Omnishopping in the Connected World
Consumer Electronics Category Analysis
15+
2 3 4500+
Executive Summary
Consumer Electronics (CE) is a category where the term omnishopping strongly applies. With a diverse array of products that enhance entertainment and productivity for home and work lives everything from micro chargers to refrigerators shoppers in this category make informed decisions about the purchase across channels and devices. Shoppers often go online to research, but then want to experience a complex product like a 4k UHD TV in a store. Mobile phones are both a defining product in the category, and the device that people increasingly use to buy products. Electronics stores are becoming more like showrooms that encourage shoppers to purchase online, and also convenience centers for those who choose to buy online and want ease of pick-up. To better understand the influences on and behaviors related to shopping in Consumer Electronics, Criteo conducted a US survey of 2,500 buyers in key product categories: The Shopper Story. The survey focused on omnishoppers: people who research online but sometimes buy in-store but also do the reverse: see something in-store that they buy online. These people spend on average 22% more online than single-channel shoppers and 3% more in stores. The CE respondents had spent a minimum of $200 in the past three months. Criteo also analyzed data from its Sponsored Products network of leading US sites that sell electronics (Walmart, Best Buy, Target, Newegg) to uncover patterns in how people shop, and which products in CE they search.
FAST FACTS
$251 51%
2.
Peak holiday average unit price on November 11, a week earlier than last year.
Free return shipping is as important as discounts for determining where to purchase online.
of Consumer Electronics buyers do NOT buy from the first website they visit.
People buy expensive CE products from their phones: one week before Christmas CE carts converted on mobile.
SECTION 1
Category Trends: Embracing the New
Here are a few of the CE trends Criteo sees emerging from product searches and the market overall:
The leap into VR continued this holiday due in part to the release of more affordable headsets from companies like Samsung and Occulus as well as to the increasing amount of content available. In smartphones, Samsung and Apple both have new releases and it's a battle for whose camera has more megapixels and what is being called the zero edge screen. 8K has been introduced, but the upgrade cycle in TVs is around 4K, with many models well below $500. Microbooks and combo tablets like the Microsoft Surface Pro will become more the norm. With the rise in Natural Language Processing and artificial intelligence, who needs Cinderella when you can command everything from TVs to Hoovers to refrigerators with voice activation Frustrating remotes may end up in the trash as smart devices like the Chromecast, the Fire Stick and Apple TV make finding your favorite stream just an ask away. Every house now needs a hub. It used to the be the router, it's now a smart device as consumers crave simplicity and a product that will control other devices. Amazon, Microsoft, Apple and Samsung all have smart speakers so shoppers will be deciding which connected home ecosystem to buy. Nostalgic Tech: While homes are expected to get more like the year 2020, there's the contrasting trend of Millennials and Gen Z going retro with audio and photo. Turntables and portable phonographs are hot again. Polaroid and Fuji Instax are back in the instant photo market and Kodak has re-introduced film like Ektachrome for new camera enthusiasts (trained by their smartphones).
3.
SECTION 2
Category Trends: Omnishopping in Consumer Electronics
With some high relative price points and many complex details, CE tends to be a highly-researched product category. People compare details, availability and prices across sites, devices and channels. The Criteo Shopper Story survey revealed the breadth of omnishopping behavior among recent Consumer Electronics purchasers. look forward to shopping in stores when they have time prefer to do most of their shopping online
The most common ways that people shop across channels are click and collect,Webrooming, (researching online and buying in store) and Showrooming (see in store and buy online).
Omnichannel Shopping is The Norm
(percent of total--frequency of cross channel purchasing)
Order goods online and pick them up in a retail store Browse products online and then purchase them in a retail store Make purchases online after seeing the product at a retail store Make purchases on my phone from within a retail store on another retailer's site (Amazon, etc.) Make purchases on my phone from within a retail store from that retailer's website
0%
17 25 15 17 11
10% 20% 30%
63 63 75 38 33
40% 50% 60% 70%
21 12 10 45 56
80% 90% 100%
Source: Criteo Shopper Story, US, 2017
Regularly
On Occasion
Never
4.
Consumer Electronics omnishoppers were asked about what most influenced their purchase at three key stages in their shopping journey: First learn (awareness), go to learn more (consideration) and last influence (point of purchase). Websites and apps had the greatest impact for omnishoppers at every stage. While many marketers continue to rely on traditional advertising, the purchase even if it is made in a store is determined by online activity for these valuable shoppers.
Online is the Key Influence for Customer Electronics Omnishoppers
(influences on the purchase (percent of total): How did you...)
100% 80% 60% 40% 20% 0%
First learn
Learn more
Influence at purchase decision
Websites/Apps (Net)
Retail Stores
Advertising (Net)
People in Real Life (Net)
Social Media (Net)
Source: Criteo Shopper Story, US, 2017
CE is a highly competitive category and there is a high degree of cross-shopping, both within a retail site and across sites. What makes them switch sites It's not just price: 34% say they wanted better selection, and 24% wanted more information. With so much cross-shopping, it's no surprise that in Consumer Electronics persistent carts are important: 25% of shoppers put items in carts without purchasing the item right away.
5.
SECTION 3
What are they looking for
When you look at the list of the top terms searched within the past two holidays for CE, they reflect a mix of old and new technologies. New launches dominate in both years, with Xbox One and the iPhone X rising to the top of the 2017 list. Classic gift items are also popular, with many gaming systems and accessories, headphones and wrist devices both of the Apple and Fitbit varieties present. Drones and hoverboards continue to be popular holiday items. Finally, CE staples likes laptops (#1) and TVs appear several times in different forms (smart TV vs. 4k TV).
Fitbit laptop
Nintendo Classic
One
tv iPad
camera speaker
laptop iPhone 7
Nintendo Switch Nintendo
4k tv
tv Xbox One X
Samsung tv
Nintendo drone
3DS
Keurig 2DS Bluetooth Xbox One vacuum smart tv Minecraft laptops Talk
PS4 games drone Xbox hoverboard
Notebook
Xbox One Xbox One games
smart tv
PS4 printer
headphones Apple Watch
hoverboard
headphones
PS4 phones
wireless headphones iPhone X
Fitbit iPhone 8 iPad
tablets
PlayStation 4 Super Nintendo
iPhone 6
Classic
Holiday Research Nov 2016
6.
Source: Criteo Sponsored Products network
Holiday Research Nov 2017