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Consumer behaviour is constantly changing, and while you might think e-commerce is the dominant shopping choice, new research shows Aussies still prefer to shop in-store, WFA reports.
Over the past two years, the Australian retail sector faced ongoing challenges, forcing retailers to swiftly pivot and shift their focus to innovation in order to survive. Retailers that elevated operations to navigate the enforcement of lockdowns, state border closures and trading restrictions have emerged more resilient and capable in the face of changing consumer behaviours.
New independent research commissioned by financial technology platform Adyen has identified the changing expectations of Australian consumers and key retail trends impacting the retail sector, including insights that will help retailers shape, grow, and realise their ambitions for 2023 and beyond.
The Adyen Australia 2022 Retail Report outlines survey findings of over 50,000 respondents (consumers and businesses) across 26 countries, including 2,000 Australian adults and 502 Australian businesses. The report highlights key shopping and payment trends, as well as the importance of unified commerce in ensuring the retail industry’s resilience and adaptability in 2022 and beyond.
Fast Facts
73% of Australian respondents prefer to shop in-store – compared to the global average of 59%.
(67%) say physical stores are an important touchpoint, even if they shop with the same retailer online.
56% of shoppers would be more loyal to retailers offering endless aisle; yet only 28% of businesses enable customers to shop and complete transactions across online and offline channels
51% of consumers are more loyal to retailers who have physical stores and online options
28% of Australian businesses currently enable customers to shop and complete transactions across online and offline channels.
63% of businesses with unified commerce grew in revenue by 20% or more in 2021
“For Australian consumers, it’s all about the experience. Just in the last five years alone we’ve seen consumer preference on shopping channels and payment methods shift from one to another, but there are two things that remain constant – It’s the reign of seamless experiences with cashless being king. Retailers who understand and adapt to this, regardless of platform or payment method, will be well-positioned to take on the next wave of retail innovation,” says Hayley Fisher, country manager for Australia and New Zealand at Adyen.
Australia decides: In-store vs online shopping
While Australians have become more tech savvy, consumers still prefer shopping in a physical store over online, with 73% surveyed choosing to shop in a physical store – 14% more than any other country surveyed. Since the pandemic and ongoing lockdowns, 34% of consumers say they have a new appreciation for being able to touch, feel, or physically try products in-store before they buy.
Although consumers continue to embrace ecommerce and online shopping, over two thirds of consumers (67%) say physical stores are an important touchpoint, even if they shop with the same retailer online. 48% say they like to go in-store for customer service or to get help with a product they couldn’t get online and 51% are more loyal to retailers who have physical stores and online options.
Experience is critical
Experience matters for Australians, with shoppers citing an appreciation for retailers that provide a seamless shopping experience across all touchpoints. As shoppers continue to favour the in-store experience, retailers need to emulate physical store experiences as much as possible online to show that they understand their customer preferences.
The report also highlights Australians’ low tolerance for bad shopping experiences. 66% of Australians said they would avoid shopping with businesses after a bad shopping experience (whether online or in-store) and 54% of Australians want retailers to be able to sell across multiple channels. Australian retailers are also aware of these increased consumer expectations, with 56% of businesses surveyed in Australia acknowledging that their customers are less tolerant of poor experiences.
“While Aussies were quick to adopt ecommerce during the pandemic, it didn’t diminish their love for in-store shopping,” said Hayley Fisher. If anything, Aussies now expect retailers to provide the best of both worlds. To continue to remain agile and competitive, retailers should be driving towards meeting these consumer expectations, delivering exceptional customer experiences both in-store and online through unified commerce,” Fisher adds.
Somfy backs physical retail
For over 20 years, Somfy has been investing in the industry via its Somfy Expert Retail Partnership Program by contributing motorised product and POS displays to their retail showrooms on an annual basis.
The company’s omni-channel marketing approach enables the business to take a customer-centric approach that focuses on a comprehensive customer journey. As part of this approach, Somfy ensures that they collaborate with their Somfy Retail Expert Partners to ensure they have a strong, immersive brand presence in all their retailer’s showrooms.
“There’s no better way to sell motorisation than to see it in person, hold a remote and send a blind up or down”, comments Paul de Salis – Head of Marketing at Somfy Oceania.
Showcasing working motorised displays for their entire range of end products is an important part of the experience as it allows end users to see how easy, convenient and magical motorisation can be.
“It’s not only important for us to exhibit the range of motors, but also to invest in having a range of remote controls, Connexoon Window RTS and voice control solutions available in every Expert’s showroom. This ultimately captures the customer’s attention and convinces them of the benefits of Somfy solutions for their own homes.”
Somfy believes that branded POS material and showroom product can not only help increase Somfy’s brand awareness, but also adds credibility to their retailer’s showrooms with the addition of Somfy Expert branding. The inclusion of a QR code linking to the somfy.com.au website on the POS material, is an added element that ties back to the omni-channel approach – keeping the brand front of mind.
“It’s critical in helping our retailers merchandise our solutions and demonstrate motor benefits such as noise difference, speed and quality; whilst building a rapport with consumers through an engaging and positive retail experience.”
As more businesses move online and users become more tech savvy, the importance of digitalising user guides and helpful tools has become more prevalent. During the peak of lockdowns in Australia, Somfy introduced a Virtual Showroom on their website which provided end-users with a means of researching Somfy-motorised internal products.
The online tool allows users to virtually operate window coverings with a remote control, voice control or app control with Connexoon Window RTS; just like they would in a showroom and all from the comfort of their home at any time of day.
“We understand that the majority of the research phase of a customer’s journey is completed online first, but the impact of a customer walking into a retail store and creating a lasting experience is just as important in the conversion phase of the overall customer journey.”
Ricky supporting in-store knowledge
At Ricky Richards, the sales and marketing team believes knowledge is the key.
“When you buy textiles from Ricky, marketing collateral is easily accessible to ensure you and your team are set up for success,” says Paul Volona from the Sun Control team.
“With that, the marketing team has created a versatile portfolio of marketing materials to support your business.”
“Their portfolio includes a variety of retail flyers, technical datasheets, wall posters, retail display stands, sampling options, and video demonstrations.”
In addition to existing materials, the team at Ricky is available to discuss custom marketing and sample requests. Custom marketing opportunities are available upon consultation with a Ricky sales representative.
Rickys solution-dyed acrylic, Docril, and premium mesh, Outlook, individually have two styles of sample books and swatch card options available on request. The large sample book features a premium finish and substantial sample size making them ideal for use in showrooms, presentations, or tradeshow environments. The smaller grab-and-go size is perfect for a team of traveling sales reps.
“Ricky also offers sampling for Barrington; An in-house designed Australian Made canvas. The sample book highlights the collection, including block colours, artisan stripes, and classic jubilee styles.”
“Outdoor upholstery fabric Bliss has exceptional marketing collateral available, including premium printed collection booklets, swatch cards, and sample book options. Custom-built showroom stands are also available to ensure your showroom experience is as elevated as the product. ”
“Working with our customers to create their specified sampling and sales tools is an absolute joy. It is a collaborative process to ensure their specific business needs are met, ultimately allowing them to excel in their sales environments,” Volona adds.
