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Retail

Online Shopping 'Game Changer' For Irish Retailers: PwC

By Steve Wynne-Jones
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Online Shopping 'Game Changer' For Irish Retailers: PwC

Online shopping has potential to be a 'game changer' for Irish retailers, with Amazon influencing customer habits more than ever, according to PwC's Irish Total Retail survey.

The global study surveyed over 24,000 online shoppers in 29 regions worldwide, with 1,000 in Ireland alone.

A quarter of Irish respondents said they shopped online at least once a week, compared to nearly 50% in the UK and 73% in China. While 72% of respondents said they frequently check grocery retail sites for special offers, more than a quarter said they hadn't visited any grocery sites in the last year.

This means there is vast potential for online retail growth in Ireland, as some of the major Irish grocery retailers lack an online shopping platform.

The most common reasons cited for online shopping were convenience and cost, with nearly one in four Irish consumers buying the majority or all of their apparel and footwear online in the last year.

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Amazon.com commands 71% of Irish consumers' loyalty, and a third said they start their purchase search with the American website, meaning 'the struggle for market share is real', the company said.

John Dillon, partner of PwC Ireland retail and consumer practice, commented on the results, "The stakes have never been higher for individual retailers. And with online players popping up in every product category, competition has never been fiercer.

"In a golden age of choice, powered by the mobile phone and global shopping just a click away, retailers often lack a global brand and face technological upheavals leaving them constantly having to reinvent themselves."

Upward Mobility

Indeed, the survey found that mobile is another area ripe for massive growth, with a third of respondents saying their mobile device would become a key part of their shopping routine in the future.

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Research emphasising that consumers are exhausted by multiple apps means that retailers need to optimise their mobile websites.

However, 44% said they had never used their mobile to shop online, with some stating that the screen size was too small, and others saying that mobile websites were too frustrating to use or not secure enough. Nearly three-quarters of those surveyed were wary of having personal information hacked, more than their global counterparts (65%).

Surprisingly, the survey also found that nearly half of shoppers used retailers' websites directly, meaning that traditional websites can't be ignored in favour of newer advertising channels, such as social media.

However, social media finesse is also key to engaging with customers and inspiring shopping trends. More than a third of Irish consumers said they use social networks to mull over purchases, check out hot brands, and find trends, rising to 50% in the 18-34 range.

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Power Shift

However, brick-and-mortar stores remain the most popular way to shop in the country, similar to the global trend, with 40% shopping in-store at least once a week. The company said that findings showed that the physical experience is still very important, but that consumers had indicated that more knowledgeable staff and and an improved personalised experience needs to be available.

Other survey findings concluded that one in four Irish consumers have fears of buying fakes online, and that advanced analytics are important to improve personalised experiences and encourage customer loyalty.

Dillon explained that with new pressures from Brexit, Irish retailers will need to fight to take and maintain a share of the online market.

"Having experienced the ease of online shopping for the first time, many consumers are likely to continue these new shopping behaviours. Their loyalty will be hotly contested.

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"The power has very much shifted from those who make and sell products to the customers who buy them. Offering consumers what they want, when they want it, how they want it, will separate the winners from the losers," he concluded.

© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Karen Henderson. Click subscribe to sign up to ESM: The European Supermarket Magazine.

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