The New Topography of Retail - Mapping emerging consumer trends 2018 - Oracle
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The New
Topography
of Retail
Mapping emerging consumer trends
2018
Methodology The research cited in this paper was conducted in 2018 with over 15,500 consumers across five key regions: Europe (France, Germany, Italy, Spain, Sweden, UK) NA (Canada, USA), LATAM (Brazil, Chile, Mexico), Middle East (Saudi Arabia, UAE) & India and APAC (Australia, China). Independent research and creative consultancy, Morar HPI, conducted the survey which explores consumers’ attitudes and expectations when it comes to the retail shopping experience now and in the future. This report is based on the findings from this study.
Introduction
Retail continues to be mercurial as consumers react and adapt to
technological developments. With new technologies predicting,
dictating and mirroring the 21st-century shopper, retailers continue
to make tough decisions about tech investments to keep pace with
a shifting marketplace that reaches across continents and cultures.
In this landscape, the global village defines the digital age we live in.
It’s a landscape that can be hard to navigate with they’ve bought and what promotions they’ve
varying levels of trend adoption in different parts used when pursuing a return.
of the world, and consumer perceptions and
expectations shifting globally as technology Behind a plethora of consumer choice lies
and advanced services forge ahead. new technology, which is driving the global
shopper’s purchasing experiences and
Across the globe, there’s been a growing exposing consumers to even bigger and
disquiet about the way technology can be a bolder technological innovations – from facial
clairvoyant as consumers go about their online recognition for purchase security to drone
life. This perceived encroachment on privacy deliveries. Not surprisingly, high-growth markets
has resulted in significant measures such as such as Brazil, Chile, China, India and the Middle
the General Data Protection Regulation (GDPR) East are more open to these compared with
legislation, illustrating consumers’ sensitivity more mature markets (such as Europe and North
and concern about the importance of protecting America), which at the moment seem to
their privacy. Fatigue around sharing personal be more set in their ways.
data has set in prompting retailers to reassess
brand transparency to offer a more anonymous Into the already complicated geographical
shopping experience. Around the world, 86 landscape steps the notion of consumer
percent of global consumers state they would personas. As we explored in previous research:
ask brands to remove their personal data if a Retail in 4 Dimensions 2017, the traditional
similar regulation was implemented in their approach to segmentation is no longer adequate.
region. Understanding consumer behaviors and triggers
is essential to relating to and earning the right
The Nomad: The Dealer: The Player:
Consumers are also demanding more traceability to be remembered on an individual basis. When
The Nomad is a nimble What motivates this This avant-garde shopper
in their personal shopping history. There seems thinking about consumers we think about their
shopper but expects shopper is the hunt, the is looking for the perfect
to be an expectation among consumers that buying behavior and how they navigate through
retailers to keep up, having thrill of the chase. And mix of brand, product and
retailers should know the full history of their each journey. The three personas – The Nomad,
full knowledge of her what’s the prize? The best experience. The Player
purchase, whether they visit the brand online, The Player and The Dealer – all exert influence
shopping journey from offer, the lowest price, the seeks out great shopping
in-store or both. Shoppers are agitated when across the globe. Such a complex, multifaceted
purchase to returns. biggest bargain. experiences, incorporating
having to explain returns, discounts, special picture of trends, territories and personas means
cutting-edge technology
offers they might have utilized; they expect it’s more important than ever for retailers to
across every touchpoint.
instantaneous, 360˚ knowledge of what remain agile.
The New Topography of Retail
Privacy and
87%
of consumers in
North America would
75% request that brands
of consumers believe remove their personal
Anonymity
that ‘personalized’ information if given
offers from retailers the option.
are different to
‘relevant’ offers.
The introduction of GDPR legislation in would do this for all brands they interact 52%
of consumers
Europe is not the driver of the seismic shift with, compared to 34% of Europeans. In
across the globe
in attitudes towards privacy and security, LATAM, 90% of consumers would exercise are aware of GDPR.
but rather the net effect of heightened the right to select which retailers have
concern over the collection and use of access to their data, and in the Middle East,
personal information. It has had a massive India and APAC this response rises to 91%.
impact on the retail sector and represents a
16%
of European
global trend, with 52% of consumers across Globally, 75% of consumers believe there consumers feel
the world aware of the regulations. Not is a distinction between ‘personalized’ that the offers
surprisingly, 72% of European consumers offers and ‘relevant’ offers, and only one in they receive from
are aware of GDPR compared to only 25% five consumers feel offers from retailers are
56% retailers are ‘always
of consumers feel
of North American consumers. What is always personalized to them. This perception personalized’.
that personalized
surprising however is the level of sensitivity that communications are not personalized offers are important
outside of Europe and the desire to exercise means retailers need to work harder to to their shopping
the right to be forgotten. 87% of consumers understand consumer preferences, all experience.
in North America indicated that they would potentially with less data from the consumer
request that brands remove their personal as they exercise their right to keep details
information if given the option, and 45% confidential.
Retailers in Europe especially need to adapt Consumers who exhibit similar patterns to
to appeal to an ‘anonymous’ shopper. The Dealer – seeking out the best offer, the
Only 16% of European shoppers feel that lowest price, the biggest bargain – are ripe
the offers they get from retailers are either for conversion in this new environment
“always relevant” or “always personalized”, of anonymity. 65% of global consumers
compared to about 20% globally. But it’s reported that they browse online several
clearly important, with 56% of consumers times a week and 47% of them indicated
in Europe stating that personalized offers that it would be “awesome” to receive
and promotions are important to their real-time offers based on what they’ve
overall shopping experience. This shows been browsing.
that there is an opportunity for retailers
Anonymous
who are willing to take personalized
communications to the next level using
discreet, intelligent methods.
personalization
is the next step
in capturing
shoppers at the
point of intent.
47%
of shoppers say that it
55%
of global consumers
65%
of global consumers
would be ‘awesome’ to think it’s important reported that they
receive real-time offers that an online checkout browse online several
based on what they’ve process does not require times a week.
been browsing online. an account setup.
Source: Morar HPI
The New Topography of Retail
Insatiable Appetite
for Information
When it comes to shopping, consumers to explain what they ordered, when they
are keen to have visibility into virtually ordered it, the promotion they used or if the
everything. When they order something item was on sale or special offer, delivery
online, they want to be able to track the item charges incurred and the exact amount they
from production to delivery, whether that’s paid. They expect all this intelligence to be
on their doorstep or in a store. And if they at the fingertips of the retailer. And they will
decide to return it they don’t want to have be impatient if it’s not.
52% 58% 60% 72%
of consumers of consumers of consumers of consumers
state that a key surveyed expect in NA expect surveyed expect
influence on retailers to always customer service granular tracking
loyalty is knowing know the reasons teams to know of their delivery
that retailers are for their return. the date of their status.
acting sustainably. original purchase.
Over half of consumers expect to be able to Such granular level of knowledge is
research and reserve items online for same also applicable to the customer service
day pick-up in-store. And if items are being experience, particularly when it comes to
delivered to their homes, a massive 72% of returns. When returning an item, 58% of
customers expect real-time updates on the consumers globally expect retailers to
location of an item throughout the delivery always know the reasons for their return,
process. Over half think it’s important to ensuring a hassle-free returns process.
know where their item is coming from, too In North America, shoppers are more
– shoppers want to know that retailers are demanding, wanting retailers to know
acting sustainably and limiting their impact details such as the date of the original
on the environment, with 56% saying that purchase (60%, compared to the global
this knowledge would influence their loyalty average of 52%) and the method of
to a grocery retailer and 52% to a fashion payment used (57%, compared to the
retailer. global average of 47%).
This transparency and omnichannel which makes keeping them satisfied tricky.
intelligence is particularly important for Consumers expect to be able to chart their
The Nomad. Effortlessly flitting through own course and simultaneously expect
the shopping experience from browsing to retailers to be able to pinpoint the exact
purchase – whether it’s online, in-store or a data point they need in an instant. The
mixture of the two – full product information challenge for retailers is how to make this
at the touch of a button (on mobile, via an information available in a seamless,
app, on a laptop or in a kiosk in-store) is real-time manner.
essential for this fast-paced consumer –
54% 73% 74%
of consumers feel of LATAM of consumers think
that kiosks where shoppers expect knowledgeable
you can look up to know where instore staff are
products in the an item was important to their
store, or available sourced, brand experience.
for delivery are an regardless of
important aspect pick-up or
of their retail delivery location.
experience.
Source: Morar HPI
The New Topography of Retail
Big, Bold
Technology
Consumers in high-growth markets are the idea of using virtual reality at home to
leading the way for retailers to make big, put together looks to try on in-store or have
bold moves in experience technology. delivered, while this appeals to a smaller
Virtual sales assistants, interactive kiosks, 33% of consumers in Europe, North
in-store robots, facial recognition America and Australia.
42% 61%
of consumers in of consumers in India
technology, driverless cars, drone
deliveries – it’s all about faster, bigger Across the board, technology enthusiasts
LATAM think that
virtual sales assistants
57% love the idea of
deliveries by drone
of consumers in the
and better experiences. think in-store facial recognition, virtual in the fitting room Middle East think that or driverless car.
sales assistants in fitting rooms, kiosks are important to their being recognized
Retailers across Brazil, Chile, China, India where you can upload an image of an item retail experience. in-store with facial
and the Middle East will benefit most by (or a celebrity or influencer wearing a recognition technology
incorporating bold new technologies into coveted piece) and get recommendations to ensure purchase
security is important.
their retail experiences. Some 60% of for similar or related items, and automatic
consumers in these regions think it would replenishment based on subscription
be “awesome” to have near real-time preferences are important (around 57%
delivery of online purchases by drone of respondents). Enthusiasm is more muted
or driverless cars. This drops to 32% in in Europe, Australia and North America
more mature markets. Likewise, 64% of with only around 28% of consumers
consumers in high-growth markets love thinking such facilities are important.
Looking more closely at consumers across In thinking about how these trends will
the high-growth territories, in LATAM, 42% eventually bleed into other markets we
of shoppers think virtual sales assistants in look to The Player, who loves radical new
fitting rooms are important. In the Middle shopping propositions and revels in the
East, where most consumers still make opportunity to enhance a retail experience
their purchases in bricks-and-mortar stores, through innovative new ideas. For The
there is a real appetite for in-store facial Player it’s all about the how not the what.
recognition technology to ensure purchase Retailers looking to engage this consumer
security and prevent fraud. Consumers and attract them like a moth to a flame
in India, on the other hand, where online would do well to look to consumer
shopping is huge, love the idea of drone behaviours in high-growth markets.
or driverless car deliveries. All territories
offer opportunities for retailers to build
integrated experiences through
technological advancements.
35%
of consumers say that
59%
of consumers in the
73%
of consumers in LATAM
kiosks where you can Middle East think that think self-checkouts on
upload an image of an being recognized instantly their personal mobile
item, celebrity or other as a loyalty member device is important.
inspiration and get with facial recognition
recommendations for technology is important.
similar or related
products is important
to their retail experience.
Source: Morar HPI
High-growth markets are
leaning into big bold tech
% of consumers that love the idea of…
Linking a fitness tracker Automatic replenishment Being recognised instantly in Using virtual reality at home to Using an in-store robot or Delivery of online purchases
(e.g. fitbit) to my supermarket/ based on subscription store with facial recognition as navigate a personalized in-store online chat assistant to curate by drone or driverless car.
grocery store to get product preferences. a loyalty member. experience. a personalized wardrobe.
suggestions.
High-growth
Developed
59 64 60
55
51
47
33 32
30
24 25
23Conclusion:
A Connected
Future
Technological innovation and a globally transparent about your brand and your
interconnected world has given rise to operations. Making big, bold investments
new possibilities that delight and disquiet in technology means establishing a single
retail consumers. Connecting, cultivating view of the customer, inventory and
and captivating the modern shopper order so that you can deliver the end-
requires new thinking around to-end experience customers expect.
segmentation, engagement and
establishing trust. Achieving a single, 360-degree view of
your customers and your inventory is
Understanding your best customer and no longer a competitive advantage but
architecting an operation that attracts a basic requirement to thrive. Retailers
them and establishes a meaningful who meet this requirement first will build
relationship between them and your stronger relationships with customers,
brand means giving them the right to create space for innovation projects and
be forgotten. Delivering on your brand make more strategic decisions that
promise – from the point of manufacturing maximize their growth.
to doorstep delivery means beingCreate the Moment. Cultivate Affinity. Captivate your Customers. Oracle provides retailers with a complete, open, and integrated suite of best-of-breed business applications, cloud services, and hardware that are engineered to work together and empower commerce. Leading fashion, grocery, and specialty retailers use Oracle solutions to anticipate market changes, simplify operations and inspire authentic brand interactions. For more information, visit our website at www.oracle.com/retail. © Oracle 2018 Oracle Retail Oracle Corporation World Headquarters 500 Oracle Parkway Redwood Shores, CA 94065 P: 1.650.506.7000 oneretailvoice_ww@oracle.com
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