For the second consecutive year, TC Group Solutions, leader in developing all types of solutions for collecting, storing, processing and analyzing the BIG DATA that interacts within Retail organizations, has produced the BIG DATA Report about the Consumers’ Behavior 2016.
The BIG DATA Report about the Consumers’ Behavior 2016 by TC Group Solutions analyzes the consumers’ attitudes on the shopping streets of 23 Spanish cities with more than 200,000 inhabitants, starting from the thousands of data that are obtained daily from more than 2,000 sensors that the company has installed in them.
The objective of the study is to help understand the behavior of consumers as well as the performances of the different cities, areas and commercial streets of the country: their pedestrian’s flow, the days and the hours of peak and lowest affluence, or the cost per potential client derived from the real estate’s rental prices. The report also incorporates a chapter entirely devoted to consumers’ behavior within stores in the FASHION sector: how many of them enter the shop, what days of the week and at what time, how many buy and how many leavewithout making a purchase.
Dr. Carlos Torrecillas, Professor of the Marketing Management Department at ESADE and author of the study’s prologue, welcomed the presentation that took place in Madrid at the Círculo de Bellas Artes. With his lecture titled “VUCA BIG DATA and the Concorde: flying over the storms” the professor revealed that “in a “VUCA” world (Volatile, Uncertain, Complex and Ambiguous) it is necessary to be able to obtain and process large amount of data and, in addition, to visualize them in a way that allows a quick analysis and understanding in order to make rapid professional/strategic decisions in such changing environment.”
The founder and CEO of TC Group Solutions, Álvaro Angulo, emphasized that this study “makes it possible to turn data into useful information for decision makers in retail, from choosing the best location, to aspects related to the point of sales management with the objective to improve cost effectiveness.”
Marta Fernández Melgarejo, marketing director at TC Group Solutions, was responsible for representing the results of the study, which revealed that “63% of customers entering a store, leave empty-handed, or that in Gran Vía in Madrid, a store of 80m² is paying 2.8 euro cents per potential customer, while in Paseo the Gracia in Barcelona, it would pay 3.4 euro cents.”
THE PEDESTRIAN TRAFFIC
The first out of four chapters that complete the report, presents the behavior of the pedestrian traffic (where it moves, what days of the week, at what times...) on the commercial streets of Spain, classified in three groups of cities, according to the number of inhabitants: Barcelona and Madrid, studied one by one; Valencia, Seville, Bilbao, Zaragoza and Malaga, studied all together; La Coruña, Vigo, Oviedo, Santander, San Sebastián, Pamplona, Valladolid, Salamanca, Alicante, Murcia, Cordoba, Cadiz, Granada, Palma de Mallorca, Tenerife and Las Palmas, also studied simultaneously.
Comparing the two largest Spanish cities, Madrid and Barcelona, it is possible to notice that while in the capital the traffic was growing up during the years, thanks to the good results of the first quarter, in Barcelona the average daily traffic was, every moth, lower than the previous year. Taking into consideration the whole year, the traffic on Madrid’s main shopping streets grow by 22% with January being the month with the highest traffic thanks to the sales, with a daily average of 6,031 pedestrians. On the other hand, the evolution of the pedestrian traffic on the commercial streets of Barcelona remained very similar to the previous year and comprehensively it only grew by 1.38% during the year. The best month in the Catalan city was September, with a daily average of 5,951 passers-by.
The days with the highest flow were January 4th in Madrid ¡, with 8,047 pedestrians and again April 23rd in Barcelona with 8,331, a figure which places itself slightly below the one of the previous year.
The five regional metropolis accounting from 300,000 to one million inhabitants, Valencia, Seville, Bilbao, Zaragoza and Málaga, in 2016 increased foot traffic of their commercial streets by 4.33%, reaching an annual daily average of 4,210 pedestrians, with inter-annual growth in all months of the year apart from July, which suffered a drop of 2.09% compared to 2015.
This year the Christmas period replaces Easter in this city, given that December was the month that he recorded the most traffic in 2016, with 4,588 medium pedestrians, gaining the position of March the winner of 2015.
In the cities accounting between 200,000 and 300,000 inhabitants, La Coruña, Vigo, Oviedo, Santander, San Sebastian, Pamplona, Valladolid, Salamanca, Alicante, Murcia, Cordoba, Cadiz, Granada, Palma de Mallorca, Tenerife and Las Palmas the average of passers-by increased by 13.75% improving the amount of every month of the year respect to the previous, reaching 3,958 of daily annual average pedestrians. The best month was again December, with an average of 5,225 passers-by and, 7.64% more than 2015.
THE COST PER POTENTIAL CLIENT
The second chapter of the report deeply studies one of the most representative streets of each group: the traffic and inflow evolution according to the hours of the day, the days of the week, rental prices of the commercial premises and, consequently, the Cost per Potential Client of each one, based on the calculation of the published rental prices of commercial premises (€/m²/month) and the monthly pedestrians’ average of the exercise. Thus, the Gran Vía in Madrid substantially improved the potential profitability of its commercial premises thanks to the improvement of the average traffic: the stable rents’ average together with the strong increment of the traffic make it possible that the cost per potential client of 2016 amounted to 2.88 euro cents, compared to the 3.5 euro cents in 2015.
VISITOR CONVERSION RATE AND CUSTOMER CONVERSION RATE
The third chapter of the report analyzes the customers’ buying intention, an indicator that the company defines as the visitor conversion rate, in order to calculate the percentage of passers-by (potential clients) that actually enter a store.
In 2016 Barcelona has gained appeal among consumers (9%) compare to the previous year, although, Madrid still performs better (9.75%). However, if we take into consideration the Customer conversion rate, which measures the percentage of visitors to a shop that end up making a purchase, the stores in Barcelona achieved an average of 34.42% reaching a conversion 2 points higher than Madrid (32.34%).
FASHION AND ACCESSORIES
TC Group Solutions has dedicated the last chapter of the study to the analysis of consumers’ behavior within the fashion and accessories sector in the different metropolis.
According to the Report, Barcelona is positioned as Spanish fashion capital, with an average of 142 customers per day compared to 124 in Madrid, 102 in the cities of Group I and 56 in the cities of Group III.
These are some of the conclusions drawn from the second BIG DATA Report about the Consumers Behavior published by TC Group Solutions and made from aggregated BIG DATA calculations based on the thousands of data that are obtained daily from the sensors the company has installed throughout the 360 shopping streets of the 23 Spanish cities with more than 200,000 inhabitants.
MORE ABOUT TC GROUP SOLUTIONS
Born as T-Cuento Soluciones in 2007, today TC Group Solutions analyses BIG DATA that interact with Retail’s organizations.
With the head office in Barcelona and other owned branches in Paris, Milan and Bogota, TC Group Solutions is present in more than 25 countries of four main lands, with more than 15.000 installed sensors which are collecting millions of data, anonymous and aggregated, about the people behavior and flow around the world.
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