Eight out of ten global shoppers’ purchase decisions are now informed by a digital device, with consumers saying they are smarter shoppers and getting more value than before. However, though in-store sales still account for more than nine-tenths of all retail spending, the result is a more focused in-store shopper buying from a narrower list of unique stores than in years past.
Technology now touches nearly every retail transaction, creating a vastly different shopping experience for retailers and consumers alike, according to a report released by MasterCard.
The MasterCard Retail CMO’s Guide to the Omnishopper combines survey data from thousands of shoppers around the globe with transaction-based insights from MasterCard. Key findings include:
• Technology Use in Shopping is Almost Universal:
◦ 80 percent of consumers report using technology during the shopping process, such as smartphone apps for price checks, “click and collect” services to buy online and pick up in-store, and in-store technology to research or order a product.
◦ In China, 95 percent of all consumers use technology at some point in the shopping process and 94 percent have used retail-based shopping tools such as automatic notifications and mobile payments.
◦ In Australia, more than one in two are doing more research online today than two years ago, above the global average of 62%.
• Brick and Mortar Stands Strong:
◦ The omnishopper chooses physical stores for better customer service and a faster, more social buying experience. This might be a contributor to e-commerce’s relatively flat growth as a share of total retail sales (7.5 percent globally).
◦ More than two-thirds of Japanese shoppers value the advice they get from in-store sales associates and the social experience.
• Consumers Want Specific Inventory, and a Seamless Experience Accessing it:
◦ Today’s shoppers know what they want. The top frustration – cited by 73 percent of respondents – is items not being in stock, underscoring the importance of inventory management for retailers.
• Consumers Feel Smarter and Get More Value:
◦ 80 percent of global consumers claim to be “smarter shoppers” than they were a few years ago and 68 percent say they are getting more value from what they buy (both in-store and online) compared to five years ago.
◦ More than nine in 10 consumers in China (92 percent), Indonesia (91 percent) and Brazil (91 percent) report that they are more savvy shoppers compared to a few years ago.
◦ Nine in 10 Chinese shoppers feel that they are getting more value out of their purchases compared to five years ago.
• Merchants are Primed for Omnishoppers’ Loyalty:
◦ Despite having nearly endless choices a click away, only 30 percent of shoppers around the world like to try new merchants. Just 20 percent say technology has led them to consider a new retailer.
In China, however, 40 percent of consumers like to try new merchants, the second highest in the world after the UAE (43%).
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