MANILA, Philippines - 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.
Eight out of 10 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.
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.
Eighty 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 percent.
The survey likewise indicates that there is still a demand for brick-and-mortar.
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.
Eighty 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.
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 percent).
In order to thrive in an increasingly competitive retail landscape – one in which 80 percent of people are claiming to be “Smarter Shoppers” – retailers also need to get savvier about their use of technology to improve the overall shopping experience and help drive loyalty and growth.