VML Commerce The Future Shopper Report 2023

Download as pdf or txt
Download as pdf or txt
You are on page 1of 112

THE FUTURE

SHOPPER
REPORT 2023
A global report offering an unparalleled view into the world of online
commerce and shopping behavior to help businesses win online,
surveying 31,000+ consumers across 18 international markets.

7TH EDITION
31,647 CONSUMERS /// 18 COUNTRIES

UK
NETHERLANDS
POLAND
FRANCE JAPAN
US
SPAIN GERMANY CHINA
UAE

THAILAND
COLOMBIA
MEXICO INDIA
BRAZIL

AUSTRALIA

ARGENTINA

SOUTH AFRICA

2
INTRODUCTION
Welcome to the 7th edition of our “Future Shopper” report, offering an unparalleled METHODOLOGY
global view into the habits of online shoppers. Like last year, this report covers The research was conducted by Censuswide, with 31,647 online shoppers who shop online at
least once a month in the following markets: UK, US, France, Spain, China, Japan, Australia, Brazil,
18 countries and over 31,000 consumers, giving us a truly global view of online Argentina, Mexico, Colombia, India, Poland, UAE, Netherlands, Germany, South Africa and Thailand
shopping behaviors. between 06.04.2023 – 20.04.2023. Censuswide abide by and employ members of the Market Research
Society which is based on the ESOMAR principles.
We have now entered an era which we can call “post-COVID-19”, but much of the
collateral damage remains, with the scars in retail still present. And while we might
have hoped that being post-pandemic would have coincided with a sense of peace
and harmony, it feels like the world is in even greater turmoil than before – be that
because of the war in Ukraine, other growing geo-political tensions, inflation, or the
cost-of-living crisis…

So, how is this all affecting the way consumers shop online, and what does it mean
for brands, retailers and marketplaces?

The over-riding aim of our Future Shopper survey is to highlight the trends that
businesses need to be strategically planning for, and act upon. And to cut through
the opinions and stories to find the facts.

We hope you enjoy this report, and remember, you don’t need to read every page to
understand the story, as we’ve packaged up both the headlines, and a condensed
version of the report.

HUGH FLETCHER
GLOBAL MARKETING DIRECTOR AND THOUGHT LEADERSHIP LEAD

3
CONTENTS
3 INTRODUCTION SECTION 6:
50 
GETTING THE EXPERIENCE RIGHT
5 THE HEADLINES YOU NEED TO KNOW
SECTION 7:
68 
MARKETPLACES
THE FUTURE SHOPPER CONDENSED
8 

SECTION 8:
76 
SECTION 1:
10 
SOCIAL COMMERCE
CHANGING CONSUMERS, CHANGING BEHAVIORS

SECTION 9:
88 
24  ECTION 2:
S
SUSTAINABILITY
WORKING FROM HOME (WFH)

SECTION 10:
94 
SECTION 3:
30 
NEW CHANNELS, TECHNOLOGIES,
THE CUSTOMER JOURNEY
AND THE FUTURE

SECTION 4:
36 
SECTION 11:
102 
THE CUSTOMER JOURNEY BY INDUSTRY
GAMING COMMERCE

SECTION 5:
44 
CONCLUSION
107 
ONLINE PURCHASING IN MORE DETAIL

108 HOW WE CAN HELP YOU

4
THE B2C FUTURE
SHOPPER REPORT 2023:
THE HEADLINES YOU
NEED TO KNOW

5
THE HEADLINES YOU NEED TO KNOW...
3. NEW WAYS OF WORKING
ARE ALSO IMPACTING HOW
WE SHOP.
WFH is changing how we research
purchases online, the retailers and
brands we are loyal to, and where
we ultimately spend our money.
1. THE ONLINE WORLD AND 2. ONLINE SHOPPING 5. MARKETPLACES
What does this mean for you?
CONSUMER BEHAVIORS REMAINS STRONG, AND Are you clear what impact a new,
CONTINUE TO DOMINATE
ARE STARTING TO WILL GROW. more online shopper will have THE CUSTOMER JOURNEY,
SETTLE FOLLOWING THE …but we have not seen huge YOY
on your business, loyalty to your EXPERIENCE AND SERVICE.
PANDEMIC-RELATED growth in online shopping since
brand or retailer, and the channels
But the share of spend
DISRUPTION. through which you sell?
last year. However, large growth is percentages is not growing, and
scheduled over the next 10 years, there are signs of recovery for D2C
One of the key observations this
so businesses must think online- brands, who have addressed their
year is a consistency of data with
first, and focus on enabling sales issue of losing consumers during
last year. This is striking given the
across an ever-increasing number the purchase phase.
huge year-on-year data changes 4. WE’VE WELCOMED THE
of channels.
we have recorded since 2020.
RETURN TO PHYSICAL What does this mean for you?
What does this mean for you? STORES. Is your marketplace strategy
What does this mean for you?
Is your business planning and delivering what it needs to? Is your
Is your strategy in-line with all
acting “digital-first” and changing The majority of consumers still content optimized to make you
current trends, and are you
processes and organizational favor retailers and brands with stand out from the crowd? And
accurately predicting how
structures to reflect these trends? physical and digital stores, and in how are you remaining connected
consumers will engage with you
the search and inspiration phase to your consumers?
in the future?
we have seen the re-emergence of
physical stores to be key during the
purchase process.

What does this mean for you?


Review your balanced channel
strategy. Does it allow consumers
to seamlessly shift across channels,
and across digital and physical?

6
THE HEADLINES YOU NEED TO KNOW...
8. SOCIAL COMMERCE
HOLDS HUGE FUTURE
POTENTIAL.
Consumers consistently tell us
they will use it more in future
as a purchase channel. This is
encouraging, given that many
6. RETAILERS AND BRANDS 7. EXPERIENCE IS KEY of the friction points, such as 10. THE WORLD IS
in-app purchasing, and full
MUST CONTINUE TO BUT THE NUMBER ONE DIGITIZING, AND WE
back-end integration, are yet to
IMPROVE THEIR ONLINE DRIVING FORCE FOR be completely realized. SHOULD THINK MORE
EXPERIENCES. ONLINE DECISION-MAKING DIGITALLY AND OUTSIDE
IS PRICE. What does this mean for you? OF OUR PHYSICAL
Consumers remain unforgiving of Do you have a social commerce
poor online experiences – they Online shoppers are price-sensitive
LIMITATIONS.
strategy? Are you thinking about
demand super-fast delivery, easy when deciding who to purchase technology and integrating your …as there are now more digital
and free returns, product availability, from, but not far behind is the need back-end systems? products, more digital platforms,
and are skeptical that brands and for service; notably around delivery, and more consumers who believe
retailers really know and understand returns and availability. their avatars are just as important
the customer journey.
as their flesh and blood bodies.
What does this mean for you? 9. SUSTAINABILITY, ETHICS The future will be one where
What does this mean for you? How is your pricing strategy
AND PURPOSE ARE KEY physical products and services will
Do you really know the full journey affecting your success? And how be reinvented to work in the digital
your consumers take to purchase can you compete using service as FACTORS IN PURCHASE
and physical world.
from you? What works? What a differentiator? DECISIONS.
doesn’t? Where are the weaknesses
What does this mean for you?
that your competitors can exploit? …and consumers are increasingly
Are you reviewing your future
choosing environmentally
product and distribution strategy?
friendly options and demanding
Are you innovating for the future,
transparency.
or just focused on the present?
What does this mean for you? Don’t let consumers’ desire to
Are you communicating your digitize come as a surprise, and
sustainability credentials and being too late for your business!
clear about your practices and
environmental impact?

7
THE FUTURE SHOPPER 2023 CONDENSED
1. ONLINE SHOPPING IS RISING 3. THERE IS DEMAND FOR 5. MARKETPLACES REMAIN THE
SLOWLY, BUT SHOWS NO SIGNS OMNI-CHANNEL SHOPPING NUMBER ONE ONLINE CHANNEL.
OF STOPPING. ACROSS AN EVER-INCREASING
SET OF CHANNELS, DEVICES AND 35% of global shoppers get their
58% of all consumer spending is now ACROSS PHYSICAL AND DIGITAL. inspiration from marketplaces, making it
online (vs 57%) last year. the number one channel for inspiration.
56% of consumers say they want
64% of spending will be online in seamless communication across digital 31% of global shoppers search for
10 years’ time, according to consumer and physical channels, and the ability to products on marketplaces, making it the
predictions. move between them. number one channel for search.

68% of global shoppers are now more 60% of global shoppers prefer to 35% of all online shopping globally 7. BUT DESPITE THE MARKETPLACE
comfortable with technology than last year. goes via marketplaces (the same DOMINANCE, THIS YEAR WE SEE A
shop with a retailer or brand that has
both digital and physical stores. percentage as last year). RESURGENCE IN PHYSICAL RETAIL
AND D2C BRANDS.
32% of all online spending globally is
2nd place – consumers identified
done on mobile phones.
physical stores as the number two
channel for both inspiration and search
for their online shopping.

14% – the percentage of online


shopping through DTC brand sites,
2. WORKING FROM HOME (WFH) IS up from 7% last year.
CHANGING HOW SHOPPERS BUY. 4. THE CUSTOMER JOURNEY IS
OMNI-CHANNEL AND SEAMLESS, 6. AND DON’T UNDERESTIMATE THE 58% of global shoppers say they like
65% of consumers say they shop online ALBEIT FIRST AND FOREMOST A ROLE MARKETPLACES COULD PLAY buying from branded marketplaces.
more because of working from home. DIGITAL ONE. IN THE FUTURE.
66% of global shoppers say they 64% of inspiration is gained from 51% of global consumers are open to
spend more time researching their online sources. buying their energy, water and utilities
purchases due to WFH, while 65% say from marketplaces like Amazon, Tmall
they have discovered new brands and 24% of consumers use in-store and Mercado Libre.
retailers as a consequence of WFH. browsing as their main source
for inspiration. 42% of global consumers are open
66% of consumers want their future to using a dating app provided by
working habits to feature more working 71% of the search process marketplaces like Amazon, Alibaba and
from home. happens online. Mercado Libre.

8
THE FUTURE SHOPPER 2023 CONDENSED
8. SOCIAL COMMERCE SHOULD BE 11. WHEN THINKING ABOUT 13. THE WORLD IS DIGITIZING, AND
IGNORED AT YOUR PERIL. SERVICE, MAKE SURE THAT YOU WE NEED TO REDEFINE OUR VIEW
REMEMBER RETURNS! OF “CONSUMERS”.
67% of global shoppers say they have
already bought through social media 19% of everything ordered online 45% of global shoppers would prefer
platforms (up 2% on last year). is returned. their products to be digital and instantly
downloadable.
53% of global consumers say they 35% of global consumers admit to
intend to shop more through social 10. PRICE MIGHT BE KING, BUT over-ordering online items, with the intent 37% of everything bought online is a
platforms in the future. SERVICE IS NOT FAR BEHIND IN of returning them. digital product or service, vs 63% that is
IMPORTANCE. a physical item.
39% of global shoppers say social-
specific deals and discounts would The No. 1 thing global consumers 57% of gamers spend money in game.
encourage them to purchase on social would change about online shopping is
media platforms more. “faster delivery”. 49% of gamers told us they would
be interested in buying real-world items
9. PRICE IS NO. 1 WHEN IT COMES
TO DECISION-MAKING ONLINE.
48% of consumers say that, when in games.
it comes to delivery, the number one

56% of global consumers identify change would be “faster delivery”, 45% of global consumers signaled
putting it as the number one desired 12. SUSTAINABILITY, PURPOSE AND their interest in the ability to carry on
price as the most important factor
improvement. ETHICS ARE MORE IMPORTANT purchasing after they die. We call this
when purchasing online, placing it in
THAN EVER, BUT NEED TO BE “post-death consumerism”.
2.15 days
first position.
– the average amount of
UNDERPINNED BY THE RIGHT
53% of global shoppers say a better time global consumers expect to wait for
PRICE AND SERVICE. 23% of global consumers are using,
their online orders to arrive. Last year it or have used, the metaverse to make
price would make them shop directly
from a brand, making it the number one
was 2.36 days.
52% of global shoppers claim to have purchases online.

23%
reason for switching. changed their shopping habits due to
of consumers now expect concerns about global warming and the
46% of global consumers say they delivery in less than 2 hours! environment.
would choose another retailer or brand over
a marketplace if their price was cheaper. 59% of consumers believe that
companies are not doing enough to
$378 the average that global offset their impact on the environment.
consumers are happy to spend on one
item online, showing that, whilst price is 46% of consumers have used
important, big-ticket commerce is clearly sustainable delivery options when
here, too! ordering online (up from 43% last year).

9
SECTION 1:
CHANGING
CONSUMERS,
CHANGING
BEHAVIORS

10
CHAPTER 1:
ONLINE SPENDING CONTINUES TO GROW

Let’s start our 2023 report with one of the most important questions: just how much
spending is online? Last year, consumers told us that 57% of their spending was online.
This year, this figure shows a modest rise to 58%.

58% OF ALL CONSUMER SPENDING IS NOW ONLINE


(VS 57% LAST YEAR).

And where in the world is online spending highest?

The answer is Mexico, where 69% of all spending occurs online… 3% ahead of second
placed Colombia, while bringing up the rear is France (48%). In fact, only two countries,
France and Japan, dipped below 50% of spending being online.

11
CHAPTER 2:
ONLINE SPENDING IS SET TO GROW OVER THE NEXT
10 YEARS

To support both the short- and long-term planning goals of our audience, we don’t just want
to know what’s happening today, but what the future will look like, too.

So, let’s look at the rest of 2023 to begin with. 60% of global consumers say online
shopping will be more important to them in 2023 than it was in 2022, with Thailand leading
the way (81%) and the Netherlands at the foot of the list (40%).

Meanwhile, 61% of consumers globally say they will increase their usage of digital shopping
channels in the future. But how does this translate to the level of spend that will be online?

To get a precise figure, we asked consumers to predict how much of their spending would
be online in 10 years’ time. The answer was 64% – 6% up from the current 58%.

64% OF SPENDING WILL BE ONLINE IN 10 YEARS’ TIME,


ACCORDING TO CONSUMER PREDICTIONS.

It is in China that online spending will be greatest according to our audience’s projections,
with 75% of all spending being online, while it is the French who predict the lowest online
percentage of 53%.

And where will the biggest changes occur? The Netherlands, South Africa and Japan look
set to experience the biggest change, with consumers in these countries expecting a 12%
swing from offline to online over the next 10 years.

We also wanted to understand the influence of consumer age in these percentages, too.
Currently, the over-65s spend the smallest percentage online (44%), but this will grow
the most over the next 10 years. The 16-24-year-old age group spends the joint highest
proportion (with 25-34-year-olds), yet this is set to grow the least in the next decade.
The group that will spend the most online in 10 years will be the 25-34-year-olds (67%).

What does this mean? It supports the finding that, at a macro level, everyone is an online
shopper, and everyone will be conducting the majority of their purchases online in the
future. At the same time, there will clearly be nuances by age group and market – most
obviously, as a result of the impact of the cost-of-living crisis on disposable incomes.

12
PERCENTAGE OF ONLINE SPENDING

% SPEND
% SPEND
PREDICTED TO
CURRENTLY CHANGE
BE ONLINE IN
ONLINE
10 YEARS’ TIME
OVERALL 58% 64% +6%
MEXICO 69% 68% -1%
COLOMBIA 66% 67% +1%
INDIA 64% 64% 0%
CHINA 64% 75% +11%
ARGENTINA 62% 66% +4%
BRAZIL 60% 72% +12%
THAILAND 59% 65% +6%
HOW MUCH SPENDING ACROSS AGE GROUPS WILL BE ONLINE IN
UAE 58% 63% +5% 10 YEARS’ TIME?
SOUTH AFRICA 58% 71% +13%
AGE NOW IN 10 YEARS CHANGE
UK 57% 62% +5%
NETHERLANDS 56% 68% +12% 16-24 62% 65% +3%
55% 64% +9%
62% 67% +5%
GERMANY
25-34
USA 54% 59% +5%
SPAIN 54% 55% +1% 35-44 59% 65% +6%
53% 62% +9%
AUSTRALIA 45-54 53% 62% +9%
POLAND 52% 63% +11%
JAPAN 49% 61% +12%
55-64 49% 59% +10%
FRANCE 48% 53% +5% 65+ 44% 55% +11%
13
CHAPTER 3:
CONSUMER BEHAVIOR HAS CHANGED FOR GOOD

One of the barriers to online shopping adoption has historically been the level of comfort
(or should that be discomfort) with technology. Many consumers’ fears of technology
were challenged unexpectedly during the pandemic and, since then, we have witnessed
increased ease and adoption.

Last year, 72% of consumers said they were more comfortable with technology than the
year before. Today, that figure is 68%, so, although not at 2022 levels, it still points to high
confidence levels and proof that consumers are increasingly comfortable with technology.

As one might expect, it is the over-65s that reflect the smallest percentage who say they are
more comfortable with technology, at just 36%. The 25-34-year-old age group displays the
highest confidence levels, scoring 77%.

68% OF GLOBAL SHOPPERS ARE MORE COMFORTABLE WITH


TECHNOLOGY TODAY THAN A YEAR AGO.

14
CHAPTER 4:
DEVICES USED FOR ONLINE SHOPPING

With more purchasing taking place online, and very little to suggest this trend will stop its
advance, we also need to understand which devices are enabling online shopping.

What’s clear is that we are living in a mobile-first world, with 32% of all online spending
going through mobile phones, followed in second position by laptops (17%) and desktops
(16%). However, it’s worth pointing out that, when you add these two figures together, you
see that computers (laptop and desktop) would take first place.

What does this mean? It means that businesses who want to build the right experiences
and conversion opportunities for their consumers should apply a balanced – if not entirely
equal – level of focus across mobile web, app, desktop and laptop users, to ensure their
journeys are seamless, friction-free and consistent.

32% OF ALL ONLINE SPENDING GLOBALLY IS DONE ON


MOBILE PHONES.

15
EXPERT OPINION: HOW VML CAN HELP YOU:
WHY ONLINE COMMERCE NEEDS A MOBILE-FIRST MOBILE TECHNOLOGY SERVICES
STRATEGY
We help some of the most successful commerce brands to build complex and
advanced mobile app solutions quickly, seamlessly and always within resource.
With 38% of all retail transactions being through a mobile device, including
We’re doing this through native apps reimagined, our advanced mobile platform,
tablet, creating the best possible mobile experience is not simply an option, it is
mobile commerce intelligence, bespoke mobile apps, intricate integration, and
a necessity for retailers. Your customers are demanding that you provide them
connecting customer experiences.
with a simple, yet highly engaging, mobile experience that makes best use of the
hugely powerful technology they have in their hands. Ensuring you have the right Our mobile app platform is the most advanced in the market, consisting of
strategy for your brand to meet that customer expectation is what will ensure features and functionality that place our clients far ahead of their competition.
you keep pace with those demands. Putting your mobile experience top of
your experience list, ensures you create the best experience for your most Find out more here.
active channel.

JONATHAN HEAP
CTO
E: [email protected]

16
THROUGH WHICH DEVICES DO CONSUMERS MAKE THEIR PURCHASES? CHAPTER 5:
SHOPPING IS OMNI-CHANNEL

As always, with so much talk about the rise of online spending amid ongoing reports of
VIRTUAL disappointing high street trading figures and closures, there is a tendency to say that
SMART REALITY physical shopping is on its last legs, if not dead. But, while we do see challenges for
ASSISTANT HEADSET physical retailers, we also get a noticeably clear message from consumers that they would

4% 3% prefer to shop from retailers that have both physical and digital stores.

SMARTWATCH Last year, 60% of global consumers said they prefer to shop with a retailer or brand that has

4% both digital and physical stores, and that percentage has stayed exactly the same this year.
Once again, this is proof that businesses must develop their omni-channel strategies.

This link between physical and digital is most important in the UAE (78%), while
German consumers seem far less fussed – albeit, 41% would still prefer digital
TABLET
and physical capabilities.

6% MOBILE
PHONE

GAMES 32%
CONSOLE

7%

TV

11%

DESKTOP LAPTOP

16% 17%
17
THE PERCENTAGE OF SHOPPERS WHO WOULD PREFER TO SHOP WITH A One thing brands and retailers do need to work on is ensuring there is seamless
BRAND OR RETAILER THAT HAS BOTH A PHYSICAL AND ONLINE STORE. communication and movement across channels. This is something that 56% of consumers
claim is essential, with only 13% saying it is a non-issue. The message is clear – different
channels must work in unison to meet consumers’ expectations.
UAE 78%
INDIA 77%
56%
OF CONSUMERS SAY THEY WANT SEAMLESS
THAILAND 76% COMMUNICATION ACROSS CHANNELS, AND THE ABILITY

73%
TO MOVE FROM DIGITAL TO PHYSICAL, AND VICE VERSA.
SOUTH AFRICA

CHINA 70%
70%
This point is proven when we look at how consumers are constantly using both physical
MEXICO and digital channels together. Even if the purchase is ultimately made in-store, we see the

69%
contribution of digital, with 72% of consumers saying they research their purchases online
COLOMBIA before they buy them in-store.

ARGENTINA 64%
USA 61%
BRAZIL 57%
POLAND 57%
AUSTRALIA 56%
SPAIN 54%
FRANCE 51%
UK 51%
NETHERLANDS 46%
JAPAN 42%
GERMANY 41%
18
EXPERT OPINION: HOW VML CAN HELP YOU:
WHY A BALANCED OMNI-CHANNEL STRATEGY ERETAIL / CONSULTANCY
IS VITAL TO THE SUCCESS OF BRANDS AND
RETAILERS We help brands execute seamlessly and profitably across all digital channels
through specialist eRetail services to help brands win in omni-channel
commerce. Our offering comprises 3 core services: Commerce Strategy –
Brands and retailers have had the opportunity to learn so much more about Commerce Execution – Commerce Intelligence, and this unique portfolio
their customer behavior over the last few years than ever before, when digital spans strategy, channel build / develop, marketing execution and proprietary
touchpoints were, at times, the ONLY way customers could interact with brands technology across D2C, owned retailers, marketplaces and social commerce.
and retailers.
To help you take the first steps, we offer two introductory services:
This means omni-channel strategies are ripe for refreshing, to redefine the future
of how organizations engage with their customers, and elevate the experience ■ A free Channel Audit to help accelerate your eCommerce performance
by maximizing the strengths of each channel. Unifying the customer experience through an assessment of your channel strategy.
across both owned real estate (e.g. brand.com, apps) and third party properties
■ A free Retail Media audit to identify how to maximize your Return On
(e.g. social) is an ongoing challenge, so taking a fresh look at an organization’s
Ad Spend.
omni-channel strategy is a great opportunity to evolve the thinking to make it fit
for future ambitions. Find out more here.

SHALINA GANATRA
HEAD OF ECOMMERCE CONSULTANCY
E: [email protected]

19
CHAPTER 6: WHAT IS THE MOST GLOBAL SHOPPERS ARE HAPPY TO SPEND ON A
SINGLE PRODUCT ONLINE?
BIG TICKET RETAIL

What can be sold online? 01 GERMANY $749


02 $646
The answer is pretty much anything! Especially as we see an appetite for spending
more online. But, some concerns still exist over whether consumers are comfortable
CHINA

03 $494
(and no doubt financed in today’s challenging economic climate!) to spend big online.
NETHERLANDS
So, just how much are consumers globally happy to outlay on a single item online?
A sizable $378 is the answer.
04 SPAIN $468
05 $455
German consumers are happy to spend the most on one item online – $749 in fact –
averaging twice the mean amount. This is well ahead of the second placed $646 that JAPAN
Chinese shoppers would be content to spend. And South African consumers are most
reticent about spending large online, with an average of $106. 06 ARGENTINA $402
07 $399
This tells us that, increasingly, consumers are comfortable and relatively unrestricted
in making high value purchases online. And this is supported by our research into B2B
UAE

08 $381
markets, too. Almost nothing is exempt from being sold online – or, to put it plainly, every
business is an eCommerce business. USA

09 UK $366
$378 THE AVERAGE THAT GLOBAL CONSUMERS ARE HAPPY
TO SPEND UP TO ON ONE ITEM ONLINE.
10 FRANCE $348
11 MEXICO $339
12 POLAND $339
13 AUSTRALIA $306
14 BRAZIL $306
15 COLOMBIA $262
16 THAILAND $219
17 INDIA $216
18 SOUTH AFRICA $106
20
CHAPTER 7:
DIGITIZING PRODUCTS AND SERVICES

One trend we’ve been tracking for several years is the move from physical to digital When it comes to the countries, as with last year, we see India once again at the top of the
products. We tend to think of buying online as being about physical products being ordered, list, albeit with a slightly lower percentage than last year, and again Japan is at the bottom
picked, packed and delivered. In reality, a significant percentage of what is bought online is of the list, with a drop in digital items being bought.
a digital product or service.
It’s worth noting that in the case of India, which leads several of our survey tables, the cost
In 2021, this figure was 33%, in 2022 it was 38%, and in 2023 this figure remains relatively of mobile internet data is among the lowest globally, with Indian consumers benefiting from
stable at 37%. When it comes to age, as one might expect, digital products and services free trials and massively slashed prices. This has contributed to the widespread adoption
are more of a young person’s game, with the percentage of digital items being bought of mobile internet services in the country and massive mobile phone penetration across all
decreasing with each age group. strata of society and every part of the country.

India is also one of the youngest nations in the world with a median age being around
28 years, and is expected to have one of the youngest populations in the world till 2030.

37%
It’s also notable that Japan props up the bottom of many of our survey tables around digital
OF EVERYTHING BOUGHT ONLINE IS A DIGITAL PRODUCT appetite and propensity. We take a closer look in section 6, chapter 10.
OR SERVICE, VS 63% THAT IS A PHYSICAL ITEM.

THE PERCENTAGE OF DIGITAL PRODUCTS AND SERVICES BOUGHT BY


So, does this percentage of digital purchasing match the desire for digital products? AGE GROUP
Almost, but it looks like there is still room for growth, as 45% of global shoppers would
prefer their online purchases to be digital and instantly downloadable. Last year this figure
AGE
was 49%. Could this be an indication that demand for digital products is plateauing, after

42%
the pandemic-accelerated digital rush?
16-24
You might expect the youngest age group to be driving this. But that’s not the case. While
50% do want their purchases to be digital and instantly downloadable, this is the same
percentage as the 35-44-year-olds and behind the 54% of 25-34-year-olds. So, this isn’t
just about the youngest consumers!
25-34 40%
35-44 38%
34%
45%
45-54
OF GLOBAL SHOPPERS WOULD PREFER THEIR PRODUCTS
TO BE DIGITAL AND INSTANTLY DOWNLOADABLE.
55-64 29%
65+ 27%
21
WHICH COUNTRY HAS THE HIGHEST PERCENTAGE OF DIGITAL ITEMS
BEING BOUGHT ONLINE?
2023 2022 DIFFERENCE

01 INDIA 45% 47% -2%


02 UAE 41% 41% 0%
03 USA 41% 43% -2%
04 AUSTRALIA 41% 40% +1%
05 ARGENTINA 41% 39% +2%
06 MEXICO 40% 41% -1%
07 UK 40% 38% +2%
08 COLOMBIA 39% 39% 0%
09 NETHERLANDS 38% 44% -6%
10 BRAZIL 38% 39% -1%
11 SOUTH AFRICA 37% 37% 0%
12 THAILAND 37% 36% +1%
13 SPAIN 37% 38% -1%
14 GERMANY 35% 36% -1%
15 CHINA 34% 36% -2%
16 FRANCE 32% 35% -3%
17 POLAND 31% NA NA
18 JAPAN 23% 28% -5%
22
KEY THOUGHTS
➜ ONLINE’S RISE CONTINUES, ALBEIT AT A SLOWER PACE, BUT
PROJECTIONS FOR 10 YEARS’ TIME REINFORCE THAT IT WILL ECLIPSE
PHYSICAL SHOPPING.
■ Businesses that do not have their online commerce strategy in place will find themselves
increasingly at competitive risk, and will face difficult times ahead.

➜ CONSUMERS WANT OMNI-CHANNEL SHOPPING EXPERIENCES WHICH


SPAN PHYSICAL AND DIGITAL.
■ Get your omni-channel strategy right to ensure consumers can seamlessly move across
channels and across physical and digital.

➜ EVERY BUSINESS IS AN ECOMMERCE BUSINESS, WITH CONSUMERS


HAPPY TO SPEND BIG ONLINE.
■ Revisit your online product strategy, and consider digitizing your products and services,
as a significant proportion of what is bought online is now digital.

23
SECTION 2:
WORKING FROM
HOME (WFH)

24
Pre-2020, it would be hard to imagine that we’d need a section on
the effects of working from home (WFH) in our Future Shopper survey.
But many things have changed in the ensuing years. Working from
home, and our new, hybrid approach to work location continues to
divide opinion and elicit emotions. It’s something we’ve been eager to
track over the last couple of years. But this report is about shopping
behaviors, so what we really want to know is how has working from home
influenced shopping behavior?

CHAPTER 1:
WFH RIGHT NOW

Before we investigate, let’s get the lie of the land. Across the 18 markets we surveyed, the
average number of days that consumers work from home per week is 2.77, with only 1 in 5
of us (21%) not working at home at all.

2.77 THE NUMBER OF DAYS, ON AVERAGE, GLOBAL


CONSUMERS WORK FROM HOME PER WEEK.

It’s interesting to note the group that works from home the least is the over-55s, albeit their
average is 2.49 days. The highest percentage is the 25-34-year-old age group (2.9 days).

We also wanted to detect regional variances, too, and found that Brazil has embraced WFH
the most, with the average number of days at home being 4.68 days a week. While the
lowest are France and Spain each on 1.99 days.

25
CHAPTER 2:
WORKING FROM HOME IN THE FUTURE

That’s the here and now, but what exactly is the appetite for working from home in
the future?

Last year, 3 in 5 consumers (60%) said they wanted their future working habits to feature
more working from home. This year, the number has risen to 66%.

So, what do these WFH developments spell for consumer behavior? Let’s start by looking
at whether WFH has increased online spending. The answer is a resounding “yes”, with
65% of consumers saying they shop online more as a result of working from home.

65% OF CONSUMERS ARE SHOPPING ONLINE MORE AS A


RESULT OF WORKING FROM HOME.

We also wanted to examine whether there had been any impact on loyalty due to WFH.
Over half of consumers (56%) say their favorite retailers have now changed as a result of
WFH, while 57% admit they feel less loyal to physical stores they used to frequent. These
indicate a remarkable trend, and one we’ve seen reflected even further in B2B sectors.

26
EXPERT OPINION:
WHY BUSINESSES SHOULDN’T DEFAULT TO THE
NORMAL RULES OF ENGAGEMENT, WITH MORE OF
US WORKING FROM HOME

Convenience is a key factor in our decision making, and where and how we
choose to spend our money. And WFH is all about convenience! Experience is
clearly vital to the performance of physical stores and online, but convenience
is all about the ecosystem being adapted to people´s needs. While leaving
our homes more and more for your personal life (family, sports, meeting with
friends), anything that may support non-specific, added value tasks – and that
means shopping! – goes into digital, automated, delivered and convenience
choices. And this is what we are seeing firsthand in Brazil today. It’s a trend that
emphasizes the importance of loyalty programs to enhance the relationships
with frequent buyers to increase competitive barriers, and the level of service
that any given digital commerce business should deliver.

GLENDA KOK
CHIEF OF TECHNOLOGY BUSINESS LATAM
E: [email protected]

27
CHAPTER 3:
HOW WFH HAS CHANGED HOW WE SHOP ONLINE

It would certainly appear that WFH has enabled consumers to shop in a slightly different
way; 66% say they spend more time researching their purchases online, while 65% say
they have discovered new brands and retailers.

66%
OF SHOPPERS SAY THEY SPEND MORE TIME
RESEARCHING THEIR PURCHASES DUE TO WFH, WHILE
65% HAVE DISCOVERED NEW BRANDS AND RETAILERS.

It has also changed a number of other things...

For instance, our findings suggest that the majority of consumers (63%) feel they are saving
money on discretionary items like coffee and snacks. The flipside of this is that 59% of
consumers believe they spend more on themselves through self-gifting, due to the savings
they make from commuting less.

And WFH has also increased the importance of delivery, with 69% saying that, due to
working from home, delivery has become even more important to them.

But the new WFH dynamics have also signaled notable concerns, too. Over half of
consumers globally (51%) conceded that their mental health has suffered due to increased
working from home. We can only speculate as to the main reasons here. For instance, with
our survey revealing that 63% of consumers are spending more time on social platforms
due to WFH, is this heightened social media exposure one of the leading determinants?

51% OF SHOPPERS ADMIT THEIR MENTAL HEALTH HAS


SUFFERED DUE TO MORE WORKING FROM HOME.

28
KEY THOUGHTS
➜ CONSUMER BEHAVIORS HAVE EVOLVED, AND ONE OF THE AREAS OF
CHANGE HAS BEEN DRIVEN BY WFH.
■ Think about how more research, and wavering loyalty, can be used to your advantage to
drive consumers to your sites to transact.

➜ BUSINESSES WHO PREVIOUSLY RELIED ON THE COMMUTING PUBLIC


MUST REINVENT WHERE AND WHAT THEY SELL, TO CATER FOR A
WORKFORCE THAT IS HUNGRY FOR MORE WFH.
■ Consider a full reassessment or at least an update of your future strategy to ensure your
business is more prepared to accommodate the worker and consumer of the future.

29
SECTION 3:
THE CUSTOMER
JOURNEY

30
In this section, we look at a simplified customer journey across But where exactly do consumers go to get this inspiration?
inspiration, search and purchase to identify which channels consumers In 2022, for the first time, we saw marketplaces jump into the number one position
use – what’s changed, and what this means for the omni-channel when it came to inspiration. At the time, we identified how surprising this was, given that
strategies of brands and retailers. Of course, journeys are never this marketplaces are often seen as predominantly rapid, transactional channels, as opposed
linear, but for the purposes of identifying the key channels, we’ve used to being places to spend time gaining inspiration. Yet, once again, we see marketplaces in
this approach for clarity. number one position, increasing by one percent from 34% to 35%.

CHAPTER 1:
35%
WHERE ARE ONLINE SHOPPERS FINDING THEIR OF GLOBAL SHOPPERS GET THEIR INSPIRATION FROM
INSPIRATION? MARKETPLACES, MAKING IT THE NUMBER ONE CHANNEL
FOR INSPIRATION.
First, let’s consider the weighting of online versus offline as the source of inspiration.

We found that 64% of inspiration comes via online, and 36% offline, which makes finding
inspiration overwhelmingly an online affair.

64% OF INSPIRATION IS GAINED FROM ONLINE SOURCES.

31
THE TOP 5 SOURCES OF INSPIRATION FOR GLOBAL SHOPPERS However, that is where the similarities with last year end.

This year, the big surprise is the re-emergence of physical stores and the decline of search
2023 2022 CHANGE
engines and social media channels.

MARKETPLACES
01 35% 34% 1%
Last year, only 15% of global shoppers got their inspiration from physical stores, whereas
(E.G. AMAZON, TMALL, this year it has risen to 24%. Could this be the effect of a post-COVID-19 renormalization?
MERCADO LIBRE)
The big losers are search engines, which occupied second position last year, having fallen
from 31% to just 15%. While we’ve seen search engines fall in importance when it comes to
02 BROWSING
IN-STORE 24% 15% 9% inspiration in the past, this year the drop appears significant.

Also, social media channels and YouTube are no longer in the top 5. Social media channels
fell from 28% to 10% while YouTube dropped from 25% to 7%. This is a surprising dip, and

03 SEARCH ENGINES 15% 31% -16% again may point to a rebalancing following the pandemic, with more consumers returning to
physical stores.

04 BRAND WEBSITES 15% 14% 1%

05 RETAILER SITES 13% 18% -5%


NB. Percentages do not add up to 100% as consumers were asked to identify their top 3 sources of inspiration.

32
CHAPTER 2: THE TOP 5 SEARCH CHANNELS FOR GLOBAL SHOPPERS
WHERE DO ONLINE SHOPPERS SEARCH? 2023 2022 CHANGE

MARKETPLACES
01 31% 36% -5%
Again, let’s start by identifying just how much of the process is done online versus offline.
It turns out that search is the most online of the three stages (inspiration, search and (E.G. AMAZON, TMALL,
purchase), with 71% of product searches taking place online, versus just 29% offline. MERCADO LIBRE)

02 BROWSING IN-STORE 18% 11% +7%


71% OF THE SEARCH PROCESS HAPPENS ONLINE.
03 SEARCH ENGINES 14% 30% -16%

Last year, we called out that the big losers, when it came to search, were search engines, 04 BRAND WEBSITES 14% 15% -1%
falling from first position to second. This year, the fall from grace is even greater – moving
into third position, and down by 16%.

But marketplaces, too, have lost some of the dominance when it comes to search, moving
from 36% to 31%. The big winner again this year is “in-store”, seeing a 7% increase versus
05 RETAILER SITES 12% 18% -6%
last year.

“IN-STORE BROWSING” HAS SEEN A LARGE INCREASE WHEN IT COMES


TO SEARCH, UP 7% IN 2023 VS 2022.

What does this data tell us? It confirms there are more and more channels through which to
search, and it tells us that marketplace strategies, tactics and presence need to be readied
and executed well. It also shows us that consumers are operating across digital and physical
channels when searching for products. All of this highlights that brands and retailers need to
get their omni-channel strategies right, with a powerful mix across channels.

33
CHAPTER 3: WHERE DO GLOBAL SHOPPERS SPEND THEIR MONEY ONLINE?
WHICH CHANNELS DO GLOBAL SHOPPERS USE 2023 2022 2021
TO PURCHASE?

The final stage of the journey is the purchase itself. So, let’s examine what percentage of 01 MARKETPLACES 35% 35% 42%
consumer expenditure is spent in which channel online.

As with last year, and without any change in percentage, we see marketplaces at the top,
accounting for 35% of all online spending. In second place, we see supermarkets and
grocers, with a slight dip from 17% to 15%. While in third place, and the biggest gainer
02 SUPERMARKETS
AND GROCERS 15% 17% 18%
this year, we see branded sites up from 7% to 14%.

03 BRANDED WEBSITES
(E.G. NIKE, APPLE, DYSON, ETC.) 14% 7% 8%

35% OF ALL ONLINE SHOPPING GLOBALLY GOES VIA


MARKETPLACES, THE SAME PERCENTAGE AS LAST YEAR. 04
RETAILER SITES
(E.G. ASOS, MACY’S,
ARGOS, UNIQLO)
13% 12% 12%
VIA AN AGGREGATOR
05 / DELIVERY APP
(DOORDASH, DELIVEROO)
5% 11% 11%
CONVENIENCE
06 STORES
(E.G. 7-ELEVEN)
5% NA NA
SOCIAL – IN-APP
07 PURCHASING
(E.G. INSTAGRAM, WEIBO)
5% 14% 7%

08 OTHER 3% 4% 3%

09 GAMING 3% NA NA

10 METAVERSE 1% NA NA
34
KEY THOUGHTS
When we investigated the influence of age on where online shoppers purchase, this gives
us some very interesting figures.

For instance, when it comes to marketplaces, the percentage of spending increases across
each age group (from youngest to oldest), ranging from 16-24-year-olds who spend 28%
on marketplaces, to 44% of over-55s. Should this be ringing alarm bells for marketplaces ➜ SHOPPING IS VERY MUCH AN ONLINE EXPERIENCE, WITH
for the future? Or is it a clear opportunity that marketplaces as well as brands and
INSPIRATION AND SEARCH BEING DRIVEN PREDOMINANTLY BY
retailers should be exploiting? Whilst it’s likely to be a mix of many things, it’s worth
closer consideration.
ONLINE EXPERIENCES.
■ Is your business offering consumers the inspirational experiences they want online,
For branded sites, the opposite is true. As each age group gets older, a smaller percentage
and are they using your sites to search?
shop from branded websites, from 19% in the 16-24-year-old age group to just 9% in the
over-55s.

➜ MARKETPLACES CONTINUE TO DOMINATE ACROSS INSPIRATION,


SEARCH AND PURCHASE.
■ What does your marketplace strategy look like? Is it driving the business that you
want and need it to? Are you looking beyond Amazon and working with the leading
HOW VML CAN HELP YOU: marketplaces in each region? In such a highly competitive market, how can your
DTC AND BRANDS: ADDRESSING ATTRITION AND experience, and your share of wallet, be improved?
MAKING A COMEBACK
➜ PHYSICAL STORES HAVE HAD A RESURGENCE WHEN IT COMES TO
In last year’s report, we called out the issue that direct-to-consumer branded
sites were having with attrition. We identified that 14% of shoppers used them
INSPIRATION AND PURCHASE.
for inspiration, 15% for search, but only 7% for purchase. In other words, when ■ What does your omni-channel strategy, spanning digital and physical, look like?
push came to shove, users were leaving branded sites and parting with their Can you offer consumers the best of both worlds, whilst maintaining a consistent,
money on other channels. seamless brand experience?
This year, however, it would seem that the vital matter of attrition has been
addressed, with conversion rates relatively consistent across the journey.
Now, 15% of consumers use branded websites for inspiration, 14% for search,
➜ DTC BRAND SITES HAVE SEEMINGLY OVERCOME THEIR ISSUES
and 14% for purchase. This is great news for brands and reflects how hard OF ATTRITION.
many have been working on ensuring that their user experience, content and
■ Now, the challenge is to maintain and augment conversion rates, attracting more
functionality drives consumers to transact on their sites.
consumers at the inspiration and search phases, ensuring they convert on your site.

35
SECTION 4:
THE CUSTOMER
JOURNEY BY
INDUSTRY

36
A DEEPER DIVE INTO 12 KEY SECTORS

One of the leading challenges that has been posed to us when presenting customer journey
data is that, whilst showing a single view on where consumers get inspired about, search
for, and purchase “different” products offers a useful high-level view, it misses some telling
industry nuances. So, this year we looked into specific sectors, too.

37
THE TOP 5 SOURCES FOR INSPIRATION, SEARCH AND PURCHASE FOR ALCOHOL ONLINE

INSPIRATION SEARCH PURCHASE

01 LEADING MARKETPLACE
(E.G. AMAZON, TMALL, MERCADO LIBRE) 38% LEADING MARKETPLACE
(E.G. AMAZON, TMALL, MERCADO LIBRE) 33% SUPERMARKETS AND GROCERS 21%
02 BROWSING IN-STORE 31% BROWSING IN-STORE 21% I NEVER BUY THIS PRODUCT ONLINE 19%
03 SEARCH ENGINES 17% SEARCH ENGINES 14% LEADING MARKETPLACE
(E.G. AMAZON, TMALL, MERCADO LIBRE) 13%
04 BRAND WEBSITES 16% RETAILER SITES 13% RETAILER SITES 8%
05 RETAILER SITES 14% BRAND WEBSITES 12% CONVENIENCE STORES 7%

THE TOP 5 SOURCES FOR INSPIRATION, SEARCH AND PURCHASE FOR AUTOMOTIVE AND ACCESSORIES ONLINE

INSPIRATION SEARCH PURCHASE

01 LEADING MARKETPLACE
(E.G. AMAZON, TMALL, MERCADO LIBRE) 47% LEADING MARKETPLACE
(E.G. AMAZON, TMALL, MERCADO LIBRE) 39% LEADING MARKETPLACE
(E.G. AMAZON, TMALL, MERCADO LIBRE) 34%
02 BROWSING IN-STORE 20% SEARCH ENGINES 17% I NEVER BUY THIS PRODUCT ONLINE 16%
03 SEARCH ENGINES 20% BROWSING IN-STORE 16% OTHER MARKETPLACES 10%
04 BRAND WEBSITES 15% BRAND WEBSITES 14% RETAILER SITES 8%
05 COMPARISON SITES 15% COMPARISON SITES 12% BRANDED WEBSITES 7%
NB. For inspiration and search, consumers could choose multiple answers, reflecting the multiple sources they use. For purchase, consumers were asked what percentage of their spend on these items they spent in each channel (with the total
adding up to 100%).

38
THE TOP 5 SOURCES FOR INSPIRATION, SEARCH AND PURCHASE FOR BEAUTY PRODUCTS ONLINE

INSPIRATION SEARCH PURCHASE

01 LEADING MARKETPLACE
(E.G. AMAZON, TMALL, MERCADO LIBRE) 40% LEADING MARKETPLACE
(E.G. AMAZON, TMALL, MERCADO LIBRE) 34% LEADING MARKETPLACE
(E.G. AMAZON, TMALL, MERCADO LIBRE) 27%
02 BROWSING IN-STORE 29% BROWSING IN-STORE 21% RETAILER SITES 13%
03 BRAND WEBSITES 18% BRAND WEBSITES 17% OTHER MARKETPLACES 11%
04 SOCIAL MEDIA CHANNELS 16% RETAILER SITES 15% BRANDED WEBSITES 9%
05 RETAILER SITES 16% SEARCH ENGINES 14% SUPERMARKETS AND GROCERS 9%

THE TOP 5 SOURCES FOR INSPIRATION, SEARCH AND PURCHASE FOR CLOTHING AND FASHION ONLINE

INSPIRATION SEARCH PURCHASE

01 LEADING MARKETPLACE
(E.G. AMAZON, TMALL, MERCADO LIBRE) 39% LEADING MARKETPLACE
(E.G. AMAZON, TMALL, MERCADO LIBRE) 34% LEADING MARKETPLACE
(E.G. AMAZON, TMALL, MERCADO LIBRE) 24%
02 BROWSING IN-STORE 33% BROWSING IN-STORE 24% RETAILER SITES 21%
03 BRAND WEBSITES 27% BRAND WEBSITES 23% BRANDED WEBSITES 17%
04 RETAILER SITES 21% RETAILER SITES 16% OTHER MARKETPLACES 12%
05 OTHER MARKETPLACES 17% OTHER MARKETPLACES 16% I NEVER BUY THIS PRODUCT ONLINE 5%
NB. For inspiration and search, consumers could choose multiple answers, reflecting the multiple sources they use. For purchase, consumers were asked what percentage of their spend on these items they spent in each channel (with the total
adding up to 100%).

39
THE TOP 5 SOURCES FOR INSPIRATION, SEARCH AND PURCHASE FOR FINANCIAL PRODUCTS ONLINE

INSPIRATION SEARCH PURCHASE

01 SEARCH ENGINES 25% SEARCH ENGINES 21% I NEVER BUY THIS PRODUCT
ONLINE 24%
02 COMPARISON SITES 18% COMPARISON SITES 16% OTHER 18%
03 BRAND WEBSITES 15% BRAND WEBSITES 15% BRANDED WEBSITES 10%
04 FROM TV, EMAILS, ADVERTS 15% LEADING MARKETPLACE
(E.G. AMAZON, TMALL, MERCADO LIBRE) 13% LEADING MARKETPLACE
(E.G. AMAZON, TMALL, MERCADO LIBRE) 9%
05 I READ NEWSPAPERS AND
MAGAZINES ONLINE 14% FROM TV, EMAILS, ADVERTS 10% SOCIAL – IN-APP PURCHASING 7%

THE TOP 5 SOURCES FOR INSPIRATION, SEARCH AND PURCHASE FOR GROCERY PRODUCTS ONLINE

INSPIRATION SEARCH PURCHASE

01 BROWSING IN-STORE 37% BROWSING IN-STORE 28% SUPERMARKETS AND GROCERS 31%
02 LEADING MARKETPLACE
(E.G. AMAZON, TMALL, MERCADO LIBRE) 24% LEADING MARKETPLACE
(E.G. AMAZON, TMALL, MERCADO LIBRE) 23% LEADING MARKETPLACE
(E.G. AMAZON, TMALL, MERCADO LIBRE) 13%
03 RETAILER SITES 22% RETAILER SITES 20% I NEVER BUY THIS PRODUCT ONLINE 10%
04 CONVENIENCE STORES 15% OTHER MARKETPLACES 11% RETAILER SITES 10%
05 VIA AN AGGREGATOR / DELIVERY APP 12% CONVENIENCE STORES 11% VIA AN AGGREGATOR / DELIVERY
APP 9%
NB. For inspiration and search, consumers could choose multiple answers, reflecting the multiple sources they use. For purchase, consumers were asked what percentage of their spend on these items they spent in each channel (with the total
adding up to 100%).

40
THE TOP 5 SOURCES FOR INSPIRATION, SEARCH AND PURCHASE FOR HEALTH AND PHARMACEUTICAL PRODUCTS ONLINE

INSPIRATION SEARCH PURCHASE

01 BROWSING IN-STORE 28% LEADING MARKETPLACE


(E.G. AMAZON, TMALL, MERCADO LIBRE) 26% LEADING MARKETPLACE
(E.G. AMAZON, TMALL, MERCADO LIBRE) 23%
02 LEADING MARKETPLACE
(E.G. AMAZON, TMALL, MERCADO LIBRE) 26% BROWSING IN-STORE 22% I NEVER BUY THIS PRODUCT ONLINE 15%
03 SEARCH ENGINES 17% SEARCH ENGINES 15% SUPERMARKETS AND GROCERS 12%
04 RETAILER SITES 14% RETAILER SITES 14% RETAILER SITES 10%
05 BRAND WEBSITES 13% BRAND WEBSITES 12% OTHER MARKETPLACES 8%

THE TOP 5 SOURCES FOR INSPIRATION, SEARCH AND PURCHASE FOR HOUSEHOLD PRODUCTS ONLINE

INSPIRATION SEARCH PURCHASE

01 LEADING MARKETPLACE
(E.G. AMAZON, TMALL, MERCADO LIBRE) 46% LEADING MARKETPLACE
(E.G. AMAZON, TMALL, MERCADO LIBRE) 40% LEADING MARKETPLACE
(E.G. AMAZON, TMALL, MERCADO LIBRE) 34%
02 BROWSING IN-STORE 30% BROWSING IN-STORE 23% SUPERMARKETS AND GROCERS 16%
03 RETAILER SITES 18% RETAILER SITES 16% OTHER MARKETPLACES 11%
04 OTHER MARKETPLACES 16% OTHER MARKETPLACES 14% RETAILER SITES 10%
05 SEARCH ENGINES 13% SEARCH ENGINES 14% I NEVER BUY THIS PRODUCT ONLINE 7%
NB. For inspiration and search, consumers could choose multiple answers, reflecting the multiple sources they use. For purchase, consumers were asked what percentage of their spend on these items they spent in each channel (with the total
adding up to 100%).

41
THE TOP 5 SOURCES FOR INSPIRATION, SEARCH AND PURCHASE FOR LUXURY PRODUCTS ONLINE

INSPIRATION SEARCH PURCHASE

01 LEADING MARKETPLACE
(E.G. AMAZON, TMALL, MERCADO LIBRE) 29% LEADING MARKETPLACE
(E.G. AMAZON, TMALL, MERCADO LIBRE) 27% LEADING MARKETPLACE
(E.G. AMAZON, TMALL, MERCADO LIBRE) 21%
02 BROWSING IN-STORE 24% BRAND WEBSITES 20% BRANDED WEBSITES 18%
03 BRAND WEBSITES 22% BROWSING IN-STORE 19% I NEVER BUY THIS PRODUCT ONLINE 16%
04 RETAILER SITES 13% SEARCH ENGINES 12% RETAILER SITES 12%
05 SEARCH ENGINES 12% COMPARISON SITES 11% OTHER MARKETPLACES 9%

THE TOP 5 SOURCES FOR INSPIRATION, SEARCH AND PURCHASE FOR SECOND-HAND PRODUCTS ONLINE

INSPIRATION SEARCH PURCHASE

01 LEADING MARKETPLACE
(E.G. AMAZON, TMALL, MERCADO LIBRE) 30% SECOND-HAND WEBSITES 27% LEADING MARKETPLACE
(E.G. AMAZON, TMALL, MERCADO LIBRE) 23%
02 SECOND-HAND WEBSITES 29% LEADING MARKETPLACE
(E.G. AMAZON, TMALL, MERCADO LIBRE) 27% OTHER MARKETPLACES 14%
03 OTHER MARKETPLACES 14% OTHER MARKETPLACES 12% I NEVER BUY THIS PRODUCT ONLINE 13%
04 SOCIAL MEDIA CHANNELS 13% SEARCH ENGINES 12% SOCIAL – IN-APP PURCHASING 12%
05 BROWSING IN-STORE 13% BROWSING IN-STORE 11% OTHER 10%
NB. For inspiration and search, consumers could choose multiple answers, reflecting the multiple sources they use. For purchase, consumers were asked what percentage of their spend on these items they spent in each channel (with the total
adding up to 100%).

42
THE TOP 5 SOURCES FOR INSPIRATION, SEARCH AND PURCHASE FOR TECHNOLOGY PRODUCTS ONLINE

INSPIRATION SEARCH PURCHASE

01 LEADING MARKETPLACE
(E.G. AMAZON, TMALL, MERCADO LIBRE) 46% LEADING MARKETPLACE
(E.G. AMAZON, TMALL, MERCADO LIBRE) 41% LEADING MARKETPLACE
(E.G. AMAZON, TMALL, MERCADO LIBRE) 34%
02 BRAND WEBSITES 23% BRAND WEBSITES 21% BRANDED WEBSITES 17%
03 BROWSING IN-STORE 22% BROWSING IN-STORE 17% OTHER MARKETPLACES 13%
04 SEARCH ENGINES 17% SEARCH ENGINES 16% RETAILER SITES 10%
05 COMPARISON SITES 16% OTHER MARKETPLACES 14% I NEVER BUY THIS PRODUCT ONLINE 7%

THE TOP 5 SOURCES FOR INSPIRATION, SEARCH AND PURCHASE FOR TOYS ONLINE

INSPIRATION SEARCH PURCHASE

01 LEADING MARKETPLACE
(E.G. AMAZON, TMALL, MERCADO LIBRE) 45% LEADING MARKETPLACE
(E.G. AMAZON, TMALL, MERCADO LIBRE) 40% LEADING MARKETPLACE
(E.G. AMAZON, TMALL, MERCADO LIBRE) 38%
02 BROWSING IN-STORE 20% BROWSING IN-STORE 16% OTHER MARKETPLACES 11%
03 OTHER MARKETPLACES 15% OTHER MARKETPLACES 13% I NEVER BUY THIS PRODUCT ONLINE 10%
04 SEARCH ENGINES 12% SEARCH ENGINES 12% RETAILER SITES 9%
05 RETAILER SITES 12% RETAILER SITES 11% SOCIAL – IN-APP PURCHASING 4%
NB. For inspiration and search, consumers could choose multiple answers, reflecting the multiple sources they use. For purchase, consumers were asked what percentage of their spend on these items they spent in each channel (with the total
adding up to 100%).

43
SECTION 5:
ONLINE
PURCHASING
IN MORE DETAIL

44
CHAPTER 1: THE TOP 10 ASPECTS WHEN PURCHASING A PRODUCT ONLINE
WHAT’S MOST IMPORTANT TO CONSUMERS WHEN THEY 2022 POSITION
SHOP ONLINE?

We have already highlighted a considerable amount of data and related insights about 01 PRICE OF THE ITEM 1
online shopping in this report. So, let’s get to the nub of the purchase decision. What factors

02 4
are most important to shoppers when shopping online?
ACCURATE PRODUCT DESCRIPTIONS
As with last year, and the year before that, price is the factor highlighted by most consumers
as being important.
03 THE ITEM I WANT IS IN STOCK 2
04 EASY TO FIND THE PRODUCT I AM LOOKING FOR 3
05 STRONG CUSTOMER SERVICE 5
06 CONVENIENT DELIVERY 6
07 EASY RETURNS PROCESS 9
08 SPEED OF DELIVERY 8
09 FREE DELIVERY 7
10 PRODUCT REVIEWS 11

45
But, once again, we also see elements around product descriptions, availability, content,
discoverability, and services – namely delivery and returns. So, whilst price may be the
number one factor, alone it is not enough, and brands and retailers must ensure they are
getting things right across a number of different factors.

Referencing, again, the point about service, we first identified in 2018 a shift towards
“service-led brands”. Simply put, we found that the brand was no longer enough to count
on to drive sales, and that it needed to be backed up by great service – ease, speed,
convenience, delivery, returns etc. As you can see, brand does not feature in this top 10,
and, although it has climbed one space to 16th this year, it is further proof that a strong
brand alone is not enough when it comes to online conversion.

So, getting your pricing strategy right is clearly vital, and that means consistency across
channels, but supporting it with fantastic service, and the right content should offer up
a winning formula. As we saw in the previous sections, marketplaces are very strong
across the customer journey, because they have found a formula which brings together
all these elements.

PRICE IS THE MOST IMPORTANT FACTOR WHEN DECIDING WHICH


CHANNEL TO PURCHASE THROUGH.

46
CHAPTER 2: THE TOP 10 FACTORS THAT WOULD ENCOURAGE CONSUMERS TO BUY
DIRECTLY FROM BRANDS
WHAT WOULD ENCOURAGE CONSUMERS TO BUY
DIRECTLY FROM BRANDS? 2023 2022

01 53% 49%
With marketplaces doing so well in terms of owning the customer journey, one of the key
questions for brands is how can you encourage consumers to come to you directly, rather BETTER PRICE
than shopping via marketplaces?

02 FREE DELIVERY 49% 47%


53%
OF GLOBAL SHOPPERS SAY A BETTER PRICE WOULD
MAKE THEM SHOP DIRECTLY FROM A BRAND, MAKING IT
THE NUMBER ONE REASON. 03 FAST AND CONVENIENT DELIVERY 36% 34%

Again, price is the key determinant. In fact, it would seem that not only is price important, 04 FREE RETURNS 36% 35%
but it has become more important since last year. It is also apparent that the service
elements around delivery and returns are also vital to get right.

05 LOYALTY PROGRAM 27% 25%

06 EXCLUSIVE PRODUCTS 22% 23%

07 BETTER INFORMATION
ABOUT PRODUCTS 21% 22%

08 ACCESS TO FULL PRODUCT RANGE 21% 22%

09 BUNDLED PRODUCT DEALS 21% 17%

10 PERSONALIZED PRODUCTS 16% 17%


47
CHAPTER 3:
WHO, OR WHAT, INFLUENCES CONSUMERS?

Finally, rather than where do consumers buy, or why do they buy, we wanted to know who When we take a closer look by region, we see a generally uniform picture, with just a few
influences them to make their purchase. The data is very consistent with last year, with three differences, such as APAC’s keen appetite for social media and celebrities, with the Middle
key sources of influence standing head and shoulders above the rest: family members, East not far behind. Notably, Europe appears to be in catch-up mode for social media.
friends and influencers.

Certainly, the role of friends is important, with 54% of global consumers actively
recommending products to their friends through tagging them, or direct-messaging them.

WHO INFLUENCES CONSUMERS ONLINE SPENDING DECISIONS?

2023 2023 2023 2023 2023 2023


2023 2022 2021
APAC EU LATAM ME NA S.AFRICA

FAMILY MEMBERS 20% 20% 21% 17% 20% 22% 18% 21% 18%
FRIENDS 17% 17% 19% 14% 19% 20% 20% 15% 14%
SOCIAL MEDIA INFLUENCERS / BLOGGERS
(E.G. INSTAGRAM, YOUTUBE, SNAPCHAT) 16% 15% 14% 21% 10% 16% 21% 13% 25%
IN-STORE SALES ASSISTANTS 6% 6% 5% 6% 5% 8% 6% 5% 9%
CELEBRITIES 5% 5% 5% 7% 4% 4% 9% 5% 8%
STREAMERS 4% 5% NA 5% 3% 3% 6% 3% 3%
COLLEAGUES 3% 3% 4% 3% 3% 3% 6% 2% 2%
BUSINESS PEOPLE 3% 3% 3% 2% 2% 4% 3% 3% 5%
SPORT STARS AND ATHLETES 3% 3% 3% 3% 2% 3% 4% 2% 2%
JOURNALISTS 1% 2% 2% 1% 2% 1% 2% 1% 0%
POLITICIANS 1% 1% 1% 1% 1% 1% 2% 1% 0%
48
KEY THOUGHTS
➜ PRICE IS THE NUMBER ONE FACTOR FOR CONSUMERS WHEN
CHOOSING WHICH CHANNEL AND RETAILER TO BUY FROM.
■ What is your pricing strategy? Is it consistent across channels and regions? How is this
affecting your online performance?

➜ SERVICE ELEMENTS AROUND DELIVERY AND RETURNS, AVAILABILITY


AND CUSTOMER SERVICE ARE ALSO IMPORTANT.
■ How do customers view your service? Are these factors helping to inspire more loyalty?
Are you hitting the mark on fast delivery and easy returns?

➜ CONTENT MUST ALSO BE ON POINT, WITH IMAGES, DESCRIPTIONS,


AND THE ABILITY TO SEARCH ALL FACTORS IN PURCHASE
DECISION-MAKING.
■ Do you have a powerful content strategy across all your channels, presenting your
products in the best light, and in a way that will maximize your online sales and win
the digital shelf?

49
SECTION 6:
GETTING THE
EXPERIENCE
RIGHT

50
CHAPTER 1:
ONLINE VS OFFLINE – WHO’S BETTER AT WHAT?

With online shopping strengthening and set for considerable growth over the next ten years,
we should ask ourselves what’s driving this development? One of the main reasons is
simply that online is viewed as “better” than offline across many criteria.

As last year, when comparing online and offline across a number of different metrics, online
is perceived as better across every single criteria except for two: “the ability to get the right
fit” and “consultation with staff”.

One of the surprising areas where online comes out on top is in the “fun of shopping”.
There has been much talk about how the experience of physical shopping needs to improve
to encourage consumers to visit, but it looks like this will be a hard battle to win as things
stand, with the majority of consumers considering online shopping more fun!

51
ONLINE VS OFFLINE – WHO’S BETTER AT WHAT?
2022 “ONLINE IS BETTER”
ONLINE IS BETTER OFFLINE IS BETTER
SCORES

CRITERIA / FEATURE 45% 22% –


WIDE VARIETY OF PRODUCTS / ITEMS 61% 10% 61%
REVIEW / EVALUATION OF PRODUCTS 57% 13% 60%
ACCESSIBILITY FOR THOSE WITH DISABILITIES (IF APPLICABLE) 57% 13% 57%
LOW PRICE / COST OF PURCHASE (INCLUDING SHIPPING COST) 56% 14% 56%
COMPARISON OF BRANDS / PRODUCTS 55% 13% 55%
BETTER COMPREHENSION ABOUT BRANDS / PRODUCTS 45% 17% 48%
SPEED OF DELIVERY 43% 30% 44%
FUN OF SHOPPING 42% 22% 44%
RETURN PROCESS 42% 25% 42%
SENSE OF LOYALTY TO A RETAILER OR BRAND 39% 19% 41%
CREDIBILITY OF PRODUCTS / RETAILERS 36% 23% 39%
FRESHNESS OF PRODUCTS 35% 34% 35%
ABILITY TO TRY THE RIGHT PRODUCT OR GET THE RIGHT FIT 34% 41% 36%
GETTING CONSULTATION WITH / ADVICE FROM STORE STAFF 34% 39% 35%
52
CHAPTER 2: WHICH CHANNELS OFFER THE BEST EXPERIENCE?
EXPERIENCES AND CHANNELS 2023 2022 2021

So, now we know that, overall, online is better according to consumers globally. But which
online channels are the best? And which need to up their game?
01 MARKETPLACES 51% 55% 60%
Marketplaces are streets ahead of the competition when it comes to best experience, but we
are starting to see a trend downwards in the percentage lead.
NONE OF THESE
02 10% 11% 11%
Retailer sites have slipped slightly, yet branded websites seem to have taken the advice from
last year’s Future Shopper guidance and started to augment their experience. Could this be
ARE AHEAD OF
one of the reasons why the purchase percentage for brand sites went up this year, too?
THE OTHERS

It is notable that, in second position, we have the verdict that no channel is better than
the rest. In one respect this is a pleasing result, reflecting the suggestion that, in an
omni-channel mix, no single channel is superior as part of a balanced channel strategy 03 RETAILER SITES 10% 12% 11%
– a view that we have articulated for several years.

04 BRANDED WEBSITES 9% 7% 6%

05 SUPERMARKETS
AND GROCERS 5% NA NA

06 SOCIAL – IN-APP
PURCHASING 5% 3% 4%

07 VIA AN AGGREGATOR /
DELIVERY APP 3% 4% 3%

08 METAVERSE 3% NA NA

09 GAMING 3% NA NA
53
CHAPTER 3: PERCENTAGE OF SHOPPERS WHO WILL NOT SHOP WITH RETAILERS,
BRANDS OR MARKETPLACES FAILING TO MATCH THEIR EXPECTATIONS
ONLINE EXPERIENCES MUST BE MET!
IN FUTURE
With such a high percentage of shopping now happening online, there is even more
pressure to make the experiences good. Shoppers globally will not stand for an experience
INDIA 72%
that is underwhelming, with 51% saying they will not shop with retailers, brands or
marketplaces which do not match up to their expectations.
UAE 69%
And consumers expect experiences to improve, too… 61% say retailers and brands need THAILAND 67%
to get better at giving them the products, services, and experiences they want when
shopping online. But there is an indication of improvement in the area, as last year this
figure was 72%.
CHINA 62%
SOUTH AFRICA 60%
BRAZIL 58%
61%
OF SHOPPERS SAY RETAILERS AND BRANDS NEED TO GET
BETTER AT GIVING THEM THE PRODUCTS, SERVICES, AND
EXPERIENCES THEY WANT WHEN SHOPPING ONLINE.
USA 54%
POLAND 52%
It’s not just about functionality either, it’s about excitement and engagement – as our earlier MEXICO 50%
48%
point around “fun” suggested. 60% of global consumers wish retailers and brands would
make the online shopping experience more entertaining. Another 30% say online shopping ARGENTINA
is boring. The good news is that this figure was 32% in 2022, so once again there is
evidence of progress. COLOMBIA 48%
However, when it comes to different countries, there are three where the percentage of
consumers who find online shopping boring is high: India (54%), Thailand (51%) and
UK 45%
45%
the UAE (50%). Clearly, there is work to be done to improve the online experience in
these countries! AUSTRALIA

Gaining all this insight can be achieved by truly understanding and researching your
customers’ journeys. Yet, almost half of consumers (49%) think brands and retailers do
SPAIN 44%
not understand the steps they take to purchase a product, while 53% say they do not
believe brands and retailers grasp all the problems they encounter when purchasing their
GERMANY 44%
products online.
FRANCE 43%
NETHERLANDS 43%
JAPAN 33%
54
EXPERT OPINION: HOW VML CAN HELP YOU:
WHY MAPPING YOUR CUSTOMERS’ JOURNEYS IS CX SERVICES
VITAL TO STRATEGIC PLANNING
Our CX experts are focused across Research, Experience Design, Design and
Content with a proven approach that has helped clients move ahead fast,
Journey mapping allows you to see how your communications, products and
reimagining their proposition to achieve outstanding customer experience and
services work together to help your customers achieve their over-arching goal.
results. We have a suite of dedicated services to help you:
In visualizing all your customer touchpoints (human, physical and digital),
as a series of steps to accomplish a goal, you can identify areas in which 1) Know your audience, 2) Understand your current journeys, 3) Improve the
your customers’ journey becomes more challenging or fails to meet their current experience, 4) Develop your CX strategy and roadmap, 5) Create new
expectations. Journey maps are a great tool to generate alignment between products and services.
various departments regarding where the effort should be placed to improve
acquisition and retention. To help you take the first steps, we offer various introductory CX consultations
and audits, including a complimentary CX audit, content consultation, design
system review, and accessibility scan.

Find our more here.

MIKE ROKES
HEAD OF UX & CX CONSULTANCY
E: [email protected]

55
CHAPTER 4: WHAT IS THE ONE THING THAT GLOBAL CONSUMERS WOULD CHANGE
ABOUT ONLINE SHOPPING?
WHAT DOES GOOD LOOK LIKE?
2022 % AND
2023
So, the experience still needs to improve, even if there are signs that it is getting better. POSITION
But, as we did last year, we wanted to see exactly what the expectations are around the
online experience. After all, understanding this is key to developing a strategic plan to
improve the online experience. So, we asked consumers what is the one thing they would
01 FASTER DELIVERY 12% 13% (1)
change about online shopping.

02 8% 7% (3)
It’s interesting to see that the percentages and positioning of the top 10 answers are almost
identical to last year. This is encouraging, as it shows that consumers are consistent in
I WOULD NOT CHANGE ONE THING
their demands. And it’s no surprise that, sitting in first place, significantly ahead of all other
factors, is “faster delivery”. It’s clear, then, that consumers’ demand for fast delivery, despite
the incredible strides made by online retailers, continues to rise.
03 FREE RETURNS 7% 8% (2)

THE NO. 1 THING GLOBAL CONSUMERS WOULD CHANGE ABOUT ONLINE 04 CREDIBLE REVIEWS AND
RATINGS THAT I CAN TRUST 6% 5% (6)
SHOPPING IS “FASTER DELIVERY”.

05 EASY RETURNS 5% 5% (5)


What also stands out, as it did last year, is “returns”, with “free returns” and “easy returns”
once again featuring in the top 5. As we’ve been saying for several years, consumers want
service-led brands and experiences.
06 CONVENIENT DELIVERY 5% 6% (4)

07 BETTER PAYMENT OPTIONS 5% 5% (7)

08 FASTER REPLACEMENT OF
PRODUCTS THAT ARE OUT OF STOCK 4% 4% (8)

09 BETTER PRODUCT RANGE 4% 4% (11)

10 EASIER TO SEARCH FOR


AND FIND PRODUCTS 4% 4% (9)
56
CHAPTER 5: WHAT WOULD CONSUMERS CHANGE ABOUT DELIVERY?
IMPROVING THE DELIVERY EXPERIENCE 2023
2022 % AND
POSITION
With “faster delivery” being the number one change that consumers would demand to
improve online shopping, let’s delve a little deeper into what expectations are, and what
good looks like, when it comes to deliveries.
01 FASTER DELIVERY 48% 48% (1)
So, what could be done to improve the delivery experience?

Once again, it’s speed of delivery that comes top (48%), followed by making it cheaper 02 IT WOULD BE CHEAPER 43% 41% (2)
(43%). In fact, the percentages are almost identical to last year, indicating that consumers
are consistent in their views on the improvements they wish to see.

03 MORE CLARITY ON EXACT


TIMES FOR DELIVERY 39% 39% (3)

48% 04 27% 26% (5)


OF CONSUMERS SAY THAT, WHEN IT COMES TO DELIVERY, ABILITY TO DELIVER
THE NUMBER ONE CHANGE FOR IMPROVEMENT WOULD TO ME WHEREVER I AM
BE “FASTER DELIVERY”.

05 BETTER PACKAGING 26% 27% (4)


The one exception to this is “no contact delivery”, which was identified by only 13% of

06 23% 22% (7)


consumers this year, versus 20% last year, indicating once again that the dark days of
COVID-19 and the actions necessary for its containment are currently behind us. MORE OPTIONS FOR PICK UP

IT WOULD CONSIDER THE


07 ENVIRONMENT MORE
(E.G. REDUCED CARBON FOOTPRINT OPTIONS,
23% 24% (6)
ECO-DELIVERY VEHICLES)

ROADSIDE / CURBSIDE ITEM


08 COLLECTION OPTION
(NO NEED TO STEP IN-STORE)
15% 15% (9)

09 NO CONTACT DELIVERY
(TO MINIMIZE COVID-19 CONCERNS) 13% 20% (8)

10 NOTHING 6% 5% (10)
NB. Consumers were able to choose multiple options, hence why the total does not add up to 100%

57
CHAPTER 6: HOW QUICKLY DO CONSUMERS EXPECT DELIVERY OF THEIR
ONLINE ORDERS?
SPEED OF DELIVERY
LESS THAN LESS THAN
AVERAGE
So, what does “faster delivery” mean? Last year, global consumers were happy to wait, 2HRS 24HRS
on average, 2.36 days for the items they had ordered online to arrive. This year that has
dropped to 2.15 days.
GROCERY
(E.G. FOOD AND DRINK) 1.23 40% 64%
HEALTH AND PHARMACEUTICAL 1.59 34% 53%
2.15 THE AVERAGE AMOUNT OF TIME CONSUMERS EXPECT TO

DAYS WAIT FOR THEIR ONLINE ORDERS TO ARRIVE. LAST YEAR


IT WAS 2.36 DAYS. ALCOHOL 1.63 32% 49%

Of course, the amount of time consumers are happy to wait is really dependent on
FINANCIAL PRODUCTS
(E.G. INSURANCE) 1.73 32% 50%
what they are ordering. As we can see from the table, when it comes to groceries, the
expectation is 1.23 days, while in last position is automotive accessories at 2.62 days.
HOUSEHOLD PRODUCTS 2.22 21% 40%
But what about really fast delivery?

Over the last few years, we’ve been tracking the very high percentage of consumers who
want their online orders to arrive super-fast, i.e. in less than 2 hours. Last year this figure
BEAUTY
(E.G. HAIRCARE, SKINCARE, MAKEUP) 2.24 20% 38%
was 24%, up 4% from the year before. This year, the figure is 23%, slightly down on last
year, while 41% of consumers expect delivery within 24 hours. Could it be that consumers’
expectations of fast delivery are starting to level off? In some countries this looks like it
TECHNOLOGY (E.G. SMART PHONES,
TABLETS, COMPUTERS, HEADPHONES) 2.42 17% 35%
might be the case, while in others, the demand for faster delivery has increased significantly.
LUXURY (E.G. HIGH-END CLOTHING,
WATCHES, JEWELERY, BAGS, ART) 2.53 17% 33%

23% 2.54 16% 32%


OF CONSUMERS EXPECT DELIVERY IN LESS THAN TOYS
(E.G. BOARD GAMES, SOFT TOYS)
2 HOURS (VS. 24% LAST YEAR).

SECOND-HAND PRODUCTS 2.56 17% 33%


2.57 16% 32%
With fast delivery being so important, it stands to reason that online sellers who get their
CLOTHING AND FASHION
delivery right (and by right, we predominantly mean fast) stand the best chance of winning
(E.G. HIGH-STREET CLOTHING, FOOTWEAR)
versus their competitors. So, who’s out in front?

Unsurprisingly, the leading marketplaces (Amazon, Tmall, Mercado Libre) come in first
position, way ahead of their nearest competitors.
AUTOMOTIVE AND ACCESSORIES
(E.G. SEAT COVERS, HUBCAPS, SATNAV) 2.62 16% 32%
58
WHICH COUNTRIES HAVE THE MOST IMPATIENT ONLINE SHOPPERS? WHO IS BEST AT SPEEDY DELIVERY?
THE PERCENTAGE OF CONSUMERS WHO EXPECT THEIR DELIVERIES TO
ARRIVE IN LESS THAN 2 HOURS: THE LEADING
MARKETPLACE RETAILER OTHER
2023 2022 CHANGE

49+51+H 9+91+H 9+91+H


IN REGION SITES MARKETPLACES
INDIA 38% 46% -8%
COLOMBIA 36% 27% +9%
UAE 34% 50% -16% 49% 9% 9%
MEXICO 31% 20% +11%
SOUTH AFRICA 31% 25% +6%
BRAZIL 31% 31% 0
BRANDED NONE OF THESE
30% 37% -7%

7+93+H 6+94+H 6+94+H


USA WEBSITES OTHERS ARE THE BEST

THAILAND 28% 25% +3%


CHINA 24% 25% -1%
ARGENTINA 23% 23% 0 7% 6% 6%
UK 19% 16% +3%
SPAIN 17% 15% +2%
NETHERLANDS 16% 13% +3% SUPERMARKETS
VIA AN
AGGREGATOR / SOCIAL – IN-APP
16% 14% +2%

5+95+H 4+96+H 4+96+H


AUSTRALIA AND GROCERS DELIVERY APP PURCHASING

GERMANY 14% 14% 0


POLAND 14% NA NA
5% 4% 4%
FRANCE 14% 18% -4%
JAPAN 5% 11% -6%
59
EXPERT OPINION: HOW VML CAN HELP YOU:
HOW AI CAN BE USED TO SPEED UP DELIVERY AI AND DELIVERY

Delivery is a constellation of complex, interconnected optimization problems We combine machine learning with optimization to build decision-making
across the end-to-end supply chain – scheduling, routing, inventory systems that radically improve operational efficiency. We are one of only a few
management, resource allocation, pricing, etc. Modeling and solving these companies globally with the expertise to engineer adaptive (AI) systems that
problems using AI is the first step toward faster and more efficient delivery. combine finding patterns with decision-making, driving enormous value for
the clients we work with. For organizations seeking to build and optimize their
You can still have human domain experts in the loop to validate and tune, but the delivery services, we have an impressive track record with major clients. Our
number of contributing variables and the size of the data have to be crunched by services cover 1) AI Strategy, 2) Custom Development,
algorithms. Each and every sub-problem that is not supported by an AI-powered 3) Logistics, 4) Future of Work.
solution is a potential efficiency leak (and an opportunity for improvement).
Find out more here.
It’s not easy for an organization to replace their legacy systems or human-centric
processes with AI components. It takes time and cost, and there are serious
risks if this replacement is not done properly. A digital twin approach is a way to
ameliorate these risks and simulate large changes before actually investing in
them. The twin mirrors the organization’s physical operations across the supply
chain. This enables the simulation of “what if” scenarios that can test different
options (strategies, algorithms, market conditions, customer preferences) and
identify the best one to implement.

THEODOROS LAPPAS
HEAD OF DATA SCIENCE
E: [email protected]

60
CHAPTER 7:
BUT DELIVERY ISN’T JUST ABOUT SPEED…

As we’ve seen in the list of things that consumers would change about online shopping,
free delivery and convenient delivery are also important. So, who is best at this? Once
again, marketplaces stand head-and-shoulders above the rest.

This is a big hurdle for online sellers who want to challenge the might of marketplaces.
When they are doing such a great job of delivery, it becomes even harder to stop
consumers simply defaulting to them.

WHO IS BEST AT CONVENIENT AND FREE DELIVERY?


CONVENIENT FREE
DELIVERY DELIVERY

THE LEADING MARKETPLACE IN REGION 48% 48%


RETAILER SITES 9% 9%
OTHER MARKETPLACES 9% 9%
NONE OF THESE ARE THE BEST AT THIS 7% 9%
BRANDED WEBSITES 7% 7%
SUPERMARKETS AND GROCERS 6% 4%
SOCIAL – IN-APP PURCHASING 4% 4%
VIA AN AGGREGATOR / DELIVERY APP 4% 4%
OTHERS 6% 6%
61
CHAPTER 8:
RETURNS

As we’ve previously mentioned, service is becoming increasingly important when shopping


online. And, while delivery is key to this, so too are returns.

So, just how much of what we order online gets returned? The answer is 19%, which is
incidentally down from last year’s figure of 23%, possibly reflecting the fact that some
retailers have made a U-turn on their free returns policy.

19% OF EVERYTHING ORDERED ONLINE IS RETURNED.

WHO ARE THE HIGHEST AND LOWEST ONLINE RETURNERS BY COUNTRY?

HIGHEST RETURNERS LOWEST RETURNERS

% RETURNED AND % RETURNED AND


COUNTRY % RETURNED COUNTRY % RETURNED
POSITION IN 2022 POSITION IN 2022

01 UAE 40% 34% (2) 01 JAPAN 8% 13% (1)


02 INDIA 37% 44% (1) 02 ARGENTINA 11.5% 15% (2)
03 THAILAND 34% 30% (3) 03 COLOMBIA 12% 16% (3)
04 NETHERLANDS 26% 32% (4) 04 MEXICO 14% 16% (4)
05 USA 25% 34% (2) 05 AUSTRALIA 16% 17% (5)
62
And, as we’ve identified before, returning items isn’t just about ordering the wrong item, WHO OFFERS THE EASIEST RETURNS PROCESS?
or finding out that it doesn’t fit, or isn’t fit for purpose. No, over-ordering is a deliberate
strategy that a significant proportion of shoppers pursue. In fact, the exact percentage is
35%. Again, this figure is slightly down on last year’s 39% which again may reflect some
LEADING NONE OF THESE

44+56+H 12+88+H 11+89+H


retailers reneging on their free returns policies.
MARKETPLACE ARE THE BEST RETAILER SITES

35% OF GLOBAL CONSUMERS ADMIT TO OVER-ORDERING


ONLINE ITEMS, WITH THE INTENT OF RETURNING THEM. 44% 12% 11%

This leads us to ask the question, who offers the easiest returns process? Once again, it’s
the leading marketplaces that dominate this part of the experience.

BRANDED OTHER SUPERMARKETS

8+92+H 8+92+H 4+96+H


WEBSITES MARKETPLACES AND GROCERS

8% 8% 4%

VIA AN
SOCIAL – IN-APP AGGREGATOR /

3+97+H 3+97+H 6+94+H


PURCHASING DELIVERY APP OTHERS

3% 3% 6%

63
CHAPTER 9: WHAT CONTENT INFLUENCES GLOBAL SHOPPERS MOST WHEN
SHOPPING ONLINE?
CONTENT

As well as the overall experience, the content that shoppers encounter when they shop
ACCURATE PRODUCT DESCRIPTIONS 46%
online influences their purchase decisions. But what content exactly is most important?

It is interesting that “accurate product descriptions” comes in first place, and by quite some
distance. In joint second position, we have high quality images followed by the brand.
HIGH QUALITY IMAGES 32%
Brand is an interesting factor, given that elsewhere in this research we’ve found that brand
takes a back seat to service. However, it appears that, when it comes to content, brand
THE BRAND 32%
plays a bigger and more important role. Colombian and South African consumers value

23%
brand in their content most (41%), while consumers in the Netherlands (24%), the UK (23%)
and Japan (19%) value it the least. EASY TO READ CONTENT

A GOOD-LOOKING SITE 20%

46%
OF GLOBAL SHOPPERS SAY ACCURATE PRODUCT
DESCRIPTIONS ARE IMPORTANT, MAKING IT THE MOST VIDEO CONTENT 20%
IMPORTANT FACTOR FOR CONTENT.

SPEED OF CHECKOUT 18%


10%
Let’s consider some other regional differences. Chinese consumers value accurate product
descriptions the most (61%), while in Thailand, being easily able to read content is more BLOG POSTS AND NEWS ON THE SITE
important than anywhere else (36%). In Poland, fast checkout is more important than any
other country (37%).
NO CONTENT INFLUENCES ME THE MOST
WHEN BUYING A PRODUCT ONLINE 8%

64
EXPERT OPINION: HOW VML CAN HELP YOU:
WHY GETTING YOUR CONTENT RIGHT IS VITAL BRAND GUARDIAN AND CURATIVE AI
TO ENSURING THAT SHOPPERS TRANSACT ON
YOUR SITE Brand Guardian is an off-the-shelf AI product that performs quality checks
on your marketing assets from various angles, in effect mitigating the risk of
unwanted publications and ensuring high standards of marketing assets that
Online shopping has broken through in terms of enjoyment, but who wants to represent the audience.
return a product that isn’t right? Shoppers value the psychological reassurance
that the product is of the quality level they expect, and that it will meet their It powerfully builds on the rise of Curative AI, a subfield of AI that focuses on the
needs – if there are clear omissions, repetitions or obfuscations, then the validation and curation of content. And it acts as a quality gate that intercepts
shopper will start to question their potential purchase and hesitate to commit. and flags off-brand and non-compliant content in real time, allowing humans
While we see regional differences in the stated preference of shoppers (text vs. to make the final decision before a publication is made. It can also scan for
brand vs. imagery), all seek the clarity that will give them the confidence to buy. published content, protecting your brand around the clock. It can scale across
all brands and teams globally, making your content flawless, every single time!
Product content will typically touch on a number of systems. It is imperative
that the information from all contributing technical capabilities forms a cohesive Find out more here.
whole that is complete and unambiguous to the customer. Product attributes,
content modeling, and the operations that deliver them, need to be completely
in lockstep, or your customers will notice.

MARK DEAL
TECHNOLOGY STRATEGY DIRECTOR
E: [email protected]

65
CHAPTER 10: THE PERCENTAGE OF ONLINE SHOPPERS WHO WANT TO GET FROM
INSPIRATION TO PURCHASE AS QUICKLY AS POSSIBLE
“COMPRESSED COMMERCE”
2023 2022
Finally, one key element of experience is speed, or, more specifically, getting from
inspiration to purchase as quickly as possible. We call this “compressed commerce”. This is
why owning the inspiration phase is so vital; if you can grab the consumer at the inspiration
01 INDIA 80% 88%
phase, you have a greater chance of ensuring they convert and purchase on your channel.
02 UAE 77% 88%
03 76% 95%
So, how important is “compressed commerce” to consumers? The answer is that it’s
essential, with 61% of global shoppers wanting to get from inspiration to purchase as THAILAND

04 74% 87%
quickly as possible.
SOUTH AFRICA
However, it’s worth saying that in 2022 and 2021, this figure was a mighty 80%. When
we look at the sources of inspiration, search and purchase, could it mean that, with more
channels in play, more consumers are happier to accept a slightly longer process? We’ll
05 CHINA 72% 86%
have to watch this space to see how this develops.
06 MEXICO 69% 85%
07 BRAZIL 68% 90%
08 COLOMBIA 67% 86%
61%
OF GLOBAL SHOPPERS WANT TO GET FROM INSPIRATION
TO PURCHASE AS QUICKLY AS POSSIBLE. WE CALL THIS
“COMPRESSED COMMERCE”.
09 POLAND 60% NA
10 USA 60% 77%
11 UK 57% 74%
12 56% 78%
Let’s take a closer look at Japan to explain why it consistently appears at or near the
bottom of most of our survey tables. ARGENTINA

The first thing to note is that most Japanese consumers are not dissatisfied with the online
shopping experience. However, they very much enjoy shopping offline, and want a mix
13 FRANCE 55% 69%
of both. Its offline retail market is very well developed, largely due to it being a densely
populated country. It also has a relatively balanced mix of supermarkets, convenience
14 AUSTRALIA 55% 72%
stores, and drugstores, with consumers shopping at these outlets every 1-3 days.
15 SPAIN 53% 76%
16 50% 75%
And if Japanese shoppers need items in a hurry, it is much quicker to buy them at the
convenience store near home rather than using an online shopping delivery service. GERMANY
As for the drop in the rate of "compressed commerce," inflation and rising prices of
goods have made its consumers more cautious in their decision making, to avoid
unnecessary purchases.
17 NETHERLANDS 44% 62%
18 JAPAN 38% 66%
66
KEY THOUGHTS
➜ CONSUMERS CURRENTLY SEE ONLINE AS OFFERING THE BEST
EXPERIENCE, WITH MARKETPLACES BEING THE CHANNEL THAT
PROVIDES THE BEST EXPERIENCE OVERALL.
■ What can be learnt from the marketplace experience and put to powerful use in your
other channels?

■ Online trumps offline in most areas we surveyed, including Accessibility. With new
Accessibility legislation on the horizon, is it a key part of your online planning?

➜ CONSUMERS WANT SUPER-FAST DELIVERY, ALTHOUGH THERE


ARE INDICATIONS THAT THEIR EXPECTATIONS APPEAR TO BE
RECEDING SLIGHTLY.
■ How can super-fast delivery be achieved to ensure consumer expectations are
being met?

➜ OTHER ELEMENTS SUCH AS AVAILABILITY AND RETURNS


ARE ALSO IMPORTANT.
■ Can your organization, whether as a brand or retailer, offer pricing
that appeals to consumers, supported by the services they demand?

67
SECTION 7:
MARKETPLACES

68
CHAPTER 1:
BEATING THE MARKETPLACES

With marketplaces still dominant across the three stages of the customer journey, retailers
and brands must find ways to compete and fight back against marketplaces. So, we asked
our global audience of consumers what the reasons would be for choosing another retailer
over the big marketplaces like Amazon, Tmall and Mercado Libre.

The answers given are challenging for brands and retailers, to say the least.

In first place, by quite some distance, and as per last year, comes “cheaper pricing”. Given
the scale, breadth and value of the offering on marketplaces, beating them on price is going
to be quite some challenge.

46%
OF CONSUMERS GLOBALLY WOULD CHOOSE ANOTHER
RETAILER OR BRAND OVER A MARKETPLACE IF THE PRICE
WAS CHEAPER.

The second reason could also prove a major hurdle: “more convenient delivery options”.
Once again, given the infrastructural and organizational investments of the big marketplaces
in their delivery options, there doesn’t seem to be a huge window of opportunity for retailers
and brands.

Finally, in third position and beyond, come a few welcome rays of light for marketplace
challengers: physical stores, more attractive loyalty programs, better and more specialized
product ranges, better environmental practices, better personalization, and better ethics….
These are all areas where marketplaces can be beaten.

However, the truth remains that consumers are first and foremost price-sensitive, and this is
a theme we have seen throughout this year’s research.

69
THE TOP 10 REASONS GLOBAL CONSUMERS WOULD CHOOSE ANOTHER And if it’s so hard to beat marketplaces, could you “join” them? Or, at the very least, build a
RETAILER OR BRAND OVER A MARKETPLACE marketplace of your own? This is a trend we’ve witnessed much more in the last few years,
of brands and retailers creating marketplaces where they curate and sell their own products
2023 2022 2021 alongside their competitors.

Is this something global shoppers are up for? Absolutely! In 2022, 54% of shoppers said

01 CHEAPER PRICING 46% 42% 46% they like buying from branded marketplaces, whereas in 2023, this figure has risen to 58%.

02 MORE CONVENIENT
21% 20% 20%
58%
DELIVERY OPTIONS OF GLOBAL SHOPPERS SAY THEY LIKE BUYING FROM
BRANDED MARKETPLACES.
03 EXISTENCE OF
PHYSICAL STORES 20% 18% 16%

04 MORE ATTRACTIVE
LOYALTY PROGRAMS 18% 15% 19%

05 BETTER / MORE SPECIALIZED


PRODUCT RANGE 17% 17% 19%
CHAPTER 2:
BETTER ENVIRONMENTAL SUGGESTED PRODUCTS
06 PRACTICES
(E.G. LESS PACKAGING, REDUCED CARBON
13% 14% 14% Marketplaces are often commended for helping consumers make the right decisions.
FOOTPRINT, ECO-DELIVERY VEHICLES)
For instance, 54% of global consumers say a marketplace’s recommended products do
influence their purchases (vs. just 16% who say they don’t).
BETTER PERSONALIZATION SO
07 THEY KNOW AND TREAT ME
BETTER AS AN INDIVIDUAL
12% 14% 12%

54%
OF GLOBAL SHOPPERS SAY A MARKETPLACE’S
08 BETTER BRAND ETHICS 12% 12% 13% “RECOMMENDED” PRODUCTS INFLUENCE THEIR
PURCHASES.

09 I PREFER TO SUPPORT OTHER


INDEPENDENT RETAILERS 11% 13% 13%
In addition, 53% say that products labeled “climate friendly” also impact what they buy.

10 10% 11% 12%


But this type of product labeling isn’t always welcomed, particularly when it comes to
BETTER-LOOKING WEBSITE sponsored items, with 55% of shoppers claiming that sponsored items get in the way of
what they’re looking for, and 53% questioning the credibility of these sponsored items. Quite
NB. Consumers were able to choose multiple options, so the totals do not add up to 100% clearly there is still some work to be done by marketplaces to get the user experience right.

70
EXPERT OPINION: HOW VML CAN HELP YOU:
WHY BRANDED MARKETPLACES COULD ALLOW MARKETPLACE SERVICES
RETAILERS AND BRANDS TO GIVE CONSUMERS
THE BEST OF BOTH WORLDS We are a leading provider of global eCommerce marketplace services and the
founding partner of the WPP Amazon Center of Excellence.

We talk a lot about how to beat marketplaces, however, as we can see from We run the largest global consultancy helping brands succeed on Amazon, Tmall
our consumer research, this is no easy matter. Through lower prices, faster and and other marketplaces. We do this by building solutions through Audit Services,
more convenient delivery options and broader assortment, marketplaces have Content Services and Media Services, to enable our customers to drive results
established a strong footfall with consumers. So, if it’s difficult to beat marketplaces globally on marketplaces and e-retailers at scale.
at their own game, one approach is to set up your own marketplace. This will deliver
Find out more here.
several benefits for your business and customers, such as:

■ Access to valuable data and analytics to gain insight to user behavior and
identify growth opportunities
■ Developing direct relationships with consumers using first party data
■ Additional revenue streams through marketing and advertising programs
■ Driving scalability and growth by attracting a broad selection of buyers and sellers

Overall, there are many benefits to establishing your own marketplace, with
significant potential to reach new consumers, increase overall revenue and build a
platform for growth.

RAGHBIR RANA
MARKETPLACES CONSULTANT
E: [email protected]

71
CHAPTER 3: LOYALTY SCHEME ADOPTION BY REGION
LOYALTY AND MARKETPLACES APAC EU LATAM ME NA S.AFRICA

Another area where marketplaces are very strong is loyalty. This may be down to the price, SUPERMARKET
it may be the ease, the speed and the convenience – but there’s more to it than that. (E.G. NECTAR, TESCO
CLUBCARD,
48% 50% 39% 32% 40% 77%
A huge percentage of consumers see loyalty schemes like Amazon Prime as the MYWAITROSE CARD)
benchmark, with 69% wishing more retailers and brands offered similar services.
LEADING
MARKETPLACE 36% 38% 29% 48% 54% 11%
HEALTH AND BEAUTY
69% OF GLOBAL CONSUMERS WISH RETAILERS AND BRANDS
OFFERED SIMILAR SERVICES TO AMAZON PRIME.
(E.G. BOOTS ADVANTAGE
CARD, SUPERDRUG HEALTH
& BEAUTY CARD)
28% 32% 23% 30% 35% 67%

FASHION
(E.G. ASOS PREMIER, 20% 23% 17% 27% 17% 50%
Despite this figure, supermarkets and grocers, not marketplaces, rule the roost when it H&M CLUB)
comes to loyalty schemes. 47% of global shoppers say they are members of a supermarket
DEPARTMENT STORES
loyalty program, while 37% say they are a member of a marketplace loyalty program.
(E.G. MY JOHN LEWIS)
28% 17% 16% 24% 29% 46%
I’M NOT A MEMBER
THE TOP 5 LOYALTY SCHEMES GLOBALLY OF ANY OF THESE 14% 15% 18% 13% 11% 7%
CONSUMER
01 SUPERMARKET
(E.G. NECTAR, TESCO CLUBCARD, MYWAITROSE CARD) 47% ELECTRONICS
25% 13% 14% 17% 12% 12%
(E.G. CURRY’S PC WORLD,
AO.COM)

02 LEADING MARKETPLACE 37% TRAVEL


22% 11% 18% 16% 16% 13%
(E.G. AVIOS)

WHOLESALE
03 HEALTH AND BEAUTY
30% (E.G. COSTCO, MAKRO)
20% 11% 19% 12% 27% 36%
(E.G. BOOTS ADVANTAGE CARD, SUPERDRUG HEALTH & BEAUTY CARD)

AGGREGATOR SITES 10% 5% 7% 12% 17% 31%


04 DEPARTMENT STORES
(E.G. MY JOHN LEWIS) 21%
MERCADO LIBRE 0% 0% 46% 0% 0% 0%

05 FASHION
(E.G. ASOS PREMIER, H&M CLUB) 21% JD VIP 4% 0% 0% 0% 0% 0%
72
CHAPTER 4:
REVIEWS, COUNTERFEITS AND CONCERNS

While the reasons to buy from channels other than marketplaces may not offer retailers and
brands a high level of opportunity, it doesn’t mean that everything is rosy for marketplaces;
there are also some negatives we uncovered.

For instance, 58% of consumers believe big tech companies (like Amazon) should be
paying more taxes, and we’ll mention later in this report the importance of ethics.

We also found that 58% of global consumers have encountered reviews on a marketplace
they believe are fake, and 52% have encountered a product they suspect may be
counterfeit. This figure around counterfeit products is markedly up from 19% last year!

We should further qualify this claim, however, with our finding that two-thirds of consumers
(67%) do trust products to be what they say they are, with 64% claiming they trust reviews.

52%
OF GLOBAL SHOPPERS HAVE ENCOUNTERED A PRODUCT
ON A MARKETPLACE THEY SUSPECT MAY BE COUNTERFEIT
(UP FROM 19% LAST YEAR).

73
CHAPTER 5: WHAT PERCENTAGE OF CONSUMERS WOULD WELCOME THE LIKES OF
EXPANDING MARKETPLACE SERVICES AMAZON DATING SERVICES?
DATING ALL MALE FEMALE
The reach and remit of marketplaces has long been talked about, so what appetite is there

42% 49% 37%


for expansion?
AGREE
One of the areas that we looked into during the last few years of our survey was banking
and financial products. 48% of consumers say they would be open to banking and
purchasing financial products through marketplaces like Amazon; this percentage has
remained a relatively consistent percentage over the last 3 years.
NEITHER AGREE
NOR DISAGREE 26% 28% 25%
31% 23% 38%
In addition to this, marketplaces should, if they don’t already, look into the services and
utilities they could provide their customers. Why? Because 51% of global consumers would DISAGREE
be open to buying their energy, water and utilities from marketplaces like Amazon.

And what about mobile phone plans? 53% of shoppers agreed they would be up for buying
their plans via marketplaces. TOP 5 COUNTRIES WHO WOULD BE OPEN TO MARKETPLACE
With this in mind, we wanted to test just how far consumers would interact with
DATING SERVICES
marketplaces, so we asked them if they would welcome the likes of Amazon setting up
DATING AGREE
dating services. After all, with so much data about consumers, surely creating the perfect

01 68%
match wouldn’t be that hard. And we could be onto something here – with 42% of global
consumers saying they would be open to using a dating app provided by a marketplace. INDIA
Although, to further qualify this response, we should also reveal that 31% of consumers
were against the idea! Amazon has always said it wanted to sell everything from A-Z, so
why not love?
02 UAE 65%
03 THAILAND 65%
42% 04 61%
OF GLOBAL CONSUMERS WOULD BE OPEN TO USING A
DATING APP PROVIDED BY MARKETPLACES LIKE AMAZON, CHINA
ALIBABA AND MERCADO LIBRE.
05 COLOMBIA 53%
74
KEY THOUGHTS
➜ MARKETPLACES ARE WINNING WHEN IT COMES TO SHARE OF
ATTENTION AND WALLET ACROSS THE 3 PHASES OF INSPIRATION,
SEARCH AND PURCHASE, BUT THERE ARE AREAS THEY NEED TO
IMPROVE ON, E.G. PERCEPTIONS ON REVIEWS AND COUNTERFEITS.
■ When it comes to your marketplace strategy, what can you do to allay consumer fears
about authentic products and reviews?

➜ BEATING MARKETPLACES IS GOING TO BE CHALLENGING, ESPECIALLY


AS CONSUMERS ARE PRICE-DRIVEN, BUT THERE IS HOPE AS
CONSUMERS CAN BE SWAYED BY OTHER PARTS OF THE EXPERIENCE.
■ How could your channel strategy, or your specialization, work to your advantage?
How do you execute it efficiently?

■ We uncovered several opportunities where you could gain the upper hand over
marketplaces. Which ones are commercially viable for development, and how do you
translate the plan into action?

➜ MARKETPLACES ARE ALSO DOING A GREAT JOB WHEN IT COMES


TO LOYALTY, ALBEIT SUPERMARKET LOYALTY PROGRAMS ARE
MORE USED.
■ What can your organization learn and replicate from these programs?

75
SECTION 8:
SOCIAL
COMMERCE

76
Social commerce has long been touted as the next new big channel.
In 2019, research we conducted of digital commerce leaders showed
they believed that social commerce would be the number one sales
channel by the end of the decade. So, how close are we to this vision
coming true?

CHAPTER 1:
BUYING THROUGH SOCIAL COMMERCE

Let’s start by first investigating the adoption and usage of social media platforms as
commerce channels.

In total, 67% of global consumers have bought through social commerce, up from 65%
in 2022, and 44% in 2021. Clearly this suggests a channel on the rise!

67% OF GLOBAL SHOPPERS HAVE ALREADY BOUGHT THROUGH


SOCIAL MEDIA PLATFORMS.

As one might expect, the younger the consumer, the more likely they are to have
purchased via social channels, going from 83% amongst 16-24-year-olds, to 33%
amongst the over-55s.

77
WHAT PERCENTAGE OF CONSUMERS HAVE ALREADY USED We also wanted to know how they had bought on those social platforms – for instance,
SOCIAL COMMERCE TO MAKE PURCHASES ONLINE? had they transacted in-app or “on” the platform, or had they followed a link to a retailer or
brand site? The results were quite surprising: 49% of all shoppers say they have purchased
ALL 67% “on platform”, while 26% of all shoppers have followed the links off the platform.*

91%
Taken at face value, this is great news, because over half of global consumers (53%) want
THAILAND to buy from within social apps, and don’t want to be redirected elsewhere. But the truth is

91%
that buying “on-platform” is in its early stages, and not available across all countries, so we
COLOMBIA should view this data with a degree of caution.

CHINA 90% *Consumers could select both options “buying on platform” and “buying off platform”, hence why the figure does not
add up to 67%.

UAE 89%
INDIA 88%
ARGENTINA 80%
MEXICO 79%
BRAZIL 78%
CHAPTER 2:
SOUTH AFRICA 76% INCREASING SOCIAL COMMERCE PURCHASING
NETHERLANDS 58% It’s impressive that 67% of consumers have already bought through social media platforms,
POLAND 58% but will this percentage continue to grow, and will the volume bought through social
platforms rise, too? Yes, it would seem, as 53% of consumers intend to spend more
UK 58% through social media platforms in the future.

USA 57%
56%
53%
SPAIN OF GLOBAL CONSUMERS INTEND TO SHOP MORE

55%
THROUGH SOCIAL PLATFORMS IN THE FUTURE.
AUSTRALIA

GERMANY 48%
FRANCE 45% Consumers in Colombia take number one spot here, with 85% intending to shop more
through social media in the future, which is closely followed by Indian and Thai consumers

28%
(both at 82%). While Japanese consumers appear the most reticent, with just 15% saying
JAPAN they will shop more through social in the future.

78
CHAPTER 3: WHICH SOCIAL MEDIA PLATFORM WOULD YOU BE MOST LIKELY TO
PURCHASE FROM?
WHICH SOCIAL PLATFORMS?
APAC EU LATAM ME NA S.AFRICA
With an eye on the future, we asked consumers which social platform they would be
most likely to purchase from. As with last year, the number one platform was Facebook, FACEBOOK 18% 24% 39% 28% 29% 38%
albeit the percentage has dropped since last year. As you might expect, we found some
regional differences.
INSTAGRAM 15% 16% 29% 26% 12% 20%
THERE IS NO
PLATFORM I WOULD
BE MOST LIKELY TO 18% 30% 6% 5% 26% 7%
PURCHASE FROM

YOUTUBE 10% 7% 5% 11% 10% 6%


TIKTOK 17% 6% 2% 6% 6% 6%
WHATSAPP 3% 5% 14% 12% 3% 14%
PINTEREST 1% 3% 1% 2% 4% 4%
TELEGRAM 3% 1% 1% 3% 1% 1%
TWITTER 2% 2% 1% 1% 3% 2%
LINE 4% 1% 0% 0% 1% 0%
OTHER 1% 2% 1% 1% 2% 2%
WECHAT 3% 1% 0% 1% 1% 0%
SNAPCHAT 1% 1% 0% 2% 2% 0%
SIGNAL 2% 1% 0% 1% 0% 0%
SHARECHAT 1% 0% 0% 1% 0% 0%
79
WHICH SOCIAL PLATFORMS ARE SHOPPERS MOST LIKELY TO SHOP We can see a correlation between where consumers are likely to purchase, and which
FROM AND WHICH CURRENTLY OFFER THE BEST EXPERIENCE? platform currently offers the best experience – in first place is Facebook (23%), followed by
Instagram (18%), and then YouTube (8%). It should come as a surprise to no one that the
WHICH PLATFORM likelihood to purchase, and the best experience, are linked.
WHICH PLATFORM ARE
OFFERS THE BEST
CONSUMERS MOST
SOCIAL COMMERCE
LIKELY TO SHOP FROM?
EXPERIENCE IN 2023?

FACEBOOK 27% 23%


INSTAGRAM 20% 18%
YOUTUBE 8% 8%
TIKTOK 8% 8%
WHATSAPP 7% 7%
PINTEREST 2% 2%
TELEGRAM 2% 2%
TWITTER 2% 2%
LINE 1% 1%
WECHAT 1% 1%
SNAPCHAT 1% 1%
SIGNAL 1% 1%
SHARECHAT 0% 1%
80
WHICH PLATFORM OFFERS THE BEST SOCIAL COMMERCE EXPERIENCE?
APAC EU LATAM ME NA S.AFRICA

NONE OF THESE
ARE BEST AT THIS / 23% 37% 9% 5% 32% 10%
I DON’T KNOW

FACEBOOK 16% 18% 35% 25% 24% 33%


INSTAGRAM 13% 14% 28% 24% 11% 20%
YOUTUBE 11% 7% 6% 14% 9% 7%
TIKTOK 17% 7% 3% 8% 6% 7%
WHATSAPP 3% 5% 13% 12% 3% 14%
TELEGRAM 3% 2% 1% 3% 2% 1%
TWITTER 2% 2% 1% 2% 3% 2%
LINE 3% 1% 0% 1% 1% 0%
WECHAT 3% 1% 0% 1% 1% 0%
PINTEREST 1% 3% 1% 2% 4% 4%
SNAPCHAT 1% 1% 0% 2% 2% 0%
OTHER 1% 1% 1% 1% 1% 1%
SIGNAL 2% 1% 0% 1% 1% 0%
SHARECHAT 1% 1% 1% 1% 1% 0%
81
CHAPTER 4:
BUYING MORE THROUGH SOCIAL COMMERCE

With social commerce on the rise, once again we looked at what would encourage
consumers to spend more through social platforms. As in 2022, the top four factors
remained exactly the same, albeit with some small changes in percentage figures.

Seemingly the ability to grab deals, discounts and offers via social is important. Could this
be because of the spontaneity of purchasing? And could this mean that businesses should
be creating bespoke discounts via their social channels to entice consumers to purchase
there and then? Remember, as we mentioned in the context of compressed commerce,
61% of consumers want to get from inspiration to purchase as quickly as possible, so
creating these spontaneous sales moments could amount to a viable and lucrative strategy.

39%
OF GLOBAL SHOPPERS SAY SOCIAL-SPECIFIC DEALS AND
DISCOUNTS WOULD ENCOURAGE THEM TO PURCHASE ON
SOCIAL MEDIA PLATFORMS MORE.

But we also see the importance of making the actual purchase easy. At present, many of
the social platforms have not taken full advantage of in-app purchasing, and this holds the
key to unlocking social commerce as a channel of significant scale.

82
EXPERT OPINION:
WHY IN-APP PURCHASING AND CONNECTING THE
FRONT- AND BACK-END HOLD THE KEY TO THE HOW VML CAN HELP YOU:
FUTURE OF SOCIAL COMMERCE SOCIAL COMMERCE SERVICES

Social media has played such a critical role in the compression of the traditional Through our global Social Commerce practice, we’re helping brands nail their
marketing funnel, where the points of inspiration and purchase have converged. end-to-end social presence. Our practice supports a brand’s entire social
With 67% of consumers already saying they have bought through social experience, focusing on five key capability areas to offer a best-in-class
commerce, a further increase on the last two years, social media is now offering approach to social commerce: Strategy, Content, Product & Data, Technology,
up a vast number of commerce opportunities directly into our hands. To make and Implementation & Reporting.
this even more seamless for consumers, brands must think about removing
unnecessary friction from the journey – and there is one over-riding way to do What’s more, as part of our Technology capability, we have created The Social
this; by introducing in-app purchasing. Connector – a platform-agnostic integrator that connects a brand’s commerce
stack with native checkout, to support in-app, on-platform purchasing.
Customers are craving it, brands are wanting to implement it, but it’s largely
dependent on the social platforms themselves, with many yet to take full Find out more here.
advantage of the technical developments. But that is not to say brands cannot
get ready, priming their tech stacks to seamlessly connect with the back-end
of a social native checkout. We are already enabling this today via our Social
Connector, a platform-agnostic integrator. Investing in the infrastructure to
support this ever-growing channel is paramount – so don’t risk slipping behind.

CHLOE COX
HEAD OF SOCIAL
E: [email protected]

83
WHAT WOULD ENCOURAGE GLOBAL CONSUMERS TO SHOP
MORE THROUGH SOCIAL PLATFORMS IN THE FUTURE?
2023 2022 2021

DEALS AND DISCOUNTS 39% 36% 37%


EASE OF PURCHASE 33% 32% 31%
EXCLUSIVE OFFERS 28% 27% 27%
MORE CUSTOMER REVIEWS 24% 24% 24%
SEEING THE PRODUCTS
ON REAL CUSTOMERS 23% 21% 23%
GREATER PRODUCT
AVAILABILITY 22% 22% 20%
FASTER PAYMENT /
MORE SEAMLESS PAYMENTS 19% 20% 18%
SERVICE / DELIVERY UPDATES 18% 18% 17%
EARLY ACCESS TO PRODUCTS 16% 16% 14%
NOTHING 15% 14% 19%
EXCLUSIVE RANGES 14% 16% 14%
LIVESTREAM COMMERCE
(VIDEO CALLS WITH SALES ASSISTANTS
AND OR INFLUENCERS)
12% 13% 11%
ENDORSEMENTS /
INFLUENCERS 10% 14% 9%
84
CHAPTER 5: WHAT PERCENTAGE OF SHOPPERS HAVE ALREADY USED LIVESTREAM
COMMERCE TO PURCHASE AN ITEM ONLINE?
LIVESTREAM COMMERCE

A trend we’ve had our eye on for some time is livestream commerce. While it’s a
phenomenon in APAC, in Europe and America it has faced challenges in getting off the
CHINA 81%
ground, with several trials rolled out and then canceled. INDIA 75%
73%
But first, let’s take a global look. What percentage of consumers have ever purchased
something, having watched a live shopping event on a social media app? Last year this THAILAND

72%
figure was 46%, and this year it is exactly the same.
UAE

BRAZIL 61%
46% OF GLOBAL SHOPPERS HAVE MADE A PURCHASE BASED
ON WATCHING A LIVE SHOPPING EVENT.
SOUTH AFRICA 54%
COLOMBIA 52%
As one might expect, livestream commerce has been used as a purchase channel by a
MEXICO 48%
higher percentage of young consumers than older ones – 60% of 16-24-year-olds have
made a purchase having engaged with livestream commerce versus 14% of over-55s.
ARGENTINA 40%
When we look at regional differences, it is no surprise that China comes top of the list,
with 81% of shoppers having purchased following a livestream.
USA 40%
SPAIN 37%
POLAND 36%
UK 35%
NETHERLANDS 33%
AUSTRALIA 31%
GERMANY 26%
FRANCE 25%
JAPAN 15%
85
EXPERT OPINION:
WHAT CAN EVERYONE LEARN FROM CHINA WHEN
IT COMES TO LIVESTREAM COMMERCE?

Live commerce in China often utilizes a variety of tactics to create excitement,


entertainment & engagement, such as showcasing new products, providing
interactive features like polls and quizzes, and inviting celebrity guests to
participate. These tactics help to create a sense of urgency and scarcity, which
can encourage consumers to make purchases even if the prices are not always
the lowest available.

That being said, price competitiveness is still a key consideration for live
commerce in China, as consumers have become accustomed to looking for the
best offers on livestreams. However, rather than relying solely on low prices,
many live commerce platforms differentiate themselves by offering unique
products or exclusive deals that are not available elsewhere.

JAMES BAY
CHIEF COMMERCE OFFICER, CHINA
E: [email protected]

86
KEY THOUGHTS
➜ A LARGE PERCENTAGE OF CONSUMERS CLAIM TO ALREADY HAVE
USED SOCIAL COMMERCE TO PURCHASE ONLINE, AND SAY THEY WILL
USE IT MORE IN THE FUTURE
■ Is your business ready for the impact and opportunity that social commerce will realize?

■ Are you testing the technology available to support on-platform purchasing such as our
Social Connector?

➜ CONSUMERS USING SOCIAL PLATFORMS TO MAKE PURCHASES


WOULD WELCOME SOCIAL-SPECIFIC DEALS AND OFFERS.
■ How could this desire be integrated into your social media and social commerce strategy?

87
SECTION 9:
SUSTAINABILITY

88
Sustainability and the environment have never been far from the news
agenda in 2022 and 2023, with freak weather events happening the
world over, be that flash floods, heatwaves or storms. But, what effect –
if any – is all this having on consumers and their shopping preferences?

CHAPTER 1:
THE DEMAND FOR SUSTAINABILITY

Let’s be clear, the matter of sustainability and the environment is impacting consumers’
behavior. 52% of shoppers claim to have changed their shopping habits due to concerns
about global warming and the environment.

Thailand and India (77%) lead the way in this regard, while once again Japanese consumers
occupy last position (21%).

52%
OF GLOBAL SHOPPERS CLAIM TO HAVE CHANGED THEIR
SHOPPING HABITS DUE TO CONCERNS ABOUT GLOBAL
WARMING AND THE ENVIRONMENT.

We also see sustainability and ethics forming part of the decision-making process in other
ways, with 59% of shoppers claiming to try to purchase from brands with ethical labor
practices, 56% trying to buy organic and fair-trade products or materials, and 60% favoring
companies that have supply chain transparency.

89
PERCENTAGE OF CONSUMERS WHO HAVE CHANGED SHOPPING HABITS
DUE TO CONCERNS AROUND GLOBAL WARMING AND THE ENVIRONMENT

THAILAND 77%
INDIA 72%
UAE 68%
COLOMBIA 67%
MEXICO 65%
BRAZIL 62%
CHINA 59%
SOUTH AFRICA 54%
ARGENTINA 52%
CHAPTER 2:
SPAIN 51% CONSUMERS WANT BETTER PRACTICES
POLAND 51% So, what behaviors do consumers want to see?

USA 48% This year, 66% of consumers wish retailers and brands offered better environmental
practices. However, this is a slight dip from 68% last year and 71% the year before that.
FRANCE 46% These are small margins, and it’s perhaps too early to suggest that inflation, the cost-of-
living crisis and the aftermath of the COVID-19 pandemic have taken the edge off
UK 42% the environment agenda from a consumer perspective just yet. Let’s look at some of
the other findings.
GERMANY 41% Again this year, we asked consumers about packaging, with 69% wishing online orders

40%
used less packaging, this is a 1% increase from last year.
AUSTRALIA
It would also seem that consumers are eager for the opportunity to buy more second-hand
NETHERLANDS 35% products, with 63% wishing brands offered a resale or second-hand area on their sites, a
1% rise on last year’s figure. With demand for “pre-loved” goods surging as the cost-of-

21%
living crisis bites in many countries, there is a clear owned marketplace opportunity for
JAPAN many businesses prepared to take this route.

90
CHAPTER 3:
A PURPOSE BEYOND SELLING

When it comes to consumers preferring to buy from retailers and brands who have a
purpose that goes beyond simply selling products and services, we recorded a very minor
fall, from 61% in 2022 to 60% this year.

A similar percentage (59%) say they are more likely to buy from a company that speaks and
acts positively about diversity and social issues.

59%
OF CONSUMERS ARE MORE LIKELY TO BUY FROM A
COMPANY THAT SPEAKS AND ACTS POSITIVELY ABOUT
DIVERSITY AND SOCIAL ISSUES.

These strong figures suggest that brands and retailers that have purpose and ethics at
their core, and articulate these values authentically, are more likely to appeal to a growing
consumer base.
CHAPTER 4:
CONSUMERS WANT BUSINESSES TO DO MORE

Despite all this change, and all these demands, a majority of global consumers believe
businesses are not doing enough, and that consumers are picking up the slack.

For example, 59% of shoppers believe companies are not doing enough to offset their
impact on the environment, and 58% believe that too much responsibility is being placed
on consumers rather than businesses when it comes to sustainability. With the tools, tech
and services available, businesses have every opportunity to take responsible action,
promoting sustainable business practices, rather than passing the cost (in its broadest
sense) onto consumers.

59% OF CONSUMERS BELIEVE COMPANIES ARE NOT DOING


ENOUGH TO OFFSET THEIR IMPACT ON THE ENVIRONMENT.

91
EXPERT OPINION:
WHY IS “SUSTAINABILITY” MUCH MORE THAN A
BUZZWORD FOR BUSINESSES TODAY?
Since the industrial revolution, we’ve been driving innovation and manufacturing
forward at an incredible rate, only to realize that we are now facing the
repercussions of how our activities are affecting our environment and our health.

The retail industry makes up roughly 25% of total greenhouse gas emissions, and
businesses are falling significantly behind in hitting their reduction targets. Most
can attribute this to not having their business, communication and sustainability
goals in alignment, but rather in competition. With new technology solutions like
AI, powering operations and driving efficiencies through optimization strategies,
brands can now drive profitability whilst reducing their carbon footprint.
Impending legislation is being put into effect that will combat greenwashing
schemes, ensuring businesses are transparent to their consumers.

Retailers are facing many challenges in the wake of sustainability, but it does not
have to be at a loss to their business, but rather a moment for transformation.
Waiting to act could result in loss of customers, suppliers and legislation
HOW VML CAN HELP YOU:
penalties, or, worse of all, the deterioration of our health and environment. SUSTAINABLE COMMERCE
The pressure is on for brands, businesses, and consumers alike to work together
as we find new solutions for a more sustainable, healthier, and equitable future. VML is on a mission to help brands reduce, optimize, and drive efficiencies
to transition to sustainable business practices. We’ve built an end-to-end
Sustainable Commerce program that helps brands realize their targets and
goals. By leveraging our deep expertise in retail and commerce, combined with
our key partnerships (Vaayu Tech, Easycom) we’re changing the way brands do
business.
SHALINA GANATRA
HEAD OF ECOMMERCE CONSULTANCY Find out more here.
E: [email protected]

92
CHAPTER 5:
SUSTAINABLE DELIVERY OPTIONS KEY THOUGHTS
With so much talk about sustainability, we wanted to know exactly how many consumers
➜ DESIRE FOR SUSTAINABLE OPTIONS, ETHICS AND PURPOSE IS RISING,
had used sustainable delivery options. It’s encouraging that we recorded an increase to
46%, up from 43% in 2022, and 34% in 2021. AND EACH ARE KEY FACTORS IN THE DECISION-MAKING PROCESS.
■ How can your policies and practices in these areas be developed and integrated into
your online offering?

46%
OF CONSUMERS HAVE USED SUSTAINABLE DELIVERY ■ With clear appetite for pre-loved items, could this support the development of your
OPTIONS WHEN ORDERING ONLINE (UP FROM 43% owned marketplace?
LAST YEAR).
➜ INCREASINGLY, MORE CONSUMERS ARE SELECTING SUSTAINABLE
OPTIONS WHEN GIVEN THE CHOICE, BUT THEY'RE ALSO FRUSTRATED
Thailand’s consumers (82%) were the leading users of sustainable delivery options, while THAT BUSINESSES AREN’T DOING ENOUGH.
Australian consumers indicated the least usage (25%).
■ What sustainable options are you offering online shoppers?
When we examine the influence of age, the 25–34-year-olds were the highest users (55%),
with the 16-24-year-olds a close second (53%), and the over-55s (at 24%) who showed the
■ How are you demonstrating the actions you are taking to make your offering
least usage.
more environmentally friendly? As point of proof, can you share the developments
Notably, 12% did not know what sustainable delivery options were, and 42% had never you’re making?
used them, so there is clearly work to be done, as well as a commercial opportunity.

➜ AS ALWAYS, SUSTAINABLE OPTIONS, ETHICS AND PURPOSE, MUST BE


UNDERPINNED BY THE RIGHT PRICING AND SERVICE STRATEGY.
■ How does your product or service measure up as a powerful value proposition?

93
SECTION 10:
NEW CHANNELS,
TECHNOLOGIES,
AND THE FUTURE

94
CHAPTER 1:
CONSUMERS CRAVE DIGITAL INNOVATION

With so many technologies, and their introduction and adoption speeding up, it can
sometimes leave you wondering whether consumers actually want innovation in their
shopping experiences, or do they hanker after the old days?

The answer is clear; 61% wish brands and retailers would be more innovative in how they
use digital technology to improve their shopping experiences.

And it would seem they don’t want innovation for innovation’s sake, but because it will
encourage them to purchase – 57% of global shoppers say if a brand is digitally innovative,
they are more likely to purchase from them.

57%
OF ONLINE SHOPPERS SAY IF A BRAND OR RETAILER IS
DIGITALLY INNOVATIVE, THEY ARE MORE LIKELY TO BUY
FROM THEM.

However, it’s evident that brands, retailers and marketplaces have a little way to go to hit
the mark, with 50% of global shoppers feeling more digitally advanced than many of the
retailers they use.

95
CHAPTER 2: THE PERCENTAGE OF GLOBAL SHOPPERS THAT OWN A SMART ASSISTANT
SMART ASSISTANTS AND VOICE COMMERCE

For a long time, we’ve been tracking the evolution of voice commerce. For many critics,
ALL 46%
the uptake has been slow, and our data proves that it has yet to become a significant
commerce channel. However, what we can say, is that the infrastructure is there for it to
CHINA 72%
take off should consumers embrace it. Why? Because globally 46% of consumers already
own a smart assistant.
INDIA 71%
MEXICO 61%
UK 58%
46% OF GLOBAL CONSUMERS OWN A SMART ASSISTANT. UAE 54%
USA 53%
SPAIN 51%
But it’s a notable spread of adoption – from 19% up to 72% – across the markets we
surveyed. China leads the way, with 72% of shoppers owning such a device, closely
BRAZIL 49%
45%
followed by India (71%). Once again, Japan is in last place, with just 19% of consumers
owning a smart assistant. THAILAND

Overall, 22% of consumers claim to have used voice commerce to buy a product, while
24% say they have never used it for this purpose, and never intend to in the future.
GERMANY 43%
These figures are consistent with last year’s numbers, suggesting that voice’s penetration
as a viable commerce channel has started to slow. And it’s also notable and probably
COLOMBIA 40%
related that Amazon appears to have scaled back its efforts (and workforce) significantly
around Amazon Alexa.
SOUTH AFRICA 38%
Interestingly, when it comes to current consumers who order via voice, it is the 25-34-year- NETHERLANDS 37%
34%
old group who order the most (28%).
AUSTRALIA

FRANCE 34%
ARGENTINA 32%
POLAND 21%
JAPAN 19%
96
CHAPTER 3: THE PERCENTAGE OF CONSUMERS WHO WISH THAT MORE ONLINE
BUSINESS ACCEPTED CRYPTOCURRENCIES AS A PAYMENT METHOD
THE FUTURE OF PAYMENTS

What about how we pay? THAILAND 73%


70%
Let’s start by considering the here and now rather than the future.
UAE
What do consumers think about “Buy Now Pay Later” payment services, like Klarna?
Over half (51%) of global consumers find these helpful in being able to buy the products
they want, when they want them. Clearly this works in both the interest of the retailer, and
INDIA 69%
the consumer, and so should be a consideration for any online check-out. Of course, part of
the conversation should also be around managing the risks of consumers using credit to
CHINA 56%
over-extend themselves.
COLOMBIA 54%
A significant change over the last 5 years has been our usage of money, and exactly what
we use to make payments. It would seem that consumers have embraced this, too, and
56% told us they were excited about a future of cashless payments, albeit this is down 2%
SOUTH AFRICA 53%
on last year. MEXICO 52%
51%
When it comes to cashless stores, and new ways of paying, like Amazon Go for instance,
again we see very little change from last year. An overwhelming 63% of consumers are BRAZIL

49%
excited about stores where you don’t have to queue, but last year this figure was 64%.
ARGENTINA
So, how about innovative ways of paying, via biometrics for example – in other words, using
body parts for automated recognition? Last year, 50% of shoppers told us they liked the
idea of using their face, palms, or eyes to pay, while this year that figure has fallen slightly
USA 43%
37%
to 47%.
POLAND
And what’s the current view around cryptocurrencies? For many, cryptocurrencies are still
confusing and come with high risk; others have embraced them as investments and forms
of payment. So, what is the appetite for using crypto to pay for products online? It would
NETHERLANDS 36%
seem there is a clear demand to use crypto, with, on average, 44% of shoppers globally
saying they wished more online businesses accepted cryptocurrencies as a payment
SPAIN 35%
method. Let’s take a closer, per country view on consumer attitudes to crypto in the
following chart.
UK 29%
GERMANY 29%
FRANCE 28%
AUSTRALIA 25%
JAPAN 17%
97
CHAPTER 4:
REDEFINING THE CONSUMER – THE METAVERSE AND
BUYING FROM BEYOND THE GRAVE

What exactly is a consumer? Flesh and blood? Someone using their phone to order? A bot? Last year, 47% of global shoppers said they would be interested in buying from beyond the
An AI? grave. While this year we have seen a slight drop to 45%, it is still an arresting finding that
so many consumers are interested.
One of the major opportunities for commerce development in the future lies in our ability to
reimagine the consumer outside of human physical limitations. To a degree, buying online
has already done this, but what are the next steps?

45%
How about the much-heralded metaverse? OF GLOBAL CONSUMERS ARE INTERESTED IN THE ABILITY
TO CARRY ON AFTER THEY HAD DIED. WE CALL THIS
Using an avatar, the metaverse holds many possibilities for us, including commercial
opportunities. But what’s the current lie of the land? Already 11% of global shoppers claim “POST-DEATH CONSUMERISM”.
to be actively using the metaverse to make purchases, while a further 12% have used
the metaverse to purchase in the past. This is exactly the same percentage as last year.
Nonetheless, it is still higher than one might expect given the present lack of commerce
opportunities in the metaverse. Yet, the fact that this hasn’t grown in the last year also There has also been talk about the ability to upload “personalities” to the cloud, something
suggests that the metaverse is not maturing as rapidly as a commerce channel as reporting that would certainly enable buying from beyond the grave, and could also support the ability
and projections might suggest. of being “brought back to life” virtually, via an avatar. Are consumers interested in this?
The answer is mixed, with 42% saying “yes” and 32% saying “no”.

23% OF GLOBAL CONSUMERS ARE USING, OR HAVE USED,


THE METAVERSE TO MAKE PURCHASES ONLINE.

With a clear sense that the potential of the metaverse is still very much at an early stage, we
wanted to get the future view from consumers. A further 22% say they have not used the
metaverse to purchase products, but intend to in the future; this would take our audience
user base up to a significant 45%. On the flipside, 34% say they have never used it and do
not intend to in the future!

One of the areas we’ve been tracking for a number of years, is the concept of being able to
carry on purchasing from beyond the grave, or “post-death consumerism” as we’ve termed
it. What might have been seen as macabre pie in the sky in the past, has, with the arrival of
AI and the huge amounts of data now collected on individuals, become possible. But is it
widely desirable?

98
THE PERCENTAGE OF CONSUMERS WHO WOULD BE INTERESTED IN THE
ABILITY TO BUY FROM BEYOND THE GRAVE
2023 2022

INDIA 72% 72%


UAE 72% 70%
THAILAND 71% 78%
CHINA 61% 50%
SOUTH AFRICA 54% 60%
MEXICO 52% 50%
COLOMBIA 50% 51%
BRAZIL 45% 47%
USA 45% 50%
EXPERT OPINION:
ARGENTINA 39% 36% OPENAI’S CHATGPT OFFERS A SUMMARY
NETHERLANDS 39% 41% In the dynamic realm of retail, innovation becomes the catalyst for extraordinary
POLAND 36% NA transformations. By embracing smart assistants, voice commerce, cashless
payments, and cryptocurrencies, brands unlock the gateway to a future where
UK 36% 31% consumer desires are fulfilled seamlessly. Amidst the vast possibilities of the
metaverse, a new frontier beckons. Subscription services forge unbreakable

FRANCE 36% 33% bonds, captivating the hearts of a tech-driven generation. Let us rise to the
challenge, envisioning and delivering unforgettable shopping experiences that

35% 38%
ignite inspiration and spark delight. Together, we shall pioneer the extraordinary,
SPAIN reshaping the retail landscape with relentless innovation.

GERMANY 33% 32%


AUSTRALIA 30% 31%
JAPAN 21% 33%
99
CHAPTER 5:
SUBSCRIPTIONS, AUTOMATED ORDERING AND AI

The success of subscriptions is constantly up for debate, so, for a number of years we
have been tracking sign-ups to subscriptions.

This year, 56% of global shoppers told us they have a subscription, a fall of 1% versus
last year, but still well up on the 44% who had a subscription back in 2021. And, on
average, consumers globally each have 1.24 subscriptions. It’s important to note that
these subscriptions exclude the likes of Netflix and Sky.

56% OF SHOPPERS GLOBALLY HAVE A SUBSCRIPTION.

The UAE leads the pack, with 75% of consumers having a subscription (slightly down on last
year’s 79%) and averaging 1.65 subscriptions per consumer. And, when it comes to age, it
appears that the younger the consumer, the more likely they are to have a subscription.

So, what can we take away from this? Subscriptions have their place, but it would seem that
the number of subscriptions is relatively low on a per-consumer basis, and clearly this is a
competitive market to be getting into.

In the past, we have talked about more intelligent ways of re-ordering, or subscribing. In fact,
we’ve been talking about machines re-ordering on behalf of consumers (aka Programmatic
CommerceTM) for almost a decade. Despite its benefits, the numbers remain low, and it
appears that consumer apathy, coupled with limited development of the hardware, means
that Programmatic Commerce is yet to be embraced at scale. Nonetheless, 14% of global
consumers say they are currently using it to support their purchases, while 15% say they
have used it in the past. However, a significant 31% say they have never used in the past
and never will.

Could it be that consumers are waiting for more intelligent technology to help them with
automated replenishment purchasing? And, if so, does AI hold the key? It’s interesting
to see in our data that 29% of consumers have never used, and do not intend to use,
AI in their online purchasing in the future. The reality is somewhat different; many of our
recommendation services are using AI already, and in practice, this isn’t really a choice
that consumers, knowingly, can – or will – be able to make.

100
KEY THOUGHTS
➜ CONSUMERS WANT DIGITAL INNOVATION
■ Embracing new and more seamless ways of engaging with consumers when they
purchase will differentiate you from your competitors. So don’t be afraid to try something
new, especially when it comes to payments.

➜ VOICE COMMERCE STANDS ON A PRECIPICE – WITH HARDWARE


PENETRATION HIGH BUT COMMERCE USAGE LOW
■ Be prepared for what could happen with voice – an explosion of voice-driven purchasing
in the future is a real possibility and shouldn’t catch retailers and brands cold.

➜ WHEN YOU THINK OF CONSUMERS, DON’T JUST THINK PHYSICAL


■ The rise of new digital platforms like gaming and the metaverse, which incorporate
the ability to purchase, means that businesses should reimagine their products in
digital format.

■ Businesses should also prepare for the commercial potential of consumers who
are no longer shackled by their physical bodies.

101
SECTION 11:
GAMING
COMMERCE

102
CHAPTER 1:
GAMING IS SET TO GROW AND GROW AS A CHANNEL

What we already know is that 1 in 25 global shoppers (4%) get inspiration for their online
purchases through gaming, while the same percentage use gaming to search for products.
When it comes to purchasing, 3% of online shopping happens “in-game”.

Whilst this may not seem like a particularly significant percentage today, we believe there is
huge potential in this channel.

To understand why, it’s important to identify just how many consumers play games. The
answer is a huge 85% (albeit this was one percent down on last year’s figure). As one might
expect, the age group with the highest percentage of gamers was the 16-24-year-olds, with
94% of them gaming, with a still sizable 60% of over-55s also gaming.

Leading the way are consumers in India, UAE and Thailand, each registering a massive
96% who play games. Once again, consumers in Japan registered the lowest percentage,
although 61% is clearly the majority.

But where and how are consumers playing games? As with last year, two-thirds (66%) are
using their phones to play games, while less than half (44%) are using a computer (either a
desktop or laptop). It’s interesting to note there has been a dip in the percentage of console
gamers, and a 3% drop for VR headset users, too. It would seem that the hype of VR and
its capability hasn’t quite caught fire with gamers just yet.

103
WHERE DO CONSUMERS PLAY THEIR VIDEO GAMES? THE PERCENTAGE OF CONSUMERS THAT SPEND MONEY ON GAMING
2023 2022 ALL 57%
TOTAL GAMERS 85% 86% CHINA 78%
THAILAND 75%
COMPUTER
(DESKTOP AND LAPTOP) 44% 45% INDIA 72%
CONSOLE 32% 34% MEXICO 71%
UAE 70%
MOBILE PHONE 66% 66% BRAZIL 61%
VIRTUAL REALITY HEADSETS 9% 12% USA 59%
NETHERLANDS 58%
NONE OF THE ABOVE 2% 2%
COLOMBIA 57%
SOUTH AFRICA 55%
GERMANY 53%
UK 52%
Of course, what we are really interested in, is the commercial opportunity afforded by
gaming, not just entertainment. So, we wanted to know what percentage of consumers
POLAND 50%
spent money on these games. The answer was 57%. ARGENTINA 50%
48%
Brands particularly should take note. Could gaming be an untapped sales channel for you?
AUSTRALIA

SPAIN 48%
57% OF GAMERS SAY THEY SPEND MONEY ON GAMING. FRANCE 36%
JAPAN 33%
104
CHAPTER 2: THE PERCENTAGE OF GAME-PLAYING CONSUMERS, WHO BELIEVE
THAT LOOKING GOOD “IN GAME” IS AS IMPORTANT AS LOOKING GOOD
WHO ARE WE? THE CROSSOVER BETWEEN DIGITAL
IN REAL LIFE
AND PHYSICAL
AGE
One of the big changes in commerce over the last few years has been the increase in

53%
the purchase of digital items. As identified earlier, almost half of everything we buy online
is digital. 16-24

But what about selling to digital consumers, rather than physical ones? Increasingly, we
see that, with the rise of gaming and the metaverse, creating avatars is becoming more
important to consumers. (And that’s before we mention the ability to create avatars on
25-34 57%
52%
video-conferencing platforms).
35-44
To clarify why this is important, we wanted to understand the blurred lines between physical

39%
consumers and their digital alter-egos. Take “looking good” for example. Almost half (49%)
of all global consumers who play games told us that looking good in-game was just as 45-54
important as looking good in real-life.

55-64 26%
65+ 15%
49% OF GAMERS SAY THAT LOOKING GOOD “IN-GAME” IS
JUST AS IMPORTANT AS LOOKING GOOD IN REAL LIFE.

It would certainly seem that this blurring of the lines will result in more time spent within
games engaging in non-game related activities, for instance watching concerts, and
attending social events. This is something 51% of gamers say they will be doing more
in the future.

105
CHAPTER 3:
GAMING, BRANDS AND THE SALES OPPORTUNITY

With more time spent within games, there will be more opportunities to sell to consumers,
both in digital and physical format. For instance, 49% of gamers are interested in buying
real-world items in games, while the same percentage would like their in-game avatar’s
EXPERT OPINION:
items (such as skins) to be available in real life. THE POTENTIAL OF GAMING COMMERCE
So how does this appetite for in-game purchasing affect brands? The answer is that it is an
FOR BRANDS
opportunity – an opportunity to sell, to influence, and to raise awareness. Almost half (45%)
of gamers are more likely to purchase from a brand they see advertising in games. Personally, I see significant potential in the convergence of gaming and online
purchases. With 85% of online consumers actively engaged in video games,
And, when it comes to NFTs in games, 48% of gamers love the idea of games including there is a vast audience waiting to be tapped into.
ownable digital items which could be bought from brands. What’s more, 45% of consumers
believe NFTs will be important to future online loyalty. The impact of gaming goes beyond mere entertainment, as gamers are
willing to invest money in their gaming experiences. This presents a lucrative
commercial opportunity for brands to capitalize on the gaming industry, driving
sales and revenue growth. While we await platform updates to facilitate such
advancements, it is certain that gaming will become another prominent channel.

Furthermore, the boundary between physical and digital realms continues to


blur, particularly evident in the importance gamers place on avatars and virtual
appearances. Many gamers consider looking good in-game to be equally as
important as looking good in real life. This creates avenues for brands to offer

KEY THOUGHTS
real-world items within games, catering to gamers' preferences and aspirations.

I firmly believe that the integration of gaming into the commerce landscape
holds immense potential for businesses to boost sales and create captivating
immersive digital experiences.
➜ GAMING IS A HUGE GROWTH OPPORTUNITY FOR ONLINE SALES.
■ Have you strategically considered what role gaming could play in your business’s future?

➜ CONSUMERS INCREASINGLY THINK OF THEMSELVES IN BOTH


PHYSICAL AND DIGITAL TERMS. NAJI EL-ARIFI
HEAD OF INNOVATION
■ Are you, or could you, cater for the digital version of your consumers? Which of your E: [email protected]
products and services are designed for their avatars, and which for their physical selves?

➜ BRANDS ARE BEING SEEN AND JUDGED BY THEIR PHYSICAL AND


DIGITAL PRESENCE.
■ Are you clear what role gaming could play in the positioning and value of your brand?

106
CONCLUSION
So there you have it; an in-depth, global view of the current trends and the future shopper.

While the market may be stabilizing after the pandemic-enforced disruption, there is plenty
to keep brands, retailers and marketplaces on their toes.

It’s vital to keep an eye on the numerous, and ever-growing number of channels that
consumers are demanding to be able to purchase through. Effectively managing all these
channels, and delivering a demonstrable return on investment, will be the major challenge
for retailers and brands in the coming years.

It’s important, too, to ensure that online experience hits the mark with expectant consumers
who will quickly and easily turn their back on retailers who aren’t giving them what they
want. And what is it that they want? Products and services at the right price, easily
available, that are quick to deliver and easy to return.

And it’s crucial that in this challenging environment retailers and brands aren’t just focusing
on selling in the here and now, but planning for the future too. This will enable them to build
strategies around the digitization of products, the digitizing consumer and new channels
like gaming and the metaverse.

It’s clear that the future of retail will be complicated to manage effectively, and it
will become harder and harder to satisfy consumers. But satisfied they must be!

Now is the time to prepare for the Future Shopper!

107
HOW WE CAN HELP YOU
1. DO YOU NEED GUIDANCE ON YOUR ECOMMERCE STRATEGY? 2. WOULD YOU LIKE YOUR EXPERIENCE TO HAVE THE X FACTOR?

As a growth partner, we help retailers and brands strategize for high-performance Day in, day out, we create customer and employee experiences that engage and
eCommerce through a suite of proven end-to-end services. We enable them to convert. In putting the customer at the heart of every journey touchpoint, we design
transact more business online by designing and implementing high-performance, frictionless customer experiences that drive engagement, action and transaction.
future-ready digital strategies. This starts with defining a balanced multichannel We understand the value of employee experience in driving the right experience for
strategy, aligned to your vision, and the planning of high-performance, integrated customers, and design the processes and digital interfaces to enable and empower them.
eCommerce solutions to support your growth ambitions and customer journeys. Read more
Read more

Connect with our Group Strategy Officer


in Europe, Krantik Das or our CEO Connect with our Head of Commerce CX, Stephen Moody
in North America, Adam Brown

4. DO YOU NEED SPECIALIST SUPPORT TO DELIVER A POWERFUL


3. DO YOU NEED HELP DEVELOPING YOUR ECOMMERCE SITES?
MOBILE EXPERIENCE?

Through our experience of inspiring powerful online CX and industry-leading websites, Our mobile technology specialists “NN4M” develop bespoke native applications for
we see the combination of creative inspiration with frictionless CX as the critical agent commerce. Clients win by leveraging the most advanced mobile app platform to
of change. We combine qualitative & quantitative insights to create interfaces that seamlessly build solutions that enhance their online and in-store offerings. This means
exceed expectations. We create design systems for consistency, speed-to-market maximizing the opportunity to increase revenue, customer engagement and loyalty at
and best practice governance; and pixel perfect visual designs to front-end build, every touchpoint. Read more
including websites, mobile sites, app and more. Read more

Connect with our Head of UX & CX Consultancy,


Connect with NN4M CTO, Jonathan Heap
Mike Rokes or our Head of UI, Tom Lancaster

108
HOW WE CAN HELP YOU
5. DO YOU NEED HELP UNDERSTANDING YOUR USERS SO YOU CAN SERVE
6. DO YOU NEED HELP GETTING YOUR CONTENT RIGHT?
THEM BETTER?

We offer deep experience in applying technology to lay the foundations for growth. We offer a full service to businesses looking for best-in-class product content
We implement world-leading campaigning and CRM technologies to identify new organization, including delivery of the best PXM solutions, such as “Shelfmaster”,
audiences then build and retain long-term relationships at scale. Our experts have to help brands push the limits of their digital shelf. We partner with brands, retailers
in-depth knowledge of the leading content and experience management tools and and distributors to help them improve their customer experience, product content
have created our own tools to give greater agility. Read more processes and organizational needs to help them win on the digital shelf. Read more

Connect with our Strategy and Consulting Director,


Connect with our PIM/PXM Lead, Dennis Peek
Herb van der Raad

7. DO YOU REQUIRE EXPERT HELP TO MAXIMIZE YOUR PERFORMANCE 8. DO YOU REQUIRE SUPPORT IN NAILING AND IMPLEMENTING YOUR
ON MARKETPLACES? SOCIAL STRATEGY?

We support and advise brands on how to increase results globally, at scale, on Through our global social commerce capability, we’re helping businesses nail their
Amazon, Tmall, eBay and other online marketplaces. We are the leading provider of end-to-end social presence via social commerce. Social platforms have evolved and
global eCommerce marketplace services and the founding partner of the WPP ACE, a consumers can now buy through the likes of Instagram and Facebook, so brands and
Center of Excellence for Amazon. Today, we’re supporting more than 150 brands, and retailers need to master their social commerce journeys to win over their audience on
generating more than $11bn annually for clients on marketplaces. We can also help this vital channel. Our service supports your business’s end-to-end social commerce
you develop and implement your own marketplace. Read more experience, and covers everything you need to nail your social presence, comprising
5 key capabilities areas to offer a best-in-class approach to social commerce.
Read more

Connect with the Head of WPP’s Center of Excellence for


Connect with our Head of Social, Chloe Cox
Amazon, Helmut Rieder

109
HOW WE CAN HELP YOU
9. HAVE YOU QUANTIFIED YOUR IMPACT ON THE ENVIRONMENT? 10. IS YOUR COMMERCE PLATFORM STILL FIT FOR PURPOSE?

Our global Sustainable Commerce Practice is designed specifically to drive We deploy and integrate best-in-class technology, with specialists supporting all major
responsible consumption across digital commerce channels, providing organizations eCommerce platforms and unbeatable experience in modern technologies such as
with tangible opportunities to deliver against their environmental commitments. SPA/PWA, headless commerce, microservices, cloud and serverless architectures.
It offers a platform to measure and meet these commitments, enabled by an Our tech-agnostic approach means that clients get the right solutions to address their
automated system and CO2 calculator that can track and reduce emissions in requirements. We’ve been doing this for more than 30 years – with 600+ successful
real time. Read more eCommerce implementations to our name for leading brands and retailers across
the world. Read more

Connect with our Head of eCommmerce Consultancy,


Connect with our Global CTO, Glen Burson
Shalina Ganatra

11. ARE YOU EXECUTING SEAMLESSLY AND PROFITABLY ACROSS 12. WOULD YOU LIKE TO EXPLORE INNOVATIVE DIGITAL EXPERIENCES
ALL DIGITAL CHANNELS? AND TECHNOLOGIES?

eRetail is a unique portfolio of services and products spanning strategy, channel We review, test, and deploy innovative technologies and solutions to keep businesses
build / develop, marketing execution and proprietary technology across D2C, owned ahead and future-ready. We explore, recommend and implement workable innovation,
retailers, marketplaces and social commerce. It is designed to help brands win in testing ideas, methodologies and leading-edge technologies to help businesses
omni-channel commerce, maximizing performance and ROI across channels. shape their own future and stay ahead. After all, how can you navigate the future of
Read more eCommerce without an understanding of the tech and trends shaping it?
Read more

Connect with our Director of eRetail & Marketplaces,


Connect with our Head of Innovation, Naji El-Arifi
Ken Platt

110
HOW WE CAN HELP YOU
13. AI IS MAKING A BIG IMPACT IN B2B. WOULD YOU LIKE TO EXPLORE 14. DOES YOUR BUSINESS HAVE THE SUPPORT IT NEEDS TO MAINTAIN
THE POSSIBILITIES FOR YOUR BUSINESS? SITE PERFORMANCE?

For more than 12 years, our AI specialists “Satalia” have been building enterprise AI Our managed services and applications are tailored specifically to client requirements
technologies for some of the world’s best known organizations. They are one of a and budgets, so they can concentrate on their core business, assured of powerful
select few companies combining machine learning with optimization to build decision eCommerce performance through the support of highly experienced teams, including
making systems that radically improve operational efficiency. commerce architects and software engineers. A key service is our peak operations
Satalia is also one of the few companies globally with the expertise to engineer capability. As one of the leading authorities on peak selling, we support many of the
adaptive (AI) systems that combine both, driving enormous value for the clients we biggest retailers through the Black Friday and holiday sales periods. Read more
work with. Read more

Connect with Satalia founder-CEO, Daniel Hulme Connect with our Chief Delivery Officer, Jason Franklin

15. DO YOU NEED HELP GENERATING REAL ACTIONABLE INSIGHTS 16. ARE YOU CREATING SEAMLESS CONSUMER EXPERIENCES TO
FROM YOUR DATA? DRIVE COMMERCE ACROSS ALL INTERACTIONS?

Our data intelligence practice generates insight-driven change to help your business We foster trust and drive commerce between brands and shoppers by creating
excel in the age of the customer. Led by an expert team of implementation, data seamless consumer experiences across physical and digital retail. We enable
science and optimization analysts, we help multichannel organizations manage organizations to forge lasting bonds with shoppers, earning their trust and loyalty
and interpret their data in order to support insight driven change. We also work through seamless experiences and meaningful connections across physical and digital
with businesses to develop the tools and processes needed to become a data-led retail environments, supported by specialized services. We empower brands to deliver
organization that gets results. Read more seamless and connected shopping experiences, focusing on the consumer journey
rather than individual channels. Read more

Connect with our Head of Data Analytics and Strategy, Connect with our Senior Group Director, Commerce & Shopper,
Adonis Themistokleous Todd Hudgens

111
ABOUT VML For UK sales inquiries:

+44 (0)20 3858 0061


VML is a leading creative company that combines brand experience, customer [email protected]
experience, and commerce to create connected brands and drive growth. VML is
celebrated for its innovative and award-winning work for blue chip client partners
including AstraZeneca, Colgate-Palmolive, Dell, Ford, Intel, Microsoft, Nestlé,
The Coca-Cola Company, and Wendyʼs. The agency is recognized by the Forrester
For European sales inquiries:
Wave™ Reports, which name WPP as a “Leader” in Commerce Services, Global
Digital Experience Services, Global Marketing Services and, most recently, Marketing [email protected]
Measurement & Optimization. As the world’s most advanced and largest creative
company, VML’s global network is powered by 30,000 talented people across 60-plus
markets, with principal offices in Kansas City, New York, Detroit, London, São Paulo,
Shanghai, Singapore, and Sydney. For North America sales inquiries:

VML is a WPP agency (NYSE: WPP). For more information, please visit www.vml.com, 206-641-7220
and follow along on Instagram, LinkedIn, and X. #VMLconnected

For Asia Pacific sales inquiries:

[email protected]

For Latin America sales inquiries:

[email protected]

For Middle East sales inquiries:

+971 (04) 4507200


©2023 VML Commerce. All rights reserved. All company and product names, brands and symbols
mentioned herein are brand names and/or registered trademarks of their respective owners.

You might also like