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What: Nielsen has released the results of its global connected commerce report, which reveals that
Why it matters: Consumers are spending increasingly more time on an expanded range of diverse digital activities. It is undisputed that internet accessibility, mobile technology and digital innovations are redefining consumers’ every interaction and will continue to enable and disrupt many aspects of consumers’ lifestyles well into the future.

This is the digital era, and as such, we are now living a connected life. That’s the idea that Nielsen has proved with a global survey sent to 30,000 online consumers in 64 countries. The Nielsen Connected Commerce report provides insights into the global connected consumer, shopping traits, category evolution, and barriers, in order to identify future growth prospects.

According to Nielsen, 4 billion people (53% of the global population) are connected to the internet, and nearly all of them (92.6%) connect using their mobile devices. 85% of users (3.4 billion) connect to the internet and spend, on average, six and a half hours online. Consumers get online more often, and they stay connected for longer. It shouldn’t surprise us, then, that the range of activities that can be done online has increased. “Internet accessibility, mobile technology, and digital innovations are redefining consumers’ every interaction and will continue to enable and disrupt many aspects of consumers’ lifestyles well into the future,” declares the report.

Development in retailing has quickly become greater in scope than either the physical or virtual store, and now manufacturers and retailers need to create strategic advantages across channels, touchpoints, and experiences along the purchase journey. Connectivity is laying the foundation for e-commerce growth; it is vital for companies to learn consumers’ online behavior and habits, adoption drivers, tipping points and challenges.

Better connectivity will boost e-commerce

Connectivity’s importance comes from the advantages it has brought upon our lives; it has permitted to do all sorts of things without leaving our homes, from talking to our friends on the other side of the world to receiving just about anything we need at our doorstep, right when we need it. As the report explains, at no point in time could this be more apt than now, considering the merging of multiple factors impacting the complexity of consumers’ lives—and shaping new found shopping experiences. In general, brands need to take three things into account: people now lead busy urban lives and need quicker, easier ways to perform their shopping activities; retail is expanding into new avenues and channels; and we must take into account a whole new generation of native digital shoppers who are used to using these devices and services naturally every day.

The report shows that global online sales in 2017 totaled US $2.3 trillion2 or 10.2% of total retail sales and is expected to reach 17.5% by 2021. In 2019, online retail trailblazer, Amazon, will turn 25 years old. With continued technological innovation e-commerce growth is set to outpace traditional formats for years to come. As the report states, “The combination of existing connected consumers spending more, more often, and newly connected consumers purchasing for the first time will proper e-commerce growth”.

Category performance shows a certain trend of diversification

Travel, entertainment (books, music, events) and durable goods (fashion, IT/mobile, electronics) are traditionally the leading categories for consumers to enter the online retail sphere around the world. After two decades of e-commerce, these categories have higher online purchasing penetration and frequency of purchasing than most consumer goods categories.

The consumer is at the center of the connected commerce opportunity. An e-commerce approach that delivers on the various and varied local consumer preferences and circumstances will have a competitive advantage, but those who solve consumers’ convenience aspirations will win.

However, consumers are looking for a wider range of e-commerce options. With a myriad of services, suppliers, products, and prices to choose from at simpler, more trustful websites, consumers now want to complete transactions online more often. This means a significant opportunity for FMCG categories, which need to be replenished periodically and take up a sizeable portion of consumers’ time to shop in physical stores.

According to the survey results, 17% of consumers are purchasing FMCG products online on a regular basis, while 11% have previously purchased online, but not recently. In addition, 30% of consumers are not currently buying groceries online but are willing to consider doing so in the near future. In developing markets this intent is just as important, with 29% of African and Middle Eastern consumers and 42% of Latin American consumers open to online purchasing.

Seek engagement before purchase

Consumers usually go online looking for information, to compare products and prices before actually buying something. Digital media assets are becoming a vital part of building awareness and consideration, satisfying shoppers’ search needs and delivering tangible links to generate purchase outcomes. As we could expect, it’s all about providing a differentiating experience: as e-commerce continues to evolve there are numerous areas to improve consumers’ overall online experience that will encourage trial and steer conversion to online. With convenience as one of the primary motivators for connected commerce, shoppers are looking for a frictionless experience which saves time, reduces obstacles and provides an enjoyable experience.

Enticers to buy online

Retailers can further solve consumers’ apprehensions via interactive services and guarantees. Same day replacement, free delivery for high-value orders, responsiveness and money back for incorrect orders feature highly to encourage online purchases of consumable products.

In the words of Sue Temple, VP, Global Consumer Insights Product Leadership, Nielsen, “The consumer is at the center of the connected commerce opportunity. An e-commerce approach that delivers on the various and varied local consumer preferences and circumstances will have a competitive advantage, but those who solve consumers’ convenience aspirations will win.”

What: We looked at the most-frequently visited retail websites in Latin America, and particularly in Mexico, in February.
Why it matters: Even though Amazon is expanding in Latin America, it’s still second to Mercado Libre, the biggest online retailer in Latin America.

As retail online grows, e-commerce sites have to engage in fierce competition. Amazon is steadily increasing its relevance in Latin America, but it still has a long way to go if it wishes to reach Mercado Libre. As Amazon goes on with its plans to expand in Brazil, we’ll see how tendencies change in the next months.

Top 10 E-Commerce Sites in Latin America, February 2018

Total Audience, Home and Work, PC/LaptopTotal Unique Visitors (000)
Total Internet: Total Audience190,287
Retail118,515
1MercadoLibre56,200
2Amazon19,728
3B2W Digital18,713
4Alibaba.com Corporation13,020
5eBay9,939
6CNova8,381
7Apple.com7,745
8Wal-mart7,331
9Google Shopping6,877
10Buscape Company6,006
[Source: comScore]
  • From the total amount of Latin Americans with internet access in February, 2018, 62% visited e-commerce sites.
  • 47.4% of those Latin Americans made their online purchases at Mercado Libre.
  • In comparison, Amazon has a long way to go with 16.6%.
  • 15.7% of users visited B2W Digital, not too far behind Amazon.
  • Alibaba was visited by 10.9% of users.
  • 8.3% of internet users looking for e-commerce sites visited eBay.
  • CNova received 7% of visits.
  • Apple.com and Wal-mart received similar amounts of visitors, 6.5% and 6.1% respectively.
  • 5.8% of users visited Google Shopping.
  • Buscape Company was visited by 5% of users.

Top 10 E-Commerce Sites in Mexico, February 2018

Total Audience, Home and Work, PC/Laptop, All Smartphones, All tabletsTotal Unique Visitors (000)
Total Internet: Total Audience68,613
Retail42,599
1MercadoLibre16,494
2Amazon9,011
3Linio Sites8,690
4eBay6,797
5Wal-mart6,698
6WISH4,093
7Ticketmaster3,955
8Alibaba.com3,246
9COPPEL.COM3,075
10Samsung Group2,765
[Source: comScore]
  • 62% of Mexicans with Internet access went shopping online in February.
  • Out of those users, 38% made their purchases on Mercado Libre.
  • 21% of users preferred to buy on Amazon.
  • Linio Sites received 20% of visits.
  • eBay, with 15.9%, and Wal-mart with 15.7%, are at almost the same level of popularity among Mexicans.
  • Wish.com opens the second half of the list with 9.6%.
  • 9.2% of e-commerce consumers visited Ticketmaster.
  • Alibaba.com received 7.6% of visitors.
  • 7.2% of users visited the website of Mexican store COPPEL.
  • Samsung Group closes the list with 6.4%.

What: With its purchase of Whole Foods for US $13.7 billion, Amazon strengthens its position in the race for the retail industry, and opens the door to direct contact with the Hispanic community.
Why It Matters: The U.S. supermarket sector is a business that moves about US $800 billion in sales annually, according to Bloomberg data.

Amazon’s acquisition of Whole Foods for $13.7 billion is the largest acquisition to date by the Jeff Bezos-led company, and the most important merger in the retail industry. With this deal, Amazon now has 450 stores in major cities in the United States, Canada, and the United Kingdom. What are the implications for marketing and multicultural/Hispanic marketing in particular?

Lee Vann
Lee Vann, Chief Strategy Officer of Captura Group.

“Consumers are increasingly demanding products and services in near real time or “on-demand,” and a physical presence in major cities gives Amazon an infrastructure to support consumers in near real time. This is especially salient when it comes to the grocery category,” Lee Vann, Chief Strategy Officer of Captura Group, told Portada.

The two companies will operate separately and the supermarket chain will retain its brand. Amazon founder Jeff Bezos points out that Whole Foods is “loved” by its customers for the quality of its products, and will maintain its corporate offices in Austin, Texas, for now.

“The acquisition, giving Amazon the in-store presence previously lacked at scale, represents a level of competition that brick and mortar retailers had previously been able to avoid. While this entrance has an immediate effect on grocery, it puts other industries on notice,” said Sean Cheyney, Vice-President, North American Business Development at Triad Retail Media.

The acquisition gives Amazon the in-store presence it previously lacked. This represents a level of competition that other retailers had previously been able to avoid.

Both Amazon and Whole Foods stand to gain from this transaction, according to the industry expert. The e-commerce giant is in the habit of being an industry disruptor. “Now is the time that grocers and retailers across industries need to be competitive in their markets with their digital advertising and in alignment with their suppliers.”

The announcement undoubtedly rocked the supermarket industry, as the acquisition of Whole Foods changes the rules of food distribution. This was reflected in the stock market, with some companies in the food industry seeing their shares fall immediately. Kroger’s shares fell 15%, while Target lost 11% at the start of the trading session, and Costco 7%.

Now is the time that grocers and retailers across industries need to be competitive in their markets with their digital advertising and in alignment with their suppliers.

Competition Intensifies

AmazonThe deal puts the U.S. market in an interesting situation, just a few months away from the arrival of German supermarkets Lidl, and its rival Aldi, owner of Trader Joe’s supermarkets. With their entry, the German companies will strengthen their presence in a market with high growth potential.

On the other hand, while all this was happening, Walmart also announced on Friday its purchase of online fashion store Bonobos for $310 million. With this move, the retail giant seeks to compete directly with Amazon in the fashion sector.

Walmart also announced on Friday its purchase of online fashion store Bonobos for $310 million.

Walmart has demonstrated an aggressive strategy to gain ground in the e-commerce sector, becoming a very strong competitor. Last year, the company acquired jet.com for $3 billion.

The acquisition appears to have been a smart move, as Walmart sales grew 63% during the first quarter of 2017 compared to the same period last year.

An approach to US Hispanics

Sean Cheyney
Sean Cheyney, Vice-President, North American Business Development at Triad Retail Media.

“This purchase is something that the industry had been waiting for many years to give it seriousness, organize its data, and better align the industry’s digital efforts. With these metrics, retailers are able to give consumers a better experience,” added Cheyney.

Analysts agree that Amazon will put the retail industry under a lot of pressure, as it first did with bookstores and electronics stores.

On the other hand, “remember that Amazon rolled out a Spanish language version of Amazon.com. As they seek to win with the on-demand consumer, they know they must win with US Hispanics, and now they have a front end to service those who speak Spanish and a physical presence in major cities to deliver,” said Vann.

Remember that Amazon rolled out a Spanish-language version of Amazon.com. As they seek to win with the on-demand consumer, they know they must win with US Hispanics, and now they have a front end to service those who speak Spanish and a physical presence in major cities to deliver.

In addition, it has the necessary cash to invest and be aggressive, with the support of its current suppliers and those it keeps adding. Likewise, it will have the strength to continue offering its Amazon Fresh grocery delivery service.

It will also put its Amazon Go model to the test. The company opened its first automated food store in downtown Seattle, where payment is made through an Amazon account and a cell phone.

Whole Foods MarketThe idea has been described as “brilliant” by analysts, who see it as a “natural evolution.”

“Retailers across all industries should be watching closely to see how Amazon uses this acquisition and its effect on Amazon’s market share within the grocery sector. Given Amazon’s history, it will take the model developed for grocery, and then replicate it across other retail verticals. While watching closely, retailers can take steps to mitigate Amazon, blocking and tackling along the way. This includes getting serious about customer experience and advertising models that allow the retailer to earn its fair share of advertising dollars that its suppliers are currently spending to sell products on Amazon,” added Cheyney.

While watching closely, retailers can take steps to mitigate Amazon, blocking and tackling along the way. This includes getting serious about customer experience and advertising models.

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What: Despite the fact that Hispanics have adopted e-commerce at a faster pace than the general market, marketers are struggling to effectively target the demographic on e-commerce platforms and lack effective measurement tools for conversion and attribution.
Why It Matters: Hispanics as a whole represent $1.5 trillion in annual spending power, but few companies have proactively targeted them in the e-commerce realm. As shoppers increasingly head online to make purchases, some in the industry are predicting a “Hispanic targeting renaissance.”

Today there are 55 million Hispanics with $1.5 trillion in annual spending power in the United States. They skew younger than your average demographic (80 percent are Millennials or younger), are digitally savvy and love shopping online after comparing prices and doing their research.

E-commerce in general is picking up steam across the country as people abandon physical stores in favor of the convenience of shopping online. According to a according to a report from the Grocery Manufacturers Association, in 2018, online sales of CPG products will hit $35 billion, up from $8 billion in 2013. And a Univision study found that Hispanics are a driving force in the adoption of online grocery shopping: 50 percent of Hispanic shoppers (and 60 percent of Millennial Hispanics) have bought a grocery item online in the past year, versus 40 percent of the general US market.

Now, marketers must untangle the behavior and preferences of an increasingly diverse demographic, and master the art of attribution and conversion across a purchasing journey that can involve multiple devices on and offline.

Get Ready for a Hispanic E-Commerce Renaissance

Lee Vann, the founder and director of Hispanic marketing agency Capture Group, emphasized that marketers should not be surprised that Hispanics are active on e-commerce sites, “as they tend to be more active across most Internet activities.” The surprising thing is that until now, “few companies have proactively targeted Hispanics via e-commerce, despite a clear opportunity,” Vann said.

Vann suggested that we may be on the brink of a Hispanic e-commerce renaissance, as retailers like Amazon increase their offerings for Hispanics. As the big players throw their hats in the ring, Vann suggested that we should “look to others to follow.”

Few companies have proactively targeted Hispanics via e-commerce, despite a clear opportunity.

Katie Thomas, a Regional Manager at Bush Brothers, asserted that “large retailers are doing a better job of segmenting stores based on demographics (Latino, African American, etc.),” but that “it is one thing to identify these stores but another to actually market different products in these stores to meet consumer’s needs.” According to Thomas, “the retailers that are doing this will win in the marketplace.”

E-Commerce a ‘Double-Edged Sword’ for Attribution and Conversion Models 

Some would assume that the increasing popularity of e-commerce among Hispanics means that marketers should have a wealth of data points from which to collect insight on their preferences and behavior. But Vann warned that “e-commerce can be a double edged sword when it comes to attribution and conversion models.”

Cookies, for example, are one of the most popular tools for tracking consumers’ purchasing journey. However, data has revealed that they are not always effective. According to Nielson OCR Norms, 58 percent of cookie-based measurement is overstated, targeting in cookie-based measurement is only 65 percent effective, and 12 percent of conversions are missed with cookie-based measurement.

Brands shouldn’t be timid to drive consumers to e-commerce sites with cultural relevant and/or in-language advertising.

What’s more, in a world where shoppers often start their journey online and end it offline or on a different device, it’s hard to know whether the people looking at products online are actually buying. Last-click attribution models ignore the fact that many shoppers follow a windy path involving different devices and visits to physical stores before making an online purchase. “Marketers must look across the Omnichannel path to purchase and ensure they capture the impact of the digital channel on sales that may have started online but ended offline,” Vann said.

Marketing strategist and consultant Daniel Villaroel emphasized that in this case, brands must take on the responsibility of experimenting until they get it right: “Optimization is always the responsibility of the brands to maximize sales.  It behooves them to see what works and what doesn’t work.”

He continued: “Brands shouldn’t be timid to drive consumers to e-commerce sites with cultural relevant and/or in-language advertising.” He added that instead of worrying about which language Hispanics are more comfortable speaking, brands should “test, see what works and optimize.”

Brands Struggling to Implement Measurement Tools Effectively 

It isn’t that brands are lacking measurement tools — it’s that they themselves are not confident that they are using them correctly.

Bush Brothers’ Thomas admitted that brands are still grappling with some of the most basic aspects of understanding Hispanic consumer behavior. “Bush uses measurement tools on our key brands but we have not done a good job of utilizing these when it comes to the Hispanic Shopper,” Thomas said.

While location-based data is an effective tool for getting Hispanics inside a physical store, brands need more when it comes to e-commerce since they must put extra effort into understanding what specific products Hispanics want. Thomas elaborated: “Large retailers are doing a better job of segmenting stores based on demographics (Latino, African American, etc.), but it is one thing to identify these stores and another to actually market different products to meet consumer’s needs,” said Thomas.

This turns into a complicated task when one considers that Hispanic shopping patterns vary greatly based on factors like age and assimilation level. According to a recent report from ThinkNow Research, nearly a quarter of Bicultural Hispanics say they would go to another store to purchase their favored brand, while only 18 percent of less acculturated Hispanics said the same. That seven-point difference cannot be ignored when marketers are developing Hispanic e-commerce targeting campaigns.

For some marketers, it may start with accepting what they don’t know. Think Hispanics are more loyal across the board? Think again. The same report by ThinkNow Research found that less acculturated Hispanics — those that have not fully assimilated into American culture —  are no more brand loyal than other segments. Bicultural Hispanics — those who are generally first  or second-generation Americans who identify with both the U.S. culture and their Hispanic heritage — are considered more loyal across several CPG categories.

Targeting: ‘Not Doing Anything is the Primary Issue’

tech.infocustechnologiesOne thing is certain: this is a hugely powerful demographic, and retailers and brands must find a way to capitalize on the fact that Hispanics are making e-commerce a regular feature in their shopping routines.

According to Villarroel, “not doing anything is the primary issue,” and that despite the fact that we are in the age of digital, brands are not delivering “micro-targeted content that’s meaningful,” and “sometimes content is still served up as a one size fits all.” This means that retailers must aid brands in forming an accurate picture of the people visiting their e-commerce sites.

The savviest marketers will make Hispanic e-commerce part of their long term plans and ensure that their products are presented in a culturally relevant way.

Vann added that to connect with this attractive demographic, brands will have to come ready with “Spanish language product information and meta data, culturally relevant imaging and messaging, and proactive marketing to drive sales.”

Brands looking to drive Hispanic e-commerce sales must start with forming a more complete picture of Hispanics, not just as consumers, but as people whose different experiences and cultures give shape to their decisions. “The savviest marketers will make Hispanic e-commerce part of their long term plans and ensure that their products are presented in a culturally relevant way,” Villarroel said.

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What:Walgreens Boots Alliance, Inc.  has awarded WPP  its US$600 million global retail, wholesale, health and beauty product brands businesses after a 1 year review.
Why it matters:‘Team WBA’ will provide services including traditional and digital advertising, media investment management, promotion & relationship marketing, public affairs, media relations and communications.

descargaPharmacy giant Walgreens Boots Alliance, Inc.  has partnered with WPP  and selected a team of WPP agencies to operate and develop multiple marketing and communications channels for its US $600 million global retail and wholesale, health and beauty product brands businesses.

‘Team WBA’, the bespoke WPP team, will provide services including traditional and digital advertising, media investment management, promotion & relationship marketing, public affairs, media relations and communications for the enterprise, realizing significant benefits globally.

Hub office locations for ‘Team WBA’ will be created by WPP in Chicago, London and New York to support Walgreens Boots Alliance and businesses including Walgreens, Boots and Alliance Healthcare businesses.

Team WBA becomes only the latest of WPP’s dedicated agency teams for clients, which also include Global Team Blue for Ford and Team Arrow Partners, the holding company’s GroupM agency for Target. In 2015, Walgreens spent more than $557 million on advertising, according to Ad Age’s Datacenter.

Stefano Pessina, Executive Vice Chairman and Chief Executive Officer, Walgreens Boots Alliance, commented: “We are very pleased to confirm this new partnership with WPP and the creation of Team WBA. We have grown rapidly, so too have our marketing and communications needs, and this multi dimensional model and new way of working will better support our vision for the company and future growth plans. This more integrated way of working will help us to strengthen brand recognition, while unlocking potential synergies, creating increased efficiencies and helping streamline our activities globally.”

Sir Martin Sorrell, Chief Executive, WPP, said: “We look forward to partnering with Walgreens Boots Alliance to help further enhance what are already iconic brands in the health and wellbeing category. Team WBA will be a custom solution that draws together the talent and resources from across WPP to develop effective communications that will differentiate WBA and drive results.”

The decision culminates a thorough review process which began in early 2016.

Walgreens Boots Alliance is the first global pharmacy created through the combination of Walgreens and Alliance Boots in December 2014.Walgreens Boots Alliance is pne the largest retail pharmacy, health and daily living destination across the USA and Europe. It has over 13,200* stores in 11* countries.

What are the most notable habits of Latin American Internet users? What are their priorities when it comes  to consuming different media? What categories do they prefer? The answers to these questions and more, according to comScore’s December 2015 rankings.

Source: comScore MMX, Latin America, December 2015, Home and Work, Top Categories, PC/Laptop OnlyTotal Unique Visitors (000)% ReachTotal Minutes (MM)Total Visits (000)
Total Internet : Total Audience182.473100,0217.8698.224.576
1    Services178.15797,635.5815.310.178
2    Social Media166.13791,065.0323.917.516
3    Search/Navigation164.68890,36.8013.058.071
4    Portals164.10189,927.0053.439.753
5    Entertainment163.89489,842.9962.781.671
6    News/Information120.57366,17.3471.211.204
7    Directories/Resources119.48565,53.135718.511
8    Retail119.24965,45.718854.644
9    Technology104.37557,21.415440.690
10    Lifestyles102.19256,02.765519.385

E-mail, Download Sites and Web Hosting Among the Top Activities

97,6% of resident users in Latin America tend to use services like e-mail, downloads and web hosting as a part of their primary online activities. The total number of visitors in this category puts it in first place in the rankings, even above social networks and search engines.

Social Networks Before Search Engines

While the difference is less than a percentage point, social networks are ranked above search engines. This is interesting, as Google sites typically occupy the first stop in comScore rankings (although if we only considered the search engine, Google would probably be ranked lower in those rankings0. Of course, the classification analyzed in this article, within the category of Google “search engines,” Google is not the only in the region, although it is the most emblematic and visited of the group.

In this ranking, when it comes to the amount of visitors, there is almost no difference between social media platforms and search engines. Nonetheless, inequality appears with respect to the amount of time users stay on the page: the minutes that users spend on search engines represents 10% of those spent on social networks. There is a reason for this: generally, search engines resolve users’ consultations in seconds, while social networks generate an engagement that is reflected in the total number of minutes spent on these platforms.

Similarities in Portals and Entertainment

It is interesting to observe how portals and entertainment sites are visited by the same percentage of users. While they appear individually on the rankings (due to their particularities), what is certain is that portals also tend to satisfy certain entertainment needs by the users.

When it comes to visitor behavior, certain difference are observed: while the amount of minutes on portals is less than that of entertainment sites, the number of visits to portals is larger than that of entertainment sites. In this sense, portals observe “less time on the site and more visits,” while entertainment sites observe “more time on the site, and less visits.”

Another interesting point is that the amount of unique users in each category is similar to that of visitors in the social media category (which should not be ignored when evaluating the reach of the “portal” and “entertainment” categories, individually).

News and Information in Sixth Place

Only some Latin American countries prioritize news and information sites. This is reflected in the rankings, in which this category comes in sixth with 66% of the visitors, below the entertainment category.

Inquiries for Useful Data, Visited by 65.5% of Users

65.5% of users use directories, maps and wikis to resolve everyday problems (according to the rankings for Directories/Resources on the rankings).

Retail, Technology and Lifestyle

In the last three spots are retail (65.4%), technology (57.2%) and lifestyle (56%). What’s interesting is the connection between the three categories: some technology sites have a direct connection to retail sites, and both categories are very associated with lifestyle.

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What are the most-visted retail sites by U.S. Hispanics?  How do they behave when it comes to making consumption decisions? The answers to this and other questions below.

The fact that the users visit retail sites doesn’t mean that they will actually make a transaction: sometimes, the inquiry isn’t directly related to an online purchase, but a search for information on the characteristics of a product or relevant information to making a purchase decision.

Visiting different retail sites, users don’t indicate an interest in particular articles, nor do they express interest in particular sellers. Here, we present user preferences according to the most-visited retail sites by  Hispanic residents of the U.S. (based on comScore rankings).

Source: comScore MMX, Category Retail, US Hispanic, December 2015, PC/Laptop only, Home & Work, 6+Total Unique Visitors (000)
Retail22.680
1Amazon Sites13.409
2eBay6.460
3Wal-Mart6.057
4Target Corporation3.812
5Apple.com Worldwide Sites3.802
6Best Buy Sites2.942
7Macy’s Inc.2.278
8Google Shopping2.184
9The Home Depot, Inc.1.934
10Kohls Corporation1.794

Bargain Seekers: Google Shopping

Google Shopping is the most-visited sites by users searching for bargains on the products they desire. While Latin American users recur to Buscapé, Hispanic U.S. residents turn to Google Shopping.

Supermarket: Walmart

U.S. Hispanics choose Walmart as their favorite online supermarket.

Technology: Apple

When it comes to technology the preference of  U.S. Hispanics  is Apple.

Clothing: Macy’s y Kohl’s

Hispanic  recur to online versions of their favorite stores: Macy’s and Kohl’s.

Home and Family: Target y Home Depot

Hispanic residents of the U.S. prefer Target and Home Depot when it comes to buying products for their home and family needs. Of course, many of the products on the list can be bought through different e-commerce sites, although Target and Home Depot are particular because of the image that they have built around their compatibility with home and family.

General Purchases: Amazon, Best Buy, eBay

For U.S. Hispanics, Amazon, eBay and Best Buy are the most popular sites for general purchases.

 

 

Source: ShareThis
Source: ShareThis

New studies connect the dots between social and revenue. It’s still a fuzzy picture, but retailers definitely are finding ROI in social media.

Instagram is the latest social network to get serious about analytics. It’s begun rolling out a suite of business tools that it says will help brands measure brand awareness on Instagram through impressions, reach and engagement and show the performance of individual ads within paid campaigns.

It’s a good move, because almost every brand – nine of out 10 – will be on social media this year, according to eMarketer. It’s a crowded space, and there’s now a pretty bewildering assortment of ROI studies – but at least they all show retailers can get ROI from social media.

Many social media shares and pins are aspirational: They know what they want but are not ready to buy so they pin it. If they really wanted to buy it, they’d just buy it.

The conversion rates for social networks differ by the product category, according to Convertro, an attribution-modeling platform acquired by AOL Platforms in May. Its analysis of $1 billion in sales, within 500 million clicks and 15 million conversions during the first quarter of 2014 tracked by Convertro found that YouTube had the highest influence at the top and bottom of the purchase funnel. Twitter, on the other hand, was the strongest influence in the middle of the customer journey.

“YouTube is strong in the front because people often start their exploration with either search or YouTube search. Social media is more of a research ally,” says Jeff Zwelling, CEO of Convertro.

At the same time, social media’s impact on conversion varies widely by the product category, according to Convertro, with the highest impact on food and beverages, followed by apparel and accessories, and then, home furnishings.

Source: Convertro
Source: Convertro

Zwelling thinks that many social media shares and pins are more aspirational: “They know what they want but are not ready to buy so they pin it. If they really wanted to buy it, they’d just buy it.”

That idea is supported by an internal analysis of ShareThis data on consumption and sharing by Hispanic Millennials. It found that, in the style and beauty category, 22 percent of page views were related to coupons and deals, while only 7 percent of the shares were. On the other hand, news and editorial related to the category accounted for 9 percent of all browsing but 26 percent of all sharing.

Source: ShareThis
Source: ShareThis

“People say they want to help people and share useful things, but what they actually share is more about [public image],” says Andy Stevens, vice president of research and strategy for ShareThis. He advises brands in all categories to be aware of these motivations for sharing. “It’s often aspirational — letting people know about yourself in a positive light.”

Where social media misses Hispanics

As we know, Hispanic consumers over index on social and mobile – but the picture is different when it comes to shopping conversions. In a study ShareThis did with Unilever and Mindshare, it found strong differences in the influence of social media on shopping among Hispanics.

This study found they share five times more often than non-Hispanic users, and what they share is 35 percent more likely to be clicked on than content shared by the general population. They’re also twice as likely to purchase the kinds of products they share about compared to non-Hispanic consumers.

But Hispanics are less likely to use Pinterest and Twitter for sharing content, which is a bummer for retailers. According to ShareThis, Pinterest is the top social channel for conversations about shopping.

Hispennials and social shopping

The retail ROI picture may be different when it comes to younger Hispanic consumers. The millennial segment as a whole is the hottest prospects for social shopping, according to another ShareThis study of 58 million American Millennials. They’re twice as likely to purchase a product they’ve shared, while Pinterest is the top social media site overall.

There’s evidence that Hispennials are converging with Millennials when it comes to mobile, social media and shopping. While mobile accounts for only 7 percent of Hispanic consumers’ sharing activity, Hispennials’ mobile sharing is the same as their non-Hispanic counterparts.

Hispanic millennials share on mobile as much as their non-Hispanic counterparts, and use Twitter and Pinterest just as often. The generational similarities also hold true when it comes to what content millennials, both Hispanic and non-Hispanic, consume and share.

Value for retailers

Social media networks like Pinterest offer retailers more sales and plenty of other benefits, according to Pinterest marketing expert Anna Cadiz Bennett, principal of White Glove Social Media: Retailers can collect market intelligence, and multichannel retailers can use Pinterest to find out what shoppers are most interested in and then showcase them in physical stores. It can also raise the brand profile, attract new customers and help with search engine rankings.

Pinterest, especially, lets brands collaborate with consumers, for example, by creating group boards. “When people contribute to your board, someone else is creating content for you,” she says.

While there may not be so many Hispanics on Pinterest right now, Bennett notes that several brands have created content targeting this group. Most of it does focus on Hispanic culture, rather than on specific products, with a strong emphasis on food. Brands can find the most important topics thanks to Pinterest’s search suggestion tool, by starting to type “Hispanic.”

hispanic pinterest search

She also advises her clients to make use of third-party tools. She says, “At the end of the day, your goal is to drive more traffic to your website.” Google Analytics will show whether Pinterest is a source of referral traffic and how much, while analytics services including Piqora can deliver metrics such as total revenue generated from Pinterest, revenue per Pin, etc.

Piqora

A 2014 study by researchers at the University of Minnesota and Georgia Institute of Technology found that the most popular Pinterest category by far is food and drink, followed by DIY/crafts and home décor. Says Bennett, “If you’re in those verticals you should be on Pinterest.”

Point and buy

The rise of social media in retail and ecommerce could be tied to an increasingly post-literate, point-and-click society, according to Zwelling. “We are gravitating into a world in which people are more likely to hear and see than to read something,” he says. And, after all, visual sites like Pinterest more closely replicate the in-store experience, where shoppers are led by their eyes.

Meanwhile, social media use grows and new networks proliferate. In its 2013 Social Commerce Breakdown, AddShoppers says that Wanelo.com, a sort of combo of Pinterest and Etsy aimed at retailers, is growing phenomenally, tripling its number of shares.

(Wanelo has posted a quote from Urban Outfitters saying its traffic from the site converts four times than any other social network.)

Then, there’s StumbleUpon, the news-sharing site. Understandably, it’s got the lowest conversion rate of any network AddShoppers studied; but it also has the highest average order value, at $238.53.

Says Peter Messmer, vice president of customer success at AddShoppers, “The trend we’re seeing is social network use in general is expanding and it’s not winner takes all.”

What: Five of the Top 10 Most Valuable Brands in LatAm are beer brands. Beer (+13%), Food (+21%) and Retail (+14%) brands show strongest growth, evolving to stay highly relevant as consumers become more prosperous.
Why it matters: Mexican brands raised from 29% to 33% in the last year, led by the strong market performance of beer brands, communication providers, retailers and financial institutions, accordig to the top 50 Most Valuable Latin American Brands 2014 ranking by Millward Brown. Mexican beer brand Corona resulted the most valuable brand in Latin America.

Photo: Amanda Graham, C.Commons
Photo: Amanda Graham, C.Commons

Mexican brands once again hold the greatest proportion of the top 50 Most Valuable Latin American Brands 2014 ranking, carried out by Millward Brown Vermeer and commissioned by WPP. The total brand value of the Top 50 declined 4.5% compared with 2013 – decreasing from US$135.3bn to US$129.2bn. Three sectors grew: Beer (+13%), Food (+21%) and Retail (+14%).

 

  • Mexican brands raised from 29% to 33% in the last year, led by the strong market performance of beer brands, communication providers, retailers and financial institutions.
  • Brazilian brands’ share of the Top 50 dropped from 28% to 24% after the country’s stock exchange experienced the second largest dip in the world.
  •  Chile, were well-positioned retail brands dominate, increased its contribution from 19% to 20%.
  • Colombia (16%) and Peru (4%) maintained their positions – financial institutions have the greatest representation in Colombia and beer in Peru.
  • Argentina (1%) is represented by oil brand YPF.

The Top 10 Most Valuable Latin American Brands 2014

beer.coronaFive of the Top 10 are beer brands, three of which grew in 2014, helping to bolster the ranking’s overall fall in value.For the second consecutive year Mexican beer brand Corona is the most valuable brand in Latin America, according to the BrandZ™. Now worth US$8 billion after a 21% increase in brand value, Corona’s continued strength reflects its solid brand positioning and the positive feelings consumers have towards it – both in Mexico and overseas.

There were six new entrants in 2014: Marinela (Mexican food brand), Ipiranga (Brazilian retail brand), Pilsen Callao (Peruvian beer brand), Tottus (Chilean retail brand), Banamex (Mexican financial institution) and Une (Colombian communication provider).

  • Modelo (+51%) has a deep understanding of its consumers, and builds on its differentiation.
  • The Liverpool department store (+30%) skilfully inserts itself into consumers’ lives (its slogan translates as ‘Liverpool is part of my life’) and makes its offer accessible to all.
  • Banorte (+59%) always seeks to deliver the best service through innovations in the customer experience – partnering with IBM to develop a more customer-oriented banking model, and launching an award-winning mobile app.
Rank 2014BrandCategoryBrand Value 2014 ($M)Brand Value Change YoYRank Change YoYCountry
1CoronaBeer8,02521%0Mexico
2SkolBeer7,0558%+1Brazil
3FalabellaRetail6,0848%+2Chile
4TelcelCommunication Providers5,308-19%-2Mexico
5BradescoFinancial Institution4,177-24%+1Brazil
6SodimacRetail4,10716%+8Chile
7TelevisaCommunication Providers3,62511%+8Mexico
8BrahmaBeer3,585-6%+3Brazil
9AguilaBeer3,565-9%+1Colombia
10ModeloBeer3,47751%+14Mexico

Responding to middle class needs

shoppingcartConsumer and retail brands have excelled at this – including Brahma (No.8), which created Brahma Fresh to compete against low price beers in the affluent north-east region, and retailers Falabella (No.3) and Sodimac (No.6) which increased 14% in value after successfully meeting the needs of the growing middle class.

Powerful local brands including Skol, Águila, Sodimac and Inca Kola all remained relevant to existing customers while also attracting new ones, by improving their offer. Bradesco (No.5) in Brazil, traditionally a bank for middle class consumers, improved its offer for low-end consumers, while Mexican Telcel’s (No.4) clear cross-class positioning of ‘Telcel is the network’ enabled it to hold on to a 70% market share – even after deregulation.

Geographical expansion boosts brand value

Mexico’s Corona and Chile’s Falabella have built sustainable growth by positioning themselves as Latin American brands abroad, and successfully competing in different markets. They will soon be followed by Colombian brands such as Bancolombia, Avianca, Grupo Sura and Brazilian brands such as Itaú, Sadia, Natura and Vale.

Eduardo Tomiya, Managing Director of Millward Brown Vermeer, says: “2014 was a very good year for consumer goods brands (9% growth) and retail brands (14% growth), which kept themselves highly relevant as consumers’ needs evolved. Brands that have positioned themselves successfully for middle class consumers increased substantially in value in the Latam region. Meanwhile those that failed to profit fully from consumers’ increased purchasing power, such as telecom brands, or which have had to restrict their brand building activities, like financial institutions, have seen their brand value drop.”

Gonzalo Fuentes, CEO of Millward Brown Latin America, says: “Latin America’s iconic local brands have achieved huge success through engaging with and representing the motivations of consumers in their ‘home’ country. Huge growth opportunities exist for those that start looking at the whole region as their playground, and work to become true Latam brands.”