While consumers wield their power in a golden age of choice, powered by the mobile phone and the global bazaar just a click way, retailers face technological upheavals that leave them constantly having to reinvent themselves.
This is according to PwC's 2017 Total Retail survey, which found in emerging economies like SA, retailers are faced with slowing economies, drought, higher unemployment and the need to engage with their customers on broader societal issues such as inequality and sustainability. Retail and consumer CEOs are more connected than ever to their end customers and should leverage the potential of data to gain consumer insight, adds the report.
More than 24 000 online shoppers around the world were surveyed in 29 countries. The survey findings found several areas of opportunities for retailers, even as the retail business model faces significant threats from a changing world.
"This digital age necessitates that management adapt in how they interact with their customers and various stakeholders to build trust and engage more broadly on the positive impact they have on the communities in which they operate. One of the top issues for retailers today is parlaying the enormous amount of customer data they generate into actionable insights. Around 39% of retailers say that creating value out of reams of consumer data is their biggest challenge. Huge gaps still exist today in the data retailers possess and their ability to glean insight from it. More than a third of retailers are struggling to implement a strategy to provide a single view of the customer," reveals the research.
Anton Hugo, Retail and Consumer leader for PwC Africa, says: "Competition remains fierce and focusing on cutting costs and organic growth alone is not enough. Retailers need to be innovative and invest in new markets, products and technologies that will give them the advantage over their competitors and allow them to connect with their customers". In the online space, new entrants don't require stores or warehouses; they can be based around the corner or on the other side of the planet. And pure-play online layers are popping up in every product category."
A higher percentage of global respondents say they are shopping more frequently with their smartphone than with a tablet. According to the survey results, more than half of South African respondents (56%) say they had paid for purchases using their smartphone; 57% had "researched products", and 52% had "compared prices with competitors online".
The survey further found more of the global population isn't attracted to traditional advertising-they want authentic information they can find at their fingertips - what are their friends doing, which brands are hot on social media, what is trending with their favourite influencers and so on.
"Consumers regularly use social networks such as Facebook and Twitter to find inspiration for their purchases (Global 39%; SA: 46%). The survey results show that consumers use social media as part of their shopping experience to read reviews, comments and feedback (Global: 32%; SA: 56%). Social media also continues to be a major source of inspiration for the discovery of new brands and products (Global: 32%; South Africa: 55%), notes the report.
On the one hand, technology provides a lot of new, exciting opportunities for shoppers, but, on the other, it also increases the risk for all kinds of cyber breaches, including data hacking. As such , PwC recommends retailers should invest more in secure platforms.
Survey results, says the report, confirm that about two-thirds of shoppers are concerned with having their personal information hacked while using their mobile phone. In some countries, this concern is greater than in other countries. For example, in SA, the Philippines, Singapore, Malaysia and Thailand around 80% of respondents are concerned, while in Belgium, France and Japan only over half are wary of cell phone hacking.
The take-away for retailers is that providing secure platforms for any touch point with customers is a must, Hugo points out: "Given the scale of the potential risk, secure technology and data systems need to be a C-level concern, and the focus should be on enhanced security systems, maintenance and updates," he concludes.
Share