GfK FutureBuy 2013 is the latest of several annual tracking studies of shoppers attitudes and behaviors in the US and abroad. Bill Romania, SVP of Gfk, will share some of the most relevant trends for marketers and retailers, with special emphasis on how mobile is revolutionizing shopper expectations and the impact for both brands and retailers. Bill will also share some global best practices and new technology that have the potential to help marketers meet the challenge. PRESENTER Bill Romania, SVP, Shopper & Retail Strategy , Gfk

1. 1
Decoding today’s “everywhere shopper”
August 2013

2. 2
• Online survey of diverse shoppers
across FMCG & durables
• Trending since 2009
• Now 14 countries (n=600 per country)
Broad Foundation Of Shopper Attitudes And
Behavioral Trends
o USA
o Brazil
o Chile
o Mexico
o Netherlands
o Belgium
o Austria
o Russia
o Czech
Republic
o Bulgaria
o Romania
o China
o Korea
o Australia
Emerging, global shopper insights
reshaping the path to purchase

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Smartphones still more active in-store, but shoppers seems more
comfortable transacting purchases via tablet
Source: GfK Futurebuy, 2013, all country average
Tablets Surpassed Smartphones For Shopping Outside
The Store
% shoppers engaging in shopping activity (all country average)
IN
STORE
Find products
Find best price
Check product reviews
Purchase product
OUT of
STORE
Find products
Find best price
Check product reviews
Purchase product 33%
38%
40%
44%
19%
24%
33%
28%
42%
42%
47%
50%
17%
21%
21%
21%
Tablet Smartphone

4. 4
Source: GfK Futurebuy, 2013
China Rises Above Diverse Array Of
Top Tablet Shopping Markets
Tablet penetration
China
% Tablet owners shopping on tablet Tablet penetration
Brazil
Netherlands
Mexico
United States
Korea

5. 5
• Food/Bev, OTC and household categories still predominantly in-store
• Bigger ticket categories drive more online activity
Source: GfK Futurebuy 2013
Omni-Channel Shopping Now Commonplace
14% 15% 20% 26% 31% 38% 43% 52% 57% 58% 66% 70%
% shoppers reporting omni-channel behavior (US)
Cleaning OTCs Food &
Beverage
Lawn &
Garden
Beauty &
Personal
Home
Improvement
Auto Mobile
Devices
Home
Appliances
Apparel Toys Consumer
Electronics
Cross-category
average: 37%

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Source: Futurebuy, 2013
Omni-Channel Just Emerging In Food/Beverage –
Except In APAC
Food/Bev % shopping both online & in-store
46%
51%
15%
Netherlands
Austria
Belgium
Czech Republic
Bulgaria
Romania
Mexico
Chile
Russia
Brazil
US
Australia
China
Korea
All country average
Comparable to
Consumer
Electronics levels!

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Source: GfK Global Audit, 2013
Virtual Subway Grocery Market
Click arrow to
play video
China

8. 8
Peapod Turns The Truck Into A Store
US

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10. 10
(% agree/strongly agree)
Source: Futurebuy, 2013
Retailer Loyalty Universally Eroding
plummeting
softening
“I am now less loyal to any one retailer because
I shop around more to find the best value”
Belgium
Brazil
Chile
Russia
Austria
Czech Republic
United States

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Mobile payment gaining momentum; Google Wallet awareness nearly doubling
Showrooming Activities Sharply On The Rise
% Smartphone Shoppers Reporting Activity In Past 6 Months (US)
Showrooming
22%
Source: GfK Futurebuy 2013, US
37% “Saw product in store
then purchased on
phone elsewhere”
UP from
22% (2012)
Friendly Showrooming
31% “Saw product in store &
purchased on phone
from same store’s site”
Mobile Wallet
Fully Digital
44% aware of
Google Wallet
“Saw product in store &
used Mobile wallet to
purchase in store”
33%“Saw product on phone
& purchased on phone
without store visit.”

12. 12
Social Retail Experience Redefines Boundaries
Germany

13. 13
Spaaza My Price Loyalty App

14. 14
• Shopping for jeans through in-store mobile app – phone is your remote control
− Makes experience fast, easy, fun for tech savvy customers
Hointer
How it works:
1. Download store’s app
2. Scan items to try-on & select size
3. You are assigned a dressing room
4. Clothes are waiting there
5. Toss rejects down shoot in
dressing room
6. Additional requests show up within
10sec
7. Fitted right away if alterations
(free)
8. Mobile payment (associate device)
9. Email is mailed, no paper
10.Sales associate on hand to help

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RFID chips embedded in select items that will start short videos on in-store mirrors/
screens when item is in close proximity
Burberry, UK
Digital Signage: RFID
The only weakness of all this mobile tech is it depends upon shopper participation

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Cell Tower Geolocation Data Enables Profiling And Tracking
Of All Shoppers, Not Just App-Downloaders
Mobile Providers 3rd Party
Consumer Data AssetsMobile Information
De-identified opt-in mobile participants provide linkage variables
to project to entire population within a market.
Data Feed, Tools and
Applications

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Features
• Compare your site against competition to
evaluate shopper traffic and conversion
over time down to the hour
• Utilize updated shopper traffic flow within
your defined shop trade area
• Find out which neighborhoods your
shoppers come from
• Independent verification of relative store
traffic in sites and shops you define
• Have confidence in observed, rather than
reported, customer behavior
• See census-level information about your
shopper clusters

18. 18
Applications
Location-based tracking is a
dynamic new product that will
change the way you think about
retail. Forever.
Who’s visiting your store? Where
do they come from? How often
do they visit? Are they your target
demographics? And how does
your retail space compare with
the competition?
Using de-identified and
aggregated cell tower
data, location-based tools provide
the answers to these questions
and more -- giving you the ability
to connect with your customers’
movements as they go in and out
of your shopping area, by the
hour, over time.

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Benefits
• Target areas for shopper activation
• Pinpoint locations for consumer marketing
and promotions
• Optimize leaflet distribution areas based on
actual catchment areas
• Determine conversion (footfall)
• Install bonus models based on actual
potential
• Evaluate your/competitive retail network
performance
• Assess visitor frequency at prospective new
retail locations
• Adjust pricing for (digital) billboards
according to (changing) frequencies

20. 20
The Next POS: Implications And Success Criteria For
Mobile Marketers
SUCCESS CRITERIA IMPLICATIONS
Appending
Anonymizing
Aggregating
Applications
Commodity Data
Omnipresent
Application dependent
Profit will be in the application

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THANK YOU
Bill Romania
+1 203 571 1461
Bill.Romania@gfk.com

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Source: GfK Futurebuy 2013, US
Tablet Shopping Expanding Faster Than
Smartphones, Especially Among Older Shoppers
Change in “device used to shop” in past 6 months
(points vs. YAG US)
+12
+19
+7 +8
+2
18-24 25-34 35-49 50-64 65+
+9
+23
+11 +14 +10
18-24 25-34 35-49 50-64 65+