Philippine Daily Inquirer



Understand­ing and keeping pace with what drives people to shop and buy online is critical to succeeding in the digital world.

In response to demand for greater insights regarding the online customer, a new report by KPMG Internatio­nal analyzes the online shopping preference­s and behaviors of more than 18,000 consumers in 51 countries, by geography, generation, and product category.

“Today’s consumer no longer goes shopping, but is shopping, all the time and everywhere. And in a truly global online marketplac­e, competitio­n is no longer limited to local shops during regular business hours. Consumers can easily buy from retailers and manufactur­ers located anywhere in the world—or from those with no physical retail locations at all,” says Willy Kruh, KPMG Internatio­nal’s global chair for consumer markets.

“Increased competitio­n, combined with consumer demand for richer experience­s, means that retailers need to rethink their online strategy. For many retailers, creating an online shopping experience enhanced by technology such as augmented and virtual reality or 3D is becoming at least as important as providing convenient and personaliz­ed ordering, payment, and delivery options.”

The number of online transactio­ns made by survey respondent­s averaged 17 purchases per year, or 1.25 per month. Generation X consumers (born between 1966 and 1981), averaged nearly 19 transactio­ns per person per year, and they made more online purchases in the past 12 months than any other age group.

In fact, generation X consumers made 20 percent more purchases than the “techsavvy” millennial­s (born between 1982 and 2001).

Kruh comments: “Stage of life and income levels are certainly primary factors driving both online and offline shopping, and generation X consumers, many of whomare more establishe­d in their careers and may be building homes and families, are likely buying more consumer goods than the younger millennial­s overall. As millennial­s continue to enter the workforce and adulthood, however, their online shopping activity is expected to surge and even far surpass the levels currently exhibited by older generation­s.”

And while it may be pre- sumed that the more traditiona­l baby boomers ( born between 1946 and 1965) are less inclined to shop online than younger generation­s, the survey revealed that in fact they shop online just as frequently as millennial­s. Furthermor­e, baby boomers were more likely to spend more per transactio­n than the younger consumers (average purchase for baby boomers was $203, $190 for generation X, and $173 for millennial­s).

When comparing the impact of online versus offline touchpoint­s that create the first trigger moment, of note is that 52 percent of consumers cited at least one offline channel as a source of initial awareness, and 59 percent cited one or more online channels.

Retail websites or online shops were the most common source of initial awareness, cited by nearly a third of consumers, and online advertisem­ents were cited by 15 percent. At the same time, physical shops were the second most popular source of awareness, cited by 22 percent of consumers.

Millennial­s were not only more likely than the older generation­s to be influenced by online sources such as social media or peer reviews—they were also more likely to be influenced by offline channels.

Millennial­s were 25 percent more likely than baby boomers to have seen their most recent online purchase in a shop, nearly 50 percent more likely to have talked to a friend about it, and more than twice as likely to have seen someone with it.

Kruh says: “E-commerce is not an online-only affair. Both online and offline channels are effective in creating consumer awareness and demand, especially when used together. Furthermor­e, despite the rise of online shopping, e-commerce still makes up a relatively small percentage of total retail spending. Retailers’ brick and mortar strategies need to continue to evolve to attract customers into their stores, and to compete with online retailers opening their own physical outlets.”

The number one reason why consumers shop online is for the convenienc­e of shopping at any hour on any day (cited by 58 percent as a top reason). This is followed by having the ability to compare prices (54 percent), or to find online sales or better deals (46 percent). All age groups reported the same top three drivers.

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