20130106-OC_C-Would_you_trust_a_machine_12页_2mb

OC&C Retail Proposition Index 2013 Summary

• Introduction: The OC&C Proposition Index 2013 is the fourth annual consumer research study on shopper attitudes toward global retailers, involving over 30,000 consumers rating nearly 600 retailers across 9 countries. It assesses overall retailer propositions and key elements like Price, Range, Service, and Trust.

• Key Highlights:

  • Amazon's Dominance: Amazon ranked first globally, reflecting its strong delivery on Promise and pricing policy. However, it faced trust challenges in markets like Germany due to labor disputes and strikes, leading to a decline in its trust rating (-8 points in Germany).
  • Trust Factors: Safe and Reliable Products was the most important driver of consumer trust globally, closely followed by Delivery on Promise and Fair Price. Trust was eroded by negative publicity (e.g., data breaches, tax avoidance issues), impacting retailers like Zappos and Amazon.
  • Country Variations: Germany showed strong preference for Fairness and Ethical Practices, while India valued long-term reliability. Spanish consumers placed the least importance on Safe Products.
  • Multichannel Importance: Multichannel retailers (e.g., Argos, John Lewis) outperformed online-only players in customer engagement, with top participants including up to 50% of customers shopping across multiple channels. Amazon retained top rankings overall but struggled with Trust.

• Examples of Declines: Retailers like DFS, Rakuten, and Tesco experienced trust rating drops due to issues such as security breaches, tax scandals, and operational problems. Zappos saw a notable decline after a data breach was allegedly mishandled.

• Category Champions: Category leaders included Amazon for General Merchandise, Costco for Grocery, and Apple for Electricals, highlighting strengths in Quality, Choice, and Service. Trust remained central, with seven top retailers appearing in the top 20 overall based on multiple markets performance.

• Global Trends: Internationalisation presented challenges, as retailers adapted to cultural and regulatory differences in local markets. Online pureplays focused on unbridled choice and low prices, while multichannel strategies were crucial for building loyalty and higher engagement.