Tech-savvy generation have high retail expectations

Long established retailers need to reinvent themselves to continue to engage with the tech-savvy generation that have high expectations, according to new research by retail and shopping marketing agency, Savvy.

The research conducted on behalf of BBC Radio 4, reveals that researching products and getting inspiration has never been easier, and it’s no longer the retailer’s store that is the main or even only source of product information and long established retailers, in particular, are having to play catch-up with how shoppers wish to interact with them.

Savvy insight director, Alastair Lockhart, said: “The retail world is playing catch-up with how today’s – and tomorrow’s – shoppers are wanting to interact with them. The tech-savvy generation have high expectations and retailers need to inspire shoppers both in-store and online whilst providing all the necessary product information to help convert sales.”

The study found that around 95 percent of adults that have access to the internet have shopped online at least once in the past six months and nearly half of UK shoppers have shopped online at least once every two weeks. While some 42 percent of shoppers said that a search engine such as Google had encouraged them to click through to a retailer’s website. The positioning of a retailer in Google’s search results was found to be critical and compared to having the prime spot on Oxford Street.

In addition, 57 percent of shoppers said easy returns made them more likely to shop online, yet only 37 percent had returned something to an online retailer in the past six months. 25 to 34-year-olds were found to be the most likely to make returns, as this group sees buying online, trying and returning as a convenient way to shop.

Long established retailers need to reinvent themselves, according to new research by Savvy

The research also reveals how the different age groups shop and where they research and get inspiration from. For the next generation, younger shoppers aged 18-24, inspiration often comes from social media, YouTube or a link sent by an instant messaging service like WhatsApp or Facebook Messenger.

For shoppers aged under 35, the use of smartphones in-store was found to be commonplace with people using them to check prices at competitors, send photos of products to friends, access social media and for some, 13 percent, they actually buy from an online retailer.

The report also reveals that shoppers under 35 were also more likely to buy on impulse, they have a higher propensity to buy clothing which is a less considered purchase and are more likely to buy quickly using their smartphones.

When it comes to consumers relationship with traditional retailing, the survey found that only a fifth of UK shoppers believed that the high street/shopping centre closest to their home had improved in the past two to four years and nearly 40 percent thought it had declined.

With 59 percent of shoppers stating that they did not visit traditional stores as much as they used to because of online shopping. While 60 percent said online shopping had taken the buzz out of the high street and 79 percent thought physical retailers needed to do more to attract shoppers to their stores.

However, 91 percent thought there will always be a place for physical stores and 85 percent added that online retailers can never recreate the experience of shopping in a store. Around three-quarters of shoppers also still believe human interaction is important when shopping and there was a strong sense of nostalgia, with 42 percent saying shopping was better before online retailing was invested.

Lockhart added: “There’s no doubt about it, demographic shifts, improving technology and retail innovation will ensure the continuing growth of online retailing, but reassuringly, the high street and shopping centres will still have a role, albeit a different one to play.

The bottom line, however, is that retailers can ill-afford to stand still and rely on a long-standing customer base. Instead, they must evolve with the times and reinvent themselves.”