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1 © 2015 TRAQLINE – THE STEVENSON COMPANY
WWW.STEVENSONCOMPANY.COM
PRESENTED BY:
ERIC VOYER
VICE PRESIDENT
TRAQLINE – THE STEVENSON COMPANY
OMNI-CHANNEL AND ONLINE OPE TRENDS
GAS / ELECTRIC / BATTERY INDUSTRY TRENDS
2 © 2015 TRAQLINE – THE STEVENSON COMPANY
WWW.STEVENSONCOMPANY.COM
OMNI-CHANNEL AND ONLINE OPE TRENDS
3 © 2015 TRAQLINE – THE STEVENSON COMPANY
WWW.STEVENSONCOMPANY.COM
Presentation Blueprint
•Background & Sources of Information
•Overall Market Landscape
•Online Landscape
•Consumer Behavior
•Omni-Channel Trends
5 © 2015 TRAQLINE – THE STEVENSON COMPANY
WWW.STEVENSONCOMPANY.COM
What is Omni-Channel?
6 © 2015 TRAQLINE – THE STEVENSON COMPANY
WWW.STEVENSONCOMPANY.COM
Who we are and how we get the data
THE BACKGROUND
7 © 2015 TRAQLINE – THE STEVENSON COMPANY
WWW.STEVENSONCOMPANY.COM
THE STEVENSON COMPANY
ANALYTICS SYNDICATED RESEARCH
CUSTOM RESEARCH
Economic Forecasting
(OPEI, AHAM, Mfrs)
Industry Analysis
TraQline US (2000)
TraQline Services (2005)
TraQline Canada (2005)
Brand/Store Positioning
Satisfaction
Market Segmentation
Brand Extension
Competitive Analysis
New Product Development
Sources of Information
8 © 2015 TRAQLINE – THE STEVENSON COMPANY
WWW.STEVENSONCOMPANY.COM
−Quarterly Internet Survey
−600K Respondents Annually
−14 Years of History
−Demographically & Geographically Representative
Survey
−Tools, Appliances, Building Products, Kitchen / Bath Purchases
−All Brands, All Retailers
−Price
−Purchase Behavior
−Demographics
Data Captured
TraQline US Tracks the Consumer Retail Market
Largest Home Improvement tracking survey in US
TRAQLINE US
9 © 2015 TRAQLINE – THE STEVENSON COMPANY
WWW.STEVENSONCOMPANY.COM
How We Collect It...
What they purchased
Where they bought
Where they shopped
How they shopped each
1
2
3
4
Bought In Store?
Bought Online?
In Store? Online?
“Other?” Online & In Store?
Feature
Brand
10 © 2015 TRAQLINE – THE STEVENSON COMPANY
WWW.STEVENSONCOMPANY.COM
Overall Share Trends
THE LAY OF THE LAND
11 © 2015 TRAQLINE – THE STEVENSON COMPANY
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OPE Products
Line Trimmers 22%
Mower: Walk Behind 21
Power Leaf Blower 13
Chain Saws 11
Pressure Washer 7
Mower: Riding Mower 7
Hedge Trimmer 5
Snow Thrower 5
Power Edger 4
Roto-Tiller/Cultivator 2
Cordless Shears 2
Chipper/Shredder 1
OPE Product Mix
2%
4% 11%
7%
13%
7%
5%
22% 2%
1%
21%
5%
Source: TraQline Units – Q1’14-Q4’14
– How They Contribute
12 © 2015 TRAQLINE – THE STEVENSON COMPANY
WWW.STEVENSONCOMPANY.COM
Total OPE Share Trends
23
21
16
10 8
4
2 3
1 0
5
10
15
20
25
4Q End Dec 2010 4Q End Dec 2011 4Q End Dec 2012 4Q End Dec 2013 4Q End Dec 2014
Source: TraQline Units
13 © 2015 TRAQLINE – THE STEVENSON COMPANY
WWW.STEVENSONCOMPANY.COM
Online Share Trends
THE LAY OF THE LAND
14 © 2015 TRAQLINE – THE STEVENSON COMPANY
WWW.STEVENSONCOMPANY.COM
OPE Online Share
15
28
13
8
6
0.4 1
9
0.2 0
5
10
15
20
25
30
4Q End Dec 2010 4Q End Dec 2011 4Q End Dec 2012 4Q End Dec 2013 4Q End Dec 2014
$
Source: TraQline Units
15 © 2015 TRAQLINE – THE STEVENSON COMPANY
WWW.STEVENSONCOMPANY.COM
OPE % Online Mix
(online sales as % of units sold)
16 15 13
10 10
6 4 3 2
0
5
10
15
20
25
30 100
95
100
Source: TraQline Units – Q4’13-Q3’14
16 © 2015 TRAQLINE – THE STEVENSON COMPANY
WWW.STEVENSONCOMPANY.COM
Selected TraQline Categories
Automotive Tires, Batt., Jack
Computers/Communication
Exercise Equip.
General CE
Hand Tools and Access.
Lawn & Garden
Major Appliances
Power Tools & Access.
How does OPE Stack Up to other Categories?
What is the #1 shop online category?
17 © 2015 TRAQLINE – THE STEVENSON COMPANY
WWW.STEVENSONCOMPANY.COM
Online Share Trends
Shop Online
Bought Online
Shop-to-Buy Conversion
Exercise Equip. 67 39 58%
Computers / Communication 62 39 63%
General CE 52 27 52%
Major Appliances 44 11 25%
Outdoor Power Equip 40 16 40%
Power Tools & Access. 27 13 48%
Automotive Tires, Batt., Jack 21 4 19%
Hand Tools and Access. 13 7 54%
Source: TraQline Units – Q4’13-Q3’14
18 © 2015 TRAQLINE – THE STEVENSON COMPANY
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Total Share Online Share
10
Total
Online vs. Total OPE Share
.2
.4 3
1
6
8 21
13
15 23
28
9
16
10
4
8
2
1
Source: TraQline Units – Q4’13-Q3’14
19 © 2015 TRAQLINE – THE STEVENSON COMPANY
WWW.STEVENSONCOMPANY.COM
Shopping Activity and Ship to Store
ONLINE BEHAVIORS
20 © 2015 TRAQLINE – THE STEVENSON COMPANY
WWW.STEVENSONCOMPANY.COM
Online Activity – OPE
Compared prices 67%
Compared product features 52
Product research 50
Read consumers reviews 49
Checked for promotions or sales 43
Read industry expert reviews 19
Searched for a store location 19
Researched policies on warranties/rebates 18
Searched for a website to shop 16
40% of buyers
All OPE Buyers are asked to mark all activities they did online
21 © 2015 TRAQLINE – THE STEVENSON COMPANY
WWW.STEVENSONCOMPANY.COM
All Categories - Ship to Store
-10 0 10 20 30 40
Automotive Tires, Batt., Jack
Outdoor Power Equip
Hand Tools & Access.
Major Appliances
Sports Equipment
PTools & Access.
General CE
Computers /Communication
% points diff from mean (11%)
More Ship to Store
Less Ship to Store
Base: Customers who bought online (units)
22 © 2015 TRAQLINE – THE STEVENSON COMPANY
WWW.STEVENSONCOMPANY.COM
OPE - Ship to Store
-10 -5 0 5 10 15
Mower: Riding/Lawn/Garden Tractor
Mower: Walk Behind
Chipper/Shredder
Power Edgers
Cordless Shears
Snow Thrower
Hedge Trimmer
Line Trimmers
Power Leaf Blower
Pressure Washer
Roto-Tiller/Cultivator
Chain Saws
% points diff from mean (21%)
More Ship to Store
Less Ship to Store
Base: Customers who bought OPE online (units)
23 © 2015 TRAQLINE – THE STEVENSON COMPANY
WWW.STEVENSONCOMPANY.COM
Average Selling Price Online vs. Brick
ONLINE BEHAVIORS
24 © 2015 TRAQLINE – THE STEVENSON COMPANY
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0
50
100
150
200
250
300
350
400
450
4Q End Dec 2010 4Q End Dec 2011 4Q End Dec 2012 4Q End Dec 2013 4Q End Dec 2014
Ave
rag
e P
rice
Pa
id
SHOP Online DID NOT SHOP Online
Shopping: Average Price Paid When
Shopping for OPE Online
$57
25 © 2015 TRAQLINE – THE STEVENSON COMPANY
WWW.STEVENSONCOMPANY.COM
0
50
100
150
200
250
300
350
400
450
4Q End Dec 2010 4Q End Dec 2011 4Q End Dec 2012 4Q End Dec 2013 4Q End Dec 2014
Ave
rag
e P
rice
Pa
id
BOUGHT Retail BOUGHT Online
Buying: Average Price Paid when
Buying OPE Online
$77
26 © 2015 TRAQLINE – THE STEVENSON COMPANY
WWW.STEVENSONCOMPANY.COM
Higher APP Shop / Lower APP Buy?
Higher APP When Shopping
Online
Lower APP When Buying
Online
More Research Online but
buy In Store for High Price
Products
27 © 2015 TRAQLINE – THE STEVENSON COMPANY
WWW.STEVENSONCOMPANY.COM
Online vs. Brick ASP Difference
300 200 100 0 100 200
Kitchen & Bath Improvement
Furniture/Home Accessories
Outdoor Power Equip
Consumer Electronics
Major Appliances
Sports Equipment
Home Improvement Products
Cleaning Chems
Hand Tools / Accessories
Building/Plumbing/Electric/Safety
Small Appliances
Computers/Communication/Home Office
Power Tools & Accessories
Automotive
Higher in Store
Outdoor Power Equip
Higher Online
Difference in ASP
28 © 2015 TRAQLINE – THE STEVENSON COMPANY
WWW.STEVENSONCOMPANY.COM
Shop Online, Buy Online/Shop Store, Buy Online, etc.
OMNI-CHANNEL CROSS SHOP
29 © 2015 TRAQLINE – THE STEVENSON COMPANY
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&
Shopped OPE XYZ...
X%
...Online Only ...In a Retail Store Only ...Both Online & In Store
XYZ – Online Other Retailer – Online
Other Retailer – Brick XYZ – Brick
B
O
U
G
H
T
Close Rates (BOUGHT):
Other Retailer – Other
XYZ Co.
When Shopping XYZ, what % shopped online only?
When Shopping XYZ, what % shopped both online & brick?
When Shopping XYZ, what % shopped brick only?
Where did the above shoppers end up buying their OPE Product?
Note: A small % may shop on some other channel
30 © 2015 TRAQLINE – THE STEVENSON COMPANY
WWW.STEVENSONCOMPANY.COM
10
55
7
28
& 16%
Shopped OPE Home Depot...
13% 71%
38%
...Online Only ...In a Retail Store Only ...Both Online & In Store
32
1
64
3
Home Depot – Online Other Retailer – Online
Other Retailer – Brick Home Depot – Brick Other Retailer – Other
34 27
37 2
B
O
U
G
H
T
Close Rates (BOUGHT):
31 © 2015 TRAQLINE – THE STEVENSON COMPANY
WWW.STEVENSONCOMPANY.COM
8
56 8
28
& 17%
Shopped OPE Lowes...
11% 72%
37%
...Online Only ...In a Retail Store Only ...Both Online & In Store
17 34
47
2 35
1
61
3
Lowe’s – Online Other Retailer – Online
Other Retailer – Brick Lowe’s – Brick
B
O
U
G
H
T
Close Rates (BOUGHT):
Other Retailer – Other
32 © 2015 TRAQLINE – THE STEVENSON COMPANY
WWW.STEVENSONCOMPANY.COM
15
5
65
4
16
& 15%
Shopped OPE Sears...
15% 70%
22%
...Online Only ...In a Retail Store Only ...Both Online & In Store
48 24
27
1
21
1
77 1
Sears – Online Other Retailer – Online
Other Retailer – Brick Sears – Brick Other Retailer – Other
B
O
U
G
H
T
Close Rates (BOUGHT):
33 © 2015 TRAQLINE – THE STEVENSON COMPANY
WWW.STEVENSONCOMPANY.COM
1
9
32
& 11%
Shopped OPE Walmart...
12% 77%
15%
...Online Only ...In a Retail Store Only ...Both Online & In Store
35
30
32
3
Close Rates (BOUGHT):
37
1
59
3
Walmart – Online Other Retailer – Online
Other Retailer – Brick Walmart – Brick Other Retailer – Other
B
O
U
G
H
T
44
14
34 © 2015 TRAQLINE – THE STEVENSON COMPANY
WWW.STEVENSONCOMPANY.COM
& 0%
Shopped OPE Amazon...
100% 0%
6%
...Online Only ...In a Retail Store Only ...Both Online & In Store
77 11
12
Amazon – Online Other Retailer – Online
Other Retailer – Brick
0% 0%
B
O
U
G
H
T
Close Rates (BOUGHT):
35 © 2015 TRAQLINE – THE STEVENSON COMPANY
WWW.STEVENSONCOMPANY.COM
51
4 9
35
1
& 11%
Shopped OPE Menards...
8% 81%
4%
...Online Only ...In a Retail Store Only ...Both Online & In Store
11 35
54
32
63
5
Menards – Online
Menards – Brick
Other Retailer – Online
Other Retailer – Brick Other Retailer – Other
B
O
U
G
H
T
Close Rates (BOUGHT):
36 © 2015 TRAQLINE – THE STEVENSON COMPANY
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34 10 Online
55 64 Brick
17 8 Online
56 61 Brick
48 15 Online
65 77 Brick
35 14 Online
44 59 Brick
11 4 Online
51 63 Brick
Omni-Channel Close Summary
&
38%
Shop
37%
Shop
22%
Shop
15%
Shop
4%
Shop
% Shop
Store Online Only Online & Brick Brick Only Channel Bought?
55
65
44
51
56
37 © 2015 TRAQLINE – THE STEVENSON COMPANY
WWW.STEVENSONCOMPANY.COM
Key Takeaways
• Understand that just because people don’t buy online, they may be shopping there
• Expect continued emphasis on online
– Microsites, product reviews, pricing / sales
• Help get people into the store for the close
• Embrace other channels not captured here
– YouTube, twitter, print
• Manage the data across all channels, make the
experience seamless/consistent
38 © 2015 TRAQLINE – THE STEVENSON COMPANY
WWW.STEVENSONCOMPANY.COM
GAS / ELECTRIC / BATTERY INDUSTRY TRENDS
39 © 2015 TRAQLINE – THE STEVENSON COMPANY
WWW.STEVENSONCOMPANY.COM
OPE Products
Line Trimmers 22%
Mower: Walk Behind 21
Power Leaf Blower 13
Chain Saws 11
Pressure Washer 7
Hedge Trimmer 5
Snow Thrower 5
Power Edger 4
Roto-Tiller/Cultivator 2
Chipper/Shredder 1
OPE Product Mix
4%
11%
13%
7%
5%
22% 2%
1%
21%
5%
Source: TraQline Units – Q1’14-Q4’14
– How They Contribute
*
*
*
* No battery option available
40 © 2015 TRAQLINE – THE STEVENSON COMPANY
WWW.STEVENSONCOMPANY.COM
Hypotheses:
1. Gas is constant: Mix of Battery sales are increasing
at the expense of electric, not gas
2. Established brands are losing share
as smaller brands proliferate
3. Online sales are hurting larger
brands as a whole
4. As new technologies emerge,
electric battery prices are falling
41 © 2015 TRAQLINE – THE STEVENSON COMPANY
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Is Electric Leading the Charge?
Gas is constant: Mix of
Battery sales are increasing
at the expense of electric,
not gas.
Hypothesis 1:
42 © 2015 TRAQLINE – THE STEVENSON COMPANY
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False.
Gains are primarily coming
from both electric and gas,
except when battery isn’t an option.
Is Electric Leading the Charge?
Answer:
43 © 2015 TRAQLINE – THE STEVENSON COMPANY
WWW.STEVENSONCOMPANY.COM
56 56 56
54 53
42
44
46
48
50
52
54
56
58
2010 2011 2012 2013 2014
% G
as
So
ld
Gas Powered – Losing Steam?
2 Year Change:
3 points
Gas Powered
Change in Mix
44 © 2015 TRAQLINE – THE STEVENSON COMPANY
WWW.STEVENSONCOMPANY.COM
3 6 4
-6 -4 -3
Is Electric Leading the Charge? % Point Mix Change 2014 vs. 2012
1
7
5
0
7 6
2 2 3
Line
Trimmer
Walk-Behind
Mower
Power
Edger
Power
Leaf Blower Chain Saw Roto-Tiller
Hedge
Trimmer
-4 -2
-3 -1 -2
-10
-1 -1
-3 -5
-0 -2
Pressure Washer Chipper Snow Thrower
45 © 2015 TRAQLINE – THE STEVENSON COMPANY
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53%
32%
15%
Gas / Electric / Battery Mix 2014
Gas
Electric
Battery
Note: Battery option not available to Pressure Washer, Snow Thrower, Chipper Shredder
(15% of Units Sold)
46 © 2015 TRAQLINE – THE STEVENSON COMPANY
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Established brands are losing
share as smaller (import)
brands proliferate.
Hypothesis 2:
Disintermediation and Share Distribution
47 © 2015 TRAQLINE – THE STEVENSON COMPANY
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True.
In aggregate, the top 5
brands have lost some hold
on the market.
Disintermediation and Share Distribution
Answer:
48 © 2015 TRAQLINE – THE STEVENSON COMPANY
WWW.STEVENSONCOMPANY.COM
36
55
26
56 55
66
31
52
47
56
-25
-15
-5
5
15
25
35
45
55
65
75
-16 -12 -11 -9
-6 -6 -6 -4 -4
0
-6 -3 -5
-2 -4 -2 -4 -3 -3 3
5 Year Change 2 Year Change
Roto-
Tiller
Chain
Saw
Chipper/
Shredder
Snow
Thrower
Power
Edger
Hedge
Trimmer
Pressure
Washer
Line
Trimmer
Walk-
Behind
Mower
Power
Leaf
Blower
2014 Top 5 Brand % Share
Disintermediation and Dispersion Total Change in Top 5 Brands’ Share (Units):
49 © 2015 TRAQLINE – THE STEVENSON COMPANY
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Online sales are hurting
larger brands as a whole.
Hypothesis 3:
Disintermediation and Share Distribution
50 © 2015 TRAQLINE – THE STEVENSON COMPANY
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True.
The success of the online
channel has impacted the
top 5 brands more than
brick and mortar alone.
Disintermediation and Share Distribution
Answer:
51 © 2015 TRAQLINE – THE STEVENSON COMPANY
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53 49
31
54 51
62
41
67
44
63
-25
-15
-5
5
15
25
35
45
55
65
75
-19 -16
-11
-16
-23
-10
-1
-3
-10
-5
-13
-7
-16
-8
-17 -16
-1 -3 -5 -1
4 Year Change 2 Year Change
Roto-
Tiller
Chain
Saw
Chipper/
Shredder
Snow
Thrower
Power
Edger
Hedge
Trimmer
Pressure
Washer
Line
Trimmer
Walk-
Behind
Mower
Power
Leaf
Blower
2014 Top 5 Online Brand % Share
Disintermediation and Share Distribution ONLINE: Total Change in Top 5 Brand Share (Units):
52 © 2015 TRAQLINE – THE STEVENSON COMPANY
WWW.STEVENSONCOMPANY.COM
Increased
Disintermediation
& Brand
Distribution
Increasing
share for
online
channels
Greater
online share
decline for
top brands
Increased Disintermediation and Brand Distribution
53 © 2015 TRAQLINE – THE STEVENSON COMPANY
WWW.STEVENSONCOMPANY.COM
68 72
77
71 74
78
71 71
80 76
-5
5
15
25
35
45
55
65
75
85
2 3
14
1 6 4
13
8
2
9
-1
3 6
0 -4 1
10
1 -1 -2
4 Year Change 2 Year Change
Roto-
Tiller
Chain
Saw
Chipper/
Shredder
Snow
Thrower
Power
Edger
Hedge
Trimmer
Pressure
Washer
Line
Trimmer
Walk-
Behind
Mower
Power
Leaf
Blower
2014 Top 5 Online Retailer % Share
Disintermediation and Brand Distribution ONLINE: Total Change in Top 5 Retailer Share (Units):
54 © 2015 TRAQLINE – THE STEVENSON COMPANY
WWW.STEVENSONCOMPANY.COM
As new technologies emerge
and production efficiencies
improve, electric and battery
prices are falling.
Hypothesis 4:
Change in the Charge
55 © 2015 TRAQLINE – THE STEVENSON COMPANY
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False.
On average, all segments’ price points have stayed the
same or have seen a slight
increase.
Change in the Charge
Answer:
56 © 2015 TRAQLINE – THE STEVENSON COMPANY
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$183
$248
$99 $114
$0
$50
$100
$150
$200
$250
$300
2010 2011 2012 2013 2014
Total Industry
Total ASP Change – All Categories
No Change in the Charge
57 © 2015 TRAQLINE – THE STEVENSON COMPANY
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So...What’s the charge for all this?
ASP Change by Fuel Type
2014 vs. 2012
Gas Electric Battery
Line Trimmer 2% 15% -5%
Walk-Behind Mower 0 6% 7%
Power Edger 5% 9% -1%
Power Leaf Blower 6% 4% 7%
Chain Saw 0 3% 5%
Roto Tiller -4% -1% -3%
Hedge Trimmer -17% 9% 7%
Pressure Washer -3% 5%
Chipper/Shredder -28% -67%
Snow Thrower 1% 6%
58 © 2015 TRAQLINE – THE STEVENSON COMPANY
WWW.STEVENSONCOMPANY.COM
REVIEW
GAS / ELECTRIC / BATTERY INDUSTRY TRENDS
59 © 2015 TRAQLINE – THE STEVENSON COMPANY
WWW.STEVENSONCOMPANY.COM
Hypotheses:
1. Gas is constant: Mix of Battery sales are increasing
at the expense of electric, not gas
2. Established brands are losing share
as smaller brands proliferate
3. Online sales are hurting larger
brands as a whole
4. As new technologies emerge,
electric battery prices are falling
Battery sales are increasing and it is at the expense
of both Gas and Electric segments
On average, all segments’ price points have stayed the same or have seen a slight increase.
60 © 2015 TRAQLINE – THE STEVENSON COMPANY
WWW.STEVENSONCOMPANY.COM
Key Takeaways
• Gas is declining, but not at an alarming rate.
Invest early in battery technology where
appropriate.
• Smaller brands are gaining share. This is a
threat for most mfrs, but can be good news for
subbrands and those manufacturers that have
strong online distribution.
• Online distribution, marketplaces, aggressive
pricing are necessary, but so are microsites and
ways to educate the consumer. Engage and
educate.
61 © 2015 TRAQLINE – THE STEVENSON COMPANY
WWW.STEVENSONCOMPANY.COM
Eric R. Voyer Vice President
The Stevenson Company (w) 502-271-5267
eric.voyer@stevensoncompany.com
@tscericv
For questions or more information about the
TraQline suite of products, including TraQline
US or Canada, please contact:
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