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The retail sector will benefit greatly by understanding consumer behavior in the post-pandemic period as newer factors involving social distancing comes into play.
Fremont, CA: E-commerce has seen a boom in the face of crashing business in the retail sector due to the COVID-19 shutdown. As soon as reopening starts, the retail sector is set to change itself understanding the customer psyche and behavior in the background of social distancing.
Retail solutions provider Tofugear recently published its Digital Consumer in Asia 2020 report, surveying 6000 consumers across 12 markets across Asia in February; it includes those markets where the pandemic had already affected retail.
The report gives an engaging insight into what online and offline shopping behavior may look like in the region, after recovery. Here are 4 trends that can transform shopping experiences.
Luxuries that are Affordable
In the face of all-time low consumer confidence in Asia, almost 27 percent of all shoppers have a good view of their personal finances in the coming year.
Demand for groceries and household goods will not change, but majority consumers said, they would cut down investing in luxury fashion and furniture.
However, 80 percent of them say that they will not cut down spending on beauty and personal care products.
As we already know, the pandemic led to a spike in e-commerce activity. Almost half of Asia’s shoppers hope to increase their online spending compared to physical shopping in the coming years, but 38 percent will remain the same. A potential digital shift rings the alarm for retailers to stand out from the rest.
86 percent of the people value free shipping service dearly. However, the costs for the same may not come in handy for all retailers out there. People also like two-hour deliveries but not as much as transparency, such as tracking their deliveries (83 percent) and selecting a delivery time (76 percent).
Brand and Second Hand
Two-thirds of all respondents in Asia say that they will consider brand sustainability into account while making a purchasing decision. Nearly 50 percent of those surveyed said, they would shop pre-owned and second-hand items. This is obvious when it comes to good brands. Similarly, rental dress services, such as those offered by Style Theory are in demand.
Circular business models are also set to increase in the coming year.
Physical Distancing Tech
After lifting lockdowns, stores will be open to customers. Nevertheless, retailers should note that consumers get into their shops with a different psyche, altered by the pandemic, and they would be extremely cautious about physical contact.
This psyche must be better valued by retailers, and they should invest in technologies that make shoppers feel comfortable, such as consumers can scan the products and pay later. The report finds that almost 80 percent of shoppers would use such technology, once available. About 71 percent would go for automated checkouts like unmanned retail outlets.
See also: Top E-commerce Technology Companies