2012-01-29-OC_C-Taking_on_the_machines_12页_1mb

OC&C Retail Proposition Index 2012 Summary

Report Purpose: To measure and rank retailer perceptions on consumer propositions (overall and by elements: price, quality, choice, suitability, service, store/website feel).

Key Findings:

1. Top Performer: Amazon consistently ranked #1 overall, demonstrating strong performance across multiple markets and dimensions. Its success relied on broad range, efficient delivery, strong service perception, community engagement (especially in niche marketplaces like Dawanda), and effective use of scale and data.
2. Diverse Winning Models: Top retailers varied by category, country, and business model:
   • Online pure-plays (Allegro, Dawanda) and established e-commerce players (Bol.com, Zara, etc.) performed strongly.
   • Multi-channel retailers (John Lewis, IKEA, etc.) leveraged their physical presence to enhance the customer experience, offering higher perceived value and loyalty compared to pure-play customers. This highlighted the importance of integrating online and offline channels.
   • Strong local champions (DM, Picard, John Lewis in their home markets) excelled by focusing on quality perception, store atmosphere, or customer service.
   • International giants (IKEA) and local discounters (Aldi, Lidl) also performed well.
3. Measuring the Index: The index analyzed over 40,000 consumer ratings across 8 countries for >350 retailers. Ratings were collected on 9 key dimensions and averaged into an overall 0-100 score. Scores were normalized internationally for comparison.
4. Challenges: Discounters improved significantly but still faced challenges from price-sensitive customers. Maintaining international proposition consistency is a major challenge, with few retailers achieving excellent ratings in multiple countries simultaneously. Excellence is tough to achieve unless the proposition has genuine mass appeal.

Conclusion: The report provides a comprehensive ranking of retailers based on consumer perception, highlighting that Amazon remains dominant. It emphasizes the importance of multi-channel integration, curation (not just breadth), and high service/quality standards for top performers.