And yet another new word enters our vernacular. Use to be we went to the showroon (a noun). Now we go showrooming (a verb). Kind of like when Google was a noun (Name of the company) and not a verb, “Just Google it?”
So what exactly is showrooming? From Wikipedia – Showrooming is when a customer visits a brick and mortar retail location to touch and feel a product and then goes online to buy the product at a lower price. Online stores often offer lower prices than brick and mortar stores because they do not have the overhead cost.
48 million consumers or 20 percent of the U.S. population will use their smartphones to showroom.
The number of shoppers engaging in showrooming during the 2012 holiday season is expected to increase by 134 percent, with mobile behavior influencing between $700 million to $1.7 billion in retail purchases, according to a new report from IDC Retail Insights.
The report reveals some of the ways that retailers can address showrooming, with approximately 70 percent of shoppers planning to showroom this season saying they will be “more likely” to buy from retailers who offer full-featured mobile Web sites, provide omni-channel convenience across stores and Web sites, support smartphone shopping apps and offer price comparisons via QR codes.
- Big ticket items, in particular those that consumers can easily evaluate by reading descriptions, specifications, ratings, and reviews will be the most showroomed items this year.
- 7 to 13% of consumer electronics shoppers will use their smartphones at least once in stores this season; showrooming activities will touch 1.4% of consumer electronic sales.
- Apparel and footwear is the second most heavily showroomed category. Between 4 and 8% of shoppers will showroom this category this year affecting about 1% of its sales.
- 64% think what they’ll learn in the store with their smartphones will have at least as much influence on their decision as what they’ll learn online before coming into the store
- 56-60% of shoppers with their smartphones in-hand say that they will be “more likely” or “much more likely” to buy what they find in the store as they shop this season when assisted by trustworthy knowledgeable store associates.
- 41% of showrooming shoppers say that they will be “more likely” or “much more likely” to rely on their smartphones when they encounter retailers who offer private or exclusive merchandise.
You can check out a bit more on this at http://www.idc-ri.com/getdoc.jsp?containerId=prUS23789012
Here is an awesome chart from Accenture:
Retail is getting quite complicated.