While the general tone in consumer attitudes has improved a tad over the last year, it's their emerging new shopping habits that retailers need to pay closer attention to as we move into the second half of 2010.
Though the recession has surely played a major role in changing these habits for a large percentage of U.S. consumers, there is an even more influential factor at play today…the Web.
I know, you're sitting there thinking that last statement is old news. Well, I'm here to tell you that you need to take a closer look at just how big a factor the Internet has become when consumers think about making purchases these days. Try these numbers on for size: 75 percent of consumers now use the Web to research products and prices before visiting a retail location; over 50 percent use social network sites as part of their buying process; approximately 33 percent are forsaking bricks and mortar and doing more online shopping than just a year ago; and 20 percent turn to Web-enabled mobile phones for help.
All the above was taken from a recent Deloitte study on consumer shopping behavior and results show a rather dramatic increase over the same period last year.
This same study also looked at consumer confidence and those numbers are also encouraging, if a bit guarded. The Deloitte study showed that 55 percent of consumers think the economy is recovering from the recession while 64 percent feel their household financial situation is the same or better than last year.
“The consumer confidence figures are certainly good news as retailers get set for the holiday selling season,” George Witt, a New Jersey-based consumer strategist. “All this research online today is an important one to keep an eye on. They'll be coming into retail with a stronger sense of what they want. Smart retailers will not only make sure they get it but also make sure they leave the store knowing a few things they didn't know when they walked in.”
The fact the numbers have spiked so high with regard to those consumers that are now shopping online only (33 percent according to Deloitte) and for those now using their mobile phones for shopping help (20 percent) also offer a warning to retailers that they best have those shops in order as well.
“Retail has really become a three-pronged approach today,” added Martha Refik, a retail consultant in New York. “That in-store experience still has to be memorable but you need to have your website working for you and a mobile strategy in place as well. You're not firing on all cylinders if you don't.”
A recent survey by the web shopping site Retrevo.com seems to back up Refik's claims. The study revealed that 47 percent of those surveyed responded that they already had (20 percent) or were planning to soon (27 percent) make a purchase using their mobile phone. Of the 20 percent that had made a mobile purchase, 42 percent did so using applications capable of transactions (as opposed to using mobile Web). Further, the iPhone, which offers some 200,000 apps, was the most popular type of smartphone when it came to mobile shopping.
Also interesting to note in the Retrevo survey was this—mobile users are still apprehensive about transferring credit card information to their phone. When asked what would make them more likely to buy something from a retailer via cell phone, 24 percent said not having to provide credit card information, and 13 percent said if credit card data was already stored with a retailer.
While the pot is still simmering with regard to mobile shopping, recent data appears to suggest the boiling point may not be very far off.
