Brick-and-mortar shops are catching up with online rivals
But a new report finds that almost two-thirds of customers would prefer brands that are sold both ways
23 September 2024 - 15:28
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Capital & Regional owns shopping centres in Edinburgh, Hemel Hempstead, Ilford, Maidstone, Walthamstow and Wood Green. Picture: REUTERS/MARK MAKELA
The growth of online shopping has slowed, signalling a shift towards a more balanced retail channel landscape as consumers become more open to physical shopping experiences again, according to VML’s “The Future Shopper 2024”. The report surveyed 31,500 consumers across 20 countries, including South Africa, to provide a global snapshot of the modern shopper.
It found that online shopping is reaching maturity, but despite that it’s still viewed positively. Globally, more than half (53%) of spending is online, down from 58% in 2023, with 47% of global consumers believing that online provides a better experience than offline retailing. In South Africa, online spending declined 3%, from 58% in 2023 to 55% in 2024.
The report says that though physical retail is undergoing a resurgence, it must embrace innovation and immersive experiences to compete in an omnichannel world, and it needs to address areas where it underperforms online. Nearly two-thirds of respondents (64%) say they would prefer to shop from a retailer or brand that has both a physical and an online store, vs 60% in 2023, and 61% say they want seamless communication across sales channels, with their journey and data following them, vs 56% in 2023.
Mobile shopping may dominate, but brands and retailers have been slow to adapt — despite what they claim — leading to frustrating user experiences. The report found that 36% of online spending is done on mobile despite 40% of consumers saying shopping on mobile phones is difficult. A total of 64% of respondents say they wish brands and retailers would make the online shopping experience more entertaining. The report suggests that a “mobile-first” mindset is crucial for brands to prioritise seamless and intuitive mobile shopping.
The report finds that consumers crave speed and convenience in their shopping journeys — 63% of consumers say they want to move from inspiration to purchase as quickly as possible. This is driving the rise of “compressed commerce” and highlighting the need for streamlined yet connected omnichannel journeys.
Consumers crave speed and convenience in their shopping journeys
Price sensitivity remains a key issue in purchasing decisions; 56% of consumers say a better price would encourage them to buy directly from brands — up from 53% in 2023. Half the respondents say they would choose another retailer over a marketplace if there was cheaper pricing and many consumers (68%) believe retailers and brands use inflationary crises to inflate prices artificially.
Other new trends taking shape include a weakening of marketplaces’ grip on the customer journey. Consumers are going to the leading marketplace in their region for inspiration (35%) and to search products (32%) but the number who are going to marketplaces to shop is down from 35% in 2023 to 29% this year.
Delivery speed expectations have reached new heights; consumers demand new-instant gratification, and service-led brands that are capable of meeting these demands are setting the pace. In South Africa, 95% of respondents indicate that speed is important when purchasing online, and they expect delivery of online orders within three days across all categories. The majority (84%) say free delivery is important, 97% say accurate product descriptions are important, and 96% say an easy returns process matters to them.
Sustainability and purpose continue to resonate with consumers; 56% say they have changed their shopping habits and 63% say they like to shop with retailers and brands that have a purpose beyond just selling their products or services. However, brands must take concrete action and be seen to be “doing their bit” while balancing environmental concerns with convenience and price.
The report finds that the definition of “consumer” is evolving, as digital avatars gain importance while technology and new channels allow for interactions beyond the physical realm.
“In today's rapidly evolving retail landscape, the demands of South African consumers are clear: a seamless omnichannel experience is no longer a luxury but a necessity,” says Parusha Partab, chief strategy officer at VML South Africa.
“As brands balance physical and digital shopping preferences, mobile optimisation remains a critical opportunity that too many are missing. With 34% of online purchases in South Africa now being made via mobile, and 67% of respondents intending to shop more through social media platforms in the future, it’s clear that the customer journey is increasingly intertwined with digital and social touchpoints,” says Partab.
“The data suggests a rebalancing between online and physical shopping in the country. While online shopping has slightly declined, this presents a unique chance for forward-thinking brands to stand out by enhancing mobile experiences and delivering superior omnichannel journeys that meet consumers' needs for both speed and convenience.”
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Brick-and-mortar shops are catching up with online rivals
But a new report finds that almost two-thirds of customers would prefer brands that are sold both ways
The growth of online shopping has slowed, signalling a shift towards a more balanced retail channel landscape as consumers become more open to physical shopping experiences again, according to VML’s “The Future Shopper 2024”. The report surveyed 31,500 consumers across 20 countries, including South Africa, to provide a global snapshot of the modern shopper.
It found that online shopping is reaching maturity, but despite that it’s still viewed positively. Globally, more than half (53%) of spending is online, down from 58% in 2023, with 47% of global consumers believing that online provides a better experience than offline retailing. In South Africa, online spending declined 3%, from 58% in 2023 to 55% in 2024.
The report says that though physical retail is undergoing a resurgence, it must embrace innovation and immersive experiences to compete in an omnichannel world, and it needs to address areas where it underperforms online. Nearly two-thirds of respondents (64%) say they would prefer to shop from a retailer or brand that has both a physical and an online store, vs 60% in 2023, and 61% say they want seamless communication across sales channels, with their journey and data following them, vs 56% in 2023.
Mobile shopping may dominate, but brands and retailers have been slow to adapt — despite what they claim — leading to frustrating user experiences. The report found that 36% of online spending is done on mobile despite 40% of consumers saying shopping on mobile phones is difficult. A total of 64% of respondents say they wish brands and retailers would make the online shopping experience more entertaining. The report suggests that a “mobile-first” mindset is crucial for brands to prioritise seamless and intuitive mobile shopping.
The report finds that consumers crave speed and convenience in their shopping journeys — 63% of consumers say they want to move from inspiration to purchase as quickly as possible. This is driving the rise of “compressed commerce” and highlighting the need for streamlined yet connected omnichannel journeys.
Price sensitivity remains a key issue in purchasing decisions; 56% of consumers say a better price would encourage them to buy directly from brands — up from 53% in 2023. Half the respondents say they would choose another retailer over a marketplace if there was cheaper pricing and many consumers (68%) believe retailers and brands use inflationary crises to inflate prices artificially.
Other new trends taking shape include a weakening of marketplaces’ grip on the customer journey. Consumers are going to the leading marketplace in their region for inspiration (35%) and to search products (32%) but the number who are going to marketplaces to shop is down from 35% in 2023 to 29% this year.
Delivery speed expectations have reached new heights; consumers demand new-instant gratification, and service-led brands that are capable of meeting these demands are setting the pace. In South Africa, 95% of respondents indicate that speed is important when purchasing online, and they expect delivery of online orders within three days across all categories. The majority (84%) say free delivery is important, 97% say accurate product descriptions are important, and 96% say an easy returns process matters to them.
Sustainability and purpose continue to resonate with consumers; 56% say they have changed their shopping habits and 63% say they like to shop with retailers and brands that have a purpose beyond just selling their products or services. However, brands must take concrete action and be seen to be “doing their bit” while balancing environmental concerns with convenience and price.
The report finds that the definition of “consumer” is evolving, as digital avatars gain importance while technology and new channels allow for interactions beyond the physical realm.
“In today's rapidly evolving retail landscape, the demands of South African consumers are clear: a seamless omnichannel experience is no longer a luxury but a necessity,” says Parusha Partab, chief strategy officer at VML South Africa.
“As brands balance physical and digital shopping preferences, mobile optimisation remains a critical opportunity that too many are missing. With 34% of online purchases in South Africa now being made via mobile, and 67% of respondents intending to shop more through social media platforms in the future, it’s clear that the customer journey is increasingly intertwined with digital and social touchpoints,” says Partab.
“The data suggests a rebalancing between online and physical shopping in the country. While online shopping has slightly declined, this presents a unique chance for forward-thinking brands to stand out by enhancing mobile experiences and delivering superior omnichannel journeys that meet consumers' needs for both speed and convenience.”
Download and view the full report here.
The big take-out: The data suggests a rebalancing between online and physical shopping in South Africa.
The rise of the Super Shopper: she wants what she wants — now. Or else!
Is ‘same-same’ customer experience an own goal for businesses?
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