Retail’s new realities Anna Wikland Industry Head, Retail Tech Google Confidential and Proprietary THE NEXT 5BN 2014 2020 7.2 BN Global Population 8 BN 2.8 BN Internet Population 8 BN * [39% of Global Population] [100% of Global Population] Source: (1) eMarketer, Nov 2013; (2) Eric Schmidt estimate* ACCESSIBILITY OF DEVICES Will drive growth $50 Phone $50 Tablet Project Loon Internet.org ENTERING A NEW WORLD Of Six Screens (yes, six!) [DESKTOP] [MOBILE] [TABLET] [TV] [WEARABLE] [IN-CAR] WITH A NEW BREED of consumer WITH A NEW BREED of consumer ≈30% 300 hr 75% of Google searches are mobile Online videos is uploaded every minute of online shoppers prefer personalised shopping experiences [INFORMATION] [ENTERTAINMENT] [SHOPPING] MORE ACCESS MORE CHOICE MORE PERSONAL The Big Shift Google Confidential and Proprietary CHOICE CONTROL NOW PEOPLE CREATE 1990 Discrete Computing 2014 Continuous Computing Online video Social Blogs Retailer Websites Online News Search Gaming Source: Google/Shopper Sciences, Purchase Funnel Analysis, April 2012. N = 3,000 CONSUMER IN CONTROL IKEA Elgigante n Media Markt Check out TV 17.15 Order bday gift 1:15 Lunch 1:00 Coffe Shop Look 8:25 up TV Reviews 8:30 Look at movie reviews 17.45 Consumers constantly connected… through mobile 5:46 daily time spent with digital +2.5 hours! mobile +6x 3:11 mobile desktop desktop 2010 2013 Retail search queries on mobile 2011: 8% 2014: 26% 2011: 10% 2014: 30% 2011: 5% 2011: 8% 2014: 20% 2014: 22% OLD Realities of Retail EVERYTHING WAS ANCHORED AROUND THE PHYSICAL STORE. FOOT TRAFFIC DIRECTED RETAIL DECISION-MAKING. NEW Realities of Retail ALWAYS OPEN, ANYWHERE, EVERYWHERE. NO LONGER CONSTRAINED BY REAL ESTATE AND STORE HOURS. MUST WIN ALL TRAFFIC - PHYSICAL AND VIRTUAL fewer visits to store… 38 billions 17 (Nov-Dec) 2010 2013 …but more purposeful $681 $783 offline +9% $B offline sales (Nov-Dec) 2010 2013 ecomm +75% more informed than ever before 5 2010 12 2013 Make information easily accessible and actionable Help the local shopper find the closest store *Not yet available in Sweden endless assortment, not dictated by store footprint transparent & dynamic pricing 75% 12% 2010 2013 mobile price checking frictionless transactions & fulfillment shopping is social even when solo 15 50% mins Source: Survey Motorola Soutions personalized suggestions. curated products 35% of purchases from Amazon are through Amazon’s recommendations AMAZON: Knows you better than you know yourself Omnichannel Case Study: Macy’s Wrap up  Do you have a good mobile presence?  Do you offer a seamless experience across devices? Across channels?  Do you make it easy for your customers to shop with you outside your store? Inside your store?  How well do you really know your customers? Do you get smarter with each interaction? Are you providing personalized experiences?  Are you investing in continual optimization? Are you keeping up with constantly changing consumer behavior?  Are you reimagining your business with the power of connectivity? Not just as a marketing strategy but as a total way of conducting business? Google Confidential and Proprietary 39 Tack! awikland@google.com Google Confidential and Proprietary