Retailers needs don’t change even when the technology does
The multichannel retail industry is constantly evolving and the boom in new technology and payment strategies means retailers need to adapt fast to survive. But what exactly are shoppers looking for?
Attune Consulting is a global solution provider to the fashion industry and new research from the business involving 1,000 regular fashion buyers gives an insight into the mind of the consumer.
Surprisingly, the customer wish list is rather simple. In the midst of an economic struggle, requirements such as lower prices, better value and a wider selection of products were the consumer needs that most dominated the results.
Making savings is paramount for today’s customer, with comments including ‘I do a lot less impulse buying’ and ‘I have cut unnecessary spending’ forming a resounding pattern throughout the survey. In fact, 67% of participants admitted to making price comparisons when shopping, and 1 in 3 even claimed they would dismiss their favourite brand if they knew they could find similar products elsewhere.
Relying purely on brand loyalty is no longer an option for retailers. Instead, it is essential they begin to embrace new ways to hook the customer, and offer them the best way to shop.
For most, technology seems to be the most desired route towards this goal. Christmas 2012 was booming for British retailers, with the British Retail Consortium confirming that spending was up by 1.5% over the festive season. Tablets and smartphones topped the gift charts, and sales through online outlets rose 80% over the period.
Mobile technology seems to have truly integrated itself into the habits of the modern shopper, meaning this could be the perfect way for retailers to identify with their customers, wherever they may be. Attune’s findings proved that the interest in multichannel shopping is growing steadily, with consumers now wanting to shop when it is most convenient for them, rather than sticking to the opening hours of their local shopping centre.
However, just because retailers have started embracing new technology, this does not mean they have it cracked. Respondents suggested that most retailers still have a long road of improvements to make until the customer is truly satisfied with the technology they provide.
The survey revealed that consumers remain unimpressed with the extra costs associated with online shopping, with a huge 68% of respondents feeling that further work was required to minimise delivery costs. This was not their only criticism.
Many also cited that technology needs to encompass more of the benefits of in store shopping if it hopes to continue successfully. Providing loyalty schemes, offering discounts and being able to see what other products are available are all in store perks that customers enjoy, none of which would be difficult to emulate through their online outlets.
Clearly, the retail industry has the potential to grow, but whether companies will be able to adapt accordingly still remains to be seen. Of course, there will always be those who prefer the traditional methods of shopping.
For example, The Independent recently reported that a huge amount of clothes purchased online are eventually returned, suggesting that being able to physically handle the products is still important for shoppers. Attune’s survey seems to confirm this, with 75% of its respondents agreeing that trying before buying is essential for them.
However, this is still not enough to discourage the average shopper, with a growing demand for a multichannel retail presence being the overriding theme throughout Attune’s findings. And with online giant Google revealing that 90% of online shoppers do so through multiple devices, it is clear that working towards an omnichannel presence is the next step for today’s retailer.
“It is a great time to be working in retail so long as you listen to your consumer and react to trends quickly”, said Richard Emmott, Director of Retail Europe at Attune Consulting. “This has always been the case in fashion but it now holds true in wider retail. It is not just about data, but rather the ability to react to it that counts.”
Read the full Proactive Retail report
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