Wunderman Thompson Future Shopper Report 2022

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Insight

The latest 2022 Wunderman Thompson report on The Future Shopper, covering the views of 31,000+ consumers across 18 markets internationally has some very interesting insights which we've picked through on your behalf.

Access their full report here.

Headlines

Consumer behaviour has changed.
Online shopping continues to grow.
Consumers are more comfortable than ever with technology.
Consumers are using more channels than ever before, across physical and digital.
Marketplaces are providing the best online experience to consumers and are the most used channel across the user journey - inspiration search and purchase.
Social commerce is on the rise with many consumers already claiming to be buying through social platforms
Global consumers less tolerant of poor experience.
Sustainability is a key factor in online decision-making - consumers want sustainability without compromising great service.
You're no longer just marketing to humans... but to their avatars!

Key Insights

57% of spending is currently online.
72% of consumers said they are more comfortable using technology than before the COVID-19 outbreak – up from 60% last year.
60% of global shoppers said they will increase their usage of digital shopping channels in the future.
60% of shoppers said they want their future work habits to include more working from home (WFH).
49% of global shoppers said they would prefer their online purchases to be digital and instantly downloadable.
38% of everything bought online is a digital product or service.
60% of global shoppers said they prefer to shop with a retailer or brand that has both digital and physical stores.
34% of global shoppers get their inspiration from marketplaces – ahead of search engines in second position (31%).
36% of global shoppers start their search on marketplaces – ahead of search engines in second position (30%).
62% of global shoppers wish that online shopping was more entertaining.
80% of global consumers want to get from inspiration to purchase as quickly as possible.
24% of consumers expect their online orders to be delivered in less than 2 hours.
65% of global shoppers said they have already bought through social media platforms – up from 44% in 2021.
46% of global consumers said they have already used livestream commerce to purchase products online.
65% of global consumers said ethics and morals play an important role in their online purchase decision-making.
64% of global consumers said they wished brands and retailers would be more innovative in how they use digital technology to improve their experiences.

57% of global consumers' spending is now online

"The biggest online consumer base is China (66%), while the lowest is Japan with 48% – meaning that in every country in our survey, online accounts for at least 48% of spend."

Is online or offline better?

Online

Wide variety of products/items
Review/evaluation of products
Price
Brand/ product comparison
Fun
Speed of delivery
Credibility

Offline

Consultation/advice
Ability to try/get right fit

Where in the world is the most comfortable with technology?

Thailand 92%
Indonesia A 87%
India 85%
Brazil 85%
South Africa 85%

Where in the world is the least comfortable with technology?

Netherlands 50%
France 51%
Germany 57%
UK 58%

Online shopping to the rescue

80% of consumers said online shopping came to their rescue this year vs 72% last year.
The highest percentage came from the 25-34-year-old age bracket (84%).
56% said they are now more inclined to spend money on experiences and days out based on what happened during lockdown.
Over half (59%) of consumers said they are frustrated that international politics is impacting what they can buy and where they can get it from.
The spike in the cost of living has made 60% of consumers more inclined to switch loyalty away from their favourite brands.

Working from home has changed consumer behaviour.

60% of shoppers want their future work habits to include more work from home.
41% of consumers are thinking about relocating due to working from home.
47% are reconsidering their reliance on a car.
61% of consumers say they spent more on products within or improving their home.
69% of consumers said they have shopped online more as a consequence of working from home.
62% said they have discovered new brands and retailers.
66% said the time of delivery has become more important (51% said they are now familiar with their delivery drivers).
52% of global consumers feel less loyal to physical stores they used to frequent.

It's about Omnichannel

60% of global shoppers said they prefer to shop with a retailer or brand that has both digital and physical stores.
72% of consumers are researching their purchases online in advance.
60% check product reviews on online marketplaces while standing in-store.
59% wish that brands communicated seamlessly across different channels.

Consumers are increasingly buying digital products and services online

In 2021, digital products and services accounted for 33% of everything that was bought; this year the figure has risen to 38%.
49% said they would prefer their online purchases to be digital and instantly downloadable, rather than a physical item.

"In a world where the Metaverse is slowly but surely playing out, and where NFTs are becoming increasingly common, the boundaries between physical and digital are becoming very fuzzy. The consumer of today is spoilt by the near-instantaneous delivery of digitized product offerings and is increasingly expecting quick responses and deliveries for almost everything. If a business thinks that their products or services can’t be digitized, they need to think again."

(Sanjay Mehta)

Top 5 sources of inspiration for online shoppers

Marketplaces (34%)
Search Engines (31%)
Social Channels (28%)
YouTube (25%)
Retailer Sites (18%)

Compressed Commerce

To inspire consumers on marketplaces, search engines, social media channels and anywhere the consumer might find/see you.

Speed is of the essence.
Address their shopping barriers and answer their questions upfront.
Inspire your customers earlier in the buying journey.
Provide the answers consumers are looking for in your product detail page.
Via enhanced text and visuals, you can improve your customers’ experience and help influence their decision before they turn to the reviews.

"80% of global consumers want to get from inspiration to purchase as quickly as possible."

Where are people searching for products online?

The lead marketplace in the region e.g Amazon, TMall (36%)
Search engines e.g Google, Bing, Yahoo (30%)
Social media sites e.g Facebook, Instagram, Pinterest (23%)
Other marketplaces e.g eBay, Alibaba (21%)
Retailer sites e.g John Lewis, JD Sports, Argos (18%)

Top factors which encourage consumers to buy directly from brands

Better price (49%)
Free delivery (47%)
Free returns (35%)
Fast convenient delivery (34%)
Loyalty program (25%)
Exclusive products (23%)
Better information about the product (22%)
Access to full product range (22%)
Better all-round experience on brand-owned sites (17%)
Bundled product deals (17%)

"70% of consumers said they wished more brands and retailers offered services similar to Amazon Prime."

Experience trumps brand

32% of global shoppers said they find shopping boring and 62% wish the online experience was more entertaining.
74% of consumers believe that retailers need to get better at giving them the products, services and experience they want when shopping online.
58% of shoppers said they would not shop with a retailer, brand or marketplace that does not meet their expectations.

"Expectations donʼt exist in silos, or sector by sector. Theyʼre the result of a consumerʼs collective experience across every aspect of their life, from media consumption to banking."

Returns

23% of everything that the global shopper orders online is returned.
39% of online shoppers globally admitted that they over-order with the intent of returning unwanted items.

Are marketplaces still leading the way for online shopping?

There is still some work to be done by marketplaces to win over the trust of all shoppers.

64% of consumers said they are excited about being able to order all of their goods through one retailer.
47% of global consumers say they are worried about marketplaces dominating the retail industry.
35% of consumers said they trust reviews.
35% add that they trust products to be what they say they are.
19% admit they have encountered a product they suspect may be counterfeit.
21% claim they have encountered a review they suspect to be fake.

"Although ecommerce channels have significantly changed the game, marketplaces offer an unbeatable experience, combining all the characteristics that help optimize “life-time” and effort, across the entire journey, from search to delivery, all in one place."

Percentage of consumers signed up to marketplace loyalty programs

Europe - Amazon Prime (39%)
US - Amazon Prime (45%)
LATAM - Mercardo Libre Puntos (43%)
China - TMALL (44%)

The rise of social commerce

65% of shoppers have bought through social media platforms.
36% of consumers said they have purchased “on-platform”.
56% say they do not want to leave the social platform to complete the transaction.
53% of consumers said they intend to shop more through social media platforms in the future.

Best social platforms for social commerce experience

Facebook (31%)
Instagram (24%)
None/I don't know (23%)
TikTok (8%)
Pinterest (3%)

What would encourage consumers to purchase on social media platforms in the future?

Deals and discounts
Ease of purchase

"We’re seeing huge growth in social platforms being used across the entire purchase journey – from attraction, engagement, conversion, to retention. Brands want, and need, to be where their consumers are – and that’s on social media."

Demand for sustainability practices

68% of global consumers said they wished retailers and brands offered better environmental practices.
65% of consumers said that ethics and morals play an important part in their decision.
61% of global consumers said they like to shop with brands who have a purpose that goes beyond just selling services and products.
60% said that they actively choose retailers and brands that are environmentally friendly.

"Businesses are leaving profit on the table by failing to invest in sustainability. When it comes to digital commerce, the opportunities are vast and cover both bottom-line improvements, as well as top-line growth."

Digital innovation

64% of global consumers said they wish brands and retailers would be more innovative in how they use digital technology to improve their experiences.
59% said that if a brand or retailer is digitally innovative, then they are more likely to purchase from them.
58% of consumers said they were excited about cashless payments.
64% said they were excited about stores where you don’t have to queue to pay (like Amazon Go).
47% of global consumers wished that more online businesses accepted cryptocurrencies as a payment method.

Gaming & the metaverse

23% of global consumers say they have used or are using the metaverse to make online purchases.
86% of consumers said they play video games.
The number one gaming channel is mobile phones (66%).
Of those that game, 62% said that they spend money within these games.

Percentage of shoppers that spend money in-game

16-24 (69%)
25-34 (72%)
35-44 (63%)
45-54 (47%)
55-64 (27%)
65+ (16%)

"It should come as no surprise, then, that gaming is fast becoming one of the most important channels for marketing and advertising globally – especially in the retailer sector. In fact, a huge 86%of online shoppers now play video games."

Reasons innovation should be considered a priority

Consumers actively want the brands they shop with to be more innovative with technology, and will make purchasing decisions onthat basis.
You can guarantee some of your rivals will be pushing the envelope on innovation. And with today’s relentless pace of technological change, you can quickly lose ground.

"...consumers are very much ready and eager for the future of commerce to unfold. They intend to use digital more and more, they want more digital products and services, they want brands and retailers that are digitally innovative."

If you'd like to build your career within e-commerce & digital why not speak to one of the team who'll be more than happy to take you through our open jobs or have a conversation with you about your e-commerce career.

Image: Wunderman Thompson Future Shopper Report

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@Beringer_Tame

22 January