How consumers across the globe use devices to shop
As digital disturbance continues to topple retail while simultaneously empowering global consumers, retailers are struggling to remain relevant. The speed of technology adoption has raised the stakes for both retailers and packaged goods globally.
Yet, with such a varied population, one ought to expect to see a few differences in online shopping and purchasing behaviours related to these devices that should help retailers get a little more control over the circumstances around them. The varying trends on consumer shopping behaviour between countries allows for some insight into how commerce marketers should approach various markets in order to achieve success.
These numbers show that just knowing how many people own smartphones and laptops in a country is not enough information to decide on a sound marketing plan.
For instance, Australia has the second highest ranking in smartphone penetration, according to Pew Research Centre’s 2016 statistics. However, it lags behind the US and the UK in the use of smartphones for purchasing. Nearly 90 per cent of Australian adults own a smartphone, but only 30 per cent have ever made a purchase using it. Contrast this with the US where 75 per cent of adults own the device, and 38 per cent have used it to purchase; and the UK where 82 per cent own the device, and 30 per cent have used it for purchasing.
In the UAE, cash is still the preferred mode of payment, but experts reveal that consumers and service providers are increasingly opting for digital payments.
Digital payments
According to the statistics revealed at last year’s Gitex Technology Week, more than 75 per cent of the total payments in the UAE are still made through cash, but this is expected to plunge by 2020 as demand increases for various digital payments services — from mobile wallets and mobile point-of-sale to electronic payments.
Local retail website Awok.com has revealed that nearly 46 per cent of Dubai residents purchase goods online and according to a survey of purchasing behaviour by Network International, one among three residents in the UAE makes one to five online purchases in a week.
So it can be deducted that because the UAE is just beginning to embrace the concept of shopping online, launching new online platforms and experimenting with their marketing styles is more welcomed than in the more established emarkets. Whereas, in established e-markets online purchasing habits have already been developed and marketers need to learn to just work around them.
It is also worth nothing that often the demographics seem to drive behaviour more than the country in question. For example, men own more smartphones and are also more likely to make purchases online than women in most countries.
Smartphones are also more the province of younger consumers, and desktops are more widely used by the older consumer. So the younger the consumer, the more it is likely that he or she will use a smartphone for online purchasing.
The bottom line is that commerce marketers must ensure that the shopping and purchasing experience for their brand is appropriate for their target audience, both in terms of demographics and preferred device.
For instance, the omnichannel experience is critical where consumers use multiple devices along their path to purchase, while those whose target audience is younger should focus on a mobile-first strategy. These regional and demographic differences can help marketers make the difference between excelling or going absolutely to waste.