Changes in Consumer behaviour and Market dynamics
Time to consume: 2 min
3 September 2020
The change in the retail market in recent years is driven by new consumer behaviour. To keep up with developments, and also to be prepared demands sound knowledge of the end consumer. ITAB has conducted consumer surveys to better assist clients with the right solutions for these new challenges.
The world's consumers are better informed and constantly online, and are more time conscious and demanding; they are accustomed to having access to what they need, when they need it, and in the way they need it. Today's consumers have high expectations of brands, particularly in terms of choice, convenience and service.
Work tools based on consumer analysis
To continue to be relevant to clients requires an understanding of the needs of current and future consumers, and how they can be best satisfied. In order to investigate this, ITAB has carried out studies in consumer behaviour. The study included interviews with consumers in Asia and Europe. From these, patterns have been discerned, which have resulted in a unique working tool. This will be used to better understand the challenges, but also as tool to help the client understand the needs of their consumers. Depending on the behaviours that need to be addressed, such as self-esteem, group affiliation, security, convenience and loyalty, then a concept should be designed differently. Through better understanding, different products and solutions can be proposed, and a quick return on the investment achieved.
The consumer of the future demands environments that provide convenience, choice and/or a place for socialising and fun. A successful concept must stand out by offering a customer journey and experience that meets some of these raised expectations. ITAB has identified four main trends that the physical store needs to take into account.
Four consumer trends
Personification and guidance
Consumers are demanding an increasingly personalised journey through the store, with customised offers according to, for example, a purchase profile. Clear routes and information on what choices are available mean that the right offer can be linked to the right consumer. This saves time and makes the consumer experience more positive.
A seamless journey
Offering a seamless customer journey, where online and offline converge into a natural experience, is beginning to be expected by the consumer. Obtaining information, making purchase decisions, and being able to pay quickly and easily are becoming more and more decisive in the choice of store.
Simplicity and convenience
Something that contributes to the consumer returning is an effective flow in stores, where queues, difficulties to find items, unclear signage, and the feeling of an unsafe environment (theft) are minimal. This also contributes to increased loyalty and gives a stronger feel for the brand.
Experiences and self-fulfilment
For brands that want to be associated with lifestyle and self-fulfilment, the store visit is not always associated with a purchase. Here, it is more about unique experiences and relationship-building at premium locations in larger cities. Consumers want to be part of the brand through, among other things, memberships and gatherings with a mutual interest, such as running or skiing. All this for a stronger relationship between brand and consumer.