Despite the growth of online stores, physical stores are still the main touch point for shoppers both locally and globally. This is according to PwC’s annual consumer survey, Total Retail: Retailers and the Age of Disruption.
Based on an online survey of 19 000 respondents globally, 1 000 of which were from South Africa, the report reveals that the physical store remains the favourite of consumers around the world. The ability to see, touch and try on the merchandise is key for 64% of respondents, while having the item immediately (62%) and avoiding delivery charges (60%) were other reasons cited by shoppers to visit bricks-and-mortar stores.
“This year’s survey echoes last year’s, which highlights the importance of having a ‘Total Retail’ model. Retailers need to think beyond channels: customers want to be connected to the retailers 24/7,” says John Wilkinson, Retail and Consumer Leader for PwC.
While mobile shopping has increased, it has not increased to the extent originally expected. The bricks-and-mortar retail stores are a lot more resilient than initially thought. The survey revealed that 43% of online shoppers still shop weekly in physical stores, whereas only 13% of shoppers use online stores for their weekly grocery shopping.
“The store is not dead, and the interaction between the store and the mobile channels is becoming increasingly important. The mobile phone is becoming a crucial agent for shoppers,” says Wilkinson.
Social networking is still in its infancy with regards to shopping, as it has not yet taken off as a platform from which to buy. By far the majority of payments in South Africa are made by debit cards, although mobile platforms like SnapScan are catching up. Security of mobile payment platforms is of concern, with 40% of South African citing this an issue. More secure forms of payment, such as retina scans, may become key for the market in the future.
59% of respondents said that social media had influenced their buying habits, while 52% like brands’ social media pages to receive information about products, sales and promotions. While 69% of South Africans use FB (higher than global average), purchase over thoe platform is lagging. The Chinese use social media to buy and purchase online. Western models focus on social media to communicate and stimulate brand presence, but not as a platform for purchase. However, as the Eastern markets continue to grow, Western models will begin to mimic them.
Around 81% of local shoppers (and 70% globally) still prefer shopping in a physical store, and 73% of people have browsed products online yet gone into a bricks and mortar store to make a purchase. Peter Hoijtink, associate director, Customer Impact and Digital Transformation at PwC, says that online stores still win when it comes to convenience. Interestingly, price in South Africa does not play as much of a role as it does globally, where online shopping offers better price points than off-line shopping.
“The store is still there. However, the shift to ‘Total Retail’ demands retailers to think beyond the usual channels. Consumers are channel agnostic, meaning retailers have to think in a different way,” says Hoijtink. “Consumers, with all the options they have, will go their own route.”
