News« Back to News 13 July, 2016
TC Group presents the first BIG DATA Report about the Consumer Behavior
The average traffic in Madrid rises by 3.9% and by the 7.8% in Barcelona. The 35% of the clients that enter in a store end up buying something. It cost the same obtain a client in Paseo de Gracia, in Barcelona and in the Av. Maisonnave of Alicante.
The ecommerce online platforms, the possibility of buying throughout the mobile applications and other technologies have brought a structural change in the retail sector which, in turn, has caused a rise of the demand in the “preferred locations”.
With this hypothesis as starting point and using the 6.000 and more data collected by the installed sensors inside and outside in the Spanish commercial establishments, the company TC Group Solutions has elaborated a BIG DATA study about the consumer behavior in the commercial street along 2015. This allows organization to know the average value of the pedestrian traffic and other indicators as the cost per potential client, the attraction and conversion rate, in order to calculate the profitability of the street and the commercial site in concrete.
The Dr. Carlos Torrecillas, professor Appointed of the Marketing Direction Department at ESADE, is the author of the study’s prologue that also gave the introducing and welcoming speech at the presentation. With his conference titled “From dowsers to ultrasounds” he gave prestige to the study, arguing that “the water seekers have become professional figures thanks to TC Group that - with its BIG DATA systems able to read and combine billion of data coming from different sources such as pedestrian traffic, the commercial spaces’ rent prices, the clients’ entrance in the stores and the sales tickets – is able to offer real data, a GPS, of what is happening in the Spanish commercial streets, information – he said – that till now was not available and therefore, it can be compared to the dowsers’ water research”.
Then, the founder and CEO of TC Group Solutions, Álvaro Angulo, underlined the general goal of study which consists in “provide a real radiography of the pedestrian traffic behavior in the Spanish commercial streets, creating useful information to the management of the commercial location according to their profitability, activity sector and commercial brand”.
In its turn, Marta Fernández Melgarejo, marketing director of TC Group Solutions, presented the study’s results that have been separated in four different chapters, in order to show the information that a good management of Big Data can generate.
The first chapter collects the data about the pedestrian traffic behavior in the Spanish commercial streets in 2015 respect to 2014, underlining e clear difference between Madrid and Barcelona. Meanwhile in the capital the traffic increased among the year, thanks to the good results of the first trimester, in Barcelona each month the average daily traffic was lower than the previous exercise. During the totality of the year, the monthly traffic rose by 3.9% in Madrid and decreased by 7.8% in Barcelona. In the capital, the traffic started the year re-launching for three times the double of the amount between January and March. From July to October, the pedestrian average in Madrid has been low, to come back rising in November and December.
The best month in Madrid was December, when the commercial streets in the capital counted a daily average of 5,673 people passing by. In Barcelona it was May, with 6,031 pedestrians. The week with the best pedestrian traffic in Madrid was precisely the last of the leap year (number 53) with an average of 6,396 daily pedestrians in the commercial streets of the city. In Barcelona it was the Sant Jordi week, saint of Catalonia (23rd of April), with an average of 6,486 pedestrians. In both the cities the lower traffic was concentrated in the week of August.
Wednesday 30th of December was the day with the higher traffic in Madrid in 2015, with 7,761 pedestrians as average in the commercial streets of the city; in Barcelona the record was again signed by Thursday 23rd of April, festivity of Sant Jordi, with 8.896 pedestrians as average in the principal commercial streets of the Catalonian city, even if it lowers by 5.9% respect to the previous year.
In the days in which the activity of the commercial streets reached the lowest level in Madrid and Barcelona, the traffic amounts to 2.500 pedestrians. In the capital, the lowest traffic was registered Sunday 16th of August, with 2,471 pedestrians, while in Barcelona the minimum was registered Sunday 1st of February, with 2,478pedestrians.
The “BIG DATA Report about the Consumer Behavior 2015” permits to know also the results of the pedestrian traffic grouping them (II Group of the Report) according to the five regional metropolises between 300,000 to 1billion habitants: Valencia, Sevilla, Bilbao, Zaragoza and Málaga. This group has seen the pedestrian traffic lowering by a 2% in 2015.
The cities classified in the III Group (cities between 200,000 and 300,000 habitants: La Coruña, Vigo, Oviedo, Santander, San Sebastián, Pamplona, Valladolid, Salamanca, Alicante, Murcia, Córdoba, Cádiz, Granada, Palma de Mallorca, Tenerife and Las Palmas) lowered by 7.1% their pedestrian traffic respect to 2014, till an average of 3,479 people per day in the commercial streets. The evolution of these cities was negative in all the months, even if the fall was braking thanks to the following months of commercial exercise, that fall only by the 2.2% in November and 1.7% in December.
COST PER POTENTIAL CLIENT
The cost per potential client is a data which allows a brand or a retail chain to identify the profitability of a determined area or location in the Gran Vía Madrileña, the cost per potential client in 2015 settled at 3,5 euro cents, taking into account the average pedestrians ratio (16,766 people a day) and a reference rent price of €220 per month per squares meters.
On the other on Paseo de Gracia, one of the principal streets of Barcelona, the cost per potential client lower by 2,6 euro cents in 2015, taking into account the average rent price of €230 per squares meters in the local in the Barcelonese street and the number of pedestrians which every day pass by them: an average of 23,442 pedestrians.
The second chapter of the Report is dedicated to the purchase intention of the consumers, an indicator that the company defines as the attraction rate, calculated throughout the pedestrian traffic that pass in front of a certain commercial position and the real number of people who enters the store.
While the commercial street of Barcelona in 2015 lowered their number of pedestrians respect to 2014, the capacity of attraction of the store was relatively higher. The attraction rate in the Catalonian capital reached an annual average of 18.6% respect to the 17.1% of the previous year.
In Madrid, on the other hand, the traffic rose but the ratio of the pedestrians which enter the store lowered from the average of 17.3% in 2014 to 9.5% in 2015. January in Madrid was the month with the best attraction traffic, with a 14.4% total of pedestrians; nevertheless it lowered respect to the 14.5% of the attraction rate of the previous year. In the commercial streets of Barcelona, the highest attraction rate, of 24.8% of the total traffic, was obtained in July.
The conversion rate that measure the number of visitors of a store that ends up purchasing something, settled at 41.68% in February 2015 in Barcelona. On the other hand, in the period from July to September it registered the worst conversion rate of the Catalonian city, respectively with a 29.41%, a 29.86% and a 28.19%. In November and December, the percentage of the clients in the commercial streets of Barcelona that realized a purchase did not outmatch the 35%, while in the same period of the previous year it passed the 40%. In Madrid, meanwhile, the highest pic in terms of conversion was registered in December, when the ratio of buyers settled at 41.97% of the clients. In the capital, May noticed the lowest conversion rate of 2015, with a 30.46%.
TC Group has designated the last chapter of the study to the analysis of the consumer’s behaviors for fashion and accessories brands in the different metropolis.
Therefore, in Madrid, the quantity of pedestrian that felt persuade by the commercial establishment specialized in selling fashion items during 2015 was lower respect to the previous year. For months, the Spanish capital maintained a stable pace lower than 12% in the attraction rate, registering the best result in January (11,6%) and the worst in April (6,9%).
In Barcelona, on the other hand, the quantity of people that passes by a fashion commercial establishment and entered it increased respect to 2014. The city registered several pics during the year, especially in April (46.2%), June (38,8%), and July (43.9%). The month with the highest difference respect to 2014 was September, with an attraction rate that doubled the one of the previous year.
These are just some of the conclusions that is possible to extract from the first BIG DATA Report about the Consumer Behavior elaborated by TC Group Solutions using the extensive data collected by our more than 10,000 sensors installed in stores over 20 countries around the world, along with the thousands of transactions that are carried out daily at our client's points of sale and the rental prices of the commercial premises.
More about TC Group Solutions
Founded in 2007 as T-Cuento Soluciones, today TC Group Solutions leads the market in the development of all types of solutions for collecting and analyzing BIG DATA inside and outside commercial establishments, inside and outside commercial establishments.
After its market entry in Paris in 2011, TC Group Solutions adds in 2015 two new companies to the group: T-Cuento Italia in Milan and Data Retail in Bogota.
Today, TC Group Solutions is present in more than 20 countries around 4 continents with more than 4,500 points of sale installed, directly or through exclusive trusted distributors.