Enabled by technology, the continued year over year growth in online shopping has been fueled by a new generation of consumers who want greater convenience, value and options. For consumer businesses, this trend poses both challenges and
Competition is no longer limited to local shops during business hours. Consumers today are shopping all the time and everywhere; and in a truly global online marketplace, products can easily be purchased from retailers and manufacturers
located anywhere in the world—or from those with no physical retail locations at all.
Consumer demand for richer experiences and greater convenience means that retailers need to rethink their strategy, both online and in stores. Having the right product mix is no longer sufficient to attract the new wave of consumers including
Millennials, who are entirely focused on one transaction—theirs. Creating an online shopping experience enhanced by technology such as augmented and virtual reality or 3D is becoming at least as important as providing convenient and personalized ordering, payment and delivery options.
However, despite the rise of online shopping, ecommerce still makes up a relatively small percentage of total retail spending. Retailers’ brick and mortar strategies also need to evolve to continue to draw customers into their stores, and to compete
with the online retailers opening their own physical outlets. Increasingly, we are seeing innovative marketing strategies, as well as new technologies such as smart shelves, robots, self-checkout, and interactive and virtual reality, being deployed in
stores as retailers strive to compete on all fronts.
Finding the ‘right’ strategy starts with one question: Given your brand promise, where do you want to compete? Only once a company understands their goals, customers and those customers’ needs can an appropriate strategy be designed.
And the key to a sustainable strategy is being able to understand and meet customer needs both today and tomorrow, across geographies, and across generations.
In this report, we aim to raise and answer some questions about your company’s approach to ecommerce. Our global research on online consumer behaviors, preferences and attitudes can be leveraged by consumer companies seeking to
improve their approach towards winning and retaining customers online.
I hope you find this report interesting and insightful. I would like to thank the survey respondents, company executives, and KPMG professionals who invested their time and insights to make this study possible.
To learn more about this research, please visit kpmg.com/onlineconsumers or contact a member of KPMG directly.
What do customers truly need?
Advances in innovation, coordinations, installments and trust — combined with expanding web and versatile access and purchaser interest for comfort — have made a US$1.9 trillion worldwide web based shopping field, where a large number of customers never again 'go' shopping, yet truly 'are' shopping — at each minute and all over the place.
An ongoing report by KPMG International titled 'Looking for client centricity through omni business models'1 , looked at how customer and retail organizations are changing to adjust to the move from conventional shop-driven business models to another reality where the client is progressively at the middle of a never-ending shopping knowledge. In this 'client driven' reality, retailers should be especially touchy also, receptive to when and where their potential clients are making buy choices (both deliberately also, intuitively) all through their 'continuously on' shopping venture.
The consuming inquiry is, by what method can buyer and retail organizations accomplish this nirvana of buyer indreading?
How might they distinguish and keep pace with the practices and inclinations of clients today and tomorrow? How would they be able to guarantee their online methodology is intensely customized to pull in and win the various and dynamic client portions they serve?
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On the web buy conduct
The computerized age and ascent of on the web shopping have driven an exceptional plan of action move for customer item makers and retailers. Numerous customary customer organizations furthermore, new businesses alike are moving far from models that are shopcentric or then again topographically engaged, to ones that are client driven and for all intents and purposes borderless. To help educate organizations handling this change, KPMG International's ongoing overview of 18,430 customers gives a one of a kind, thorough list of purchaser internet shopping practices and conclusions crosswise over nations, items what's more, ages.
Internet shopping as a rising pattern The recurrence of online buys fluctuates significantly by topography.
Customers in Asia, North America and Western Europe are well on the way to shop on the web, while per capita online buys in Eastern Europe and Russia, Latin America, and the Middle East and Africa are less incessant. A Generation X are the most dynamic online customers.
Among the distinctive age gatherings, Age X buyers (conceived between 1966 and 1981) made increasingly on the web buys a year ago than some other age gathering, averaging almost 19 exchanges every year. Curiously, in spite of the regular conviction that the rise in web based shopping is to a great extent driven by the more youthful and that's only the tip of the iceberg 'well informed' Twenty to thirty year olds (conceived among 1982 and 2001), Generation X buyers actually made 20 percent more buys last year than their more youthful partners.
Phase of life and pay levels are positively essential elements driving both on the web and disconnected shopping, what's more, Generation X buyers, numerous of which are progressively settled in their vocations and building homes what's more, families, are likely purchasing more customer products than the more youthful Twenty to thirty year olds by and large. As Millennials keep on entering the workforce and embrace new way of life needs, be that as it may, their internet shopping action is anticipated that would flood and even far outperform levels as of now displayed by more established ages.
Try not to think little of the Baby Boomers Contrasted with the advanced first Millennial age, it is sensible to assume that Baby Boomers (conceived between 1946 and 1965) are less disposed to shop on the web. Nonetheless, the Baby Boomers studied in certainty shopped on the web similarly as much of the time as the Millennials.
Besides, the Baby Boomers on normal spent more per exchange than both of the two other more youthful age gatherings.
This Normal sum spent per exchange (USD) age was bound to purchase social insurance items, wine, family unit merchandise and apparatuses, classes which will in general have more expensive rate focuses.
Men spend more online than ladies
While people shopped with about equivalent frequencies, by and large, the men spent more per exchange— US$220 versus US$151 for ladies—on their latest buy. This can to a great extent be ascribed to the way that the male purchasers were more prone to purchase things in higher evaluated classes, for example, extravagance products (55 percent of extravagance exchanges were by men) or hardware (72 percent of hardware exchanges were by men), while ladies were bound to purchase in lower-evaluated classifications, for example, beautifying agents or sustenance.
Global Chair, Consumer Markets
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