MagnaGlobal's 'The Changing Face of Retail' study reveals key observations about Aussie's attitudes about in-store vs online shopping
Australian shoppers are caught in a dilemma created by the online shopping world, with the majority of people believing that choosing a product in-store - then later buy it online - is the wrong thing to do.This dilemma and other key findings on how consumers are changing the Australian shopping landscape have been revealed in a MagnaGlobal study titled "The Changing Face of Retail". The new study has just been finalised from data collected in June 2012 and reveals key observations about people's attitudes to offline and online shopping.
Says Victor Corones, managing director of MagnaGlobal: "This study
highlights enormous change to shopping habits as consumers navigate a
significantly more complex retail environment. It gives us unprecedented
understanding for the development of business and communication
strategies across our client base."
The research shows that whilst 85% of Australians have shopped online, the majority of shopping is still done at "bricks and mortar" stores. Three out of four consumers visit their local shops at least once a week, but only one in four shop online over the same time frame.
The study underlines that eRetail is increasing the opportunities to shop. However, online shopping is growing most predominantly at the expense of traditional stores in sectors where consumers believe they are not getting favourable in-store experiences. Four out of five people said they still prefer to browse in store.
In the MagnaGlobal survey, when people considered the statement, "I think it's wrong to get a shop assistant to show you something in-store and then go and buy it online," 39% agreed and 29% disagreed. This has become a new dilemma.
For most consumers the shopping process has changed and now relies on both online and offline environments. The online environment provides depth of detail around brands and products and commands the greatest attention across considered purchases and from those unfamiliar with a category. With shoppers having different needs and expectations from both environments, retailers need to tailor their brand appeal to deliver against consumers' expectations and provide a seamless shopping experience.
Interestingly, the majority of Australians now feel real pressure to research everything online before making a purchase and many feel overwhelmed by the volume of information and deals available. This highlights retailers' opportunities to help customers navigate and filter information they require. The study has also confirmed that consumers are now shopping online more frequently through a wider variety of sites online, with online marketplaces the most popular. Almost one in three people claimed to use online marketplaces more often than they did 12 months ago.
Group buying sites and catalogue aggregators currently offer little for consumers other than price. The research also shows that international shopping sites are used most often by people looking for a unique product, dispelling popular belief that the key driver to shopping overseas is price. International sites are being used less often than Australian sites, with 7% of consumers shopping online internationally weekly, vs 12% shopping weekly at local sites. However, 28% said that they are using international sites more often than they did 12 months ago.
With one in four Australian shoppers already using a smartphone to check online for a cheaper deal while out shopping, we see price comparison apps beginning to play an important role in influencing consumers across all categories. Popularity of the apps is driven by people who are particularly price sensitive.
The role of smartphones in retail is expected to develop significantly over the next two to five years as mobile technology improves and as marketers develop their mobile communication strategies.
With end sales the final measure of success for any marketing campaign, MagnaGlobal's latest research is designed to assist Mediabrands clients in navigating the nature of change across all retail sectors and the impact on consumers' path to purchase.
The research shows that whilst 85% of Australians have shopped online, the majority of shopping is still done at "bricks and mortar" stores. Three out of four consumers visit their local shops at least once a week, but only one in four shop online over the same time frame.
The study underlines that eRetail is increasing the opportunities to shop. However, online shopping is growing most predominantly at the expense of traditional stores in sectors where consumers believe they are not getting favourable in-store experiences. Four out of five people said they still prefer to browse in store.
In the MagnaGlobal survey, when people considered the statement, "I think it's wrong to get a shop assistant to show you something in-store and then go and buy it online," 39% agreed and 29% disagreed. This has become a new dilemma.
For most consumers the shopping process has changed and now relies on both online and offline environments. The online environment provides depth of detail around brands and products and commands the greatest attention across considered purchases and from those unfamiliar with a category. With shoppers having different needs and expectations from both environments, retailers need to tailor their brand appeal to deliver against consumers' expectations and provide a seamless shopping experience.
Interestingly, the majority of Australians now feel real pressure to research everything online before making a purchase and many feel overwhelmed by the volume of information and deals available. This highlights retailers' opportunities to help customers navigate and filter information they require. The study has also confirmed that consumers are now shopping online more frequently through a wider variety of sites online, with online marketplaces the most popular. Almost one in three people claimed to use online marketplaces more often than they did 12 months ago.
Group buying sites and catalogue aggregators currently offer little for consumers other than price. The research also shows that international shopping sites are used most often by people looking for a unique product, dispelling popular belief that the key driver to shopping overseas is price. International sites are being used less often than Australian sites, with 7% of consumers shopping online internationally weekly, vs 12% shopping weekly at local sites. However, 28% said that they are using international sites more often than they did 12 months ago.
With one in four Australian shoppers already using a smartphone to check online for a cheaper deal while out shopping, we see price comparison apps beginning to play an important role in influencing consumers across all categories. Popularity of the apps is driven by people who are particularly price sensitive.
The role of smartphones in retail is expected to develop significantly over the next two to five years as mobile technology improves and as marketers develop their mobile communication strategies.
With end sales the final measure of success for any marketing campaign, MagnaGlobal's latest research is designed to assist Mediabrands clients in navigating the nature of change across all retail sectors and the impact on consumers' path to purchase.
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