In today’s challenging physical and digital global retail environment, it is imperative for both online and offline retailers to not only carry a good assortment of products, but also include other accompanying after-sales offerings. According to the insights from a recent GfK study, the combination of these create the overall experience for the shopper and contribute to their sense of ‘value’ over and above price.
When choosing which brick and mortar retailer to shop at, over half (52 percent) of all consumers in the region indicated that it is extremely important that the shop offers good value for money—making it the most important factor in this region and ranking top in five of the six markets.
“Value for money is a subjective concept with notions of quality, service, and experience amongst others, intertwined with price,” highlighted Jake Shepherd, APAC Retail Director at GfK. “In order to satisfy their customers, the most important thing is that retailers understand what constitutes value for money for their shoppers.”
Retailers having special price offer or good deals is placed second, agreed by 47 percent of all the region, which is unsurprising given the belt-tightening measures of consumers in many of the region’s markets causing shoppers to have to make careful spending choices.
The top three factors which shoppers in this region deem extremely important when it comes to shopping online vary slightly from that which influences their choice of brick and mortar retailer. Although the same two key criteria— offering good value for money (49 percent) and having special price offer and good deals (47 percent)—remain amongst the top three, these have been pushed down to second and third ranking respectively, overshadowed by the greater importance of the e-retailer offering fast and secure payment—concurred by over one in every two (52 percent) consumers surveyed.
“For the shopper, the transaction does not end with payment, but extends to delivery, returns and refunds or exchanges—which are also factors ranked high on store choice criteria,” Shepherd added.
GfK conducted the Shopping Monitor study in six Asian countries— Australia, Indonesia, Malaysia, Singapore, Thailand and Vietnam to find out the key factors which attract consumers to shop at a physical store, as well as an e-retailer. The study can provide retailers and manufacturers of Technical Consumer Goods insights into shopper preferences towards store and brand choice, both across Asia Pacific and within the individual countries, allowing them to make strategic and tactical decisions on how to target shoppers.
“The proliferation of multi-channel shopping is presenting the region’s consumers with high engagement levels and options of digital channels and platforms to choose, compare, shop and pay from, and it is hence important that retailers and manufacturers continue to work together to understand their shoppers,” commented Shepherd. “With these increasing touchpoints, it is, in one way easier than it has ever been to reach a potential shopper, but, in another way, make it harder to be consistent and successful in providing an experience which meets the expectations of that shopper,” stressed Shepherd.
“The intensifying competition in retail makes it all the more vital for players to know exactly what the important dynamics are that help attract and retain their shoppers and what they need to do better than the competition,” he concluded.
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