25,000

30,000

Average Minutes per Visitor Total Unique Visitors (000)

Pinterest.com: Trend in Unique Visitors (000) and Average Time Spent Source: comScore Media Metrix, U.S., May 2011 – Sep 2012

Pinterest has 20 million

more monthly

visitors than going into

last holiday season

Buying Power Index of Pinterest

visitors: 174


Social Commerce: Pinterest has ushered in a new era of social commerce with new players, in addition to Facebook making a push


Smartphones: Last year saw a significant uptick in holiday smartphone acquisition; the iPhone 5 will lead the way in devices & accessories

Average Monthly Smartphone Acquisition (MM) January – October vs. Holiday Season

Source: comScore MobiLens, U.S., 2011

2.7

3.9

Jan-Oct 2011 Nov-Dec 2011

+44%

0

20

40

60

80

100

120

140

160

180

200

Sep-11 Dec-11 Mar-12 Jun-12 Sep-12

iPhone 5 Announced September 12, 2012

iPhone 4S Announced October 4, 2011

iPhone Online Accessory Sales Indexed to October 2011

Source: comScore Custom Analytics, U.S., Sep 2011 – Sep 2012


0

10,000

20,000

30,000

40,000

50,000

Retailer Websites E-Payments Credit Cards Auction Sites

Q3 2011 Q3 2012

Smartphones: Retail-related categories showed significant growth among mobile phone owners YoY, including +65% for online retail

+65%

Content Categories Consumed by Mobile Phone Owners (000) & Growth vs. YA Source: comScore MobiLens, U.S., 3 Mo. Avg. (includes browser or application access)

+67% +59% +46%


Sit-Back Shopping: 1 in 10 retail e-Commerce dollars are now spent via mobile device (i.e. smartphones and tablets)

10% 9%

8% 9%

8%

6% 6%

3% 3%

2%

Q3 2012

Q2 2012

Q1 2012

Q4 2011

Q3 2011

Q2 2011

Q1 2011

Q4 2010

Q3 2010

Q2 2010

Percentage of Retail e-Commerce Dollars Spent via Mobile or Tablet Device Source: comScore Custom Mobile Research


Sit-Back Shopping: A new shopping occasion emerges in the later evening hours = new opportunity for retailers – especially Apparel

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

12:0

0 AM

1:

00 A

M

2:00

AM

3:

00 A

M

4:00

AM

5:

00 A

M

6:00

AM

7:

00 A

M

8:00

AM

9:

00 A

M

10:0

0 AM

11

:00

AM

12:0

0 PM

1:

00 P

M

2:00

PM

3:

00 P

M

4:00

PM

5:

00 P

M

6:00

PM

7:

00 P

M

8:00

PM

9:

00 P

M

10:0

0 PM

11

:00

PM

Tablet

Smartphone

Computer

50%

33%

29%

28%

25%

Apparel & Accessories

Books

Tickets

Daily deals

Consumer Electronics

Share of Daily U.S. Device Page Traffic Source: comScore Device Essentials, U.S., Jan. 24, 2012 (Weekday)

Category Spending Among Tablet Buyers: Percent of Buyers via Tablet Who Conducted a

Purchase within Category Source: comScore TabLens, U.S., 3 Mo. End Sep 2012


Showrooming: Nearly 4 in 10 consumers agreed they engaged in ‘showrooming’ – engagement remains much higher than awareness

“Showrooming” – verb. Visiting a brick-and-mortar store to see a product but instead purchasing the product online. Shoppers may intend from the start to purchase the product online, or may decide to purchase online, rather than in-person, after viewing the item at the store.

12% 16%

% who have heard of 'showrooming'

32%

37%

% who have engaged in 'showrooming'

Although only 16% of consumers were aware of the term “showrooming” unaided, 37% agreed they engaged in the

activity after seeing a definition


72%

40%

24%

16%

14%

2%

Price was better online

Planned to buy online but wanted to see item(s) in person before ordering

Item was out of stock at store

Was not convenient to buy in-person at the time

Would rather have item(s) shipped to home than take home with me

Other

% among those who engaged in 'showrooming'

Showrooming: Price is the biggest driver of ‘showrooming.’ Big-ticket items more likely to be showroomed because of higher cost-savings

Why Consumers Are ‘Showrooming’ Q. Which of the following describe why you utilized showrooming? (Please select all that apply)

Source: comScore Survey – October 2012

Overall, 12% of showrooming consumers said they engaged in

the behavior “often”

This varies by category, however… – Jewelry: 28% – Appliances: 26% – Books: 20% (Amazon Effect?)

– Apparel: 16%


Showrooming: Mobile Apps dominate Mobile Web access for most leading pure play online retailers

Share of Mobile Time Spent by Retailer App vs. Mobile Web

Source: comScore Mobile Metrix, U.S., Sep-2012

Selected Leading Retailer Mobile Web Properties Unique Visitors (MM): Mobile Web + App Combined

Source: comScore Mobile Metrix, U.S., Sep-2012 App Mobile Web

3.8

4.7

6.5

7.9

11.1

17.1

18.6

37.5

58.0

Barnes & Noble

Etsy

Best Buy

RedBox

Target

Netflix

Wal-Mart

eBay

Amazon

92%

65%

30%

86%

38%

99%

42%

84%

84%

8%

35%

70%

14%

62%

1%

58%

16%

16%

Barnes & Noble

Etsy

Best Buy

RedBox

Target

Netflix

Wal-Mart

eBay

Amazon


Preliminary Holiday 2012 Forecast

Key Factors Driving Initial Outlook Growth in mid-teens for all 3 quarters of 2012 Two extra shopping days between Thanksgiving and XMas

Improvement in consumer sentiment in the most recent quarter

Continuation of channel shift and increasing promotional efforts online

Preliminary Holiday 2012 Growth Forecast: 15-18%

state of the retail q2 2012 - texas cable associationstate of the u.s. online retail economy in q3...

Documents