Gen Ys most loyal shoppers to Appliances and Electronics sites

Posted by Sandra Hanchard  March 22, 2010

Earlier this month, Commonwealth Bank in conjunction with the University of Canberra launched Viewpoint - a report on the economic vitality of Australia. The report found that Gen Ys' spending habits were surprisingly resilient to the Global Financial Crisis - “Gen Y’s spending increased 6.2 per cent in 2009, despite earnings growing only 2.5 per cent and job losses in the age group rising 13.6 per cent.”

This insight corresponds broadly to a finding from our recent study on the “New vs. Returning” visitors to Shopping and Classifieds – Appliances and Electronics websites in the lead up to Christmas last year. Interestingly, 18-24 year olds were 44% more likely than the online average to be returning visitors to Appliances and Electronics websites in November 2009. Even though Gen Ys were amongst the hardest hit group by economic pressures, they were still the most engaged online researchers in one of the most popular online retail categories last year.

In comparison, users over 55 were the least likely to return to Appliances and Electronics websites. Given that 55+ users have high purchasing power, and are becoming a larger segment with Australia’s ageing population, retailers should be stepping up their efforts to market to this group and create compelling content that invites repeat visits.

We also looked at the broader Lifestyle Mosaic Groups and found that “Learners and Earners (students) and “Pushing the Boundaries” (young families) were the two household groups most likely to have repeat visits to Appliances and Electronics sites in November 2009. The strength of repeat visits by young families, in addition to students, suggests that households with tight disposable incomes may also be engaging in higher than usual comparison shopping activity.

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eMarketer Weighs In on 2010 Trends: E-Commerce & Mobile

DECEMBER 8, 2009

eMarketer analysts give you their perspective

   Jeffrey Grau, Senior Analyst

Mobile Commerce’s Time Has Arrived

It is eye-catching when a consultancy revises a market forecast upward in the midst of an economic downturn. That is exactly whatABI Research did with its forecast of mobile sales of physical goods in North America. In January 2009 it projected m-commerce sales would reach $544 million this year, up 57% over 2008—impressive in its own right. But in late October, ABI upped its forecast, saying sales would top $750 million in 2009, a whopping 117% annual growth rate. M-commerce’s time has arrived, and it is an easy bet that sales in 2010 will pass the $1 billion mark.

Whereas consumers once limited their mobile phone purchases to downloadable ringtones and games, today they are using their devices to buy books, apparel and other items associated with online shopping on a PC.

Retailers Grapple with Measuring Social Commerce

A number of major retailers have established a presence on social media platforms such as Facebook and Twitter. For now, retailers are intent to learn from these experiments and are not too concerned with driving e-commerce sales. Building brand awareness and a solid fan base and generating leads have been deemed sufficient. But in 2010, retailers will become more serious about trying to measure social media’s impact on sales. One question retailers will grapple with is how much a large fan base translates into sales or brand loyalty.

   Noah Elkin, Senior Analyst

Mobile: Moving into the Mainstream

Although mobile usage is firmly entrenched among consumers, marketers still view mobile as an emerging channel, hence the long-running (and always unfulfilled) expectations about the “year of mobile.” 2010 promises to be a little different. Aided by a flurry of acquisition activity, an influx of venture capital funding and growing brand adoption in the latter half of 2009, the year ahead will see mobile continue its shift toward the marketing mainstream.

Mobile ad spending will rise from $416 million in 2009 to $593 million in 2010 as more brands and agencies integrate mobile into their marketing mix. And if not an outright arms race, Google’s $750 million purchase of AdMob is certain to prompt greater interest in the mobile space from agencies, brands and media companies alike.

The fusion of mobile and social and the appetite for apps (among both consumers and brands) will continue unabated. In fact, location- and social-aware apps and utilities will be a key avenue for brands looking to engage consumers on the go. Cheaper smartphones and smarter feature phones will help marketers bridge the gap with consumers, but the onus is still on marketers to provide consumers with a measure (and measurable degree) of utility, relevance and entertainment.

Keep up on the latest digital trends. Learn more about an eMarketerTotal Access subscription, today.

Check out today’s other article, “Digital Point-of-Sale Gives Brand Marketers an Edge.”

Tomorrow, check out analyst predictions on social media and paid content.  

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