Shoppertunities Kerry Chipp 15 May 2014 Note of thanks to sponsor - - PowerPoint PPT Presentation
Shoppertunities Kerry Chipp 15 May 2014 Note of thanks to sponsor there is extensive shopper behaviour research conducted at the level of individual malls, but limited comparative data for the category. Primedia Unlimited Mall Division
Kerry Chipp 15 May 2014
Note of thanks to sponsor
“there is extensive shopper behaviour research conducted at the level of individual malls, but limited comparative data for the category. Primedia Unlimited Mall Division seeks to enable a better understanding of how consumer intent translates into shopper behaviour and retail sales”
Background
*SACS2013 Fact Sheet *Average of audited foot counts across super regional and regional malls
With an estimated R407 billion* spent in shopping centres in 2013 Which accounts for 70% of all retail spend in 2013 And super regional and regional shopping centres attracting an average footcount of 800,000* consumers a month
Context
Understanding who these consumers are, how and what they buy and what influences their purchases is paramount
Methodology
Fieldwork conducted by AC Nielsen, overseen by Dr Clive Corder and Kerry Chipp 7 Super regional and regional malls in Gauteng, KZN and Western Cape Surveyed 4200 n = 600 per centre Sampled two weeks at the end Nov 2013, every day across 4 intervals each day Mall intercept questionnaire randomly sampled across entrances, time of day and day of week Two questionnaires
Who did we speak to?
Profiles
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Gauteng KZN Western Cape Pretoria
27% 28% 33% 12%
Total n = 10669
Please note data weighted Un-weighted total 4200
Spread across the main centres
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 15 - 24 25 - 34 35 - 49 50+ Black White Indian Coloured Male Female Daily Weekly Monthly Less often Age Race Gender Frequency of visit 27% 33% 26% 14% 63% 10% 12% 14% 36% 64% 15% 51% 30% 3%
Spread of ages, races and across week activity More females than males
What did we ask?
On Entry
On Exit (for a voucher)
The mall differentiators
The roles of Super-Regional vs. Regional malls are clearly differentiated by mall goers
Super-Regionals Regionals
Centred around EXPERIENCE Rated positively in terms of Accessibility Comfort Discovery of new products Socialising Centred around FACILITATION Rated positively in terms of Purpose driven event Directed purchase Functional engagement Ease of navigation is a strong influencer
Super-regionals are more likely to be used for a wide variety of activities by mall goers Regionals are more likely to be frequented regularly for essential shopping and activities
The unintentional shopper
On average, mall goers visit 9 categories per visit
visits are unintended at the
Mall goers buy a variety of items when shopping, a third outside of their original intention
There are similarities between the top intended categories and top unintended categories visited
Top Intended categories visited Top unintended categories visited
during their visit
unintended at the outset
Malls attract buyers, who buy things they didn’t even know they needed
This equates to R 13.5 billion a month being generated by unintended purchases
presence of in-mall advertising and marketing activations
Marketing in the last mile contributes to the bottom line In a mall with an average of 800,000 monthly visitors, 288,000 purport to be influenced by the presence of in-mall advertising and marketing activations R 12.2 billion spend a month being generated by response to in-mall advertising and activations
Shopper behaviours
The research identified 5 distinct shopper behaviours
Goal Directed Taking a Break Leisure Shopper General Shop Business Purpose
Goal Directed
marketing activations
have come to buy, they do make unintended purchases
This group generates around R 48.3m in spend in an average mall a month
Top 5 intended categories Top 5 unintended categories
Taking a Break
demonstrations and engage in marketing events
household goods, but often end up buying other categories.
unplanned purchases
This group generates around R41.6 m in spend in an average mall a month
Top 5 intended categories Top 5 unintended categories
Leisure Shopper
entertainment
the occasion
demonstrations – like new experiences
extensively
This group generates around R 18.3m in spend in an average mall a month
Top 5 intended categories Top 5 unintended categories
bars
General Shop
from far
to be vague at the outset
advertising and marketing activations
This group generates around R 9.7m in revenue in an average mall a month
Top 5 intended categories Top 5 unintended categories
bar
The Business Purpose
catchment
unplanned purchases
activities and in-mall advertising
social media
This group generates around R 3.9m in sales in an average mall a month
Top 5 intended categories Top 5 unintended categories
Actions and Attitudes
𝑡𝑢𝑝𝑠𝑓 𝑤𝑏𝑠𝑗𝑓𝑢𝑧 + 𝑓𝑦𝑢𝑓𝑜𝑒𝑓𝑒 𝑐𝑠𝑝𝑥𝑡𝑗𝑜 𝑢𝑗𝑛𝑓 𝑏𝑤𝑏𝑗𝑚𝑏𝑐𝑚𝑓 = log𝑡𝑞𝑓𝑜𝑒
R 0 R 100 000 R 200 000 R 300 000 R 400 000 R 500 000 R 600 000 R 700 000 R 800 000
R 113 046 R 360 123 R 789 384 R 358 041 R 30 883 R 107 891 R 72 015 R 11 424 R 32 678 R 160 418 R 40 343 R 24 311 R 114 908 R 31 083 R 115 495 R 81 171 R 35 803
Purpose of visit
Shoppers come to shop, but shoppers with time on their hands are a lucrative market
Shoppers tend to say and do very different things They say advertising gets them there They say they are cautious, but also that they are willing to use credit They say they like to buy items
They say advertising and special promotions influence them Few were brought in on the strength of an offer advertised outside the mall High propensity to visit stores not intended and purchase items not planned for They respond well to specials which shows they are deal prone High propensity to only remember things they need
that triggers in the local environment are effective
The importance of the last mile
says “name surname” –
In-mall advertising and marketing activations have a significant impact on consumer purchases Advertising and mall activations accumulate Mall activations create unplanned browsing (statistically significant correlation r = .256) Engaging in product demonstrations Receive store marketing messages Attend marketing events during visit Enter a promotion
In-mall advertising and marketing activations have a significant impact on consumer purchases Advertising and mall activations accumulate and explains 36% spend in malls Mall activations factors into spend (statistically significant correlation β = .223) Mall advertising factors into spend (statistically significant correlation β = .248) When combined in concerted campaigns – an amalgam creates the impact – so rather own a mall than spread efforts thinly across malls R 12.2 billion spend a month being generated by response to in-mall advertising and activations
In-mall advertising is recalled by those with unplanned visits and purchases to be influential
Top 3 recalled in-mall advertising platforms
The role of digital is significant in malls where the capabilities are higher
In malls with digital capabilities, di
within the to
recalled advertising channels
While smartphone penetration is high, the usage of devices for wifi in the malls isn’t significantly high
62%
Smart Feature Basic
26% 12%
their wifi enabled phones when coming to the malls
Online shopping penetration is low currently but with access and mobility increasing
report to use
Key Take Outs
With consumers being deal prone and value conscious, in mall promotions work well to drive behaviour With a high propensity to engage in the mall environment for relaxation and socialising, mall demonstrations are attractive In-mall marketing activities play a far larger role in unplanned purchases than advertising In-mall marketing activities correlates to unplanned visits of mall retailers There is a direct correlation between amount of time spent in the mall and the presence of in-mall advertising to drive unplanned purchases
Implications for stakeholders
Mall Owners
large retail
malls, so can capitalise on many shopping occasions
Brand Owners
building and below the line sealing of the deal
above
are at leisure
Retailers
spend for the mall
the need for footfall
Thank you!
Kerry Chipp chippk@gibs.co.za