The Truth About Online Consumers PDF

The truth
about online
consumers
2017 Global Online
Consumer Report
kpmg.com/onlineconsumers
Foreword
Enabled by technology, the continued year over year growth in online shopping has
been fueled by a new generation of consumers who want greater convenience,
value and options. For consumer businesses, this trend poses both challenges and
In this report
significant opportunities. How do companies target
Competition is no longer limited to local shops during business hours. Consumers Millennials who no longer
today are shopping all the time and everywhere; and in a truly global online trust traditional advertising?
marketplace, products can easily be purchased from retailers and manufacturers How important are payment
located anywhere in the worldor from those with no physical retail locations at all. options in India? Which
Consumer demand for richer experiences and greater convenience means that countries are most likely to
retailers need to rethink their strategy, both online and in stores. Having the right buy from foreign websites?
product mix is no longer sufficient to attract the new wave of consumers including Where are consumers
Millennials, who are entirely focused on one transactiontheirs. Creating an online
willing to buy groceries
shopping experience enhanced by technology such as augmented and virtual reality
or 3D is becoming at least as important as providing convenient and personalized
online? In this report we
ordering, payment and delivery options. answer these and other
questions that can help
However, despite the rise of online shopping, ecommerce still makes up a relatively
small percentage of total retail spending. Retailers brick and mortar strategies also
inform an online strategy
need to evolve to continue to draw customers into their stores, and to compete that is more targeted,
with the online retailers opening their own physical outlets. Increasingly, we are effective and customer-
seeing innovative marketing strategies, as well as new technologies such as smart centric.
shelves, robots, self-checkout, and interactive and virtual reality, being deployed in
stores as retailers strive to compete on all fronts.
Finding the right strategy starts with one question: Given your brand promise,
where do you want to compete? Only once a company understands their goals,
customers and those customers needs can an appropriate strategy be designed.
And the key to a sustainable strategy is being able to understand and meet customer
needs both today and tomorrow, across geographies, and across generations.
In this report, we aim to raise and answer some questions about your companys
approach to ecommerce. Our global research on online consumer behaviors,
preferences and attitudes can be leveraged by consumer companies seeking to
improve their approach towards winning and retaining customers online.
I hope you find this report interesting and insightful. I would like to thank the survey
respondents, company executives, and KPMG professionals who invested their
time and insights to make this study possible.
To learn more about this research, please visit kpmg.com/onlineconsumers or
contact a member of KPMG directly.
Sincerely,
Willy Kruh
Global Chair, Consumer Markets
KPMG International
2017 KPMG International Cooperative (KPMG International). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Contents
What do consumers really want?.......................................................2
The dilemma......................................................................................2
What 18,430 consumers told us........................................................3
Online purchase behavior....................................................................4
Online shopping as a rising trend.......................................................4
Product category trends....................................................................6
Rise of international trade and e-tailers.............................................8
Device preference trends.................................................................12
The path to purchase journey............................................................14
Stage 1 Awareness: triggers and influencers..............................15
Stage 2 Consideration: product and company research..............16
Stage 3 Conversion: deciding where and when to buy...............20
Stage 4 Evaluation: experience and feedback.............................22
Cycle duration..................................................................................24
Understanding consumer attitudes and motivations.....................27
Whats driving the shift to online?....................................................27
Overcoming the hurdles to selling online........................................28
Winning the online consumer..........................................................29
Payment options need to be regionally tailored...............................30
Building consumer trust...................................................................33
Are experience and trust enough to earn consumer loyalty?...........34
How KPMG can help..........................................................................35
About KPMG.......................................................................................36
Contact us.......................................................................................Back
2017 Global Online Consumer Report 1

What do
consumers
really want?
Advances in technology, logistics, payments and
trust coupled with increasing internet and mobile
access and consumer demand for convenience
have created a US$1.9 trillion global online shopping
arena, where millions of consumers no longer go
shopping, but literally are shopping at every
moment and everywhere.
A recent report by KPMG International The dilemma

titled Seeking customer centricity The burning question is, how can
through omni business models1, looked consumer and retail companies achieve
at how consumer and retail businesses this nirvana of consumer mindreading?
are transforming to adapt to the shift How can they identify and keep pace
from traditional shop-centric business with the behaviors and preferences of
models to a new world where the customers today and tomorrow? How
customer is increasingly at the center can they ensure their online strategy
of a perpetual shopping experience. In is acutely tailored to attract and win
this customer-centric reality, retailers the diverse and dynamic customer
need to be exceptionally sensitive segments they serve?
and responsive to when and where
their potential customers are making
purchase decisions (both consciously
and subconsciously) throughout their
always on shopping journey.
1
https://www.kpmg.com/cmsurvey
2 2017 Global Online Consumer Report

Baby Boomers Generation X Millennials
Born 1946-1965 Born 1966-1981 Born 1982-2001
What 18,430 consumers told us The ultimate purpose of this research ways to filter and classify the data is
During 2016, KPMG conducted an was to provide consumer goods and too copious to summarize in a single
international study on consumer retail companies with the global and report, so in the following sections
behaviors and preferences related to local insights into the specific behaviors we provide an overview of the global
online shopping. The research was and preferences of the customers results, highlighting the most significant
largely based on an online survey of they want to target. By understanding or interesting trends and comparisons
18,430 consumers living in more than the uniqueness of different customer among the major demographic groups
50 countries. The respondents were segments, companies can tailor their and product categories.
between the ages of 15 and 70, each online strategies for maximum success.
Executives interested in receiving more
having purchased at least one consumer The depth of the data collected for this detailed insights are invited to contact
product online in the past 12 months. study makes it possible for companies KPMG to have a member of our team
In addition to scrutinizing their online to analyze and forecast the behaviors filter and analyze the full set of data
shopping behaviors, preferences, and and preferences of their customers according to your specific requirements
decision processes, the study also by geography, generation (Millennials, or target markets.
explored consumers plans for future Generation X or Baby Boomers) and/
online purchases, factors affecting trust or product category. The number of
and loyalty towards certain brands, and
their sentiments and attitudes towards
the companies that they do, or dont,
choose to buy from.

Online
purchase
behavior
Survey respondents were The digital age and rise of online in Eastern Europe and Russia, Latin
required to have purchased shopping have driven an unprecedented America, and the Middle East and Africa
business model shift for consumer are less frequent (Figure 1.0).
at least one consumer
product manufacturers and retailers.
product online in the past Many traditional consumer businesses Generation X are the most
12 months. and new start-ups alike are moving active online shoppers
away from models that are shop- Among the different age groups,
centric or geographically-focused, to Generation X consumers (born between
ones that are customer-centric and 1966 and 1981) made more online
virtually borderless. To help inform purchases last year than any other age
companies tackling this transformation, group, averaging nearly 19 transactions
KPMG Internationals recent survey of per year. Interestingly, despite the
18,430 consumers provides a unique, common belief that the upswing in
comprehensive index of consumer online shopping is largely driven by
online shopping behaviors and the younger and more tech-savvy
sentiments across countries, products Millennials (born between 1982 and
and generations. 2001), Generation X consumers in fact
made 20 percent more purchases last
Online shopping as a year than their younger counterparts.
rising trend
The frequency of online purchases Stage of life and income levels are
varies considerably by geography. certainly primary factors driving
Consumers in Asia, North America and both online and offline shopping,
Western Europe are most likely to shop and Generation X consumers, many
online, while per capita online purchases ofwhichare more established in
their careers and building homes
There is a little Millennial in each of us. A number

of Baby Boomers are starting to understand and
appreciate the technology that is out there. Theyre also
trying to appreciate and experience the convenience of
buying online.
Mark Larson, Head of Consumer and Retail, KPMG in the US

Figure 1.0
Average number of online
transactions (per person per year)
19 18.4 22.1
11.9
18.6
Eastern Europe & Russia

15.6
15.1
Western Europe
North America
Report, KPMG International, 2017

Source: Global Online Consumer
16.1
11
Asia
Africa & Middle East
9.2
Australia & New Zealand

Latin America
Baby Generation X Millennials

Boomers
and families, are likely buying more generation was more likely to buy Figure 1.1
consumer goods than the younger healthcare products, wine, household Average amount spent per
Millennials overall. As Millennials goods and appliances, categories which transaction (USD)
continue to enter the workforce and tend to have higher price points.
adopt new lifestyle priorities, however,
their online shopping activity is Men spend more online than
expected to surge and even far surpass women
levels currently exhibited by older While men and women shopped with
generations. about equal frequencies, on average,
the men spent more per transaction $203
Dont25underestimate US$220 vs. US$151 for womenon $190
the Baby Boomers their most recent purchase. This can $173
Compared to the digital-first Millennial

largely be attributed to the fact that

20
generation, it is reasonable to presume the male consumers were more
that Baby Boomers (born between likely to buy items in higher priced
1946 and15
1965) are less inclined to shop categories such as luxury goods (55
online. However, the Baby Boomers percent of luxury transactions were
surveyed10
in fact shopped online by men) or electronics (72 percent of
just as frequently as the Millennials. electronics transactions were by men),
Furthermore, the Baby Boomers on while women were more likely to buy
average5 spent more per transaction in lower-priced categories such as Baby Generation X Millennials
Boomers
than either of the two other younger cosmetics or food.
generation groups (Figure 1.1). This
0

Product category trends
Top online
preference for streaming2 vs buying
The online shopping landscape is media continues to put downward
gradually changing in terms of the pressure on online sales of books and
products by
types of products being bought online. music, since even as Millennials get
Generally, consumers planned online older this is one area where buying
purchases indicated a year over year habits are unlikely to change.
increase for most product categories
(Figure 1.2). These results signal a
higher willingness to buy new product
On the other hand, bigger items such
as household goods and appliances,
furniture, home dcor and sporting
geography
categories online, particularly those In most countries, media,
goods show some of the highest
more traditionally sold in shops. For electronics, and apparel are
growth potential. According to
example, greater options for shipping among the 5 products most
respondents planned online purchases
and delivery have made it easier and often purchased online.
for the coming year, online sales of
more common to buy bulkier products household goods and appliances are
onlineincluding furniture, appliances expected to increase by 3.5 percentage
and even vehicles. Meanwhile, although points, furniture and home dcor by
easier to ship products such as books, 4.3 points and sporting goods and
music, electronics, accessories and equipment by 4.4 points. Telecom
apparel remain the most popular online products and fragrances are categories
categories, relative growth in these that are also expected to grow, by 4.5
segments is expected to be minimal. and 2.8 percentage points respectively,
In fact, we see a possible downward as are wine, liquor and art.
trend for books and music, currently In general, growth categories tend to
the number one online category, be those which do not need trial and/or
asMillennials purchase these items where consumers can have relatively Books and
online less often than the older more faith in product quality. music
generations. It will be worth watching
this particular category over the
next few years to see if Millennials
Clearly, ecommerce has been growing globally A

across many usual suspect categories like apparel,
books, and music. But what we are now starting Electronics
to see, and where we expect more growth, is from
categories where showrooming often occurs, such as
mobile phones and laptops, as well as furniture and
decoration items. Even in the grocery retail market we
see opportunities. Very few retailers get their online
grocery model right, but when they do, it can be very
successful. Winning companies in this segment have
focused on Millennials and young professionals,
Apparel
where the focus on prepared fresh meals has been a
growth driver.
Willy Kruh, Global Chair, Consumer Markets,
KPMG International
2
https://www.purposegeneration.com/buzz/article/streaming-the-future-millennials-and-media

The following products were Figure 1.2
also among the top 5 in these Actual vs planned online purchases:
geographies: Last year vs next year Growth in
% points
Wine Books/ 53 0.5

Music 54
Australia and
Electronics/computers/ 47 (0.6)
Belgium peripherals 47
Apparel 40 1.0
women 41
Accessories Household goods 36 3.5
and appliances 39
US, Indonesia and Accessories 40 (1.0)
Turkey 39
Apparel 34 2.3
men 36
Telecom products Food/ 33 1.4
groceries 34
and mens Toys/games/ 29 1.7
footwear video games 31
India, Russia, and Cosmetics/ 30 0.8
skin care 31
the UAE
Furniture/
home dcor
26 4.3
31
Sporting goods/ 26 4.4
Cosmetics equipment 30
Asia-Pacific, Russia Shoes
women
27 2.0
29
and CEE Telecommunications/
phones
23 4.5
27
Shoes
men
25 2.2
Pharmacy and 27
healthcare Apparel 22 0.8
children 23
products
Apparel Bags/ 20 1.5
Brazil and Greece leather goods 21
Perfume/ 18 2.8
cologne 21
Household Pharmacy/ 20 1.6
healthcare 21
goods Wine 15 2.7
Africa and the 17
Middle East Shoes 13 1.3
children 15
Fine jewelry/ 12 0.7
watches 13
Groceries 14
Baby (1.0)
UK and China products 13
Eyewear 12 0.8
12
Sporting goods
Pet food
and supplies
11 1.0
12
Finland Liquor 9 1.5
11
Beer 10 0.8
Childrens 10
clothing, toys
Artwork 5 1.1
6
and games
Percentage that purchased the Percentage planning to purchase
France product in the past 12 months the product in the next 12 months

Figure 1.3
Expected category growth by
generation: Percentage point difference
between last year and next year 5.9
4.8 4.7
3.6

3.1 3.1
2.8
2.5 2.6 2.6
2.1 2.2
1.9 2 2
1.8
1.5 1.5 1.6
1.4
1.1 1
.9 .8
.6 .7
.5 .4
.3
.7 2.1 .7 .6 2.2 .3
Artwork Eyewear Fine Pharmacy Perfume/ Bags/ Furniture/ Cosmetics/ Shoes Household Books/
jewelry/ /healthcare cologne leather home dcor skin care women goods and music
watches goods applicances Acces-
sories
Generational trends to buy a category such as household among Millennials. As Millennials

a closer look goods (Figure 1.3) is different. In this interest in art, comfort with buying
When looking at differences by age case, fewer household goods purchases art online, and disposable incomes all
group to spot trends, further analysis is by younger age groups is more likely grow, we see this as another category
required to determine when an apparent due to the age effect or cohort effect3, showing solid potential.
trend indicates sustainable future where behaviors are tied to age or stage
of life rather than to lasting attitudes.
Rise of international trade and
behavior, versus when it is simply due to e-tailers
a difference in age or income. In fact, as Millennials grow older, the
potential for buying household goods Cross-border shopping is on the rise
For example, contrary to the earlier online is probably quite strong. globally, driving international retail trade.
example suggesting that media sales As part of this study we looked at the level
may continue to decline even as Artwork is a small category in terms and nature of online purchases made
Millennials mature, the interpretation of of the percentage of total consumers outside consumers own countries.
this generations similar lower tendency buying it online, however this categorys
online sales seem to be growing quickly
Much of the future growth in ecommerce will be millennial-driven. In 2 or 3 years,

Millennials are forecasted to be the largest demographic in North America. As
Millennials delay leaving their parents house and delay getting married, they spend their
money on other things. Brands like Uber and Apple, and the craft beer industry have all
to some degree been ignited by Millennials. Grocery spending, on the other hand, has
been eclipsed by restaurant spend. Millennials like to share meals with friendsits all
about shared experiences.
Willy Kruh, Global Chair, Consumer Markets, KPMG International
3
https://en.onpage.org/wiki/Cohort_Analysis

Figure 1.4
Percentage of online purchases
imported from other regions 43
50

44 15
14 21
Western Europe
North America
35
Asia

Latin America
Figure 1.4 shows the percentage of online In Australia and New Zealand, the online (50 percent of purchases). This
purchases that consumers made outside percentage of online purchases is particularly true in the UAE, where
their own region. North American and imported from outside this region 58 percent of online purchases were
European consumers made the fewest was 35 percent, with 25 percent of importedwith 80 percent coming from
international purchases,14 and 15 those imports from North America Asia, North America and Western Europe.
percent respectively of their total online and Europe. The geographically more
In many countries, the tendency to
purchasesnot surprising given the remote location of these countries is
buy internationally is highest among
maturity of these markets, where the most likely one of the key drivers.
Millennials. This could indicate potential
popular products can already be sourced
The bottom three regions in Figure 1.4 growth for cross-border online shopping
domestically at competitive prices. 50
are the markets most likely to make as consumers increasingly seek unique
Asian consumers imports averaged 21 international purchases online. In or specialized products from other
percentalthough it varied significantly
40
Eastern Europe and Russia, 43 percent countries. In the US, for example,
by country. While Hong Kong, Singapore of all online purchases were imported, 15percent of Millennials recent
and Vietnam had significant imports at mainly from Asia (15 percent), Western purchases were imported, compared
31, 43 and 55 percent, respectively,
30 of Europe (13 percent) and North America to 9 percent for Generation X and just
their online purchases, other countries (8 percent). In Latin America, 44 percent 3 percent for Baby Boomers. It will be
such as Indonesia, Japan and India each of online purchases were imported, interesting to see how the new US
20
imported only 12 percent or less of their with nearly 60 percent of those imports administrations proposed focus on
online buys outside Asia. China, with 20 from North America. African and Middle domestic protectionism might affect
percent imports from outside Asia,10lay Eastern consumers were the most likely the trend for younger US consumers to
somewhere in the middle. to import consumer products bought shop outside the country.

Case study
Nespresso
Roger Staeheli, Country Manager, Hong Kong
Nespressos omni-channel Integrated channels and

Nespresso SA was
evolution customer relationships
founded by Nestl 30 Roger Staeheli, Nespressos Country The company is very clear on the role
years ago, to introduce Manager for Hong Kong, explains that of each of its channels, he says. Retail
Nespresso operates autonomously is very much about delivering the brand
a revolutionary system from Nestl, due to its unique direct- experience. Online is about Nespresso
of coffee machines and to-consumer (B2C) model that requires anytime, anywhere. Trade is focused on
the company to have their own sales machine sales and is a channel through
portioned encapsulated channels. The companys four B2C which we can recruit new members. The
coffee. Initially in 1986, channels include: retail boutiques, an Customer Relationship Center, which
online boutique, coffee machine trade used to be a transactional channel,
the company focused points, and call centers called Customer today is about building relationships.
Relationship Centers, where more than
on the corporate offices 1,000 coffee specialists offer support to
Typically, new customers that are initially
recruited through a Nespresso boutique,
market, and a few years Nespresso Club members.
then become online customers.
later expanded to selling Nespressos sales channel evolution Subsequently, these customers are
evolved in the opposite way than regularly invited back into the boutique
direct to consumers. that of many similar long-standing or shop to try new coffee innovations
Today, Nespressos retailers. After initially selling through to enable Nespresso to engage directly
its Customer Relationship Centers, with them. Since in most cases,
450 retail boutiques Nespresso launched its Nespresso customers are also members of the
website in 1996, began to take orders
can be found in 64 online in 1998, and opened its first retail
Nespresso Club, the company is able
to gain a good understanding of their
countries throughout boutique in 2000 in the city of Paris. individual customers behaviors and
preferences, therefore enabling them to
the world. Nespressos According to Staeheli, this progression
tailor their marketing campaigns or offer
from online to retail shops was born
boutiques are an out of necessity, rather than choice.
customers personalized experiences.
important branding and Thirty years ago, coffee that was sold Offline vs. online in Hong Kong
at retailers was instant coffee. So we
sales channel for the decided to retail our own products Despite the fast growth of Nespressos
ourselves. We first established the online channel, Staeheli highlights the
company, although the call centers then evolved into different two main challenges to ecommerce
fastest-growing part of channels from there. in Hong Kong. We want to offer our
online customers greater convenience,
their business in some Staeheli says the goal today is to offer but going out to the shops in Hong
a consistent experience to customers Kong is already very convenient, since
countries such as Hong across all channels, both offline and most households are within five to ten
Kong, is online. online. Its about consistency in the minutes of a mall. So to better serve
product, price and promotion. our online customers, we offer same-
day delivery during a certain period of
the day. The other challenge for Hong
Kong then becomes the high cost of
distribution.

Overseas born Australians have been a contributing factor to ecommerce growth. In
cities like Sydney, Melbourne and Brisbane with large percentages of overseas born
nationals, consumers have always been comfortable buying goods online as it was
often the only way to get the products they liked.
Trent Duvall, Head of Consumer Markets, KPMG in Australia
E-tailers dominate the online (69 percent), Italy (68 percent) and who are less prone to shop around for
marketplace South Africa (65 percent). The share for price and who prefer to buy from familiar
The rising power of e-tailers such as e-tailers in these countries is far above websites, made their most recent
Taobao, Alibaba or Amazon, to name the global average of 50 percent. purchase from an e-tailer, compared to
a few, is apparent around the world. Millennials with e-tailer purchases at 48
A trend of younger consumers being
Their dominance is particularly evident percent. Conversely, Millennials were
less likely than Baby Boomers to buy
in China and Indiawhere over 80 30 percent more likely than the Baby
from e-tailers could indicate a future
percent of online purchases were Boomers to buy directly from a retail
slowdown in this platforms growth.
from e-tailersas well as in Japan shops website (Figure 1.5).
Fifty-four percent of Baby Boomers,
Figure 1.5
Where most recent purchase was made (%)
5
5 12
11 5
8 10 7
6 7 6
18 13 10 10
34 33

42
5 27
34 35
Western Europe
11
10
North America
10
16 51 45
45 11
Asia
28 70
54 50 48

Boomers
46 43 An online-only retailer
Latin America
Retailers website
56
Manufacturer or brands website
29 Other
36

Figure 1.6
Preferred device for shopping online (%)

59 48
60 5 54
71 55
5
Western Europe
10 5 19 8
6 67 11
6
North America
8 4 9 6
10
27 18
29
Asia
25
63 20 28 29
6 Baby Generation X Millennials

7 Boomers
59
54

6 Laptop or PC
6 5
24 8 Smartphone
Latin America
Tablet
29 No preference
33
Device preference trends or laptops, while 17 percent said they evident in China, where 26 percent
Despite the global proliferation of preferred to use a mobile device and 27 favored a mobile device. As expected,
mobile smart phones and tablets, percent had no preference (Figure 1.6). Millennials were the generation most
the majority of consumers still prefer likely to use a smartphone for shopping
Device preferences varied significantly
traditional desktop PCs or laptops when (11 percent of recent purchases)
by region, with Asian consumers being
shopping online. More than half (57 although 54 percent of them still used
more than twice as likely (19 percent) as
percent) of online purchasers globally a laptop or desktop PC for their most
the global average (8 percent) to shop
said they prefer to use desktop PCs recent online purchase.
on a smart phone. This was particularly
One of the reasons that China is so mobile-centric is because third-party payment

systems using mobile apps are widely accepted in China both online and in shops.
Chinese consumers are unique in their high confidence in third-party payment systems.
Another120 reason is the high penetration
120 of smartphoneslargely due to the number of
local manufacturers and competitive prices. Lastly, a lot of people have leapfrogged to
ecommerce
100
because of the lack of
100
shops or brands available to them. The smartphone
literally
80
brings shops to rural consumers
80
for the first time.
Jessie Qian, Head of Consumer Markets, KPMG in China
60 60
40 40
20 20

2017 KPMG International
0 Cooperative (KPMG International). KPMG International
0 provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Companies should be channel agnostic, meaning it does not matter if they start with
online or offline, what matters is that all channels are interlinked to give consumers the
convenience they need. Online plays a major part in the customer journey or ROPO
(research online, purchase offline). The most successful multi-channel companies
established their online channels as early as the late nineties, went on to establish click
and collect, eradicated silos across the entire organization and established a channel
agnostic incentive program so retail staff do not consider online as a separate business.
Paul Martin, UK Head of Retail, KPMG in the UK
Smart phones keep offline (79 percent), CEE (78 percent) and the generation of respondents said they
shoppers connected US (77 percent), whiles many European had checked their mobile devices while
While mobile may not be the most consumers are about 10 to 15 percent in a shop.
preferred online sales channel, over two- less likely than average to look up
What were consumers looking up?
thirds of the consumers said they had products online while out shopping.
Comparing prices was the main reason
used a smartphone for product research Millennials in all regions were more for doing online research while out
while in a physical shop (Figure 1.7). likely than their older counterparts to shopping, followed by looking up
This was particularly common in look up information on a smartphone product information and checking online
Singapore (83 percent), Brazil while out shopping (77 percent). reviews (Figure 1.8).
However, even half of the oldest
Figure 1.7 Figure 1.8

Percentage of consumers that have Percentage of consumers that looked
used their smartphone to look up a up the following information about a
product while in a shop product while in a shop
77% 65% 61% 49%

70%
Price comparison with Product information/ Online

other retailers specifcations reviews
50%

35% 16%
Product options Store inventory/

(e.g. color, size, style, etc.) availability
Boomers

The path to
purchase
journey
The path to purchase is a traditional consumers decisions during a typical
shopping concept that has evolved online transaction, a simplified cyclical
significantly over the past decade due path to purchase model was used for
to the internet, digital innovation and this study (Figure 2.0). Respondents
the subsequent rise of online shopping. were asked to describe their behavior
Although the digital revolution hasnt during their most recent online
altered the fact that consumers transaction at each of four stages:
still experience the same stages of
Awareness
awareness, consideration, conversion
When they first became aware of or had
and evaluation, the journey itself has
a desire for the product
changed. Instead of a path to purchase
that is traditionally linear, it has Consideration
become more of a cycle or even a web. When they were researching the
Consumers move through and back and product online or offline
forth between the stages, influenced
Conversion
by a myriad of both offline and online
When they were deciding where and
factors at every stage.
when to buy the product
In order to investigate the drivers,
Evaluation
motivators and inhibitors affecting
After they made the purchase
To create loyalty with Millennials, brands need to first cover

the basicsthat means top notch customer service and
quick, individualized responses, through the channels they
use such as social media and messaging. But beyond that,
brands need the right content strategy. They need to engage
Millennials with communications that are both entertaining
and informative. Elements of gamification or exclusivity can
work well. Some of the footwear brands that are popular
with Millennials use limited editions to create product and
brand buzz. Millennials will line up physically and digitally to
get their hands on these exclusive products.
Joel Benzimra, Global Advisory Lead for Consumer Markets,
KPMG International

Figure 2.0
Simplified path to purchase
Stages of the online purchase journey
1. Awareness:
triggers and
influencers
4. Evaluation:
experience
and feedback 2. Consideration:
product and
company research
30 Online: 59% Offline: 52%

22
3.
16.7
Conversion:
15
where and
15 15 when to buy 13
12
9 are effective in creating

Stage 1 Awareness:
10 10 Using a multi-channel strategy offline channels 8
to create awareness consumer awareness and demand,
triggers and influencers 7
Retail websites or online shops were especially when they are used together.
When comparing the impact of
the most common source of initial This is true for both corporate-controlled
online versus offline touchpoints in
product awareness, cited by nearly channels (shops, websites, advertising),
creating the first trigger moment, it is
a third of consumers, and online as well as third-party sources of
interesting to observe that 52Inpercent Awareness:
In an online shop a social media postadvertisements
or blog were Incited by 15
a physical
triggers and shop information. After
I saw a friend with websites,
it shops or
ofInconsumers cited at least one offline
an advertisement In an email promotion percent. At the same time,with
Talking
influencers physical
my friends online advertising, orthe
in a print magazine newspaper
most common
channel as review
a source of initial awareness,
In an online article orshops
In an online magazinewere the second most
Talking withpopular
my family I saw it on TV or in a movie
sources of product awareness were
and 59 percent cited one or more online
source of awareness, cited by online reviews (cited by 15 percent),
channels (Figure 2.1).
22 percent of consumers. talking with friends (15 percent), social
Evaluation: Consideration:
experience
Ecommerce is clearly far from being product and media (13 percent) or seeing a friend
and company with it (12 percent).
an online-only affair. Both online and
feedback research
Conversion:
Figure 2.1
deciding where and
Channels where consumers saw the product before purchasing
when to buy
Any online Any offline

channel: 59% channel: 52%
30%
22%
15%
15% 15% 13%

12%
10% 10% 9%
8%
7%
Online shop Social media post or blog Physical shop Saw a friend with it
Online Email promotion Talking to friends Print magazine or newspaper
advertisement Online article or magazine Talking to family On TV or in a movie
Online review

Consumers increasing reliance on by online sources such as social Stage 2 Consideration:
peers or ambassadors means that media or peer reviewsthey are also
customers are among the most more likely to be influenced by offline product and company
influential promotional conduits for channels. Millennials were 25 percent research
companies. Both online and offline, more likely than Baby Boomers to have
During the consideration stage, the
the frequency of peer opinions as seen their most recent purchase in a
importance of online channels continues
top awareness influencers highlights shop, nearly 50 percent more likely
to prevail, with the top two channels for
the significance of creating brand to have talked to a friend about it, and
research being online reviews (cited by
ambassadors and delivering a positive more than twice as likely to say they
55 percent of respondents) and company
customer experience. saw a friend with it (Figure 2.2).
websites (47 percent) (Figure 2.3).
Awareness triggers by Although Millennials are certainly digital
Offline channels are also a significant
generation natives first, they are also at least as
source of information, with 26 percent
Millennials are not only more likely than active and influenced as their parents
of consumers saying they visited a
the older generations to be influenced are beyond the digital world.
physical shop during the research stage
and 23 percent saying they spoke to
Figure 2.2 friends or family about the product.
Offline channels where consumers saw the
product before purchasing, by generation
24%
22% 17% 17%
18%
13%
12%

11%
8%
Physical shop Talking with friends Saw a friend with it
Figure 2.3
Percentage of consumers using the following channels to
research products they bought online
26% 23%
55% 47%
Online search for reviews and Visited the Visited physical stores Spoke with my friends
recommendations company website to see, try or fit the product or family about it

Case study
Ryohin Keikaku (Muji)

Kenji Takeuchi Executive Officer
Targeting different segments

Muji, founded in the Mujis target market is not based solely goes home and is able to measure and
on demographics, but on market size see if it will fit in their space. To allow
1980s, is a globally and respective consumer behaviors. customers to then purchase the items
renowned Japanese We target customers who are
trend-conscious and are leading total
online, we ensure that they can be
easily ordered and quickly delivered.
retail brand selling more consumer spending in each region. For
example, Generation X are the main Communicating content instead
than 7,000 household target in Japan because they have a high of specific products
goods, apparel and food interest in shopping, and also have the
Muji does not advertise their specific
disposable income.
items. Their products products but instead relies on
In China, on the other hand, Millennials consumers seeking new trends, styles,
are sold both through are the main target because we regard and information. According to Takeuchi-
their online store, and in them as the most up-to-date on trends
and they are highly engaged digitally,
san, Our advertising style is focused
on the communication of a concept.
over 700 shops around says Takeuchi-san. He also notes that, We use our online asset MUJI.net
In Japan, where the retail market community and online loyalty program
the worldmainly in is very mature, there are not many MUJI passport to communicate
Japan, as well as in over differences between generations in concepts and provide information
terms of online shopping. The only that can be shared on Facebook or
26 other countries. As difference Muji sees is that Millennials Instagram, to entice consumers to visit
an Executive Officer at contribute to information diffusion, our website or stores.
while Generation X consumers lead in
Ryohin Keikaku (RKJ), consumption.
Muji uses its loyalty program to
encourage customers to provide
Kenji Takeuchi is in charge Muji is a true omni-channel feedback and promote the companys
products online. Members receive
of Mujis corporate retailer
MUJI Miles not only for making
planning, finance and IT. Muji actively pursues synergies purchases, but also for checking into
between its offline and online channels, stores, posting product comments or
and they have formal key performance participating in other promotions.
indicators (KPIs) in place that ensure
Japan business leads in these synergies are maximized. Online community is a point of
ecommerce According to Takeuchi-san, The number differentiation
of customers that visit our shops is a
Ecommerce is a key part of Mujis The MUJI.net community is considered
KPI for our ecommerce division. One of
business, although there is still to be an area of differentiation for
the objectives of that group is to direct
room for growth in their online sales, Muji. The brand has developed a loyal
consumers shopping online to come
especially outside of Japan. According member base through this community,
into our physical locations.
to Takeuchi-san, In Japan, Mujis online with which they regularly communicate
transactions account for around 10 In addition to online to offline, Takeuchi- regarding trends and products. Takeuchi-
percent of total sales, whereas in other san discusses how their customers san explains, We provide interactive
countries it is lower; in Germany and also go from shopping offline to online. content, and columns to publish our
China for example, only about 4 percent Furniture is a category that people views on social issues, and we engage
of sales come from online. often prefer to shop for in person, so customers in product development by
they can see and touch the products. asking for their ideas and opinions. This
However, the final purchase decision contributes to building loyalty among
may not be made until the consumer our customers.

Millennials are 50 percent more reliance on online reviews vs corporate price and promotions, product features
likely than Baby Boomers to websites than other regions (Figure (23 percent) or brand reputation (22
visit a store 2.5). This comparatively lower trust percent) were also commonly identified
in corporate content can be a risk for as the top considerations when making
As in the awareness stage, Millennials
companies in these regions since they a final product choice (Figure 2.6).
are more likely than both Generation X
lack control over messaging and product
and Baby Boomer consumers to use Product decision factors varied by
information contained in consumer
offline channels during the consideration category. For fashion, food and
reviews. In addition to having informative
stage. While online reviews and product luxury items, brand reputation was a
websites, these companies need to pay
websites are most frequently consulted, particularly important consideration,
particular attention to ensuring that have
Millennials were also nearly 50 percent although price was still the top decision
favorable reviews on social media and
more likely than Baby Boomers to factor (especially for luxury items, cited
other third party forums.
research a product by visiting a store or by 33 percent). For cosmetics, however,
talking to friends and family (Figure 2.4). Factors driving final product brand reputation and online reviews
decisions were the leading considerations (27
Trust in online reviews vs
Overall, price or promotions (identified and 21 percent respectively), and for
company websites varies by electronics, product features were most
region by 27 percent of respondents) were
the factors most likely to influence important (25 percent), closely followed
In Asia, Eastern Europe and Russia, consumers decision regarding which by price, brand reputation and online
consumers seem to put a much heavier product or brand to buy online. After reviews (each cited by one-fifth of the
electronics buyers).
Consumers are firmly in charge today and they are looking at personalization of services.
Todays consumer is more similar to the 1920s consumer with a personal relationship
with shopkeepers. Therefore, big data is important retailers should understand
what individual consumers buy and what they do. They should cater to consumers as
individuals.
Paul Martin, UK Head of Retail, KPMG in the UK
Figure 2.4
Channels used to research online purchases by generation
Online channels Offline channels
56% 56%
52%
48% 48%
45%
30%
26% 27%
20% 19% 20%
Did online search for Visited the Visited physical stores to see, Spoke with my friends or
reviews & recommendations company website try or fit the product family about it

Figure 2.5
Percentage of consumers using the following 64
channels to research online purchases by region 66
50
52 48
44
44
5 42
42 Online channels

32 30
11
22 25
25 19 3131 Did online search for
Western Europe
55
reviews & recommendations
North America
55 50
Visited the
49
53 company website
49
Asia
28 2222

20
Latin America
20
16
Offline channels
Visited physical stores to see,
try or fit the product
Spoke with friends or

family about it
Figure 2.6
Factors driving purchase decisions Decision factors by region In Asia, on the other hand, brand was
Consumers in Australia, New Zealand, typically more important than price,
particularly in China and India, where
27% Price/promotions
Canada, France, Belgium and South
23% Product features

Africa were most likely to be influenced brand reputation was cited twice
22% Brand as often as price (31 percent vs 15
by price or promotions. In these
17% Online reviews
countries, more than 38 percent of percent). Asian consumers, especially
5% Newest trends
or arrivals consumers said price and promotions in China, Japan, Hong Kong and India,
4% Peer influences/ were the factors that drove their most were also more likely than consumers
recommendations
recent product choice. in any other country to base their final
2% Complementary product decision on online reviews
products
(Figure 2.7).
Figure 2.7
Factors driving purchase decisions by region
12% 19% 9% 15% 13%

27% 22%
12%
22% 38% 19%
17%
23% 22%
15%
17% 29%
24% 19% 26%
Asia Australia or North America Eastern Europe

New Zealand or Russia
11% 9% 9%
Price/promotions
30% 13% 29% 16%
16% 34% Product features
Brand
Online reviews
18% 24% 24% Other
25% 25% 17%
Western Europe Latin America Africa and

Middle East
Stage 3 Conversion: Figure 2.8
deciding where and Most important attributes when

deciding where to buy
when to buy
In the conversion stage of the online Best 36%
price
purchase journey, the consumer
exercises two decisions: where, and Preferred
website
30%
when, to buy a product. In the online
Best delivery
shopping arena, however, successfully options/price
17%
engaging consumers during the first two
Stock 40%
stages of the purchase journey far from availability
14%
guarantees success in the third stage. Peer 35%
advice 2%
Informed online consumers will not 32%
Returns 31%
hesitate to glean their inspiration and policy 1%
information from one or more sources, 27%
only to buy from another. Understanding Report, KPMG International, 2017
the priorities of different types of
consumers during this critical stage
can give companies the advantage they Generally speaking, the decision factors or being relatively more online savvy
need to win the coveted final sale. most often considered by consumers or comfortable with online shopping in
Deciding where to buy choosing vendors were consistent general.
across age groups, although Millennials
As during the final product decision Having a trusted website will always
were considerably more likely than the
stage, price remains as the most be important,Preferred
but even asBest
Millennials
older generations to choose aPreferred
vendor Best
common consideration when consumers website incomes grow,
price competitive
website pricepricing
based on price than website preference
are deciding where to buy (Figure 2.8), is expected to continue to rise in
(Figure 2.9). This could partly be due to
particularly in certain categories such importance during vendor selection.
Millennials lower disposable incomes,
as electronics. Having a website that
consumers like and/or trust is also
Figure 2.9
important, especially in Asia, where
consumers said buying from a preferred Top attributes when deciding where
website was more important than price. to buy by generation
In developed nations such as North
America, Australia, New Zealand, and
Western Europe, stock availability
was a higher priority than in it was
for consumers in other countries,
particularly when buying fashion or 27%
luxury items. Consumers buying fashion
31%
items were also on average three times
33% 33%
more likely to choose a vendor based on 31%
their returns policy.
27%
Baby Generation X Millennials Baby Generation X Millennials

Boomers Boomers
Preferred website Best price

Case study
Grana
Luke Grana, CEO
Winning and creating loyal

online customers
GRANAs fun and cheeky social media
Luke Grana is CEO presence boosts rapport and in turn,
brand loyalty, with their customers. They
and Co-Founder of the boast over 23,000 likes on Facebook, Returning customers comprise 50
as well as over 24,000 followers on
innovative online fashion Instagram. It is on these social media
percent of GRANAs sales. Luke
attributes this loyalty to quality, pricing,
retailer, GRANA. He, platforms where they interact with their swift delivery and attention to customer
core market of Millennials, in a way servicesuch as the personalized
along with Pieter Paul that goes beyond just showcasing their handwritten thank you cards that are
Wittgen (COO and Co- fashions. included with each delivery, or the real-
time live chat option available on their
Founder), have overseen Never having invested in traditional
advertising or promotion methods, website.
the companys growth GRANA instead relies on social media,
Looking at the future
digital campaigns and word-of-mouth
from a small startup recommendations to build brand Initially, GRANA experienced most of
just two years ago to awareness and drive online conversion. their sales in Hong Kong where it is still
To support their ecommerce platform, strategically headquartered. However,
an international brand, GRANA has also created over twelve their highest growth market is now the
now shipping to twelve pop-up stores in Australia, Hong Kong, US. The company is planning to open
their next pop-up showroom experience
Singapore and the US, in addition to a
countries. GRANAs core flagship showroom called The Fitting in New York City, in an effort to increase
Room by GRANA, located in Sheung their US customer base even further.
aim is to manufacture Wan, Hong Kong. The startup also recently attracted
and sell high-quality These physical locations serve a
Alibabas Entrepreneur Fund as a new
investor, and with their support, GRANA
clothing at affordable dual purpose: they introduce the
plans to enter the mainland China
brand to those who have not already
prices, by cutting the encountered it online, and they allow
market in 2017, complete with a Chinese
language website.
costs associated with both new and existing customers to
Were really excited to have investment
feel the fabrics and try on clothing to
most traditional sales and find the right fit. Although The Fitting support from Alibaba, and were looking
Room and pop-ups carry no inventory, forward to working closely with their
distribution channels. the buying experience is easy for those team to enter the mainland market,
unaccustomed to online shopping, as says Luke. Chinese consumers have
staff are at hand to help customers already matured when it comes to the
order items online, on the spot, for adoption of online shopping, and we
delivery to customers homes. see tremendous potential there in the
medium-to-long-term.

Stage 4 Evaluation: America (Brazil to a lesser extent) were Figure 2.11
also more likely than average to share Type of feedback most recently
experience and feedback feedback online. On the other end of the shared online
In a circular or web path to purchase scale, consumers in Australia, Japan and
model, the evaluation stage is at least many Western European countries were
as important as, and inextricably linked the least likely to post a review.
with, the awareness and consideration
Younger consumers were more likely 92% Positive
stages. Positive customer experiences 2% Negative
to post a review online, a consumer
are critical in generating loyalty and 6% Neutral
behavior trend that will likely continue
repeat purchases, and in an era of social
even as they get older. This means
media and increasingly trusted peer
that as the more vocal and digitally
reviews, voicing customer experiences
engaged younger consumers comprise
can significantly influence future Source: Global Online Consumer
an increasingly larger portion of the Report, KPMG International, 2017
buying decisionsboth positively and
consumer base, online feedback will
negatively. consumers to post positive reviews is
become a more frequent and influential
driven by many trends, including the
The rise of online feedback part of the marketing mix.
rise of social media, where consumers
Around 30 percent of online consumers Reviews are generally subtly compete with their peers by
said they posted product feedback publicly sharing their latest purchases
positive
online and, in Asia, consumers were and experiences; the rise of bloggers
nearly 50 percent more likely than A significant majority (92 percent) of
the reviews that consumers across all whose business models are based
average to post a review (Figure 2.10). on providing product reviews that
Consumers in the US, Turkey and Latin age groups shared online were positive
(Figure 2.11). The growing tendency for drive affiliate clicks; and sellers who
proactively solicit ratings from happy
customers.
Figure 2.10
Percentage of respondents who
shared product feedback online
43
35
26
22
34
Western Europe
30
North America
29
28
32
Asia

Latin America
14

Boomers

Snapchat 3
Pinterest 3
Other 21
The older consumers are very concerned Figure 2.12
about data privacy and hence trust in Sites where consumers shared
feedback (%)
the companies they buy from and share
information with is important. On the Sellers website 47
Facebook 31
other hand, younger consumers are Manufacturer or
18
brand website
less concerned about privacy. As long as WhatsApp 17
they can gain a benefit from sharing their Instagram 12
Online forum 11
information, they will do it. This trait will WeChat 11
become mainstream in the future. Blogs 10
Twitter 9
Stephan Fetsch, Head of Retail, KPMG in YouTube 4
Germany Snapchat 3
Pinterest 3
Other 10 21
Increasing influence of customers who are likely satisfied and mastered this approach, but most
social media willing to post a positive review. brands have yet to fully do so.
Understanding where consumers are Generational trends indicate an Regionally, there is variation in the most
posting feedback can help companies increasing use of social media sites such popular social media platforms (Figure
become more proactively engaged in as Facebook, WhatsApp, Instagram, 2.14). Although Facebook is the most
monitoring, managing and fostering blogs and Twitter for posting and common platform in nearly all regions,
positive online customer reviews. reviewing feedback (Figure 2.13). it is by far the preferred choice in
Currently, consumers are most likely to The implication for companies is that NorthAmerica and Australia. Instagram
post directly to seller websites (Figure user-generated reviews are being and Twitter are predominantly North
2.12). Many popular online sellers have posted on sites that are increasingly American channels, and WhatsApp is
feedback mechanisms built in to solicit beyond their sphere of control or particularly popular in Hong Kong, India,
comments from customers shortly influence. Companies will need to Africa, and Latin America. In China,
after their purchase has been received. actively integrate these social media where many US-based social media
By waiting a few days for unhappy sites into their marketing and customer channels are not available, WeChat
customers to register a complaint strategies. Many digitally innovative dominates, although its use is virtually
or return a product, savvy sellers retailers and brands have already exclusive to that country.
can selectively reach out to those
Figure 2.13
Sites where consumers shared feedback (%) by generation
49
46
43
34
29
25
22
18 17 18
16 16 17
12 12 13
9 9
11 10 11 10 10 10
6 5 5
3 4 3 3 3 4
1 2 1
Sellers Facebook Manufacturer Instagram Twitter Online WhatsApp Blogs WeChat YouTube Snapchat Pinterest
website or brand forum
website

62
Figure 2.14
Most popular social media
40
sites for feedback (%)

by region 29 25
Western Europe
25
North America
15
17 27
15
8 8 21
5 10
8
6 1 5 14
1 10
8
6 WeChat
Asia
Blogs

29 WhatsApp
38
23 42 Twitter

Instagram
26
12 Facebook
10
Latin America
6
2
1010
16
6
8
5 3
2
Cycle duration surveyed made their purchase within Although the survey results revealed
a week of awareness or desire. Nearly that some consumer segments such as
Short decision cycles leave
one-third of the respondents said Millennials or Eastern Europeans and
little time to influence potential they purchased the item on the same Russians, seem to take comparatively
customers day. This brief window for brands to longer to make purchases, in general,
For the majority of online transactions, influence potential customers makes there was little variation in the length of
the path from awareness to conversion it critical for them to understand what time spent in each stage based on age
is very short71 percent of consumers drives consumer behavior and decisions or geography (Figure 2.15).
at every stage.
Figure 2.15
Length of purchase cycle by region and generation (%)
3
2 2
4 7 1
4 7 3
6 7 5
15 16 15
19
3
5
6
34 1 2 2
39 38
2 44 3 4
Western Europe
16 4
3 6 6
North America
2 7
8
5 13
25 7 16
32 19
Asia
39 20 32
15
43
41 40
41
40 36
29
Latin America
36 33 27
27
35 Boomers
The same day 2-4 weeks

Less than 1 week 1-3 months
1-2 weeks More than 3 months

Case study
TFG Group
Offline shops are here to stay
Connected to the above, Cooke
believes that offline retail is not at all
under threat with the proliferation
of online retailers. She comments:
Online only retailer businesses in
Robyn Cooke South Africa are difficult to sustain
Head of ecommerce because most are working on funding,
and there is a lot of pressure to get to
a profitable level. It is still questionable
how this will pan out for the pure
TFG is one of the leading higher than average 1.5 to 2 percent of e-tailer players in the market.
independent retail all sales is transacted online, well ahead
Future developments in
of the market, and Cooke expects this to
groups in South Africa. It grow to 5 percent in the next few years fashion retailing
has grown to 22 different based on an annual growth rate of 30 to TFG foresees that in the future they
40 percent. will offer more trendy shopping micro
retail brands, with 3 sites, driven by shoppers need for
Replenishment buying not all
operating internationally fashion purchases require touch
convenience. This can be in the form of
event categories such as weddings or
and the rest in South and trial music festivals, or it can be in the form
Africa. Robyn Cooke Cooke agrees with the finding in this of lifestyle trends such as nesting. TFG
report on the importance of allowing believes they can leverage their diversity
heads the ecommerce customers to touch and feel products, by providing all the products within
these categories on one platform.
division for TFG globally and that it can be a barrier for online
sales. However, as per Cooke, about
and as she previously On developments in payment
60% of TFGs online sales are for
methods, WeChats global
served in ecommerce replenishing products; items that
consumers purchased previously and expansion
roles in other regions where they like to buy another color South Africa has been a credit-driven
or type. As there is less of a need for
she has a uniquely global touching and trying the product for
market, through private label credit
offered through stores. However, this
perspective on what these scenarios they are excellent is becoming more balanced with cash
ecommerce growth opportunities. payments increasing in recent years,
makes ecommerce in In addition, within TFGs segment of which are managed through mobile
South Africa different. disposable fashion the need to touch, payments or electronic fund transfers.
feel and try fashion is less important Furthermore, WeChat, in combination
than in other fashion segments. with SnapScan offer South Africans
TFG: aiming to grow
in-store mobile payments.
e-commerce business by 30-40 Online-only retailers limit
percent customers choice Innovative solution for secure
While currently 11 of its 22 brands are When talking about online to offline and convenient delivery
trading online, TFG is on a 5-year trajectory conversion and vice versa, Cooke fully Unique challenges in South Africa
to get all 22 brands trading online. agrees to the advantages of having a drove TFG to find an innovative delivery
multi-channel online and offline retail solution. Most consumers in South
According to Cooke, the average
platform. Consumers are neither online Africa are not at home during regular
contribution of online sales for
or offline, they just choose what fits them hours to receive packages, and there
businesses in Africa is just around 1
best each time. Says Cooke: Within our is a high crime rate. To meet the need
percent today. She says that this puts
platform, customers are able to check to provide a secure and convenient
South Africa still in an earlier stage of
store stock levels online so they can pick- delivery option, TFG collaborated with
ecommerce adoption: If we would say
up their desired item in a store. In terms a start-up company that works with
the US is in year 17 or 18 of ecommerce
of returns, they can choose to return a network of video stores and 24-
adoption, then comparatively South
items to physical stores if that is easier hour petrol stations to provide secure
Africa would be in year 5 or 6. Its
for them. I feel that online-only retailers locations where customers can pick up
a young and nascent market, but
limit consumer choice as they cant offer their packages at any time.
strategically very important. For TFG, a
these types of benefits.

Figure 2.16
Purchase duration by product category and price (%)
31 1
5
41
6 4 5 42
17 9
29 11 32
15 17
47
21 37
41 The same day
46 42 Less than 1 week
1-2 weeks
Cosmetics Electronics Fashion Food
2-4 weeks
1 1-3 months
51 3 52 3
7 5 8 20 More than 3 months
8
31 25
14 36 14
17 Source: Global Online
20 Consumer Report, KPMG
International, 2017
21 34
39 41 40
Luxury Below US$100 US$100-$500 Over US$500
While the tendency for Millennials to While consumers are less likely to with longer cycles have more time
be more time-rich and cash-poor purchase electronics, luxury goods, and opportunity to influence buying
than older generations can help explain household furniture or appliances on decisions during the consideration
why they might spend more time doing impulse, food and other consumables processprovided they know when
research, the average time that online such as beer, medicine, alcohol and pet potential customers are in this stage,
consumers took to make a purchase food were frequently purchased on the and what sources they are using to do
was more related to the type and value same day. Books and music also often fell their research.
of product being bought. into the impulse category (Figure 2.17).
Impulse categories present another
Electronics, especially For products of relatively lower value, type of challenge for consumer
telecommunication devices, had the and where consumers are already companies. Consumables are
longest purchase journey, due to more familiar with the products on offer usually products that consumers
time typically being spent comparing (often regular purchases), the evaluation buy repeatedly, or sometimes buy
product features, researching the latest stage is often skipped completely impulsively on trial. While its important
trends and innovations, or finding as consumers move straight from for brands selling consumables to have
the best price or promotion. Luxury awareness to conversion. positive online reviews and informative
products also had relatively longer sales websites, marketing to consumers
In general, sales cycles are longer for
cycles, although 70 percent of luxury before they even reach the awareness
higher-priced items and products that
purchases were still made within a week stage, or promoting relevant products
consumers typically buy less often.
(Figure 2.16). right at the time of purchase, is going to
Brands and retailers selling products
have the most impact.
Figure 2.17
Impulse vs longer cycle categories
Most impulsive Percentage of purchases Least impulsive Percentage of purchases

categories made same day categories made same day
Food/groceries 51% Telecommunications/phones 10%

Beer 49% Furniture/home decor 14%
Pharmacy/healthcare 46% Electronics/computers/peripherals 15%
Wine 44% Household goods and appliances 18%
Books/music 43% Fine jewelry/watches 18%
Pet food and supplies 41% Sporting goods/equipment 18%
Liquor 36%

Understanding
consumer attitudes
and motivations
What drives a customer to buy online Whats driving the shift to
or offline in the first place? Why do they online?
trust some companies or websites over When consumers were asked what
others? And what motivates someone factors motivated them to buy online
to become a repeat customer or loyal instead of going to a shop, the top
ambassador? Understanding these reasons were time flexibility and cost
consumer sentiments is critical for savings (Figure 3.0).
companies when formulating their
brand, market positioning and overall Consumers also said they preferred
experience offering. shopping online to avoid the negative
experiences associated with going
out to shopsthese consumers in
Figure 3.0
Reasons consumers shop online
instead of in stores
Ability to shop 24/7 58%

Ability to compare prices 54%
Online sale/better prices 46%
To save time 40%
Convenience of not
going to shops 39%
Greater variety/selection 29%
Free shipping offers 29% Convenience
Convenience of Price-related
everything in once place 27% Push from offline
To locate hard to find items 20% Ease of selection
Free shipping
To avoid crowds 15% Only option to buy
Products are not sold in
my city/country 15%
To avoid checkout lines 11%

Figure 3.1
Percentage of consumers who shop
online to avoid crowds by country
a way are pushed online by the Another key driver for some who are product availability or selection is limited,
inconveniences of traveling to a buying online is access to products or where much of the population lives
shop, being in a crowd, or standing in not otherwise available in local shops. in remote areas with limited access to
checkout lines. This was particularly Although on average this was one of shops or certain goods.
evident in some countries with densely the least common reasons for shopping
populated cities. Consumers in China, online, in certain regions such as Latin Overcoming the hurdles to
India and Singapore (Figure 3.1), for America and Asia-Pacific, it was cited as selling online
example, were the most likely to say a top reason by a quarter to nearly half Although the percentage of total retail
crowd avoidance was a top motivator to of all consumers surveyed. sales made online is unquestionably
shop online. growing, on average, the majority of
The countries where consumers consumer purchases are still made in
were most likely to shop online out shops (Figure 3.2).
of necessity tend to be those where
Figure 3.2
Online retail sales as a percentage
of total retail sales
(US$ trillions) 2015-2020 $4.1 As more advances in technology such as
blockchain or payment apps emerge, the
$3.4
move to cashless societies will create
$2.9
new ways for retailers and online brands
$2.4 to offer benefits to customers. Banks
Source: eMarketer, Aug 2016
14.6%
$1.9 13.0% and other payment technology providers,
$1.5 11.5%
including credit card companies, need
10.0% 7
8.7%
to be aware of these changes and join
7.4% the game, or risk losing their leading
positions.
2015 2016 2017 2018 2019 2020
Willy Kruh, Global Chair, Consumer Markets,
Ecommerce sales Ecommerce as a percentage of total retail sales
KPMG International

Figure 3.3 As part of an integrated
Reasons consumers shop in stores customer-centric business
instead of online
model, customers expect
I want to see/touch
item first
56% that goods can be delivered
I want to try
the item on 55% or picked up wherever they
Concerned products
look different 41% are located. They want their
Delivery takes
34% orders consolidated, they want
too long
Shipping costs are
25%
shipping bundled with service,
too high
Product is too valuable
and they want to be able to
24%
to buy online
Enjoy the experience of Touch/try product
return things easily. In order to
23%
going to the shops Shipping meet these growing demands,
I have to go to the
shop anyway 16% Enjoy experience companies need either better
Other
I want to verify
the authenticity 15% distribution systems or partners
Return process is
too complicated 14% that can do it better for them.
Do not trust
online security 13% Julio Hernandez, Global
I want to talk
11% Customer Lead, KPMG
to a salesperson
Source: Global Online Consumer International
Only 23 percent of consumers said photographs with 360 and zoom Winning the online consumer
they prefer visiting shops to enjoy the viewing, free fabric swatches by mail, As explained in the previous chapter,
shopping experience. Most often, it is satisfaction guarantees, or easy returns, during the conversion stage, having the
because they want to see, touch, try to name a few. most competitive price wont guarantee
on, or verify the appearance or features a sale. Although price was cited by 57
As consumers continue to shift their
of a product before buying (Figure 3.3). percent of consumers as a top factor
shopping to online, retailers who
Retailers looking to drive online sales of in deciding which website to buy from,
understand the factors motivating them
products that consumers are less willing the next key attributes were enhanced
to shop online or in-store will be better
to buy sight unseen may use strategies delivery options and easy return policies
positioned to create sales channels that
to persuade them to shop online. These (Figure 3.4).
meet their customers evolving needs
might include providing comprehensive
and preferences.
sizing and measuring charts, detailed
Figure 3.4
Most important company attributes when deciding where to buy
The lowest price I can find 57%
Enhanced delivery options 43%
Easy return policy 40%
Payment options 34%
Ability to see if the
product is in stock 33%
Information about product
ingredients/sources
26%
Consistent & seamless shopping
experience across channels
23%
Incentive program or reward for new

customers
21%
A promotion that is 21%
tailored for me
Ability to buy online
and pick up 20%
A limited time promotion 16%
Social media presence 10%
In China, delivery options ranked even with buying products online without Payment options need to be
higher than price, and in India and seeing them first, they are almost twice regionally tailored
Turkey, easy return policies was the as likely to say theyd rather visit shops Payment options ranked fourth (by
most commonly cited attribute. to get their product right away, rather one third of consumers) among key
than buy online and await delivery consideration when selecting a vendor.
Millennials less willing to wait (Figure 3.5).
for delivery Consumers in Eastern Europe and
Companies will need to continually certain Western European countries
Millennials have a much higher
innovate to shorten delivery times such as Germany, Belgium and Greece,
demand for instant gratification than
and satisfy increasingly demanding as well as in Russia, India and Latin
older generations. Although younger
consumer expectations. America, were especially likely to say
consumers are increasingly comfortable
a companys payment options are
important, and in many cases even
more important than their options for
delivery or returns.
The majority of payments for

online purchases in India at the Figure 3.5
moment are cash on delivery Reasons consumers shop in stores instead of online by generation
(COD). This is driven by the
high proportion of unbanked
population, and the low credit
card penetration. However,
there has been an increase
in use of credit cards, debit 62%
cards and e-wallets in the past 57%
53%
one and a half years since the
government has announced

the demonetization move, a 39%
big push to curb black money 33%
in India. The banks as well are 23%
educating their customers
and driving them to use other
methods of payment. Still Baby
Boomers
Generation X Millennials Baby
Boomers
Generation X Millennials
though there is a long way to I want to see/touch the Delivery takes too long
go because the online payment item first
systems are not yet well
developed.
Rajat Wahi, Head of Consumer &
Retail, KPMG in India

Figure 3.6
5
Percentage of consumers
5 that use payment 5
11
method by region8 7
65
67
51 71
49

42
39 36
40
29
Western Europe
30
10
North America
23
13
9
79 8 5 10
9 4
6 15 16
4 11
77 1113 75
5 Bank credit card
Asia
PayPal
42 Debit card
54
Bank transfer

35 COD
43 Gift card
25 32
Latin America
30
15 24
20
6 14 11
3 8
8 3
Globally, credit cards are the most Younger consumers are less simply reflective of younger consumers
common payment methodmore likely to pay with credit currently having less access to credit,
common than the next two popular is uncertain (but likely the latter).
payment methods combined, PayPal Millennials are less likely than other Regardless, the key takeaway is that
and debit. PayPal is a close second to generations to pay with credit compared companies need to include both cash/debit
credit cards in the more developed to debit cards, COD or prepaid gift cards. and credit as payment options in order to
countries and is widely used in most Whether this trend indicates a sustained attract younger buyers (Figure 3.7)
other countries with the exception of lower appetite for buying on credit, or is
Asia (Figure 3.6). In most of Asia, PayPal
is hardly used, compared to Alipay and
Figure 3.7
WeChat in China, and credit cards in
most other Asian countries. India is the Percentage of consumers that use payment
Asian exception, where consumers method by generation
prefer to pay cash on delivery (COD)
or by debit card, rather than on credit,
similar also to Russia, where consumers
74 73
are the least likely of any nation to use
credit at all. 64
35 35
33 32 Baby Boomers Generation X Millennials
26
21
15
13 13 12
9 11 10 10 9
7 6 7
Bank credit PayPal Debit card Bank transfer Alipay COD Gift card
card

Case study
ZALORA
Tito Costa, Managing Director
compared to the US or Europe. We Another example is when we open a

also believe that customer experience, pop-up store in Singapore, we partner
breadth of higher quality assortment and with transportation apps like Grab (an
relevant content will play an increasingly online car hailing service in Southeast
Founded in 2012, important role. Deal-seeking behavior
or discount-focused discovery will only
Asia) where we leverage geo-fencing
technology to drive footfall to our store.
ZALORA is a leading be one of many drivers of ecommerces During a promotion, customers using
future potential. Grab to commute to an area near our
fashion ecommerce pop-up store will receive an automated
Leveraging both online and
company in Southeast push notification with a voucher code
offline channels from ZALORA inviting them to come to
Asia, with presence in As an online retailer, ZALORA sees the store and make a purchase.
Singapore, Indonesia, offline channels as important for Localized delivery options
acquiring customers and building
Malaysia, The Philippines, brand trust, says Costa, We have
crucial in Southeast Asia
Hong Kong and Taiwan. been experimenting with offline retail We have invested heavily in logistics
through pop-up stores since late 2014. and in our own warehouse and delivery
Tito Costa is ZALORAs Customers at our pop-up stores are fleet in most of our markets. Additionally,
Managing Director, who able to see our products, try them on we have a strong partnership with
and then scan the barcode in order to convenience store chains like 7-Eleven,
joined the company after process their purchase at the self-serve where customers can pick-up their
checkout. Not carrying inventory in the orders. This allows us to boost
launching several internet store (the stores have samples in each customers confidence in online
businesses in Europe size only) frees our shop assistants from shopping and make it a more viable
managing inventory in favor of spending alternative to brick-and-mortar stores.
and Asia when he was time advising customers.
Customer engagement and
with Rocket Internet In addition, Costa explains how pop- loyalty
one of the early investors up stores help the brand connect with
ZALORAs target customers are 25 to
customers emotionally: Trust has
in ZALORAs parent always been a big challenge for online 35-year-old young professionals. Costa
fashion retailers, since customers want explains how they build loyalty with
company Global Fashion to touch and try on products before this group: The way we are engaging
Group. they make their first purchase. Having with them is mainly through mobile
physical locations helps us address this and social media. Since mid-2014 until
issue and engage with our customers in now weve seen a very dramatic shift
Southeast Asia growth a deeper and more emotional way. in traffic from desktop browsing to the
Costa is very optimistic about growth in mobile app, which now makes up more
Offline to online conversion than 50 percent of our business. More
his region: Ecommerce in Southeast
Asia is still at an infancy stage with examples than just a singular channel, we have
online retail accounting for roughly 1-2 found social media to be an important
Costa gives two examples of leveraging
percent of total retail sales. Given a lack branding tool where we can have a two-
more traditional marketing channels:
of traditional retail infrastructure outside way conversation with our customers,
We have used out of home (OOH)
of the tier one cities, we expect that which is on one hand, providing
advertising in the past where we put
over time ecommerce will comprise an customers with fresh, highly relevant
a voucher code on billboards in a few
even larger share of retail sales when content about our offerings, and at the
prime locations. This code serves as a
same time, receiving feedback from
tracking tool and allows us to monitor
customers in real-time and being able to
the conversion from offline to online
quickly act on it.
during the campaign.

Building consumer trust at the company (Figure 3.8). This was average to say they trusted companies
Given the nature of online shopping, especially true in Canada, the UK and that educated consumers about their
where consumers are buying products South Africa, where as many as 64 products.
sight unseen, providing personal data percent of consumers said it was a top
While most of these attributes are well
online, and often paying in advance, trust factor.
within a companys ability to offer and
having a brand and website that Being open and honest about negative manage, some of the most significant
consumers trust is critical. Competitive news and events ranked second among threats to maintaining customer trust
prices or delivery options can be trust enablers, especially in China and come from outside of the organization.
a deciding factor when potential Japan, where consumers were likely Regardless of how many attributes a
customers are choosing a vendor, but at to say it was even more important than company has that will earn the trust of
the end of the day consumers will only being able to contact people at the their customers, not having the right
buy from websites they trust. company. Having control over how their systems in place to protect that trust
When we asked consumers about personal data is used was next most can be catastrophical. At the top of that
the attributes of the companies or important to consumers, especially in list, companies need to sufficiently
websites they trusted most, over 50 North America, Europe and South Africa. protect consumer data and ensure the
percent cited websites that make it Consumers in the BRIC (Brazil, Russia, quality and safety of the products they
easy for customers to contact people India and China) countries were 25 to manufacture or sell.
50 percent more likely than the global
Figure 3.8
What do the companies that consumers
trust most have in common?
Make it easy to contact

people at the company 51%
Are open and honest about
negative news or events 43%
Let consumers control how their
data is used 41%
Educate consumers about
their products 41%
Ask consumers how to
communicate with them 39%
Are transparent about the use of
consumers info 35%
Are socially
responsible 27%
Send personalized 23%
communications
Are transparent about 17%
subsidiaries/affiliations
Have credible
spokespeople 17%
16
10
CEOs are aware that providing a positive and unique experience is one of the
biggest bases of competition that they can deploy. However, their greatest
concern is around customer loyalty. Customers compare companies and expect
the same level of experience from one to another, resulting in a perpetual
increase in expectations. Companies want to provide relevant and meaningful
experiences, but how to do that in a profitable way is the challenge.
Julio Hernandez, Global Customer Lead, KPMG International

A breach in either of these areas When shopping in-store, people have Providing excellent consumer support,
can have serious and long-lasting certain service level expectations loyalty programs and benefits, and a
consequences in terms of consumer of staff attentiveness or product forum for feedback, will all remain vital
trust. Particularly in an age of prolific knowledge. In an online environment, to earning the loyalty of customers
mainstream and social media, news however, most transactions are across generations. However, in order
of a data breach or production quality conducted with no personal contact or to attract the younger consumers,
issue can quickly spread out of control. service at all. So when online retailers companies need to offer more
Companies not aptly prepared to prevent go the extra mile by reaching out to personalized interactions, more
or manage these risks can see their their customerswith an unexpected customized experiences and one-on-
hard-earned trust and brand reputation personal note or an extraordinary issue one engagement.
extinguished overnightsometimes resolution, for exampleit gets noticed.
As Millennials become a larger
beyond repair.
Finding ways to provide exceptional proportion of the total consumer
Are experience and trust enough customer support online can lead market, excellent customer support and
to earn consumer loyalty? to customer loyalty in an online loyalty benefits will become minimum
While consumer trust can be the key environment, where it can be difficult to expectations. Loyalty will be granted
to a companys success, the coveted stand out or be remembered. to those companies that make their
prize is to win customer loyalty. Ideally, customers feel like they are part of a
Younger consumers are looking community, and one where they feel
these customers not only develop for more engagement
an allegiance to a company, but they important, unique and valued.
Younger consumers, looking to be
also become brand ambassadors, The bottom line is that to win and
treated as unique individuals, tend
encouraging others to follow suit. retain online customers, companies
to be less impressed than the older
What makes consumers loyal to consumers by excellent customer need to find cost-effective ways of
one company over another? Is a support, and slightly more impressed providing the service and quality that
good experience and company trust than their older counterparts with customers expect, while keeping prices
enough to ensure they will return? company offers that have a personal competitive. Consumers, depending
When consumers were asked about element, such as customized largely on their country, culture or age,
the attributes of the companies they promotions, recognition across channels as well as on the type of product being
were most likely to be loyal to, by far or an ability to anticipate needs purchased, will each be more or less
the leading response (by 65 percent of (Figure 3.9). willing to trade-off service or quality
respondents) was provides excellent forprice.
customer support. The companies that are able to identify
and segment their target customers
based on these factors, and develop
Figure 3.9 product offerings and online strategies
that are distinctly tailored for each
Top ten attributes that drive customer loyalty
unique market, will be truly poised to
by generation (%)
succeed in the online revolution.
74
66
59 Baby Boomers Generation X Millennials
45 47
43
39 37
35 36 36 35
29 29
25 28 26
21 20 20 19 21
19 18 17 18 18 16 16 17
Provides Exclusive Has a loyalty Listens to Customized Easy to make Suggests Is socially and Recognises Anticipates
excellent offers for program customer promotions repeat products community customers needs based
customer members feedback purchases based on conscious across on customer
support purchase channels profile
history

How KPMG
can help
KPMGs Global Consumer Markets Marketing sales and service
practice and Global Customer Center transformation
of Excellence work together to uncover The front office is being revolutionized
the latest insights regarding the issues by digital disruption and rising customer
that consumer and retail businesses expectations. We can help you envision
face, and the customers they serve. the ecosystems and platforms you can
Our specialized industry teams have leverage and design customer-centric
developed leading and innovative service processes.
business strategies and solutions which
are tailored to individual client needs. Customer data and analytics
Utilizing these insights and solutions, Understanding and leveraging your
KPMG member firm professionals customer data is vital to business
leverage their deep consumer and retail transformation. This starts with a
experience to help companies achieve master data management strategy
and maintain the competitive edge they which well help you define, alongside
need to succeed. the governance and tools youll need
to manage data securely across your
Customer strategy and digital
enterprise.
innovation
We want to help you reduce costs Customer technology solutions
and grow your enterprise. Well work The ecosystems of technology that
integrally with your business to define are the backbone of your business
which innovative customer and digital are more important than ever. We can
propositions will drive enterprise value help you source, develop and integrate
and optimum customer engagement. technology solutions to complement
existing business capabilities and create
Customer experience commercial value.
We bring an outside-in perspective
to help you understand what your A customer-centric organization
customers are experiencing. By The edges of the organization are
spotlighting your most critical customer blurring and digital is revitalizing the way
journeys, underpinned by customer we want to engage in the workplace.
insights, well help you define relevant We can help you create a modern,
and engaging customer experiences to digitally enabled organization structured
drive customer retention, positive word around your key customer journeys.
of mouth, services and, ultimately, sales.

About the survey
KPMG International commissioned Intuit Research to conduct a survey of
global online shoppers regarding their purchase behavior, purchase drivers, and
perceptions and attitudes towards online shopping.
The sample consisted of consumers aged 15 to 70 years old who had made at least
one online purchase in the past 12 months, and who were within the top 65 percent
of income-earners in their country.
The survey was conducted using an online questionnaire. A total of 18,430
qualified responses were received from 51 different countries. Within each
country, the sample was weighted to the same age distribution to ensure that
country comparisons showed behavioral differences rather than those caused by
differences in demographic make-up of the population surveyed in each country.
The full report can be downloaded online at www.kpmg.com/onlineconsumers.
About KPMG
KPMG is a global network of professional services firms providing Audit, Tax and
Advisory services. We operate in 152 countries and have 189,000 people working
inmember firms around the world.
KPMG is organized by industry sector across our member firms. The Consumer
Markets practice comprises an international network of professionals with deep
industry experience. This industry-focused network enables KPMG member firm
professionals to provide consistent services and thought leadership to clients
globally, while maintaining a strong knowledge of local issues and markets.
We work with consumer and retail clients to help them succeed in the face of a rapidly
changing business environment. KPMGs customer, digital strategy, data analytics,
cyber security, supply chain management, operations modeling and business
transformation practices are a few of the areas in which we have industry-leading
expertise and experience, which can help meet the most pressing needs of clients.
For more information, please visit kpmg.com.
About Intuit Research

Intuit Research is a market research consultancy that provides high quality research,
business insights, and thought leadership services to clients in the financial, high
tech, and consumer industries. The company operates from offices in Hong Kong
and Singapore and has a team of highly experienced researchers that take a hands-
on approach to design, execution, and interpretation of market research, bringing to
clients the insights they require to make business decisions.
For more information, please visit www.intuit-research.com.

Contact us
KPMG International Contacts KPMG Regional Contacts
Willy Kruh Mark Larson
Global Chair, Consumer Markets Americas Leader, Consumer Markets
KPMG International KPMG in the US
wkruh@kpmg.ca mlarson@kpmg.com
Joel Benzimra Anson Bailey

Global Advisory Lead, ASPAC Leader, Consumer Markets
ConsumerMarkets KPMG in Hong Kong
KPMG International anson.bailey@kpmg.com
jbenzimra@kpmg.fr
Jessie Qian
Julio Hernandez Head of Consumer Markets
Global Lead, Customer COE KPMG in China
KPMG International jessie.qian@kpmg.com
juliojhernandez@kpmg.com
Rajat Wahi
Dan Coonan Europe, Middle East and Africa Leader,
Global Executive, Consumer Markets Consumer Markets
KPMG International KPMG in India
daniel.coonan@kpmg.co.uk rajatwahi@kpmg.com
Elaine Pratt
Head of Global Marketing,
ConsumerMarkets
KPMG International
epratt@kpmg.ca
kpmg.com/socialmedia kpmg.com/app
Some or all of the services described herein may not be permissible for KPMG audit clients and their affiliates.
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to
provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in
the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
2017 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG
International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis--
vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
The KPMG name and logo are registered trademarks or trademarks of KPMG International.
Publication name: The truth about online consumers

Publication number: 201701TW-G
Publication date: January 2017

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The truth

2017 Global Online Consumer Report 1

A recent report by KPMG International The dilemma

2 2017 Global Online Consumer Report

2017 Global Online Consumer Report 3

There is a little Millennial in each of us. A number

4 2017 Global Online Consumer Report

Eastern Europe & Russia

Report, KPMG International, 2017

Australia & New Zealand

Baby Generation X Millennials

Compared to the digital-first Millennial

largely be attributed to the fact that

2017 Global Online Consumer Report 5

Clearly, ecommerce has been growing globally A

6 2017 Global Online Consumer Report

Wine Books/ 53 0.5

2017 Global Online Consumer Report 7

Report, KPMG International, 2017

Baby Boomers Generation X Millennials

Generational trends to buy a category such as household among Millennials. As Millennials

Much of the future growth in ecommerce will be millennial-driven. In 2 or 3 years,

8 2017 Global Online Consumer Report

Eastern Europe & Russia

Australia & New Zealand

Report, KPMG International, 2017

2017 Global Online Consumer Report 9

Nespressos omni-channel Integrated channels and

10 2017 Global Online Consumer Report

Report, KPMG International, 2017

Baby Generation X Millennials

2017 Global Online Consumer Report 11

Report, KPMG International, 2017

6 Baby Generation X Millennials

Australia & New Zealand

One of the reasons that China is so mobile-centric is because third-party payment

12 2017 Global Online Consumer Report

Figure 1.7 Figure 1.8

77% 65% 61% 49%

Price comparison with Product information/ Online

Report, KPMG International, 2017

Source: Global Online Consumer

Product options Store inventory/

2017 Global Online Consumer Report 13

To create loyalty with Millennials, brands need to first cover

14 2017 Global Online Consumer Report

30 Online: 59% Offline: 52%

9 are effective in creating

Any online Any offline

15% 15% 13%

2017 Global Online Consumer Report 15

Report, KPMG International, 2017

Physical shop Talking with friends Saw a friend with it

Baby Boomers Generation X Millennials

16 2017 Global Online Consumer Report

Ryohin Keikaku (Muji)

Targeting different segments

2017 Global Online Consumer Report 17

Online channels Offline channels

Baby Boomers Generation X Millennials

18 2017 Global Online Consumer Report

Eastern Europe & Russia

Australia & New Zealand