What Can Retailers Expect in 2013?
With January’s numbers looking rather flat, the threat of sequestration for tomorrow, and economic uncertainty making us all a little nervous – what can we expect for the rest of 2013? Is there a light at the end of the tunnel? Experian Marketing Services sent along some predictions for the rest of the year for retailers. Have a look at tell us what you think!
1. Economic uncertainty continues
· Fiscal cliff hangover could be fueling tax concerns prompting Americans to cut back
· Latest Experian Consumer Expectation Index showed a decline in consumer confidence going into the end of 2012
· In good and bad times online retail traffic goes up as consumers search for deals
o As such, online traffic to top 500 retail sites increased 13% YoY in January 2013
o Amazon.com remained the top visited Retail site in Jan-13 vs. Dec-12 and increased its share of visits among the top 500 sites (ranking below)
o QVC.com, Overstock.com and HSN.com all saw their market share of visits increase in Jan-13 vs. Dec-12 among the top 500 sites
· Consumer awareness continues to improve as more retail information is readily available
2.Consumers are “always-on”
- Consumers move seamlessly across devices/channels and are “always-on” so multichannel marketing is no longer a trend
o According to a recent Experian Marketing Services survey, 36 percent of U.S. organizations interact with customers and prospects in five or more channels.
o Among young adults ages 18 to 34, mobile phones now tie with televisions when it comes to reach.
· Demographic data alone is not enough for marketers to rely on to truly understand customers.
o Millennials, the generation of 18- to 34-year-olds, represent upwards of 80 million consumers. Nearly two-thirds are under 30 years old. 52% of Millennials rank far above or above average when it comes to being early adopters of technology.
o Representing about 25% of the U.S. population, baby boomers are nearly 80 million strong and account for more than 75% of America’s net worth.
o Can reference past election as Obama campaign utilized multiple sources of data to target voters
3. Showrooming – friend or foe? Retailers must decide
· Bricks and mortar stores face a choice in showrooming or price matching to online retail
o B & M Retailers such as Target and Best Buy are rolling out policies to price match online
· No one is safe from comparison shopping (third biggest category of traffic to retail is other online retailers)
- antidote to lowest price focus is differentiation and service
Top visited Retail sites – January 2013
The Home Depot
Source: Experian Marketing Services