2020, maybe rephrased as the Year of Disruption. Almost everything has changed about consumerism this year. The methods in which we buy, where we buy, what we buy, and when we buy.
Despite there being disruption, there is a great sense of opportunity. In order to meet consumers evolving behaviours, retailers had to automatically switch to the ‘new normal’ of online shopping investing in digital architecture, hiring and seeking new innovative delivery options, adopting touch free, frictionless payment systems.
This year due to the pandemic has led to an entire digital transformation than the entire decade combined.
So what is in store for us in the coming year of 2021?
Online is Offline & Offline is Online
Online shopping has escalated to more than 75% and the convenience of kerbside delivery, click & collect and buy now pay later has been the main source of its success. This has been a very popular system with the Australians who plan to increase their shopping online in the coming months. About 32% of them indicate that they will continue to shop online for the next year. So our loyalty to shop online is here to stay.
But it’s not all just about clicks. The retail landscape of 2021 will be omnichannel and seamless blending online and in-store shopping. Retailers are optimising the strengths of their in-store experience, and the consumers’ desire for an engaging, immersive, convenient shopping experience. But they are merging this with a user friendly, slick and frictionless online experience. In 2021 it will be no longer relevant to talk about online versus in-store as two separate shopping channels. hybrid models are popping up offering shoppers an experiential journey where the physical store is no longer the consumers final destination but it is just a part of the retail experience.
Shopping is no longer binary. It’s not as simple as “if I want to buy item X, I have to go to store Y.” The covid induced multi-channel shopper revolution means that consumers will now visit a pop-up, a boutique and say, a department store. Then they’ll jump on to their device to shop up a storm. Laptops will be most popular with 54 per cent of Aussies browsing on them, but the ease of mobile shopping means it is also on the rise from 39 per cent this year. Shoppable posts and shopping apps are also on the rise – 62 per cent of Aussies use a shopping app each month according to We are Social. This hybrid shopping experience means that consumers are experiencing these brands across multiple platforms and at every moment of their day.
Social media on its road to an evolution or revolution?
The pandemic has been a blessing for retailers on social. Aussies currently
have an average of 6.7 social media accounts each, 96% of Australians have visited or have used a social network or messaging service in the past month. Youtube, Facebook, Instagram, Twich, TikTok, Pinterest & Spotify are platforms that are currently leading the way and that everyone is collectively hooked onto for the content. Our media consumption has doubled and now we spend an average amount of 6 hours 59 minutes online per day. That’s an unbelievable amount of over 40% of our waking life. The sky is really the limit to target eyeballs in the social space in the year of 2021.
Consumers are constantly craving high end, exclusive and personalised shopping experiences through social media to build on their purchasing power. The want for curated edits, personal content and human touch is in demand.The indisputable trend of shoppable posts, concierge services, instant 24/7 chat access to sales staff and livestreamed support will continue.
The online social aspirational phase is a critical piece of the customer journey which is focused on finding inspiration or inspiring others in social media. Research has found that more than 70 per cent globally of Gen Z’s make their purchase decision during this shopping stage.
Forbes reported that consumers will spend 48 per cent more when their shopping experience is personalised. Even high-end fashion retail labels are in on the act clothing gaming avatars in high- end ‘skins’ and runway launches for video games. If one can’t afford the real-thing, 2021 will offer you the digital ephemeral version. Gen Z are hooked to flocking and posting their new avatar outfits for fellow social gamers to see, even if they’re virtual.
Currently we are privy to a brave new retail world but the retailers that get it right in 2021 will be omnipresent connecting consumers across their retail ecosystem and being where they are when they are there.
Physical retail will always be in vogue
Despite the massive shift to online shopping, physical retail will never go out of style. It is simply evolving.
Australians still love the immersive and experiential shopping experience. Covid has brought a stronger will for community spirit. Consumers have fought tooth and nail for local retailers to start small businesses offering a personalised service and distinctive product. The testament of success to small retailers is harnessing consumers sense of belonging and identification amongst the locals.
Mastercard reported that 73% of consumers wanted to shop local to help their community get back on its feet and 42 per cent of consumers said they would spend more to do so. The average spend on local businesses is now $200 per week. The covid-induced buy local, shop local movement will continue into 2021 in line with the increasing “in this together” consumer sentiment that we have witnessed this year.
Genuine retail & the spike of sustainability
In the coming year, consumers will be more conscious, ethical, more aware and sustainable as a result of covid. There’s a greater awareness of retail with purpose and authenticity and integrity will be key. Gen Z in particular are looking beyond the physical products that are sold and they are looking to the retailers’ purpose – its value set. Value is no longer a simple trade-off between price and quality. It’s multidimensional. Covid has really hit the reset button on societal values, and consumers now want to shop with retailers that reflect their societal, cultural, economic and political values. Savvy retailers in 2021 will have a finger on the social movement and consumer sentiment pulse and be proactive, not reactive when it comes to reflecting what consumers want.
Re commerce is on the rise
half of all Aussies are buying second hand to get bang for their buck and make the dollars go further. That’s around $ 5000 of unwanted clothes, accessories, and household goods for every household in Australia. With the economic impact of Covid continuing and with the removal of stimulus schemes, consumers are going to be more budget-conscious than ever.
42% of Aussies plan to sell their own items in the future. For socially aware consumers the idea of reducing waste, conserving resources, giving back to society and saving money is a winning combination. On top of that re-commerce allows consumers to connect with one another, have conversations, socialise and buy/sell and in a year of social dislocation, isolation and lockdown – and that in itself will be a huge benefit in 2021.