Marktanalyse - How Britain Shops: Music & Video 2011

Introduction

How Britain Shops Music & Video provides a detailed overview of the shopping habits of consumers. It examines, who shops for music & video, where they shop, whether they are satisfied with their current store and what stores should do to satisfy customers more.

Features and benefits

* Thorough analysis of how customers shop for music & video. Profiles of 6 music & video retailers, including: HMV, Amazon, iTunes and Tesco.
* Visitor and main user share data, conversion rates, customer loyalty rates and reasons for loyalty/disloyalty.
* Data is segmented regionally and by demographic and socio-economic group.
* Historic data is provided so trends can be analysed over a five year period.

Highlights

After a period of growth caused by the introduction of downloads which did not carry digital rights management (DRM), and greater price competition, visitor share has fallen sharply for the second consecutive year, this time by 4.6 percentage points to 40.2%. Factors affecting this fall include piracy, streaming websites and customers cutting back.
While overall loyalty in music & video has slipped by 0.2 percentage points to 89.4%, it has overtaken personal care as the sector with the highest level of loyalty in the 2011 survey. This is testament to the retailers that have created an offer that has adapting customers migrating to digital product with their clear and easy-to-use websites.
The launch of the iPad tablet computer and the latest version of the iPhone in May and June 2010 are main factors behind improvements in visitor and main user shares in the latest survey. With the facility to download content directly on to their devices, many shoppers will have found iTunes the most convenient channel.

Your key questions answered

* How Britain Shops is one of the most comprehensive studies of its kind drawing on a nationwide survey of 6,000 shoppers.
* Use this report to understand what drives the loyalty of your customers and find out where else they are shopping - and why.
* Channel investment for maximum return by knowing which aspects of your retail proposition most need improving in the opinion of your customers.

Executive Summary

Verdict view

Key findings

Visitor share now at lowest level since 2001;

Shoppers aged between 16 and 24 make up the greatest share of music & video shoppers;

Penetration down across all demographic segments;

Not even half of any region's shoppers now buy music & video;

Music & video market consolidates rapidly;

Conversion improves for second consecutive year;

In spite of latest decline, loyalty remains high;

Pureplay retailers take Top Three spots for loyalty;

Range, price and convenience remain key drivers of loyalty and growth;

Amazon closes gap to HMV in main user share.

Main conclusions

Visitor share at lowest level since 2001

Shoppers aged between 16 and 24 make up the greatest share of music & video shoppers

Penetration down across all demographic segments

Not even half of any region's shoppers now buy music & video

Music & video market consolidates rapidly

Conversion improves for second year

In spite of latest decline, loyalty in the music & video sector remains high

Pureplay retailers take Top Two spots for loyalty

Range, price and convenience remain key drivers of loyalty and growth

Retailer highlights

Relaunch of standalone download offer boosts HMV

Amazon's strong performance continues

Asda suffers from lack of download offer

Heightened austerity hits Tesco

iTunes launch of new devices lifts share

Play.com's performance impacted by greater levels of competition

SECTOR SUMMARY

Share of shoppers

Falls to lowest level since 2001

Penetration of music & video shoppers

Market continues to be weighted towards a younger, more affluent customer

Retailer usage

While HMV continues to lead the way, Amazon gains fast in a rapidly consolidating market

Each region's breakdown of main user share between leading retailers

Conversion rates

Improve for second straight year

Shopping around

Shopping around remains higher among online specialists

Loyalty

Remains high as four of the Top 10 overall leaders come from music & video

Drivers of loyalty/ disloyalty

Range and price stay the main drivers for customer loyalty

AMAZON

Benefits from trend to digital downloads

Increases both visitor and main user shares

Despite declining on last year, Amazon has the highest level of loyalty among profiled retailers

Range has overtaken convenience as the second strongest driver of growth

Visitors

Continues to attract more customers

Main users

Increases main user share across all demographic segments

Conversion rates

Conversion reaches a new high

Loyalty

Handed lead in sector in spite of falling year-on-year

Competitors

Level of shopping around declines

ASDA

Lack of download offer hampers performance

Main user share drops — despite increase in footfall …

… due to fall in conversion — the heaviest among profiled retailers

Loyalty takes heaviest knock, too

Greater proportion of Asda's shoppers want to buy music & video from Tesco

Visitors

Third consecutive rise in footfall — but limited to elderly and less affluent

Main users

Move into decline

Conversion rates

Sharpest decline among profiled retailers

Loyalty

Sharpest decline here, too

Competitors

Shopping around at lowest level in 10 years

HMV/ FOPP

New digital download site improves performance

Main user share increases despite fall in visitors …

… thanks to greatest uplift in conversion among profiled retailers

Loyalty flat year-on-year but range, ambience and facilities show uplifts

Biggest potential gains

Visitors

Visitor share falls after three years of growth

Main users

Reach highest level in five years

Conversion rates

New standalone download service drives significant jump in conversion

Loyalty

Remains above 90.0% for the second consecutive year

Competitors

Shopping around stays low inline with high loyalty

ITUNES

Pace of share gain slows …

… but visitor and main user shares continue to improve

Conversion rate declines

Loyalty flat on previous year

HMV continues to be the preferred choice for disloyal iTunes customers

Visitors

Launch of iPad and upgrade of iPhone drive growth

Main users

More customers spend the most at iTunes

Conversion rates

Conversion falters marginally

Loyalty

Remains flat on last year despite range falling sharply

Competitors

Less shopping around better for iTunes

PLAY.COM

Feels competitive strain

Visitor and main user shares down but Play.com gains older customers

Conversion down for fourth straight year

Lower convenience score drags down loyalty despite appreciation of its prices

Amazon a greater threat

Visitors

Visitor share declines for the first time

Main users

Loses ground among younger shoppers

Conversion rates

Continue to decline in more challenging market

Loyalty

Off the top but remains high

Competitors

Play.com's main users increasingly visit its competitors

TESCO

Despite download offer Tesco still struggles with tougher competition

Tesco's visitor and main user shares both down

Conversion rates remain low

Convenience boosts loyalty score …

… but range scores even more poorly

Visitors

Falls back after strong uplift

Main users

Main user share eases off as less affluent shoppers prioritise spending elsewhere

Conversion rates

Struggles to boost conversion

Loyalty

Convenience drives loyalty improvement

Competitors

Shopping around continues to fall as customers one-stop shop in downturn

APPENDIX

Methodology

Selection of parliamentary constituencies

Selection of enumeration districts

Selection of respondents

Post survey weighting

Further reading

Ask the analyst

Global Retail FreeView

Verdict Research consulting

Disclaimer

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