Mumbai: More than two-thirds (68 per cent) of Gen Zs and over half (58 per cent) of millennials have ordered products directly from brands in the past six months, compared to 41 per cent on average across all age groups. The findings were published by Capgemini Research Institute in its latest report.
The report titled ‘What Matters to Today’s Consumer’ explores the impact that the pandemic has had on consumer behaviour and buying trends. According to it, consumers have reported a better buying experience, and access to brand loyalty programmes, as a major factor compelling them to bypass traditional retail channels.
Interestingly, the report also found that almost half (45 per cent) of all shoppers they interviewed said they are willing to share data on how they consume or use products and more than a third (39 per cent) say they are willing to share personal data such as demographic information or product preferences. However, 54 per cent of all shoppers say that offers, deals, and/or discounts would make it more likely for them to share their data directly with brands.
“Younger consumers’ willingness to go straight to brands when purchasing goods presents a real opportunity for consumer product companies. This enables them to collect consumer data and helps create a more mature direct-to-consumer channel,” said Capgemini head of consumer goods and retail Tim Bridges. “Being data-powered enables the consumer product and retail organisations to translate supply and demand trends into intelligent decisions on where best to stock their products, customise products and services, and enhance customer experience.”
Online not likely to replace in-store shopping entirely
Contrary to popular notions, the report also found that the majority of consumers (72 per cent) expect to have significant interactions with physical stores after the pandemic subsides. In fact it indicates that the surge in e-commerce over the last two years due to safety concerns and the desire to avoid physical stores has now plateaued, and more consumers anticipate a return to in-store shopping experiences.
At least 72 per cent of all shoppers expect to have significant interactions with physical stores once the pandemic subsides – up from 60 per cent pre-Covid levels. Globally, all age groups expect their level of in-store interactions post-pandemic to be higher than their online interactions.
Delivery and fulfillment services gain importance in certain segments
With convenience remaining a key priority for consumers, delivery and fulfillment are increasingly being transformed from a cost center to a growth driver for many organisations. In the health and beauty and grocery segments, shoppers place greater importance on delivery and fulfillment than in-store experiences. This is especially true for groceries shoppers across all age groups, where 42 per cent of shoppers say that delivery and fulfilment are the most important service attributes.
To add to it, convenience of delivery is a major factor that can push shoppers to try new and emerging models of shopping. Slightly less than half of consumers (47 per cent) who have purchased products via subscription services do so for the convenience of home delivery. However, shoppers are less willing to pay a premium for fast delivery. Across all shoppers, 3.3 per cent of the total cost is the average they would be willing to pay for two-hour delivery, down from 4.6 per cent in 2019. While younger shoppers with children remain the most willing to pay a premium, consumers increasingly expect fast delivery as a standard part of the customer experience.
Health and sustainability are top of mind for consumers
Health and sustainability look set to continue influencing consumer decisions going forward, and organizations should consider investment in empowering customers to make informed choices around these, cites the report. At least, 44 per cent of consumers are willing to pay a premium for grocery products that have sustainable packaging. This is more pronounced amongst Gen Z (64 per cent) and Millennials (54 per cent) than older generations like Boomers (30 per cent).
As many as 10,000 consumers over the age of 18 years were surveyed by Capgemini Research Institute in 10 countries around the world, including Australia, Canada, France, Germany, Italy, Netherlands, Spain, Sweden, the United Kingdom, and the United States. Consumers were qualified as “shoppers,” meaning they must have made a purchase of groceries, household and toiletries products, and/or health and beauty products at least once in the past six months.
