A look at the Future of Retail

Category: Retail, eCommerce, Technology, consumers

Insight "A look at the Future of Retail"
The act of buying is very different today that it was just a few years ago.

The onslaught of the Internet and mobile devices in our daily lives has allowed us to be completely connected at any time of the day. This means that everything is now within reach at the touch of a button: from ordering food for home delivery to purchasing a trip. 

Commerce has been the sector most affected by this digital revolution, gaining immediacy, universality and omnipresence. We can buy anywhere, but nor in any way.  

The act of buying is very different today than it was just a few years ago. Despite what one might think, we're not only referring to a transfer from the physical to the digital, but rather the change has greatly affected the relationship between the seller and the consumer, altering the behavior of both. 

The Affects that this Transformation has in practice

The study "The Future Shopper 2019", carried out by  Wunderman Thompson Commerce and The Cocktail, delves into the evolution of trade in eight countries, including Spain. The more than 2,000 interviews that we conducted in our country allows us analyze the various phases of the purchase funnel:

Inspiration: this is the key phase of the purchasing process, where it needs to be more visible and relevant. 51% of purchases are generated in search engines, once again winning the battle in the fight to be the most relevant medium, followed very closely by brand sites.

Although social networks are stepping on the heels of the younger population and consumers of the future, we are faced with a generational and demographic gap. If we focus on this generation,  Generation Z, we see that their focus is on social media and print magazines. They are skeptical of Amazon and very aware of ethical and environmental issues.  

Another relevant insight is the importance that the consumer gives to physical stores due to their differential and omnichannel experience. Two figures stand out: 48% of users prefer to buy from brands that have a physical location and 33% say that they start shopping in physical establishments because of the great experiences that these spaces continue to generate. 
 

The best shopping experience may be not having to purchase at all.

José Luis Antolín, Business Development Director at The Cocktail.

Search. We're talking about two main channels: search engines and Amazon. Spain is the country that most frequently starts searching for products on Amazon. Although a strategy based solely on this channel is not always a guarantee of success, ensuring an appropriate presence of your brand/retailer in search engines is a basic pillar of the strategy. 

Unlike the previous funnel phase, the influence of websites and social networks at this stage is no longer relevant. Social media searches only rise 15% among Generation Z; a figure that denotes a positive trend in the future of Social Commerce. 

Purchase & Loyalty. Consumers want it all: speed, availability, product description and price information. But what's important, beyond giving all information to our consumes, is to create and maintain a good loyalty channel. 

The Amazon Prime effect has changed user expectations. As a result, Amazon focuses its loyalty program on creating a cutting-edge mentality and committing to new services, such as voice shopping and programmatic commerce. 

When it comes to logistics, brands need to improve their capabilities, which means major organizational changes and a decisive role for data. 

In delivery, impatience is the norm. Most consumers consider a delivery time of between 1 and 3 days to be reasonable.  

 

The future of retail holds even greater challenges for brands. Experts predict five trends

- A strong propensity for voice shopping. It's beginning to become a reality, but we calculate that it has a long way to go.  

- The possible creation of a universal interface for Ecommerce.

- The cashless world may end up predominating, even if today it's not highly accepted by most users. 

- The growth of Programmatic Commerce, which has become a key part of business. José Luis Antolín, Business Development Director at The Cocktail, states that, "the best shopping experience may be not having to purchase at all"

- Social Commerce will be increasingly relevant for the buyer of the future. Generation Z is already inclined to it. 

 

You can obtain the report "The Future Shopper" by writing to bd@the-cocktail.com or through the following link. Bellow, you'll find a video with the summary of the HubDay that took place on June 13, "The Future Shopper: A Look at the Future of Retail". 

 

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