There is little doubt that consumers have woken up to the joys of ecommerce but this shift online is taking the spontaneity out of shopping, and leaving some packaged goods brands vulnerable to losing revenues.
According to a study of UK consumers, carried out by the Digital Business Collective, when Brits shop instore, four out of five (80%) say they are far more likely to act on impulse when they see something they fancy to snap up brands they recognise and trust, but only 60% say they act the same when shopping online.
This decrease could be due to the fact that “brand” is simply not an important factor in influencing purchase online; fewer than 2 people out of 10 (16%) look for brands when buying on the Internet, the study shows.
And the shift online is unlikely to recede any time soon; the Office for National Statistics’ recently revealed that ecommerce in the UK has risen by 46% since February, while 2020 is being touted as the first truly “eChristmas”, with online spending forecast to overtake physical store sales for the first time ever, topping £39.4bn, according to Parcel Hero.
The Digital Business Collective shows 23% of Brits only plan to partially go back to physical stores post-pandemic, while 17% plan to maintain the shopping habits they adopted during lockdown, and a further 17% plan to increase their use of online shopping.
This is not quite as drastic as the findings of a Whistl report, in which 42% of Brits said the move to shop online rather than on the high street is permanent. For retailers who target an 18 to 24 age demographic, the shift is more dramatic, with 55% claiming they will not return to physical stores.
Digital Business Collective consultant Nicole Wilson said: “Covid and the ensuing lockdown drastically changed UK consumers’ shopping behaviours, as thousands of people who habitually did instore shopping for necessities like groceries, began to do it online. We wanted to understand the way in which this shift to online shopping changed the way these consumers interacted with packaged goods brands.
“The results highlight that these brands face a battle for customer loyalty as online shopping increases, with brands losing control over how their products are sold to consumers. But by investing in digital channels, packaged goods brands can take back direct control of the way they engage with their customers and can help them to build long lasting customer loyalty.”
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