The retail environment has never been more complex according to PwC director and digital strategy and data specialist, Greg Doone. A recent PwC study, Total Retail 2015: Retailers and the Age of Disruption, reports that retailers are facing four waves of disruption. “While e-commerce sales are growing every year, the store isn’t dead yet,” Doone says. According to the study, while 68 per cent of the global sample say they have browsed products at a store but decided to purcha
se them online, 70 per cent said that they have done just the opposite; that is, browsed products online but decided to purchase them instore.
“Shopkeepers and shops have been around for centuries, so it’s a pretty safe bet, mobile apps or not, that stores will still be around in very familiar forms for at least the next few decades,” Doone states.
The PwC survey data strongly backs that claim up; PwC says in some areas it has found a strong bounce back for the store from previous surveys.
Doone says mobile is still a very small piece of the pie in terms of overall retail sales, but mobile phones are a increasingly critical factor in setting the stage for a purchase.
“Thirty per cent of our global respondents have located stores, and a quarter have used coupons they received by mobile phone,” Doone says.
Companies and governments analysing trends with “big data” have produced exceptionally valuable insights. Today’s consumers can access their own versions of big data on their smartphones, and Doone says this capability has only scratched the surface.
“Improvements in data storage, near-field and GPS technologies and retailers’ abilities to recognise shoppers’ preferences are game changers,” he says.
“The smartphone won’t be just something consumers can call or search with – it will be constantly searching on their behalf for the cheapest, greatest value, and most unique product.”
When asked if their interactions on social media had led them to buy more, a total of 62 per cent of survey respondents answered either “yes in most cases” (19 per cent), or “yes in some cases” (43 per cent).
“Optimising or integrating social with your site, particularly in its mobile web presence, investing to improve search engine rankings, and creating a focused social strategy may be the best approach for retailers who are innovating their social networks,” says Doone.
“Social media platforms are ideally suited for creating or supporting a brand, distributing great content, and providing the space to generate genuine word of mouth and viral buzz.”
