'Digital Christmas' may foster long-term change
Christmas will obviously not be the same this year. The restrictions put in place to curb the pandemic are affecting how we meet our family and friends, socialise and embrace traditional Christmas festivities. Furthermore, the impact of Covid-19 has shifted consumer behaviour. Shopping, whether at Christmas or any other time of the year, has changed dramatically.
In the first four months of 2020, e-commerce penetration grew by 11 per cent as a percentage of retail sales. That is more than in the past ten years combined. Inapp ordering, shopping by social media platforms and home deliveries rose sharply as the pandemic hit and have been sustained throughout the crisis.
On the one hand, this is driving the use of data and digital technologies for customers to find that perfect, customised purchase with guaranteed delivery. On the other, it has been a catalyst for more immersive technology that is reimagining the whole consumer experience.
As much as consumers love the convenience of digital commerce, there is no purchasing certainty when we shop online for products we haven’t evaluated in person. Immersive experiences, such as augmented and virtual reality and 3D content, however, give consumers purchasing confidence. In a recent Accenture survey almost half (48 per cent) of British respondents stated that viewing a product without visiting a physical store is their top motivation for using immersive technologies, while nearly a third (30 per cent) said these experiences make them feel a human and physical connection with a product.
In fact, the research indicates that immersive experiences can boost consumer confidence in an online purchase by 6 per cent in the UK. Many leading brands already understand this. Our analysis reveals that 64 per cent are starting to invest in immersive experiences to enhance sales.
For Scotland’s tech sector, the blurring of previous physical boundaries between ecommerce, entertainment, digital and experience poses exciting opportunities. Staying in is the new going out: our research found that 82 per cent will be dining in their own home for their main festive meal this year. This means new ways to party in family bubbles, enjoy boardgame nights and access personalised and premium experiences, without leaving the living room or kitchen, are increasingly in demand and will continue to be well into the new year.
The drinks market is particularly ripe for more and new consumption models that recreate the feeling of going out, at home. As a recent report by drinks producer Diageo has shown, at-home consumer occasions are serving as a replacement for events like the traditional Christmas party, while home drinks kits, or the likes of Drinkworks’ new Home Bar, which prepares bar-quality cocktails, brews and ciders at the push of a button. Could these also be combined with online lessons from a master brewer, sommelier or expert bartender?
The legacies left by the impact of the pandemic are vast. But if we watch and embrace the trends, not only can this year’s “digital Christmas” be one to celebrate safely but memorably at home; it can also be the start of many new ventures in the new year.
•Michelle Hawkins is the managing director of Accenture in Scotland