Nowadays, online consumption is becoming more and more popular with consumers. The rapid development of online shopping channels has brought a lot of pressure to the traditional physical store retailers. Will offline channels be replaced by online? What are the differences in consumer spending habits online and offline? What are the characteristics of future shopping consumption trends?
Recently, Nielsen officially released the "Global E-Commerce and New Retail Report" and surveyed 30,000 consumers from 60 countries to fully answer the huge impact of electronic technology on the retail industry for retailers and manufacturers. We made forward-looking comments on our strategic adjustments.
E-commerce and physical stores go hand in hand
Nielsen's survey shows that physical stores will not be replaced by e-commerce in a short period of time. Although online shopping has many benefits, physical stores also have their own unique advantages, especially for those with more mobile consumer goods. While most respondents in China stated that offline shopping is a pleasant family outing, another 67% of respondents believe that they enjoy the pleasure and satisfaction of shopping in physical stores.
The report also pointed out that e-commerce does, to some extent, have greater development advantages than physical stores. Therefore, for retailers and manufacturers, they must attract consumers through more flexible means. Many key factors are crucial, such as: using digital technology to help consumers find stores more easily, develop shopping lists, and check prices. Search for related products, share shopping experiences and information, and final purchases.
“The era of business interaction has come.†Fan Xi, general manager of Nelson China, stressed that “now consumers are no longer simply using a single online or offline shopping method, but according to their own needs, choose the most suitable way for them. For retailers and manufacturers, the flexibility to use both online and offline sales channels, regardless of when and where they can meet customer wishes, is truly successful.â€
Digital technology leads to offline reform
Even in physical stores, retailers can use online services to boost sales. For example, in-store applications such as online coupons and mobile terminal coupons, shopping lists, downloading retailers or member apps, scanning two-dimensional codes for more information, and in-store Wi-Fi online payment and other digital technologies.
With the popularity of smart phones and broadband networks, online transactions in developing countries have ushered in a period of rapid development. Nielsen's report shows that the maturity of online shopping in China has been ahead of the world average. The report further pointed out that if more Chinese retailers carry out digital services in stores, such as online or mobile terminal coupons, shopping lists, self-service payments, and use of in-store Wi-Fi, there will be more room for growth in this area. . Most Chinese respondents chose online shopping for home delivery, which is far higher than the global respondents. 30% of Chinese respondents said they have used online customization services, while 23% of Chinese respondents said they have used online or mobile terminal coupons. Digital services in the above three physical stores are the most widely used among Chinese consumers. In addition, more than half of the respondents stated that they are willing to try these services in the future.
The survey also revealed that 18% of Chinese respondents indicated that they would log into the store's Wi-Fi to obtain product information or prices, and 17% would obtain the required information by scanning the QR code and use the in-store computer to check the product information. Consumers account for 16%. Seventy-five percent, seventy-eight percent, and seventy-nine percent of Chinese respondents said they would be willing to try these electronic methods to shop in physical stores in the future.
Physical stores can provide consumers with an easy, convenient, and personalized experience through online service on the store. For physical stores, providing convenient digital services is no longer an option, as it will greatly increase consumer's staying time, participation and customer traffic. In Nielsen's survey, consumers who choose physical stores to experience online services are the most popular in the Asia-Pacific region, Africa, and the Middle East. These regions even exceed the global average.
“At present, most consumers will list shopping lists before shopping, and will purchase necessary products when shopping.†Fan Yan said, “In the fiercely competitive environment of retail, retailers and manufacturers can completely pass the line. Onboard tools help consumers to enhance their shopping experience, allowing them to stand out from other sales channels and increase their potential sales. In the process, smart phones have played a decisive role. Using online tools in the store can often help with spending. Enjoy a more enjoyable shopping experience."
"Time-conscious consumers are more likely to use technology to make shopping faster, simpler and more efficient," Fan said. “As the more mature and flexible ways of self-checkout are used by more people, more and more retailers have joined the ranks of online service providers. Now, more and more consumers are more willing to choose This way of shopping."
Who is shopping online
The 15-34 year-old young people who grew up with digital technology are the main players in online consumption. These consumers are keen on and proficient in new technologies. According to the survey, the demand of 21-34-year-old youth groups for online consumption not only promoted the growth of online sales, but also contributed to the maturity of the industry. In the global context, young people after the 1980s, after the 1990s, and even after the 1990s are the main force for online shopping, and China is no exception. These consumers have unprecedented enthusiasm for the use of digital technology. Online shopping is not only a habit for them, but also gradually becomes a new way of life. Currently, six types of online shopping that are commonly used, namely, online shopping delivery, self-acquisition in online ordering stores, pick-up after driving, designated site pickup, virtual supermarkets and automatic customization, are most popular with young consumers. They are also the generation who most hope to use online shopping in the future. According to the survey, 9% of the elderly, 17% of middle-aged, 22% of young people, 30% of youth groups, and 28% of young people have already used the online shopping delivery service. Among them, young respondents indicated that they are willing to use various online shopping methods in the future.
Beginning in the post-80s and beginning of the 1990s, the family will begin to form a family. After the 9th 5th and some after 0, they will soon graduate from school and enter the workforce. This generation will determine the future economic direction. Therefore, for retailers and manufacturers, it is crucial to understand these consumer-oriented shopping methods. â€
In the Asia-Pacific region, more than half of the respondents stated that they are willing to use online shopping in the future, which exceeds the global average. Especially in China, online ordering and delivery are all-inclusive. More than one-third of respondents in the Asia-Pacific region said they have had online shopping experience; online auto-ordering is also more popular in the region than the global level, and China's proportion is as high as 30%.
What do consumers buy online and offline?
It is not suitable for online, it is definitely suitable for the offline, and sometimes the two are just the opposite. For example, in the U.S. market, the ratio of food and non-food in offline consumer goods is 60% vs 40%, and the opposite is true for the online market.
So, which products are more potential for online sales and which products are more suitable for offline sales? In general, long-term storage of goods, such as personal care products and household products is the first choice for consumers to shop online. In China, shower gel, toothpaste, paper towels, shampoo and hair care products, and detergents were among the top five in online shopping, followed by cosmetics. According to Nielsen's survey, the share of offline skin care products still occupies half of the market, and these traditional channels include cosmetics stores and grocery stores. At the same time, the amount of online transactions for skin care products has also rapidly increased and currently accounts for 42% of total sales, a 56% increase over the same period.
According to Nielsen's data, physical stores have no doubt made up for 62% of sales in the food and beverages category, followed by grocery stores with a 32% share, while online transactions accounted for 6%. However, the survey also showed that the online trading of food and beverage products has great potential for growth. About 36% of Chinese respondents stated that they plan to purchase milk and nut products online, over 20% in the next 6 months. People said they would buy beer, yogurt and coffee online. In addition, during 2013-2014, online sales of liquid milk and chocolate rose by 91% and 59%, respectively.
What are the growth rates of online sales of fast-selling products in Asian countries that are much higher than those of other countries? The Nielsen report pointed out: First, the urbanization and high population density of Asian countries provide a market basis for the circulation of fast-moving goods online. Express delivery is more economical and labor costs are lower. Second, the rapidity of smartphones. Popularity provides consumers with a hardware foundation. Third, the high level of concern for food safety issues has also prompted consumers to prefer high-quality food online, especially in China.
Where are we shopping in physical stores?
Of the three product categories included in the study, food, beverage, furniture and personal care products, the fastest-growing channels did not account for the largest share of sales, indicating that the global trade share has become increasingly fragmented. In the food and beverage category, traditional stores have the fastest growth. Supermarkets and hypermarkets are still important channels for the sale of such products. However, street-level shops and small-scale community shops are increasingly being satisfied by satisfying consumers' demand for convenient shopping. Consumers love it. The situation of household products and personal care products is similar to that of food and beverages. Hypermarkets still occupy the largest share of sales, but sales of convenience stores are also growing rapidly.
Taking liquid milk as an example, although large shopping malls and supermarkets still dominate the category's sales channels with a total sales volume of 60%, the growth rate of online channels and traditional grocery stores also reached 91% and 17% respectively. The same applies to skin care and baby products. Although large supermarkets and supermarkets still maintain their very important status, cosmetics specialty stores and mother-and-baby stores have also rapidly emerged, which has increasingly played an important role in sales of category products.
Large supermarkets and hypermarkets are still important participants in the global retail landscape. This situation will also continue for a long time to come. However, small-scale shops and e-commerce channels also occupy a considerable share of certain varieties. Increasing. Therefore, when planning a sales plan, it is necessary to consider the situation of large supermarkets and small-scale shops entities and online. An in-depth understanding of consumers' shopping locations and shopping categories will provide operators with more clear ideas and more suitable distribution rules for the market. Strategy.
Although the digital age has arrived, even if consumers' shopping channels have changed, most consumers will continue to shop in physical stores. Convenience, comfort and reasonable prices will also be important dimensions for consumers to consider shopping. Therefore, for retailers and manufacturers, leveraging online and offline advantages to optimize the shopping experience and allow consumers to enjoy a better shopping experience is of utmost importance.
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