The COVID-19 pandemic has had a profound effect on shopping, with lockdowns, restrictions and safety concerns driving people to rapidly embrace e-commerce.
This move toward researching and buying anytime, anywhere, on multiple devices could have a lasting effect. Shopping journeys will likely look different now that consumers have become accustomed to increased selection, simple price comparison and ease of delivery.
These evolving changes will affect shoppers’ relationships with brands and retailers, and understanding them is key to developing successful strategies in the years to come.
So what will the future of shopping look like? Let’s dive into three of the five shifts highlighted in Facebook IQ’s research on shopping behavior to learn more.
Trend #1: In-store and online reverse roles
Consumers have traditionally gone to brick-and-mortar stores to have a shopping experience, but the pandemic has affected that behavior.
“Because of health and safety concerns, shoppers often limit their time in stores and come in with a plan to buy,” said Catharine Duane, global vertical insights marketing strategist at Facebook. “In fact, our research shows that one in three global shoppers now plans to spend less time in stores.1 As a result, retailers are adjusting to this desire for more transactional visits by increasing efficiencies and hygiene for in-store shopping.
Although shoppers may browse less in stores, they spend more time on their mobile devices finding, researching and planning purchases further in advance. Increasingly, the in-store roles of serendipitous discovery and exploration have migrated online, occurring on digital channels.
Savvy brands are adjusting to this shift by enhancing their online experiences. “Some brands are using augmented reality or virtual reality for products like home appliances, enabling shoppers to take pictures of their rooms and see how well different options fit,” Duane said. For instance, Swedish home furnishing retailer IKEA has a feature within its IKEA Place app that allows users to visualize realistically rendered 3D products in their homes via augmented reality. “Also becoming more popular is live commerce, which lets people shop via live streams and see product demonstrations from their favorite brands and influencers.” Singaporean fashion label MDS Collections pivoted their business model from 80% offline to online and started using Facebook Live to pre-launch their new collections, leading to a 20% increase in total sales.
In the future, shoppers will likely increasingly rely on a mix of brick-and-mortar and digital channels for discovery, researching and purchasing. Online shopping is no longer only specific to lower-funnel objectives, such as conversion or transaction, and should be considered within a full funnel strategy. Whether in-store or online, brands can meet shoppers’ needs by using data and machine learning to understand behaviors and deliver personalized, seamless experiences.
Trend #2: A re-examination of in-store vs. online shopping priorities
Price has historically been a key priority for shoppers, and while it still is, additional factors have increasingly come into play both in-store and online as consumers redefine what value means.
As a result of the COVID-19 pandemic, safety and efficiency are now priorities for brick-and-mortar retailers, and added conveniences such as contactless shopping methods (e.g. curbside pickup) and seamless return policies have become important differentiators for shoppers.
At the same time, reliability has become critical for online shopping due to ongoing challenges with out-of-stock items and inventory shortages. Convenience, delivery time and delivery options are also influencing consumers’ decisions on where to shop digitally, with more than two-thirds of consumers saying all are very important factors.2
What’s more, when online shoppers make buying decisions, they increasingly look at a brand’s reputation and corporate social responsibility. Brands that successfully state and promote their missions and values are now better able to connect with like-minded consumers.
“There are new consumer expectations, and brands should consider how to adapt their shopping platforms and experiences to meet these,” Duane said. Prioritizing factors such as customer service, convenience, corporate responsibility and reliability is likely to continue well past the pandemic. Brands can address these needs by creating shopping environments online and in-store that are trustworthy, deliver messaging that is highly relevant to the intended audiences and clearly communicate how business practices help the environment, employees and society at large.
Trend #3: The evolving loyalty equation
During the pandemic, some brands have struggled with availability, leading consumers to try alternate options. Some retailers, especially non-essential ones, faced temporary closures, causing consumers to switch to other options as well.
“In many cases, shoppers have embraced the new brands they’ve tried and made them their go-tos,” Duane said. “Factors beyond availability have also become important. Consumers want assurance that they can trust the brand they buy and that there is an easy omnichannel experience to purchase a product.”
As shoppers explore new brands, products and ways of shopping, their loyalty to retailers and brands is evolving.
This evolution has made it more important than ever for brands to develop personal and convenient experiences for consumers. One way to do this is by elevating loyalty programs beyond discounts. UK-based retailer Marks & Spencer revamped its loyalty program by offering instant rewards, but also by donating money to chosen charities based on every member's purchases.
Consumers still want sales and specials, but they also want to be rewarded with services such as free delivery and faster or exclusive access to products and experiences.3 There’s also a heightened desire for points that can be redeemed for experiences or accessories.4
Brands and retailers can also encourage loyalty by supporting local businesses and communities with a “glocal” (global and local) focus. As consumers have seen the pandemic’s economic effect, many have shifted focus to keeping small businesses in their communities afloat. In fact, two-thirds of consumers say they’ve taken some measure to support a small, local business, such as making a special effort to buy from one or promoting one on social media.5
Consumers who say selling local products influences their shopping decisions are 1.3 times more likely to say it’s more important for in-store shopping than online shopping, indicating that the approach is an especially essential part of the brick-and-mortar loyalty equation.6
As brands and retailers look at influencing repeat purchases, understanding and adjusting to the new factors that are important to today’s shoppers will help build and maintain loyalty.
Consumer shopping behavior during the pandemic has changed rapidly, and it is likely to continue to do so. As it does, brands and retailers will benefit from understanding these shifts as they happen, so they can develop the strategies, messaging and products that anticipate and meet consumers’ evolving needs.
For more Facebook IQ insights on the future of shopping, please download our latest report, The Future of Shopping Has Come Early.
1 “Global Retail Re-emerge Study” by Ipsos (Facebook-commissioned online survey of 43,474 people ages 18+ across AU, BR, CA, DE, FR, IN, JP, MX, SK, TH, UK, US), Jul–Aug 2020. Qualifying respondents purchased food and beverage, beauty, personal care, furniture/appliance, electronics, apparel and/or household supplies in the past six months at the time of the study. Unless otherwise specified, data is a cross-country average across all 12 markets.
2Global Web Index, Global Data, Q2 2020.
3 “Global Retail Re-emerge Study” by Ipsos (Facebook-commissioned online survey of 43,474 people ages 18+ across AU, BR, CA, DE, FR, IN, JP, MX, SK, TH, UK, US), Jul–Aug 2020. Qualifying respondents purchased food & beverage, beauty, personal care, furniture/appliance, electronics, apparel and/or household supplies in the past 6 months at the time of the study. Unless otherwise specified, data is a cross-country average across all 12 markets.
4“Global Retail Re-emerge Study” by Ipsos (Facebook-commissioned online survey of 43,474 people ages 18+ across AU, BR, CA, DE, FR, IN, JP, MX, SK, TH, UK, US), Jul–Aug 2020. Qualifying respondents purchased food & beverage, beauty, personal care, furniture/appliance, electronics, apparel and/or household supplies in the past 6 months at the time of the study. Unless otherwise specified, data is a cross-country average across all 12 markets.
5“Industry Micro-Shifts Monthly Tracker” by Kantar Profiles (Facebook-commissioned online survey of 96,938 adults across AU, BR, CA, DE, ES, FR, HK, ID, IN, IT, JP, KR, MX, TW, UK, US), May–Aug 2020. Unless otherwise specified, data is a cross-country average across all 16 markets.
6“Industry Micro-Shifts Monthly Tracker” by Kantar Profiles (Facebook-commissioned online survey of 96,938 adults across AU, BR, CA, DE, ES, FR, HK, ID, IN, IT, JP, KR, MX, TW, UK, US), May–Aug 2020. Unless otherwise specified, data is a cross-country average across all 16 markets.