Research confirms rise in online shopping
IAB Australia and Pureprofile have published their Australian Ecommerce Report 2021. The data was collected in June this year, when most of Australia was no longer on lockdown and retail had reverted to a standardized pattern.
Based on research of 1,000 Australian online shoppers examining consumer attitudes, behaviors and influences on e-commerce in Australia, the report found that there has been a fundamental shift in behavior. consumer spending driven by COVID-19. Australian retailers have had to adapt, making significant investments in digital transformation that have resulted in extraordinary growth in e-commerce spending.
Convenience isn’t the only factor driving engagement
The report also showed that while convenience was cited by 76% of online shoppers as the main driver of online shopping and worth paying the extra, it is no longer a strong differentiator on its own. . Marketers will now need to make sure that they systematically review the entire retail process they offer to their customers, from the research phase to the delivery of the products purchased.
While most consumers during COVID-19 in 2020 were not new to online shopping, 84% of those who increased their online purchases during COVID-19 maintained this increase or purchased even more frequently until. now in 2021. In June of this year, 76 percent of online shoppers indicated that they shop online at least once a month.
Social networks are an important factor
Online research has been identified as the most popular source of inspiration and brand discovery for consumers when purchasing anything online. Social media has played an important role for millennial shoppers, with half indicating that social media is now essential for finding
products to buy. Retailer marketing channels have also played a crucial role in communicating with online shoppers, with 59% often reading content produced and distributed by retailers through retailer websites, emails, catalogs, etc.
Martin Filz, CEO of Pureprofile, said: “The great migration to online retail has accelerated during the COVID-19 pandemic, and this research suggests an evolution in the way consumers find and connect with them. marks. In an increasingly saturated online retail market, consumers seek recommendations through search and social media, seek easy-to-reach customer service, and prioritize fast local delivery. To thrive in this new environment, marketers must adapt and improve the buyer’s journey to reflect these new buyer behaviors and expectations.
Other research results include:
- Fifty-six percent of direct brand buyers and 39% of non-direct brand buyers are more likely to buy from retailers that have performed well during the pandemic. This model presents an opportunity for all brands to present their values and ethical references.
- Forty-six percent of online shoppers are now buying more products online from local retailers, representing a clear opportunity for brands to develop a sense of community and connection.
- Ethical and sustainable proposals resonate more strongly with buyers of direct-to-consumer brands, with some 54% of buyers of direct brands preferring to buy from brands they know are sustainable (compared to 38% of buyers of non-direct brands).
- Direct brands should amplify the communication of brand proof points on hygiene factors.
- Value for money has increased as a compelling reason to choose direct brands this year; However, other hygienic factors such as simplicity of purchase and quick and easy returns don’t set direct brands as much apart as they did last year.
- Brand proofs such as innovation, personalization, social responsibility, respect for the environment and Australian ownership have become more compelling reasons to buy a direct brand.
- Buyer rewards programs are popular with online shoppers, but trust and increased transparency are needed.
- 9 in 10 online shoppers have signed up for at least one shopper rewards program, and of these, 45% are signed up for 4 or more cards.
- Fifty-four percent of online shoppers have at least some concerns about how retailers use data about them provided through the loyalty program or reward card, but the issues are reduced when consumers have a level of high trust with an individual retailer.
- Most loyalty cardholders understand that retailers use their data to target advertising and market products to them. Yet almost a third (30%) did not know if their data was being provided to other companies.
Gai Le Roy, CEO of IAB Australia, said: “It’s no surprise that the pandemic has changed retail habits and accelerated the adoption of e-commerce for brands and consumers, but we felt that it was important not only to provide industry data to the market. on purchasing habits and future intentions but to explore the drivers of brand selection, sources of inspiration and discovery. For a country that has been on lockdown for most of the past 12 months, it looks like a lot of us have made some comfy additions to our wardrobes, with clothing being the # 1 shopping category with 72% of online shoppers making an online clothing purchase over the past year. “