Study: Online shopping leveling out
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Denver — Study results released Monday by The Integer Group showed that, although online shopping has increased over the last three years, overall it has leveled out.
According to The Checkout, an ongoing shopper behavior study conducted by Integer and M/A/R/C Research, online shopping is level and steady, but boomers continue to increase their online purchases – up 4.5% since 2011.
Millennials, on the other hand, are backing off, as the study revealed that Millennials who said they are purchasing more online is down 7% from 2011.
"Millennials may be feeling the pinch of a still-slow economy and making the decision to watch spending more closely,” said Craig Elston, SVP, insight & strategy, Integer Group. “It could also be that we are starting to reach a plateau in online-shopping adoption."
Even though many shoppers in the survey noted that they are shopping about the same amount online as they were three months ago, there are some interesting shifts in purchase categories, according to the survey.
Since January 2012, online purchase of health and beauty has increased significantly among shoppers aged 50 to 64, growing nearly 12%. The percentage of 18- to 24-year-olds who say they’ve purchased any products online, even once, has dropped in all categories except books, music, and tickets. Overall, none of these categories saw major growth from 2011 to 2012.
Report: Retail imports to increase 8.5% in February
Washington, D.C. — A report released Friday by the National Retail Federation and Hackett Associates estimated that retail imports will increase 8.5% in February, after a contract deal between the East Coast and Gulf Coast dockworkers is finalized.
The monthly Global Port Tracker report said that, had a key West Coast agreement also been settled, import cargo volume at the nation’s major retail container ports would possibly have seen an additional rise.
“We were very happy to see a deal on a tentative contract for the East Coast and Gulf Coast ports but we are urging the parties to quickly work out any outstanding issues and ratify the agreement as soon as possible,” NRF VP for supply chain and customs policy Jonathan Gold said. “We were disappointed that the LA/Long Beach clerical workers’ contract wasn’t ratified, but are encouraging the parties to work through their differences without a disruption.”
The International Longshoremen’s Association and the U.S. Maritime Alliance reached tentative agreement February 1 on a contract that avoided a strike that could have shut down East Coast and Gulf Coast ports from Maine to Texas. The agreement is subject to reaching supplemental local agreements and ratification by union members. Last Wednesday, however, members of the International Longshore and Warehouse Union’s Local 63 Office Clerical Unit voted down a tentative agreement with the Harbor Employers Association that ended an eight-day strike at the Ports of Los Angeles and Long Beach in November and December 2012.
U.S. ports followed by Global Port Tracker handled 1.32 million Twenty-foot Equivalent Units in December, the latest month for which after-the-fact numbers are available. That was up 2.8% from November and up 8% from December 2011. One TEU is one 20-ft. cargo container or its equivalent. The numbers for December brought 2012 to a total of 15.8 million TEU, up 2.9% from 2011. January was estimated at 1.34 million TEU, up 4.6% from January 2012.
February is forecast at 1.18 million TEU, up 8.5% from last year; March at 1.29 million TEU, up 3.6%; April at 1.36 million TEU, up 4.4%, May at 1.45 million TEU, up 6.2%, and June at 1.45 million TEU, up 4.9%. The six months of data projections for 2013 should bring the first half of the year to 8.1 million TEU, up 5.3% from the first half of 2012.
Mobile commerce takes flight in 2013
With nearly two out of three* consumers using mobile devices to research products and make purchases, the adaptation to this ever changing consumer shopping behavior is more crucial than ever.
2012 showcased how mobile commerce has evolved. The majority of retailors and financial institutions worldwide have now moved to a mobile commerce platform. Banks see it as a way to cut out the credit card middleman to reap a higher cut of the fees that are paid to terminate transactions, while credit card companies, like Visa and MasterCard, need to keep their hand in the mobile game to make sure they can protect their transactional business and, in the future, potentially drive higher volumes of transactions through smartphones. Analysts from eMarketer looked at projections from Gartner and Juniper Research and found that in 2012, the U.S. mobile payments market will be worth $640 million. By 2016, the total transaction value of mobile payments in the U.S. will hit $62.24 billion. Although the user base is still relatively small, with only 7.9 million users in 2012, usage is expected to grow during the next few years to 48.1 million mobile payment users by 2016.
What’s next? 2013 will be all about the entry into mobile shopping – a solution that offers a more holistic approach to the entire shopping experience, not simply the payment method.
This past year, 43 percent of smartphone owners used their mobile device while in a store for a shopping purpose – not simply a payment method.** Where Mobile Commerce is a means to an end, mobile shopping embraces reshaping the entire shopping experience in-store and everywhere else to meet the demands of the new mobile empowered consumer. Mobile shopping is more than making purchases or searching for products on a device, it is the incorporation of new mobile accessible value added services that benefit shoppers and transform the Smartphone into a new service. It is no longer enough to offer a mobile application that looks nice, but does nothing for the entire retail experience. In order to retain valuable customers and increase sales, mobile applications must offer a real value added service to the end user.
Many companies are already utilizing this holistic approach. Zipcar discussed at MobileCon how their future innovations will include using a mobile device to become an ‘in-car assistant’ to help navigate, plan an itinerary, build an iTunes playlist and provide information about the car. Retail giant Target upped their mobile initiatives this fall focused on increasing mobile use around the holidays. By providing QR codes on popular toys in store, busy moms are able to scan the code, buy the toy via their mobile device, and have the product delivered to their homes without worrying about kids noticing a gift slipped into the shopping cart. Target also revealed a mobile toy catalog, complete with coupons that can be used on a guest’s purchase, further evolving the mobile shopping experience. This year at the National Retail Federation, AIRTAG will be demonstrating how their UK partnership with McDonalds allows customers to place orders and pay for them via smartphone, so by the time they arrive at the restaurant, they can swipe their phone to check in, quickly collect their Freedom Fries and get on their way.
Consumers have mobilized, which, in turn, has created a new set of values as to what constitutes a good shopping experience. Mobile Shopping is a new opportunity for retailers to create value at all stages of the customer journey, in-store and everywhere else through interactive and engaging experiences and maximize the value for the end user.
In 2013, retailers who do not opt for a Mobile Shopping Solution risk being left behind. So, why aren’t more retailers implementing Mobile Shopping solutions? There are a couple of reasons retailers may not be taking the mobile plunge:
1. Readiness of information systems: Retailers may be hesitant to adopt a mobile solution because of very specific POS systems & devices. Fortunately, this can be overcome through the implementation of “plug & play” solutions, which don’t disrupt the existing POS.
2. Retailers may fear associated costs, as Mobile Shopping Solutions can range anywhere from 30$/month to thousands. However, solution providers have adapted by using platform and use based solutions that make Mobile Shopping accessible for everyone from globally recognized retailers to the local bakery.
The most influential reason retailers should aim to deliver an omni-channel experience in 2013, is the incomparable competitive advantage it creates amongst their competition in connecting with the highly empowered consumer of today. Retailers delivering new value added services that streamline the shopper experience and solve the problems your customers face in-store will be more than one step ahead; consumers will have a reason to become loyal to stores again.
As the mobilized consumer gets more used to ordering food from their phone and skipping the line, experiencing the conveniences of virtual grocery shopping (which allows them to beat the rush and acquire additional savings), those retailers without a mobile presence might just find themselves shutting their not so virtual windows.
Jérémie Leroyer is the CEO of AIRTAG, the mobile shopping ecosystems startup that provides end-to-end mobile shopping solutions including in-store devices and secure mobile applications. He can be reached [email protected]