Monday, May 30, 2016

2016 Retail and Consumer Products Trends

Trend #1: Brand entrants are more focused

New micro, digital-only companies are flooding the market, riding on mobile consumer channels and the proliferation of social media. These retailers distinguish themselves by their well-defined niches and clever, often rebellious, promotional strategies. For them, the product is less a commodity than an art form in which the customer participates.

Trend #2: Stores shrink

Foot traffic is on the decline in the U.S.: Retail store visits fell from 35 billion in 2009 to 17 billion in 2013, according to a PwC survey. According to the National Association of Realtors, at 47 square feet of retail space per capita, the U.S. has more retail square footage than any other country. Meanwhile, as sales per square foot continue to decline after decades of growth, retailers are reconsidering size in favor of productivity, measured by profit per square foot. More than likely, in the U.S. and around the world, this attention to productivity will increase as digital technologies enable more efficient use of square feet, as well as more consumer buying outside the store.

Trend #3: Giants personalize and localize

Few consumer products companies have a direct relationship with the purchasers of their products, even as robust data analytics allow personalization and localization, leading to ever more differentiated shopper segments. But bypassing their traditional retail partners — at least some of the time — in order to sell directly to consumers could produce hard-to-come-by growth for consumer packaged goods (CPG) companies.

Trend #4: “Frenemies” collaborate

Retail and consumer companies have always had a complicated relationship. They’ve partnered for decades, even as retailers have developed their own private-label brands to compete with manufacturers. Now that supply chains are more transparent, these “frenemies” are discovering more ways to benefit from growth opportunities together. The promise of margin improvements and cost cutting from supply chain efficiencies, for example, is behind the manufacturers’ and retailers’ recent efforts to share customer data, insights, and analysis. And performance-based trade promotions will become more routine as manufacturers ask retailers to help enhance the effectiveness of in-store product campaigns in return for sharing in gains from them.

Trend #5: Global brands embrace social issues

Of the top 20 brand leaders in 1999, only seven remain in the top 20 today, according to PwC’s Bonfire of the Brands, a 15-year survey of 200,000 consumers worldwide and their attitudes toward 6,700 global brands. Our 2016 CEO Survey also found that 52 percent of CEOs believe their customers choose brands not solely on price and features but also on the basis of social and environmental issues.
Orignal Article here

Saturday, May 28, 2016

Digital Ad Spending in India to Surpass $1 Billion Next Year

Digital still accounts for just a quarter of the total media market

India’s media market is growing robustly, according to eMarketer’s latest estimates of ad spending around the world. Total media ad spending in Asia-Pacific’s second-largest country is set to grow at double-digit rates through at least 2020—and those growth rates are even set to rise in the coming years. 

This year, eMarketer estimates, advertisers in India will spend about $7.41 billion on paid placements in all media, up 11.3% over 2015 spending levels. By 2020, spending will hit $11.82 billion.

Most of that spending still goes toward traditional media—and will continue to do so throughout eMarketer’s forecast period. This year, just 12.6% of all ad spending will go toward digital. In 2017, digital ad spending in India will surpass $1 billion and will amount to 14.3% of total outlays. By 2020, the figure will be 20.2%.
And mobile, in turn, is an even tinier slice of the whole pie, at just 3.3% of total media ad spending this year. That translates to less than $250 million in ad spending—nothing to sneeze at, however, considering it represents a doubling of 2015 mobile internet ad spending investments in India.
Mobile is also a relatively small share of digital ad spending, but that’s changing quickly. This year, just over a quarter of digital ad spending will be mobile. By the end of eMarketer’s forecast period, that share will almost double, to 50.2%. At that point, just over 10% of all ad spending in India will go toward mobile placements.

Friday, May 27, 2016

Use of Big Data in Marketing Still a Work in Progress

Consumer products marketers are saturated in Big Data. It pours out in ever-increasing torrents from retail selling systems, marketing analytics, social media, search engines and mobile devices.

As an industry we’re well aware that Big Data is important, and pretty sure we know why, but we’re still figuring out how to make the most of it for the benefit of our consumers and our brands. Brand marketers want to leverage Big Data to improve performance at retail, connect with consumers more directly and effectively, and enhance the ability to differentiate ourselves from our competition. The effort is now underway in earnest.

A national survey of CPG marketers about their use of Big Data revealed the following:
  • Nearly half (47%) are integrating new data sources to gain a better view of consumers.
  • More than half (54%) are linking syndicated data with new data sources to improve promotions.
  • Seven in ten (70%) have applied Big Data insights to sharpen promotion strategies.
  • One in three (33%) have invested in Big Data technology, and another 17% plan to this year.

However, we are still seeking understanding about Big Data options and practices. Few companies have an enterprise Big Data strategy in place, and most are simply not ready with rationale, technology or the talent to put it to beneficial use:
  • Two thirds (68%) are still determining the business case for Big Data
  • Just 6% have deployed Big Data solutions in consumer marketing.
  • Fewer than 10% have talent acquisition strategies that address Big Data opportunities.
  • Only a third (35%) measure their Big Data program ROI.

Thursday, May 26, 2016

Grocery Buyers Shop Frequently Because of Promotions

Consumers across all generations check digital circulars

Promotions in weekly circulars can drive purchases at grocery stores, according to February 2016 research. In fact, more than a third of grocery buyers shop at a store frequently because of these offers.

Additionally, nearly a quarter of respondents said they shop at specific grocery stores almost always because of promotions. Only 3% of grocery buyers said they never do.

Shoppers continue to rely on circulars for their grocery buying needs. Indeed, checking circulars is the No. 1 digital grocery shopping activity, according to August 2015 research from The Retail Feedback Group.
While Gen Xers and boomers like checking digital circulars the most, millennials prefer building their grocery lists.
Orignal Article Here

Wednesday, May 25, 2016

Contextual insight in apps is the key to customer loyalty

A study by Forrester Consulting has found mobile apps that have greater personalisation and user context gain 15% more customer loyalty than those that don’t.

Weather, location data, and user recommendations are all factors that matter. 
Overall, a company that has a ‘great’ app as opposed to just a ‘good’ one is likely to earn five times more mobile commerce revenue.

Tuesday, May 24, 2016

72% Of Smartphone Shoppers Say They Research An Item Before Purchasing It

Consumers handle a lot of their shopping activities on their mobile devices, and everyone knows that savvy consumers do their due diligence before handing over their cash. In fact, 72% of smartphone shoppers research an item before purchasing it, 70% check the price of an item and 60% use a store locator to find a store where they can buy their desired product of choice.

While smartphones are used often in mobile shopping, tablets used as well! In fact, 66% of tablet shoppers researched an item before purchasing it, followed by 57% of tablet shopper checking the price of an item. Fifty-one percent of tablet shoppers read a review of an item they purchased or plan to purchase.
So which factors are most important to consumers when they’re shopping on mobile?
Read full article at Nielsen

Monday, May 23, 2016

How a men’s grooming brand boosts sales 14 times over with smart targetin

US-based men’s grooming brand USTRAA developed streamlined, Instagram-worthy creative for its carousel ads to promote its shaving line to its target audience. This case study looks at how the brand made smart use of targeting with its hip, sexy image to boost sales 14 times over.

The brand ran an optimised campaign across Facebook, Instagram and Audience Network to reach as many people from its target audience as possible.

It used carousel ads to display its products visually and allow people to scroll through a variety of creatives. Understanding the way its audience thoughtfully curates its Instagram feed to be visually inspired, the brand invested in creative that matched the Instagram aesthetic.

The creative featured minimalist product photography for on-trend items from its USTRAA line, such as beard tonic.

The copy had a confident tone, announcing that “well groomed is the new sexy” and telling men that USTRAA products haven’t been tested on animals, “just rascals.”

One visual suggestively placed a range of grooming products next to a jewellery box and a “do not disturb” sign, along with the copy “when your beard is your pickup line.” It applied a variety of Instagram filters to give the ads a retro feel. Collectively, the suite of photos had a modern and sexy feel.

As well as targeting 18 to 35-year-old men who use certain devices and operating systems, Happily Unmarried used Website Custom Audiences to retarget website visitors and lookalike audiences to find people similar to existing customers.

Its cross-platform, six-month campaign (which ran from August 2015 —February 2016) reached the right people, tripling website traffic and driving a 12X increase in monthly revenue.

Men responded to the creative, which was reflected in the 14 increase in sales of USTRAA.


Thursday, May 19, 2016

Predictions for mobile marketing trends in 2016

Let’s take a look at their mobile predictions for 2016.

1. Joined-up mobile experience
2. Virtual and augmented reality
3. Heightened security
4. The internet of things
5. Personalised retail
6. New approach to products
7. Mobile apps will impact TV viewing habits
8. The way people interact with mobile content will evolve
9. Better use of data to personalise content
10. Education revolution
11. App-only content in SERPs
12. App streaming
13. Video consumption will rise, which will impact on advertising
14. Artificial intelligence will improve

Reaf full article here

Wednesday, May 18, 2016

Searches for discount deals up by 40%

According to analysis from Hitwise, a division of Connexity, searches for discount deals and coupons are on the rise, seeing an increase of 40% last year.
Shoes and boots come top of our wishlists, with searches for footwear sales being the most common.
Similarly, the popularity of the search term ‘coupon codes’ demonstrates a shift towards a mostly digital shopping experience.

Tuesday, May 17, 2016

Shopper abandonment rates are decreasing

According to SalesCycle’s Remarketing Report, efforts to improve personalisation and greater customer insight has resulted in fewer shoppers abandoning their baskets. 
Down from 76.6% to just over 74% - the lowest rates are found in North America and Europe. 


Monday, May 16, 2016

Consumer conversions increase on mobile

A latest report highlighted some interesting ways consumers are now using mobile. Here are its top three stats:

  1. Search conversions on smartphones increased 10% year-on-year.
  2. Display conversions have grown 26%, clicks are up 13% and impressions have increased by 10% on smartphones.
  3. Social conversions will be 50% mobile by the end of the year.
With shopping on smartphones becoming the norm, investment in mobile-optimisation will also increase in 2017.

Sunday, May 15, 2016

Youngsters are twice as likely to share video ads

Research by tech company Unruly has found that 18-34 year olds are 112% more likely to share video ads compared to other age groups, with videos that have an emotional response being the most successful.
In a survey of 3,200 people, Unruly also discovered that 63% of millennials demand control over their videos - 93% are reported to have considered using an ad blocker.