Showrooming in the Retail Environment

show-room-ing /'Jaurumin/ Showrooming describes the act of examining goods in a brick and mortar store but making the actual purchase online. "ne RETAIL ENVIRONMENT 48% SHOWROOMING OF SHOWROOMERS USE PHYSICAL STORES TO RESEARCH PRODUCTS WITH NO PLANS OF MAKING A PURCHASE. A QUARTER OF SHOWROOMERS PLAN TO BUY IN-STORE, BUT CHANGE THEIR MINDS DURING THE PROCESS. PRODUCT CATEGORIES MOST LIKELY TO BE PURCHASED VIA SHOWROOMING SHARE OF CONSUMERS WHO PURCHASED ONLINE AFTER SHOWROOMING Consuniel clectronics Books Appliances Apparel, clothing & 63% 43% 29% 22% 22% 16% 10% Jewelry Toys and watches Other The dawn of smartphones has given a boost to showrooming as it enables potential shoppers to compare prices on the go. Showroomers use their phones during 50-60% of their store shopping trips. SMARTPHONE SHOPPING ADOPTION BY CATEGORY ACTIONS SMARTPHONE USERS TAKE WHILST SHOPPING ELECTRONIC / APPLIANCES 45% 49% GM / DEPARTMENT / WAREHOUSE CHECK PRODUCT REVIEWS 46% CLOTHING / FOOTWEAR 38% 44% $129 FOOD / BEVERAGE 35% COMPARE PRICES $99 BOOKS AND MUSIC 33% 31% SPORTING GOODS, TOYS, HOBBY v Milk v Eggs v Comflahes 31% CREATE ELECTRONIC SHOPPING LISTS Not every smartphone shopper turns into a showroomer. The effect of in-store smartphone usage might actually be positive. ACTIONS TAKEN AFTER SCANNING FOR PRODUCT INFO 15 DISSUADED FROM MAKING A PURCHASE 48 FELT BETTER ABOUT PURCHASE % 14 MADE AN UNPLANNED PURCHASE Showrooming hurts the bottom line of traditional stores, which is why retailers need to understand the motivation behind it. 50% The number 1 reason for showrooming is price. -60% -75% REASONS WHY CONSUMERS ENGAGE IN SHOWROOMING PRICE WAS BETTER ONLINE ITEM WAS OUT OF STOCK WASN'T CONVENIENT TO BUY AT THE TIME 72% Q 24% i 17% 45% oZ 18% 5% PLANNED TO BUY ONLINE BUT WANTED TO SEE ITEMS BEFORE ORDERING TO AVOID CARRYING ITEM HOME OTHER REASONS Due to higher overhead costs, it is very hard for traditional stores to compete with online-only retailers on price. Instead they could offer additional services such as home-delivery to make in-store purchases more convenient. Ars statista Sources: ComScore, Deloitte, Retail Customer Experience, eMarketer, Progressive Grocer