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Showrooming: A multichannel opportunity

  • February 2014
  • 17 pages
  • MarketLine
Report ID: 2103675

Summary

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Introduction

Showrooming has hit retailers hard in recent years. The emergence of smartphones means that many consumers are able to look at products in a bricks and mortar store and look around online to find a better price. Among other things, online retailers benefit from having fewer overheads than physical stores, which makes them very difficult to beat on price.

Features and benefits

* This case study looks at the emergence of showrooming, its effect on retailing and how retailers can take advantage of it.
* The case study also examines the strong growth of e-commerce, and particularly m-commerce, in recent years.
* The case study also looks at how retailers can provide a multichannel experience to consumers for example by using social media platforms.

Highlights

Worldwide e-commerce sales grew by 21.7% in 2012 and early estimates suggested it grew by 17.1% in 2013. M-commerce growth is outstripping e-commerce growth. According to a report by comScore, a digital business analytics company, third quarter 2013 m-commerce spending on smartphones and tablets grew at rate of 26%
New research from Google has found that eight out of 10 shoppers research products and prices on their phones in store, and some often prefer this to talking to a store employee. The survey found that one in three shoppers used their phone to find out information over asking an employee.
Retailers are increasingly using social media to strengthen their brand, connect with consumers, and secure sales. The value of pins on Pinterest is increasing:a study by TechCrunch found that a pin generates 78 cents in sales on average, up 25 cents from Q4 2012. Additionally, on average pins deliver two site visits, six page views, and 10 re-pins

Your key questions answered

* What is showrooming? Why do people showroom? How have companies been affected?
* How fast are the e-commerce and m-commerce markets growing?
* How can retailers provide a multichannel experience?
* What advantages do retailers gain by engaging with consumers on social media platforms?

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