Packaging for Ecommerce Understanding Online Shopping Behavior A Coca-Cola Case Study 1 1
China E-commerce Evolution The explosive growth of online shopping has revolutionized the world of retailing – with sales expected to exceed $752 billion (2016) in China. And this trend is likely to continue, creating some uncomfortable disruption as well as amazing opportunities for consumers, manufacturers and retailers. • Ecommerce on Mobile is only going to grow exponentially • Online food and beverage business will explode • Lower tier to outpace high tier in Ecommerce sales • Social communities will influence Ecommerce sales 2
CONSUMERS Online shoppers are faced with complex Ecommerce environments that is constantly evolving … BRANDS Marketers are facing challenges to keep their products salient in these new fighting arenas 3
Or more Easy as A-B-C? complicated? Just take a pack shot and put it up? Do I have too much information in my visual that shoppers are deselecting information? Can I communicate effectively the pack quantity? Can I communicate effectively the pack size? Can a more visceral image improve sales conversion? Category page 4
While the shopping environment is complex… The shopping behavior can be predictable 5
To Navigate Complex Ecommerce environment, We Use Two Systems of Thinking System 1 System 2 INTUITITIVE COGNITIVE Autonomic Deliberate Fast Slower Effortless Involved Feelings Facts While shopping is typically driven by “System 1”, research often focuses on “System 2”. 6
Coca-Cola Case Study Coca-Cola is looking to evaluate their new designs to be put on the E-tailer platform. The e-store design and development needs additional shopper insights to help improve its shop-a-bility and conversion to sales. 7
Our Attention Span Have a Threshold From here, less than half of the online shoppers will notice your products ~ 7 mobile phone scrolls 8
Our Physiological Visibility Have a Consistent Pattern Singular Row 2 Columns 3 Columns 9
Our eyes are conditioned to be lazy. Presenting data in an easy to read manner will promote engagement 10
Product image is king! E-shoppers use product image more than the text to infer and make decisions 2 1 3 4 No Name %Noting 1 Product Image 2 Product Description 3 Price 4 Comments 11
The amount of text determines the amount of information processing and also text deselection Flash Exposure (1s) Flash Exposure (1s) Brand Name Brand Name Volume Volume 330ml 330ml 24 Can 24 Can Multipack Multipack Can format Can format Text "JD Text "JD supermark… source" Red Color Black Color Packaging Packaging Price Price 12
New shoppers of the category In Ecommerce often engage in a herding behavior to reinforce their decisions BEHAVIORAL ECONOMICS Deselection tools usage % NORMS Sort sales Search Sorting by Sales facilitate the Sort Price choice and encourage the need Filter JD Filter Brand for conformity Filter Category Filter Single size It is tantalizing to follow the majority’s behavior to avoid thinking too much about Filter Packaging certain decisions and be part of ‘the norm’. Filter Pack format Sort Comments Filter Import/export Filter Product source Filter Quantity Filter Price range Source: Online Sparkling Drinks Shopping Base: 450p 13
Managing Comments = Managing Behavior BEHAVIORAL ECONOMICS BEHAVIORAL ECONOMICS Exploratory tools usage % Transmitter Loss aversion Scroll through images Clicking on comments Viewing product pictures by Comments influence perception other buyers as they are the real messengers We are more sensitive to a loss Details than to an equivalent gain. We We give more credence to someone familiar react more to what is framed as a and in this case, the most familiar person is loss than to what is framed as a the person who is not communicating from Promotions gain. Losing 100RMB is about twice the business and is showing the products more painful than winning 100RMB bought is enjoyable. Enter flagship Source: Online Sparkling Drinks Shopping Base: 450p 14
Even with the same pack, different display execution will encourage different online behavior ORIGINAL EMOTION QUANTITY Bought from category page Bought from category page Bought from category page 15
Product images need to ‘survive’ different contexts Shoppers shopping on Landing Page Shoppers shopping on Product Page Shoppers shopping on Checkout Page 16
The right visuals can help change perception of the product and brand Quenching The Thirst The glass serve as a reference to product pack size Suitable for Summer Drinking 17
10 Learnings for KO E-commerce For Coca-Cola specific learnings For Category learnings 1 A picture is worth a 6 thousand words Unseen is unsold 2 Romance your way into 7 your shoppers’ hearts Visibility is a function of contrast 3 Reinforce Choose the right emotional 8 competitiveness cues and amplify it Control the flow of information 4 Size Perception Matters 9 Set your Anchor 5 Be Consistent, Have 10 Hierarchy Reserve the best seats 18
1 A picture is worth a thousand words • Shoppers tend to look at visuals more than text to process information. • Having the visual convey information on quantity, size and format will ensure no mistaken Which one of the above text identity. description are you more incline to read? 19
Key Product Shot Brand Pack Logo Size Emotional textures BEFORE AFTER 20
How it looks like in EC platform Easy to stand out 21
DO NOT 8 Control the flow of information • Ecommerce shoppers naturally ignore information if it is presented to them in ways that requires extra effort (E.g. Zig Zag display). • Design with System 1 Fast Thinking Shoppers in mind. 22
Product Description Page 23
Key initiatives to follow… • Apply our learnings to other platforms… Embrace • Apply our learnings to all product portfolio… the • Update our online design in a regular base change • Set up our fast-reaction mechanism 24
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