Author: Grace Binchy, Insight & Trends Specialist, Bord Bia – The Irish Food Board
72% of UK adults have minimised their trip to the shops as a result of the COVID 19 response with 85% expecting to continue to do so into the future.
27% of UK consumers are shopping more online and 66% of consumers expect to do so in future
These stats highlight the changing shopping behaviour emerging during COVID 19 and are included in our recently published UK validator report, May 2020, as part of our Future Proofing Toolkit. These toolkits are being rolled out now across a number of markets including the US and Germany with more markets to follow.
Help me help myself..fast!
As we move through the crisis, shopping behaviour has continued to change and as consumers are more mindful and fearful than they were, stores and brands need to consider how they can engage with consumers to make the shopping experience more comfortable especially if they want to get people back in store.
In Australia, Woolworths as an example has introduced an in-store virtual assistant that can facilitate contactless shopping. With convenience, a priority and moving through a store with speed, a more seamless approach to purchasing will become more desirable and likely encourage people to engage with shops. The Woolworths virtual assistant involves downloading an app ‘Scan & Go” and allows people to use their phone to scan items, tapping out at a specific pay point. While just an app now the intent is to enhance the facilities it offers to help people find specific items instore.
To optimise peoples grocery experiences in the UK, Supermarket Check-In is an app that launched during the pandemic, provides crowd-sourced information about how long users will have to queue for and what the stock levels are in local shops. The information relies on peers input, so the quality of information is limited by the number of users who contribute.
The desire for contactless and faster experiences is also likely to grow in the UK in the context of payments too: 45% of UK consumers are using contactless payments with 71% expecting to continue to do so more in the future.
Building an ambience:
According to Wired, UK supermarkets are using music to provide a sense of calm as people shop.
In-store stations at Asda and Co-op, and the programming teams responsible for broadcast in the likes of Morrisons, Sainsbury’s, and Waitrose have evolved from finely tuned content marketing services to public service broadcasters in a matter of weeks.
Since the outbreak, the UK government has been meeting with supermarket bosses to align on communication strategies that can minimise disruptive or irresponsible shopper behaviour. Music is one of a host of tricks supermarkets are using to try and encourage shoppers to maintain social distancing, and not to panic buy. (Will Pritchard, Wired, April 2020)
“Chatbots” which till not too long ago seemed very futuristic are now likely to become a more integral part of modern shopping. Indicator #8 P to P Purchasing gave the example of Interpark, one of South Korea’s major online shopping malls. They introduced its own AI shopping consultant dubbed Talk Butler last year after 30 months of research and development. Using big data, Talk Butler is able to answer questions from customers within five minutes. Upon receiving requests, Talk Butler can recommend items or offer deals after analyzing questions and customer needs. This will not only make for a more efficient shopping experience but also cleverly create a personal touch.
The channel opportunity
Convenience:
While bigger stores may be more challenged in terms of footfall, convenience stores have seen a surge in shopping according to McKinsey.
In China, according to McKinsey convenience store basket sizes rose 120 percent during the crisis, and remained 45 percent higher as the crisis abated. Again, they iterate, this is likely the result of continuing caution in respect of travelling and mixing in large groups.
A new research study in the UK commissioned by TWC and conducted by KAM Media, reveals that 75% of the UK adult population has visited a convenience store in the past 6 weeks with 52% stating that. Their local convenience store has become more important to them since lockdown measures were introduced with more than 77% of respondents saying that they feel very safe when shopping in their local convenience store. (May 2020)
Online:
Online shopping while already high in China – some 71% of consumers bought more groceries online at the peak and 21% spent more. While online spend has moderated, visits are still running at 15% above pre-crisis levels. (McKinsey)
In the UK 27% of UK consumers are shopping online and 66% expect to continue to do so into the future according to the Bord Bia Indicators Barometer.
Facebook in response to the rise in online shopping have also just recently launched Facebook Shops to compete with Amazon and eBay enabling merchants to create their own digital storefronts and allow consumers to buy directly from businesses.
So are these behaviours likely to stick?
Our validators would suggest that people will continue to reduce their trips to the shop especially as we know the virus is around for some time.
With ongoing concerns around safety and people adjusting to no longer using cash, contactless payments are also likely to become a more regular shopping behaviour.
While more people are adjusting to shopping online it is likely that this will still remain a more niche behaviour as we know people ultimately like the human contact and the in-store experience.
The convenience store maybe one likely beneficiary of changing dynamics.
Implications for businesses:
- Retailers need to make the in-store experience more comfortable for consumers to drive footfall.
- Instore theatre should play a role to make the experience more special, while feeling safe is important, people are also there for an experience
- Brands need to find new ways to engage with their consumers as they wish to move quickly through stores
- Virtual shopping assistants and chatbots are likely to become more prevalent and sophisticated at replicating the human touch in the years ahead. Businesses and brands need to consider how to use these to engage the shopper of tomorrow
- Direct to consumer channels are likely to become more popular
- Convenience stores have the opportunity to enhance their “local” positioning and revisit their offerings
- As online shopping gains traction, businesses need to find ways to create distinctive online shopping experiences that work to complement the in-store experience
Sources:
https://www.canvas8.com/signals/2020/05/22/woolies-contactless.html
https://au.news.yahoo.com/woolworths-bold-plan-as-coronavirus-changes-how-we-shop-05 _
https://www.canvas8.com/signals/2020/05/26/fb-shop-launch.html
https://www.canvas8.com/signals/2020/04/24/supermarket-check-in.html
https://www.wired.co.uk/article/coronavirus-supermarket-music
https://metro.co.uk/2020/04/20/supermarket-queue-checker-app-work-can-download-12581876/
