One-quarter of global respondents say they are already ordering grocery products online for home delivery and more than half (55%) are willing to use it in the future, according to the new Nielsen Global E-commerce and the New Retail Survey released today. This survey also reveals that in Taiwan, online grocery ordering is even more popular: more than one-third respondent (36%) claim they have already online ordered grocery products for home delivery and more than half (55%) are willing to use it in the future. Furthermore, three in ten also say they have already ordered groceries online and picked up inside the store.
The survey polled 30,000 online respondents in 60 countries to understand how digital technology will shape the retail landscape of the future. The report looks at how consumers are using technology and offers insights into how retailers and manufacturers can use flexible retailing options to improve the shopping experience and drive increased visitation and sales across channels.
CONNECTED COMMERCE: BRIDGING DIGITAL WTH THE IN-STORE EXPERIENCE
The good news for brick and mortar retailers is that clicks won’t be replacing bricks any time soon.
Online shopping has a number of benefits, but physical stores also have strong key advantages over e-commerce—especially for fast-moving consumer goods. In fact, the majority of Taiwan respondents (66%) reported that going to the grocery store is an enjoyable and engaging experience. A similar percentage (64%) thinks grocery shopping in a retail store is a fun day out for the family.
In addition, around three quarters (73%) Taiwan respondents who are willing to utilize digital options for grocery shopping ordered prefer to place online grocery order using store website. This research shows that clicks do lead to bricks and this is an important take-away for retailers and manufacturers who must engage the consumer early on the path to purchase. There are many touch-points along this path, which include finding the store, making shopping lists, checking prices, researching products, sharing reviews and manufacturer and retailer content on social media and finally purchasing.
“The connected commerce era has arrived,” said Terri Kang, director, retailer and eCommerce vertical, Nielsen Taiwan. “Consumers are no longer shopping entirely online or offline; rather, they’re taking a blended approach, using whatever channel best suits their needs. The most successful retailers and manufacturers will be at the intersection of the physical and virtual worlds, leveraging technology to satisfy shoppers however, wherever and whenever they want to shop."
Retailers have a lot of room to grow when it comes to in-store digital enablement options, such as mobile coupons, lists and shopping apps, and in-store Wi-Fi availability. In Taiwan, use of online or mobile coupons (21%), use of online automatic subscription (select items, number of units & frequency of home delivery, 19%) and mobile shopping lists (16%) are the most cited forms of in-store digital engagement in use today among Taiwan respondents, with about two-thirds or more willing to use them in the future (72%, 63% and 73%, respectively). Downloading a retailer/loyalty program app on a mobile phone to receive information or offers is used by 12% of Taiwan respondents, and 74% say they’re willing to use one when it is available. About one-in-10 Taiwan respondents say they log in to store Wi-Fi to receive information or offers (10%), use in-store computers to view extended product ranges (11%) or scan QR codes to access more information (10%). Roughly seven-in-ten, however, are willing to use these options in the future (72%, 76% and 76%), respective
In-store digital enablement options can bring the ease, convenience and personalization of online to brick-and-mortar stores. Instituting digital strategies into the in-store experience is not just a nice-to-have—these options can increase dwell time, engagement levels, basket-size and shopper satisfaction.
“At present, shoppers do all of the work putting the pieces together to arrive at their final purchase decision,” said Kang. “In a competitive retail environment, retailers and manufacturers can add value and differentiation by providing digital tools to help consumers take control of their shopping experience while also increasing sales potential. Mobile in particular can tip the scales in favor of increased shopper control, empowering them to shape the shopping experience more than ever before.”
“Time-starved consumers want to use technology to make shopping faster, easier and more efficient,” said Kang. “As we’ve seen with self-checkout, one of the more mature flexible retailing options included in the survey, as more retailers incorporate these options in their in-store and online offerings, adoption rates will likely increase.”
Among the online respondents in Nielsen’s survey, use of in-store digital enablement options is highest in Asia-Pacific and Africa/Middle East. These regions also exceed the global average for willingness to use in-store options when they become available. Current usage is low in Latin America, but enthusiasm for them is high. More than seven-in-10 Latin American respondents say they’re willing to use the in-store digital enablement options in the future. Mobile coupon usage is highest in North America (26%). European respondents have the lowest claimed usage levels for in-store digital engagement, but more than half (average 55%) say they are willing to try the options in the future.
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