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1、8TH EDITION231,500 consumers/20 countriesUKAUSTRALIACHINATHAILANDFRANCEGERMANYINDIAITALYINDONESIASOUTH AFRICANEW ZEALANDSAUDI ARABIAMEXICOUSBRAZILNETHERLANDSARGENTINAPERUCOLOMBIAUAE3INTRODUCTIONWelcome to the 8th edition of The Future Shopper this huge,global survey is an unparalleled look into the
2、habits and online shopping trends of 31,500 consumers across the regions of the world.Whats interesting is that over the course of the eight editions,online shopping very much its own channel at the outset has now morphed simply into shopping,with omni-channel shopping experiences being expected and
3、 demanded by global consumers.This means that The Future Shopper and its findings go way beyond just shopping online albeit online,rather than physical,remains its focus.With a vast amount of data underpinning these trends,we aim to deliver businesses a robust,reliable and empirical guide to the dev
4、elopments that we believe they need to be aware of and be planning for.And this year we see some interesting trends taking shape be that evolving consumers who think and act in a different way,or the shift towards re-normalization,with consumers being more open to physical shopping experiences again
5、.We note marketplaces retaining their dominant position in the customer journey,but their grip weakening,and we look into the impact of new technologies like AI and how they could change what we sell,how we sell it,and who we sell it to.And of course,we focus on our old-favorites such as service inc
6、luding price,delivery and content.All of this means that there has never been a more inspiring or exciting time for brands to design the ideal shopping experience across the myriad of channels at their disposal.And this is an opportunity for brands to innovate across all these channels,including mar
7、ketplaces,D2C,social,gaming,chat and personalized content.Whats clear is that consumers expect and demand a lot from retailers and brands.They want it all,and will search to find it,across a multitude of channels.This poses a challenge,albeit an exciting one,to see which brands and retailers can giv
8、e consumers what they want.Methodology31,500 shoppers across 20 countries were surveyed.In order to qualify they had to have shopped at least once online in the preceding month.The surveys took place in:Argentina,Australia,Brazil,China,Colombia,France,Germany,India,Indonesia,Italy,Mexico,Netherlands
9、,New Zealand,Peru,Saudi Arabia,South Africa,Thailand,UAE,UK,and US,between the 05.22.2024 06.05.2024.Censuswide abide by and employ members of the Market Research Society which is based on the ESOMAR principles and are members of The British Polling Council.Hugh FletcherGlobal Demand Content and Tho
10、ught Leadership DirectorBeth Ann KaminkowGlobal Chief Commerce Officer and Co-CEO,VML NY4CONTENTS3 Introduction6 The headlines you need to know8 The Future Shopper condensed10 SECTION 1:Changing consumers,changing behaviors22 SECTION 2:Working from home26 SECTION 3:The customer journey33 SECTION 4:T
11、he customer journey by industry39 SECTION 5:Online purchasing in more detail49 SECTION 6:Getting the experience right61 SECTION 7:Marketplaces68 SECTION 8:Artificial Intelligence72 SECTION 9:Sustainability78 SECTION 10:Social commerce/social media88 SECTION 11:Gaming commerce92 SECTION 12:New channe
12、ls and new technology100 Conclusion5THE FUTURE SHOPPER REPORT 2024:The headlines you need to know6THE HEADLINES YOU NEED TO KNOW12345Whilst still a preferred experience for many,online shopping growth has slowed,signaling a shift towards a more balanced retail channel landscape.Physical retail under
13、goes a resurgence but must embrace innovation and immersive experiences to compete in an omni-channel world,with a need to address areas where it underperforms online.The post-COVID consumer is a different consumer based on experiences and circumstances,both personal and professional,and prioritizes
14、 health,wellness,and bucket-list experiences,demanding brands cater to their evolving values.Mobile shopping dominates,but brands and retailers have been slow to adapt(despite what they say),leading to frustrating user experiences.A“mobile-first”mindset is crucial for brands to prioritize seamless a
15、nd intuitive mobile shopping.Consumers crave speed and convenience in their shopping journeys,driving the rise of“compressed commerce”and highlighting the need for streamlined yet connected omni-channel journeys.76789107Price sensitivity remains a dominant factor in purchasing decisions,with consume
16、rs ready to shop around more to actively seek out the best deals bringing into question brand and channel loyalty of the past.Marketplaces maintain dominance in product discovery but face increasing competition as consumers explore alternative channels for purchasing.The COVID years of simply defaul
17、ting to marketplaces appear over.Delivery speed expectations reach new heights,with consumers demanding near-instant gratification and service-led brands capable of meeting these demands setting the pace.Sustainability and purpose resonate with consumers,but brands must take concrete action and be s
18、een to be“doing their bit”whilst balancing environmental concerns with convenience and price.The very definition of“consumer”is evolving,as digital avatars gain importance,while technology and new channels allow for interactions beyond the physical realm.The new era of consumers is upon us.THE HEADL
19、INES YOU NEED TO KNOW8Online shopping is a channel reaching maturity but its still positively viewed and showing potential for growth.53%of spending is online down from 58%in 2023.But it is set to grow to 60%in 5 years time.47%of global consumers believe online provides a better experience than offl
20、ine retailing.Physical retailing is making a comeback in an omni-channel world,but experiences must be engaging and innovative.64%of global consumers say that they would prefer to shop from a retailer or brand that has both a physical and online store(vs 60%in 2023).61%of global shoppers want seamle
21、ss communication across sales channels,with their journey and data following them(vs 56%in 2023).60%of global shoppers say they want their physical shopping experiences to be immersive,futuristic and creative.The world is changing and so are shoppers:the new-normal consumers are different.66%of glob
22、al consumers are now increasingly focused on their health,and this impacts what they buy and who they buy from.65%of global consumers say they are more focused on wellness,and this influences what they purchase.57%of global consumers admit that because of the upheaval of the last few years(COVID,war
23、s,inflation,and so on)they are more likely to spend money on bucket list experiences,as“life is too short”.Brands and retailers must work on their consumers shopping experiences,with particular focus on mobile:36%of online spending is done on mobile.64%of global consumers told us that they wished th
24、at brands and retailers would make the online shopping experience more entertaining.40%of global consumers claim they find shopping on mobile phones“difficult”.Despite the desire for omni-channel,consumers are also driven by speed across the journey(AKA“Compressed Commerce”),and a focus on completin
25、g the purchase through just one channel or device:63%of consumers want to get from inspiration to purchase as quickly as possible.71%of consumers said that when they purchase a product online,they tend to use only one device.Consumers are still price-sensitive if not even more so:56%of global consum
26、ers say that a“better price”would encourage them to buy directly from brands(thats up from 53%in 2023).50%of consumers say that they would choose another retailer over a marketplace if there was“cheaper pricing”.68%of global shoppers believe that retailers and brands are using inflationary crises to
27、 artificially inflate prices.Marketplaces remain dominant but face competition,with a weakening grip on purchase:35%of global consumers go to the leading marketplace in their region for inspiration.32%of global consumers go to the leading marketplace in their region to search products.29%of global c
28、onsumers shop through marketplaces,down from 35%last year.THE FUTURE SHOPPER CONDENSED9 9Becoming“service-led”is essential as delivery speed expectations soar:31%of global consumers expect the products that they have ordered online to arrive in less than 2 hours.Sustainability&purpose resonating,pre
29、ssing,but a conflicting consumer issue:56%of global consumers say that due to concerns about global warming and the environment they have changed their shopping habits.49%of global consumers have used sustainable delivery options when ordering online(up by 3%from last year).63%of global consumers sa
30、y they like to shop with retailers and brands that have a purpose beyond just selling their products or services.New innovative commerce channels develop but still await their full commercial maturity:59%of global consumers said that if a brand is digitally innovative,they are more likely to purchas
31、e from them.49%of global consumers own a smart assistant.49%of global consumers do not believe that VR headsets will take off because they dont like the idea of wearing a computer on their face.53%of global shoppers said they had purchased via an online live shopping event.With a captive audience,ga
32、ming commerce presents new opportunities for brands and retailers if they are brave enough:89%of global consumers are“gamers”(thats anyone who plays a game on their electronic devices),while 60%of these spend money in-game.55%of gamers tell us that looking good in-game is just as important as lookin
33、g good in real life.52%of gamers said they would be just as excited to go to a virtual concert as they would to an event in real life.Brands selling via D2C struggle to convert in the inspiration and search phases:9%of purchasing goes through direct-to-consumer platforms,despite 21%of consumers goin
34、g to them for inspiration and 20%for search.Peer-to-peer becomes more important when making online purchase decisions:19%of global shoppers say the biggest influence when they shop is friends(making it the number one biggest influence).37%of global shoppers say ratings and reviews are the most impor
35、tant piece of content when shopping online.Social commerce gains traction but is yet to explode:73%of global shoppers claim to have bought something through a social media platform.62%of global shoppers say that they intend to shop more through social media in the future.Consumers and their experien
36、ces are being redefined as physical and digital lines blur:47%of global consumers said that they would be interested in buying from beyond the grave(AKA“post-death consumerism”).46%of consumers say they would like to be able to talk to those that have died using AI to bring them“back to life”.30%of
37、consumers claim to be buying or have bought via the metaverse(up from 23%last year).AI sparks both excitement and concern:55%of global consumers say that they have used AI(like ChatGPT).41%of global consumers said that they would let an AI organize their lives.68%of global consumers say that they ar
38、e fed up with not being able to speak to a real person when they call a company.THE FUTURE SHOPPER CONDENSED10SECTION 1Changing consumers,changing behaviors11In 2023,the figure for online spending was 58%,and the year before it was 57%.But,in 2024,we see a decline to 53%.What can we read into this?I
39、s this evidence of the post-COVID normalization of shopping that has been talked about?Is it the physical stores fighting back?Could it be due to inflation and that fact that a larger part of income is absorbed by primary shopping needs that are more often satisfied in-store?Or is it a migration awa
40、y from the more functional,quicker and easier experience of online shopping to the real-world advantage of being able to directly interact with products?Well come back to this throughout the report.And is this shift driven by any age group in particular?No.In fact,all age groups post between a 4.56%
41、to 6.17%drop in online spending.The group with the largest drop?The 16-24-year-olds moving from 62%to 56%.This would appear to support our assertion that digitally native does not always mean digitally exclusive.And where in the world is online spending percentage the highest?In first place comes In
42、dia(62%),almost matched by China,while the lowest percentage is Italy with 44%.CHAPTER 1:Online spending shrinksWe always start Future Shopper by looking at one key metric:the percentage of spending online versus offline.And straight away we see a change since last year namely a 5%drop in online spe
43、nding.53%OF SPENDING IS ONLINE62%INDIA IS THE COUNTRY WITH THE HIGHEST PERCENTAGE OF ONLINE SHOPPING12Percentage of online spending across countries now and in five years:%spend currently online%spend online last yearEstimated online spend in 5 years time%change from in 5 years time1.India62%64%61%-
44、1%2.China62%64%61%-1%3.Thailand61%59%63%+2%4.Saudi Arabia57%N/A70%+13%5.Brazil56%60%67%+11%6.South Africa55%58%64%+9%7.UK54%57%57%+3%8.UAE54%58%69%+15%9.Colombia54%66%65%+11%10.Indonesia53%N/A57%+4%11.Netherlands52%56%62%+10%12.Mexico51%69%60%+9%13.USA51%54%55%+4%14.Peru50%N/A61%+11%15.Argentina50%6
45、2%62%+12%16.New Zealand49%N/A57%+8%17.Australia48%53%54%+6%18.Germany48%55%57%+9%19.France47%48%56%+9%20.Italy44%N/A51%+7%Percentages have been rounded,so countries displaying the same percentages are likely to have very small differences.13But thats not the case in all countries.In fact,in two coun
46、tries India and China consumers estimated that they would be spending less online in 5 years time,while in the Middle East in the UAE and Saudi Arabia the most growth is expected(+15%and+13%respectively).And when we look at which age groups will be driving this change,it is older consumers where the
47、 change will be the greatest.The 45-54-year-olds are set to increase their online spending by 10%in the next 5 years,while the 55+s are not far behind with a 9.51%increase.What will be the percentage of online spending across age groups in five years time?CHAPTER 2:Online spending is predicted to gr
48、ow againThis means that weve seen a shrinking of online spending since last year.Perhaps not what we were expecting.But what about in the future?Is online spending set to follow this trend or will it grow?The answer seems to be that online spending will increase rising from an average of 53%to 60%.O
49、NLINE SPENDING IS SET TO INCREASE TO 60%(FROM 53%)IN FIVE YEARS TIME+6%+6.%+7%+10%+10%Now(online)AgeChangeFive years(online)62%62%61%58%52%16-2456%25-3456%35-4454%45-5448%55+42%Percentages have been rounded,so age groups displaying the same percentages are likely to have very small differences.14EXP
50、ERT OPINION:Why is online spending growth so high in the Middle East?The Middle East boasts a young,tech-savvy population eager to embrace new technologies.This demographic,combined with rising disposable incomes,creates a vast and diverse consumer base primed for eCommerce.Governments have recogniz
51、ed this potential,investing heavily in digital infrastructure and implementing favorable regulations and initiatives to promote digital literacy.Dedicated eCommerce zones offer businesses incentives to innovate and thrive.In a region where smartphone penetration is exceptionally high,consumers enjoy
52、 the convenience of shopping anytime,anywhere,reinforcing its status as a mobile-first market.This underscores the importance of seamless integration between online and offline experiences.Additionally,enhanced logistics and secure payment solutions have bolstered consumer confidence,making online s
53、hopping more reliable and trustworthy.The Middle Easts online spending growth is driven by a mix of technological,demographic,and cultural factors.For brands,this represents a golden opportunity.By adapting to the rapidly evolving landscape,products and categories traditionally reliant on offline sa
54、les can uncover new touchpoints and audiences unlike anywhere else in the world.This growth invites brands to explore new channels,audiences,and innovations,engaging with a market that is not only ready but eager for the digital shopping revolution.However,this evolving context also presents a chall
55、enge:brands will need to work harder to stand out.Mona HassanieHead of Strategy UAEE:15CHAPTER 3:Mobile phones rise in importance for online salesOur data was clear last year we are living in a mobile-first world,and this trend has gathered pace in 2024.While mobile spending accounted for 32%of onli
56、ne spending in 2023,this has risen to 36%this year.And if we include tablets,its an even more resounding 44%.And just to be clear,this is not an age thing.Mobile spending increased across all groups with the exception of the over 65s with increases ranging between 34.77%(for the 16-24-year-olds)and
57、39.27%(for the 45-54-year-olds).Which devices do consumers use,and prefer to use when purchasing online%of shopping through this device%of consumers who prefer to use this device to shopMobile phone36%53%Laptop16%16%Desktop13%12%TV8%2%Tablet8%5%Games console6%2%Smartwatch5%2%Smart assistant4%2%Virtu
58、al Reality Headsets4%1%36%OF ALL ONLINE SPENDING IS DONE VIA MOBILE PHONESAnd where in the world is mobile purchasing highest?Thailand.In fact,its the one country where mobile spending accounts for over 50%of spending.One of the big losers though has been the desktop computer,dropping from 16%last y
59、ear to 13%this year.Laptops too have fallen from 17%to 16%.We not only wanted to gauge what devices were being used,but which devices were preferred.And once again,it is mobile devices that come top,with 53%of consumers saying they preferred to shop through mobile.Whats clear for businesses is that
60、they must view their online sales offerings through a mobile lens.Whilst this seems like an obvious statement,many companies are still focused on a desktop/laptop first strategy perhaps because this is what the majority of the workforce uses on a day-to-day basis.16There is also a belief amongst con
61、sumers that mobile phones are right for some types of shopping and not others.In fact,44%told us that they dont think their phone is for making serious,expensive,or critical purchases.Whos to blame for this experience?Consumers lay the blame firmly on retailers and brands,with two-thirds(66%)believi
62、ng that retailers and brands should work harder at making their mobile experiences better.CHAPTER 4:But the mobile experience needs to improve!Despite the preference for mobile,there is still work to be done on the shopping experience.Almost half of global respondents(49%)said that they felt that mo
63、bile purchasing still lags behind desktop and laptop,with 40%claiming that they find shopping on mobile difficult.When it comes to checkout,consumers are split in their view with 42%agreeing that the checkout and payment process on mobile is frustrating,compared to 31%who disagree.66%OF GLOBAL CONSU
64、MERS CLAIM THAT RETAILERS AND BRANDS SHOULD WORK HARDER AT MAKING THEIR MOBILE EXPERIENCES BETTERPercentage of online spend via mobile devices by countryThailand51%New Zealand43%Indonesia42%Argentina42%Mexico41%Australia40%Netherlands40%Colombia38%Italy37%UK36%Peru35%USA34%China34%South Africa34%Bra
65、zil34%UAE33%France32%Saudi Arabia32%India28%Germany27%17EXPERT OPINION:How can businesses shift their mindset to ensure theyre mobile-first and meeting customer expectationBeing mobile-first requires a shift in how we view the role of a business digital experience.Mobile enables shopping anytime,any
66、where,resulting in fast,micro on-demand shopping for fast comparison or impulse buying or continuous shopping,not stretched through one long experience,but done over many small shopping“episodes”.The result requires experiences built around the customer,erring on simplicity,and focused on facilitati
67、ng quick,meaningful engagements.To enable this shift,businesses should reinvestigate where,how and when their customers are shopping.They should:Understand the customers jobs to be done(functional,social,and emotional)and the situational moments they are shopping,helping architect experiences that c
68、an facilitate inspiration vs.accelerating the path to purchase.Embrace design constraints of a mobile-first experience,tuning the design(both UX and UI)to be optimized to the situational moments.Ensure content structure and creation is pulled forward in the design process and matches the expectation
69、s in those moments in the form factor of a mobile device.Ensure the technology and design prioritizes simplicity,enables fast load times and powers a persistent experience.Today,retailers and brands aspire for the best,most exhaustive version of their brand,but all too often consumers expect a mobil
70、e experience that is simple,fast,and relevant to their situation.Winning requires businesses to accept and embrace the constraints of a mobile-first experience,designing around the customer and their moments rather than a brands aspirations.Ben GehebGlobal Chief Experience Strategy OfficerE:18Of cou
71、rse,the challenge with omni-channel is ensuring that all channels are connected,with consumers able to seamlessly move from one to another.And this is becoming more important,because while 56%of consumers said this was important in 2023,this figure is now 61%.CHAPTER 5:Omni-channelThe number of chan
72、nels that businesses need to sell through is growing.Later in this report,well investigate some of the newer channels.Whats very clear is that consumers want omni-channel spanning both physical and digital.For the last 2 years,60%of consumers told us that they would prefer to shop with a retailer or
73、 brand that has both a physical and online store.This year,the percentage has risen to 64%more proof that physical retail is alive and kicking,and that omni-channel is the way forward.To further prove this point,a huge 72%of consumers said that they research their products online before they buy the
74、m in-store,demonstrating the use of both physical and digital channels for a single purchase.Although,in an interesting twist,it does appear that consumers despite demanding omni-channel experiences across devices and across digital and physical can be surprisingly“uni-channel”when it comes to purch
75、asing too.71%of consumers said that when they purchase a product online,they tend to use only one device.Well talk a little later about“compressed commerce”,but getting from inspiration to purchase as quickly as possible might be driving this.64%OF GLOBAL CONSUMERS SAY THAT THEY WOULD PREFER TO SHOP
76、 FROM A RETAILER OR BRAND THAT HAS BOTH A PHYSICAL AND ONLINE STORE61%OF GLOBAL SHOPPERS WANT SEAMLESS COMMUNICATION ACROSS SALES CHANNELS,WITH THEIR JOURNEY AND DATA FOLLOWING THEM19CHAPTER 6:The post-COVID consumerWhile COVID-19 thankfully seems like a distant memory to most of us,its impacts are
77、still being felt,and certainly businesses would do well to be aware of some of these.Take for instance health and wellness.Our data tells us that two-thirds(66%)of global consumers are now increasingly focused on their health,and told us that this directly impacts what they buy,but also who they buy
78、 it from.But while its true that COVID may have spurred many consumers into thinking more about their health and wellbeing,its also true that this is a much wider trend,with consumers becoming more aware of their health in general,and being more aware of how their consumption decisions and behaviors
79、 affect how they feel.While you might at first glance presume this was driven by younger consumers,our data tells us that across all age groups,a focus on health and its impact on purchasing is becoming more important.And from a country perspective,it is Thai and Indonesian consumers for whom this i
80、s most important(82%and 81%respectively),while Dutch consumers are at the bottom of this list,albeit still with 46%saying they are increasingly focused on their health.Wellness and not just health is important too,with 65%of global consumers confirming they are more focused on wellness and that this
81、 influences what they purchase.66%OF GLOBAL CONSUMERS ARE NOW INCREASINGLY FOCUSED ON THEIR HEALTH,AND THIS IMPACTS WHAT THEY BUY AND WHO THEY BUY FROMEXPERT OPINION:Brands must reconsider who their consumers are,and what they want,in order to boost their brand equityPeople are demanding more meanin
82、gful value from brands and are using their spending power to determine how brands show up.Economic,societal,technological,cultural and environmental factors,mean multiple micro trends are playing out against a backdrop of macro trends continuously shaping consumer behavior in real-time.Its crucial t
83、o understand what triggers and inspires your consumers today and in the future.We know that 63%of how a person feels about a brand is how they experience it,so brands need to reassess how and where their equity is now being built and that means across all channels.Digital commerce experiences were d
84、esigned to only serve the needs of cost comparison and convenience,but with eCommerce touchpoints now often being the first port of call for shoppers,we need to focus on how were building brand love and commerce experiences in those moments.Welcome to a new era of brand building.Naomi TroniGlobal Ch
85、ief Marketing OfficerE:20In our Tomorrows Commerce report from a few years ago,we also identified a trend around the“post-COVID gratification wave”of purchasing.Or to put it another way,consumers changing what they spent their money on as a direct consequence of the issues they had endured.But do th
86、e stats prove this?They sure do,with 57%of global consumers saying that,as a result of the significant turbulence of the last few years,they are more likely to spend money on bucket-list experiences as“life is too short”.Retailers and brands should think about how they tap into these carpe diem mome
87、nts via their communications,products and experiences.And despite living in a very digital world,it would seem that sometimes being“always on”is just too much 58%of consumers told us that sometimes they feel overwhelmed by technology and like the idea of being liberated from it by doing digital deto
88、xes and“no internet”breaks.EXPERT OPINION:How a more health-conscious consumer must be considered and how VML can helpGiven this increased focus on global wellness,with 65%of global consumers saying that they are more focused on wellness and that this influences what they purchase,retailers and bran
89、ds would be remiss not to focus on how to address this consumer directly.VML can help by deep-diving into manufacturers current audiences of focus,with human-centered insights and data-driven rigor.Leveraging our proprietary data sources like Choreograph via Audience Origen,secondary sources like sh
90、opper behavior data(Circana Panel,84.51,Luminate),social data via Infegy and industry trend sources like Mintel,Y-Pulse and Kantar IQ,we can build and size targetable sub-audiences,knowing that health-conscious and wellness-driven mean different things to different people.We then enrich these audien
91、ces in WPP Open,building synthetic audiences and querying to understand their preferences,barriers,triggers and opportunities to convert.We test creative and messaging against these audiences to ensure that we are bringing the best personalized experience to every consumer.Michelle BaumannChief Stra
92、tegy Officer,CommerceE:The percentage of consumers who are increasingly focused on their health,with this impacting what they buy and who they buy fromAge16-2463%25-3471%35-4469%45-5463%55-6457%65+49%58%OF CONSUMERS TOLD US THAT SOMETIMES THEY FEEL OVERWHELMED BY TECHNOLOGY AND LIKE THE IDEA OF BEIN
93、G LIBERATED FROM IT21Key takeaways1Online spending shows signs of maturation:While online spending has slightly decreased since last year,it is projected to grow in the next five years,particularly among older demographics.This suggests a more balanced approach to online and offline shopping moving
94、forward.2Mobile-first should be non-negotiable:Mobile devices are now the dominant force in online shopping,surpassing desktops and laptops.Businesses must prioritize mobile optimization to meet consumer preferences and ensure a seamless shopping experience.3Omni-channel strategies are essential:Con
95、sumers increasingly demand a seamless experience across both physical and digital channels.Brands and retailers must connect their online and offline presence to cater to this desire for integrated shopping journeys.4The post-COVID consumer is evolving:Consumers are increasingly focused on health,we
96、llness,and seeking out meaningful experiences.Brands need to adapt their offerings and messaging to align with these shifting priorities and values.VML can help talk to us about:Growth mining(focused on where to play,how to win,how to grow)Omni-channel growth opportunity mapping Mobile strategy,buil
97、d and operation;Native apps Data orchestration Journey mapping Channel audits Traffic acquisition Strategic media planning Digital Shelf experience22SECTION 2Working from home23However,last years figure was 65%.Could this fall be a consequence of a re-alignment of online and physical shopping as we
98、saw in the previous section?Fueled perhaps by more people operating hybrid working lives?We need to factor in that consumers are now researching online more.At their fingertips is access to an endless aisle where,with a little effort,they can find the best product,at the best price.And our data back
99、s this up.One of the effects of WFH is that 61%of consumers say that they now spend more time researching their purchases online.In addition,58%of consumers say that they are also spending more time on social media due to working from home.Dont tell their managers,but this increased usage of social
100、media during the workday should be factored into advertising and acquisition.CHAPTER 1:WFH and online shoppingIt would certainly appear that working from home is driving consumers to buy more online.Three in five(59%)global consumers told us that they have shopped more online due to working from hom
101、e.59%OF GLOBAL CONSUMERS ARE SHOPPING MORE ONLINE AS A CONSEQUENCE OF WORKING FROM HOMEThe flipside of this is that with more research,and with a changing set of requirements,60%of consumers say that they have discovered new brands and retailers due to working from home.This is important for brands.
102、Could historic brand equity be under threat from newer brands who have better grasped the changing face of consumers?And in addition,consumers are demanding more from brands.Later in this report,well talk about“service-led brands”and the importance of delivery.And it would appear that WFH has had an
103、 effect on this too,as 63%of consumers say that due to working from home more,delivery has become more important to them.As we mentioned in the previous chapter,while COVID lockdowns are thankfully a distant memory for most,their effect lives on,and one of the areas it has impacted is the acceptance
104、 of working from home(WFH).There are ongoing debates about the pros and cons of WFH,but were less interested in those,and more focused on what it means for consumers and their shopping habits.CHAPTER 2:WFH,brands and loyaltyWith less exposure to physical stores because of working from home,it stands
105、 to reason that loyalty and love for brands and retailers has changed.Over half(53%)of global consumers admit that their favorite retailers have changed since working more from home,while 52%say that they feel less loyal to the physical stores that they used to frequent.53%OF GLOBAL CONSUMERS ADMIT
106、THAT THEIR FAVORITE RETAILERS HAVE CHANGED SINCE WORKING FROM HOME24CHAPTER 3:WFH and service-led brandsThe shift towards remote work has undeniably impacted consumer expectations,particularly when it comes to the convenience and reliability of delivery services.As more individuals embrace the work-
107、from-home lifestyle,the reliance on seamless delivery experiences has grown significantly.A staggering 63%of consumers now consider delivery to be a more crucial aspect of their purchasing decisions,highlighting the need for businesses to prioritize and optimize their delivery operations.This evolvi
108、ng landscape necessitates a closer examination of“service-led brands”companies that prioritize exceptional customer service and delivery as key differentiators.In the following sections,we will delve deeper into the characteristics and strategies employed by these brands,exploring how they leverage
109、efficient and customer-centric delivery experiences to foster loyalty and drive growth in this new era of consumer behavior.25Key takeaways1WFH fuels online shopping and research is king:Working from home continues to boost online shopping,but the real emphasis is now on thorough online research bef
110、ore purchase.2Brand loyalty loosens as new favorites emerge:The shift to WFH has disrupted traditional brand loyalty,opening doors for new brands to capture consumer attention and preference.3Delivery reigns supreme in a WFH world:Seamless and reliable delivery has become paramount for consumers,pos
111、itioning service-led brands with strong delivery offerings for success.VML can help talk to us about:Data&CRM strategy and execution Last mile delivery strategy and execution Journey mapping Traffic acquisition Retail media strategy and execution Pop-up retail activations Sampling&trial campaigns AI
112、-powered Product Content Generator AI route optimization26SECTION 3The customer journey27Indonesia81%Thailand79%India76%Saudi Arabia76%China75%UAE73%South Africa71%Brazil71%Peru69%Mexico65%Colombia65%Argentina57%France56%USA56%UK55%New Zealand53%Australia52%Italy52%Netherlands45%Germany43%This is ev
113、en more important as consumers,while signaling their desire to operate across channels,can also be heavily uni-channel at times.As we mentioned,64%of global consumers told us that they liked the idea of buying everything from just one retailer!CHAPTER 1:Compressed commerceBefore we look at each of t
114、hese stages,lets talk about“compressed commerce”a concept which weve covered for a number of years.This is the notion of getting from inspiration to purchase as quickly as possible,pressing the customer journey.Last year,61%of consumers told us this was important.This year that figure has risen to 6
115、3%,although its still some way off the COVID-driven 80%of 2022.Whats clear though is that,for a majority of global consumers,getting from inspiration to purchase as quicky as possible is vital and a good reason why getting consumers to your site at the early stages of their journey(inspiration and s
116、earch)is so crucial.63%OF GLOBAL CONSUMERS WANT TO GET FROM INSPIRATION TO PURCHASE AS QUICKLY AS POSSIBLE,WHILE 64%LIKE THE IDEA OF BUYING EVERYTHING FROM JUST ONE RETAILERThe percentage of consumers across countries who want to get from inspiration to purchase as quickly as possibleAs is the case
117、each year,we like to look at a simplified customer journey across three stages:Inspiration,Search and Purchase,to identify trends when it comes to online shopping.28So,where do we see the changes?Last year we saw the re-emergence of browsing in physical stores for inspiration when the percentage of
118、consumers getting their inspiration in-store increased by 9%.Once again,physical stores see an increase,this time of 7%to 31%.Much of this can be attributed certainly to a post-COVID normalization,but it is also further proof that humans crave physical shopping experiences.Its good news for brands c
119、onsidering going direct-to-consumer(D2C)too,as this channel shows an increase of 6%for inspiration,rising to 21%.And when it comes to the losers this year,the usage of search engines for inspiration continues to decline,falling 3%.Due to the concept of“compressed commerce”the fight for consumer atte
120、ntion at inspiration stage is vital.What we see are numerous channels vying for consumer attention at this stage.Retailers and brands must work hard to ensure that they are seen as the right place for consumers to get their inspiration.CHAPTER 2:InspirationAs was the case last year,when it comes to
121、inspiration,the leading marketplaces in each region(Amazon,Mercado Libre,Alibaba,etc.)remain on top.However,as a whole,they show no growth versus last year,and the percentage of consumers who get their inspiration there remains at 35%.While the percentage remains constant,and we may agree that the y
122、ears of massive audience and customer growth for marketplaces may be over,we should still take a moment to consider that over a third of consumers are going to marketplaces for their inspiration.Just a few years ago this idea would have been staggering,but today we accept it as the norm.35%OF GLOBAL
123、 CONSUMERS GO TO THE LEADING MARKETPLACE IN THEIR REGION FOR INSPIRATIONThe top six channels for inspiration2024202301The leading marketplace in the region35%35%02I browse in-store31%24%03 Branded websites21%15%04 Retailer sites18%13%05Other marketplaces13%13%06 Search engines12%15%29We again see th
124、e continued trend of the comeback of physical retailing,with 28%of consumers“searching”in-store,versus just 18%last year.This is a major shift,and,given the challenges of the physical versus the endless digital aisle,could show that consumers are prepared to forego so much choice in favor of a physi
125、cal and more visceral experience.Brand websites also see a large uplift in search too,rising from 14%to 20%,and retailer sites rise to 17%from 12%.The move away from search engines continues with a 2%drop down to 12%.Retailers and brands need to remain abreast of these constantly fluctuating search
126、habits and must consider how this impacts their acquisition strategy.CHAPTER 3:SearchIn terms of search,once again,leading the pack is the main marketplace in each region up 1%from last year,but again showing the slow growth we discussed around inspiration.32%OF GLOBAL CONSUMERS GO TO THE LEADING MA
127、RKETPLACE IN THEIR REGION TO SEARCH FOR PRODUCTSThe top five search channels2024202301The leading marketplace in the region32%31%02I browse in-store 28%18%03 I browse brand websites20%14%04 Retailer sites17%12%05 Search engines12%14%30Elsewhere,despite strong rises in inspiration and search,branded
128、websites have seen their percentage fall when it comes to purchase are we once again seeing the issues of attrition that looked to have been addressed last year?Across a number of different physical channels,percentages are also on the rise,with a higher proportion of spend going through physical st
129、ores,including supermarkets,grocers and convenience stores.CHAPTER 4:PurchaseIn terms of purchase,the big news this year is the drop in marketplace spending from 35%to 29%.As we saw in the previous sections,marketplaces hold on inspiration and search has remained consistent,and whilst it once again
130、tops the charts as the number one channel to purchase through,it has lost ground.29%OF GLOBAL CONSUMERS SHOP THROUGH MARKETPLACES,DOWN FROM 35%LAST YEARWhere do global consumers spend their money?20242023DifferenceLeading marketplace29%35%-7%Physical stores(including grocery and convenience)28%20%8%
131、Retailer sites10%13%-3%Branded websites9%14%-6%Via an aggregator/delivery app(e.g.Uber Eats,Deliveroo)8%5%3%Social media7%5%2%Gaming5%3%3%Other4%3%0%31EXPERT OPINION:The rise of marketplaces may be plateauing but they should still form a central plank in a brands strategyAs this survey confirms,more
132、 than a third of consumers are going to marketplaces for inspiration.Therefore,marketplaces remain an important part for brand owners in the sales and marketing mix.And with the rise of AI technology,brand owners are finally able to go one step further at reasonable cost and adapt their content spec
133、ifically to each marketplace with the associated adapted tone of voice,to target each specific audience.Multiple AI-driven,bespoke content creation,storage and dynamic syndication to the different marketplaces represents a big challenge for brand owners today,and will be a major success factor.Thats
134、 why VML parent WPP has launched WPP Open in order to make AI-driven content generation and adaption available to all its clients.More specifically,the marketplace tools sit in WPP Opens Commerce Studio and are fully integrated in the existing workflow processes of our clients.Helmut RiederCEO VML L
135、uxembourg and Head of VML Center of Excellence for AmazonE:32Key takeaways1Compressed Commerce drives urgency:Consumers increasingly prioritize speed and efficiency in their shopping journey,emphasizing the need for brands to streamline the path from inspiration to purchase.2Physical retail undergoe
136、s a resurgence:Despite the dominance of online marketplaces,physical stores are experiencing a comeback highlighting the enduring value of in-person shopping.3Marketplaces show signs of weakness:Whilst still retaining their first position in inspiration,search and purchase,their conversion rates are
137、 declining,indicating potential difficulties in translating browsing into buying.4Brand sites face conversion challenges:Despite attracting consumer interest in the early stages,brands struggle to convert this interest into sales,suggesting a need to optimize their online presence and checkout proce
138、sses.VML can help talk to us about:Journey mapping Promotion&Experience design Creative Commerce(engaging and captivating the consumer to conversion)Growth mining(and building behavior-based growth audiences)Marketplace audits,growth strategies and AI-powered Product Content Generator Retail&Perform
139、ance Media(incl.Streaem self-service retail media platform)D2C strategy,execution and management WPP Open Creative Studio33SECTION 4The customer journey by industry34A DEEPER DIVE INTO 9 KEY SECTORSPresenting a journey across all sectors is of course a challenge;how one product is bought differs fro
140、m another.In order to understand these nuances a little more,we delved into a number of different industries to see where inspiration,search and purchase takes place.The top five sources for inspiration,search and purchase for alcohol onlineInspirationSearchPurchase01Browsing in-store33%Browsing in-
141、store30%Physical stores total34%02I dont get these online19%Leading marketplace19%I dont get these online17%03 Leading marketplace19%I dont get these online18%Leading marketplace11%04Retailer sites15%Branded websites15%Retailer sites8%05Branded websites13%Convenience stores14%Via an aggregator/deliv
142、ery app(e.g.Uber Eats,Deliveroo)6%35The top five sources for inspiration,search and purchase for automotive and accessories onlineInspirationSearchPurchase01Leading marketplace36%Leading marketplace37%Leading marketplace30%02Browsing in-store21%Browsing in-store20%I dont get these online12%03 Brande
143、d websites20%Branded websites19%Other marketplaces11%04Search engines16%Search engines14%Retailer sites11%05Other marketplaces15%Other marketplaces13%Branded websites9%The top five sources for inspiration,search and purchase for beauty products online(e.g.haircare,skincare,makeup)InspirationSearchPu
144、rchase01Leading marketplace39%Leading marketplace35%Leading marketplace25%02Browsing in-store29%Browsing in-store27%Physical stores total16%03 Branded websites23%Branded websites23%Retailer sites16%04Retailer sites18%Retailer sites17%Branded websites11%05Social media15%Other marketplaces12%Other mar
145、ketplaces9%36The top five sources for inspiration,search and purchase for clothing and fashion online(e.g.high-street clothing,footwear)InspirationSearchPurchase01Leading marketplace42%Leading marketplace37%Leading marketplace24%02Branded websites32%Branded websites28%Retailer sites22%03 Browsing in
146、-store31%Browsing in-store27%Branded websites18%04Retailer sites23%Retailer sites22%Other marketplaces10%05Other marketplaces16%Other marketplaces14%Physical stores total7%The top five sources for inspiration,search and purchase for grocery products online(e.g.food and drink)InspirationSearchPurchas
147、e01Browsing in-store42%Browsing in-store38%Physical stores total45%02Leading marketplace25%Leading marketplace23%Leading marketplace12%03 Retailer sites22%Retailer sites21%Retailer sites9%04Branded websites15%Branded websites15%Via an aggregator/delivery app(e.g.Uber Eats,Deliveroo)8%05From TV,email
148、s,adverts11%Retailers mobile apps9%I dont get these online8%37The top five sources for inspiration,search and purchase for health and pharmaceutical products onlineInspirationSearchPurchase01Browsing in-store37%Browsing in-store35%Physical stores total22%02Leading marketplace28%Leading marketplace25
149、%Leading marketplace16%03 Retailer sites17%Retailer sites16%I dont get these online14%04Branded websites15%Branded websites15%Retailer sites12%05Search engines15%Search engines13%Branded websites7%The top five sources for inspiration,search and purchase for household products online(e.g.cleaning pro
150、ducts,toilet roll,etc.)InspirationSearchPurchase01Leading marketplace40%Leading marketplace35%Physical stores total33%02Browsing in-store36%Browsing in-store33%Leading marketplace23%03 Retailer sites20%Retailer sites18%Retailer sites11%04Branded websites14%Branded websites14%I dont get these online8
151、%05From TV,emails,adverts12%Other marketplaces11%Other marketplaces7%38The top five sources for inspiration,search and purchase for luxury products online(e.g.high-end clothing,watches,jewelry,bags,art)InspirationSearchPurchase01Leading marketplace34%Leading marketplace30%Branded websites23%02Brande
152、d websites28%Branded websites27%Leading marketplace18%03 Browsing in-store23%Browsing in-store22%Retailer sites14%04Retailer sites16%Retailer sites15%I dont get these online11%05Other marketplaces15%I dont get these online14%Other marketplaces9%The top five sources for inspiration,search and purchas
153、e for technology products online(e.g.smartphones,tablets,computers,headphones)InspirationSearchPurchase01Leading marketplace50%Leading marketplace44%Leading marketplace33%02Branded websites29%Branded websites27%Branded websites16%03 Browsing in-store24%Browsing in-store23%Retailer sites15%04Retailer
154、 sites16%Retailer sites16%Other marketplaces12%05Search engines16%Other marketplaces15%I dont get these online5%39SECTION 5Online purchasing in more detail40What can we take from this?Online shoppers are demanding,and they want not only the best price,but the best service too.As weve said for many y
155、ears,service-led brands(those that focus on key elements of the customer experience like delivery and returns)stand out to consumers more in the online world.Of course,other factors play an important role too including the ability to find the right product,availability,delivery and returns.Once agai
156、n,“brand”doesnt make the top ten,being ranked by our consumer audience in sixteenth position.CHAPTER 1:Whats most important to consumers when they shop online?Theres not a lot of change versus last year when it comes to whats important to consumers when they shop online.As with last year,at the top
157、of the pile sits price,followed by accurate product descriptions.The matter of price or pricing policy needs little introduction.The importance of accurate,detailed product descriptions cannot be overstated too.For instance,if you sell on Amazon,youll most likely know that Amazons algorithm will rew
158、ard you with higher search rankings.With most shoppers never looking beyond the first page of Amazons search results this makes product descriptions doubly critical.THE MOST IMPORTANT FACTOR INFLUENCING PURCHASE DECISION-MAKING ONLINE IS PRICEThe top ten factors that influence purchase decisions whe
159、n buying a product online01Price of the item02Accurate product descriptions 03 Easy to find the product Im looking for 04 Convenient delivery05The item I want is in stock06 Strong customer service07 Speed of delivery08Easy returns process09Product reviews10 Free deliveryWeve just looked at the custo
160、mer journey.Now lets delve a little deeper into purchasing.As is always the case,what we find,quite clearly,is that consumers are driven by price.But this year,there is evidence that consumers are indexing this more strongly,as inflationary and economic pressure impact countries across the globe.A s
161、ignificant proportion of consumers sense that retailers and brands are taking advantage of this with 68%saying that they are using inflationary crises to artificially inflate prices.This may or not be true in practice particularly in view of the increased cost of raw materials as well as challenging
162、 supply chain issues,but the perception alone should cause concern.41CHAPTER 2:What would encourage consumers to buy directly from brands?One of the key areas we like to keep our eye on in our Future Shopper survey is the role of direct-to-consumer(D2C).In 2022,we noticed that the percentages for co
163、nsumers getting inspiration and searching on D2C platforms was higher than the percentage that was purchasing on them.Or to put it another way,brands selling via D2C were losing consumers who had come to them for inspiration and search by the time it came to making their final purchase decisions.In
164、2023,it appeared that this trend had been truncated,but as you will have seen from the section on the customer journey,while D2C sites have experienced a growth in the percentage of consumers coming for inspiration and search,once again they are losing consumers when it comes to the payment stage.Do
165、 consumers care?By and large,not at all!In most cases,they are typically buying enterprise brands which are available through multiple channels.If the D2C experience falls short,there are other channels that can readily meet their needs.So,what can businesses selling through D2C do?How can they enco
166、urage more consumers to buy from them?The answer is simple;differentiate powerfully(e.g.via exclusivity)or just give consumers the products they want,at the price they want,backed up with fantastic delivery,free returns,exclusive offers and content that makes their purchase decision easier.Sounds ea
167、sy right?!And herein lies the D2C challenge:the benchmark for what good looks like has been set so high,that reaching it requires a huge amount of effort,investment and planning which is often out of reach for many enterprises selling D2C.To this point,theres a strong argument to think(and plan)in t
168、erms of“optichannel”optimizing around the channels that make the most sense,because few businesses have the resources to succeed powerfully through omni-channel,in its literal sense:through every channel.And this comes back to our long-held recommendation to brands and retailers of seeking to build
169、a balanced channel strategy.56%OF GLOBAL CONSUMERS SAY THAT A “BETTER PRICE”WOULD ENCOURAGE THEM TO BUY DIRECTLY FROM BRANDS (UP FROM 53%IN 2023)The top ten factors that would encourage consumers to buy directly from brands20242023202201Better price56%53%49%02Free delivery49%49%47%03 Fast and conven
170、ient delivery40%36%34%04 Free returns37%36%35%05Loyalty program27%27%25%06 Exclusive products26%22%23%07 Better information about products25%21%22%08Access to full product range24%21%22%09Bundled product deals22%21%17%10 Personalized products18%16%17%42EXPERT OPINION:How brands wanting to sell D2C m
171、ust address their checkout and payment process to deliver compressed commerceOur research shows that a seamless checkout experience is crucial for eCommerce success.While competitive pricing remains important,a cumbersome checkout process directly impacts conversions and brand loyalty.Brands selling
172、 D2C must prioritize a streamlined checkout flow that meets evolving consumer expectations.This includes offering diverse payment options,transparent pricing,clear communication on delivery costs and timelines,and a mobile-first design.Its surprising how many brands still dont optimize their checkou
173、t for mobile or offer Google or Apple Pay in their checkout,given that all the hard work of acquiring the customer and getting them through the journey to the basket has already been done.By investing in a frictionless and customer-centric checkout experience,businesses can unlock significant value,
174、driving revenue growth and building lasting customer relationships.Shalina GanatraHead of eCommerce ConsultancyE:43CHAPTER 3:Loyalty programsAnother driver for loyalty,is of course loyalty programs themselves.We wanted to understand what percentage of consumers belonged to which schemes.Once again,t
175、op of the pile sits supermarket loyalty programs at 43%although this is down from 47%last year.They are closely followed by programs offered by marketplaces(like Prime)at 37%the same as last year.Two areas with a marked increase are aggregator sites,up from 9%last year to 14%this year,and travel pro
176、grams(from 16%to 21%)perhaps fueled by the evolving consumer and their desire for experiences.The percentage of global consumers who belong to loyalty schemesAllSupermarket(e.g.Nectar,Tesco Clubcard,myWaitrose card)43%Leading marketplace(e.g.Amazon etc.)37%Health and beauty(e.g.Boots Advantage Card,
177、Superdrug Health&Beauty Card)28%Department stores(e.g.My John Lewis)23%Travel(e.g.Avios)21%Fashion(e.g.ASOS Premier,H&M Club)20%Wholesale(e.g.Costco,Makro)19%Consumer electronics(e.g.Currys PC World,)19%Im not a member of any of these14%Aggregator sites14%Multi-brands coupons programs(e.g.Coupons Ne
178、twork,Ma Vie en Couleurs,Croquons la Vie)14%Mercado Libre12%JD Status1%44CHAPTER 4:The impact of advertising on online purchasingThere can be a tendency for us to sneer at the efficiency of online advertising.Consumers frequently roll their eyes at being followed around the internet by adverts pushi
179、ng the last product that they viewed.We wanted to find out whether this rhetoric was representative,or whether consumers were actually engaging with online advertising.The results paint a picture of the efficiency of online advertising with 61%of global consumers saying that they find adverts promot
180、ing relevant or related items useful.While the same percentage say that they have made a purchase based on an advert that they have seen or clicked on online.This data seems to provide clear proof that brands and retailers looking to drive sales should consider online adverts.One growth area is“Reta
181、il Media”.See our break-out box for more details.EXPERT OPINION:With brands seeking to maximize ROI often from shrinking budgets,retail media cannot be ignoredThree key reasons stand out as to why it may cost brands to overlook retail mediaFirstly,retail data is at the heart of retail media.With cha
182、llenges related to privacy,retailers hold the promise of providing privacy-compliant,scaled,deep 1st party data to help brands better understand shopper behaviors and preferences as well as having a clear view of a brands performance vs.the rest of the category.This data is key to inform planning,ta
183、rgeting,measurement and budget allocations.The second factor is omni-channel activation.Brands can reach shoppers throughout their journey by leveraging full-funnel omni-channel opportunities across on-site,off-site,and in-and out-of-store;enabling them to show up consistently across touchpoints tha
184、t are becoming less siloed.And thirdly is the matter of closed-loop measurement.With closed-loop measurement brands can understand the link between ad exposure and sales,and fine-tune future campaigns.Kiess LamourGlobal Head of Media,CommerceE:45CHAPTER 5:Who,or what,influences consumers?As in previ
185、ous years,we wanted to get a view on who or what influences purchasing.The big fallers this year are family members,dropping two positions from top spot to third.The role of friends has become more important,placing them in first place with 19%,while social media influencers has risen by 1%and maint
186、ains second place.19%THE BIGGEST INFLUENCE ON GLOBAL CONSUMERS WHEN THEY SHOP IS FRIENDSWho influences you most about what youd like to buy?202420232023-24 change2022Friends19%17%+2%17%Social media influencers/bloggers(e.g.Instagram,YouTube,Snapchat)17%16%+1%15%Family members16%20%-4%20%Celebrities6
187、%5%+1%5%In-store sales assistants6%6%0%6%Streamers5%4%+1%5%Colleagues3%3%0%3%Sport stars and athletes3%3%0%3%Business people3%3%0%3%Journalists1%1%0%2%Politicians1%1%0%1%46Who influences you most about what youd like to buy?Age 16-2425-3435-4445-5455-6465+Social media influencers/bloggers on24%23%16
188、%9%6%2%Friends22%20%19%18%16%12%Family members11%14%17%21%22%25%Celebrities8%7%6%4%1%0%Nothing/no one7%10%16%27%38%50%In-store sales assistants5%5%6%6%7%6%Streamers5%6%6%4%1%0%Sport stars and athletes4%4%3%2%1%0%Colleagues4%4%4%3%2%0%Business people4%3%4%2%1%1%Journalists2%1%1%1%0%1%Politicians2%1%1
189、%1%0%0%Other1%1%1%2%3%3%47CHAPTER 6:Buy now,pay later?The emergence of“buy now,pay later”schemes has been a highly visible development as part of the shopper journey in the last few years.But what do global consumers think of these?Our survey indicates that sentiment is very positive,with 58%saying
190、that they find“buy now,pay later”loans really useful in helping them to buy the products they want.Clearly this capability plays an instrumental role for many consumers in the shopper journey,and retailers and brands would be wise to integrate the option into their checkouts.The highest percentage o
191、f users are in Saudi Arabia(76%),India(73%)and the UAE 73%,with France showing the lowest at 41%.Whilst when it comes to age,it is the 25-34-year-olds who have the highest percentage(66%)followed by the 35-44-year-olds.So while you might presume that as this capability is relatively new,and that you
192、ngest consumers would be the biggest users,the data doesnt prove this.48Key takeaways1Price sensitivity reigns supreme:Consumers are increasingly price-conscious due to economic pressures and perceive brands as exploiting the situation.This highlights the need for transparent pricing and strong valu
193、e propositions.2Brands selling D2C face an uphill battle:While attracting interest in the early stages,many struggle to convert,losing customers to competitors offering better prices,delivery,and returns.They need to meet high consumer expectations and/or differentiate powerfully in order to compete
194、 effectively.3Online advertising proves its worth:Despite skepticism,online advertising effectively drives purchases,with consumers finding relevant ads useful and making purchases based on them.This underscores the importance of targeted online campaigns.4Friends take center stage in influencing pu
195、rchases:While family influence declines,friends emerge as the most significant influencers on purchasing decisions,highlighting the power of word-of-mouth marketing and social proof.VML can help talk to us about:Growth mining(and building behavior-based growth audiences)Creative Commerce Digital She
196、lf Experience(including ShelfMaster PXM)Category&Aisle Assortment audit Streaem(VMLs self-service retail media platform)Retail&Performance Media strategy and execution Channel orchestration Merchandising&Site trading D2C strategy,CX,build and measurement AI-powered Product Content Generator49SECTION
197、 6Getting the experience right50CHAPTER 1:Consumers are dissatisfied with the online shopping experienceIn this section,well investigate the experience that online consumers expect,and more importantly,what drives their buying behavior.But one things clear online shopping,despite the high percentage
198、 of sales which it accounts for still has some way to go to create the experiences that consumers want.Nearly two-thirds(64%)of respondents told us that they wished that brands and retailers would make the online shopping experience more entertaining,while 59%told us that they wished that the online
199、 experience could be multisensory with sight,sound,touch,smell and even taste.Its worth keeping that in mind when you read through the section on new channels and technologies.64%OF GLOBAL CONSUMERS TOLD US THEY WISHED THAT BRANDS AND RETAILERS WOULD MAKE THE ONLINE SHOPPING EXPERIENCE MORE ENTERTAI
200、NINGWere all wired for connection,and customer experience offers brands and retailers a crucial lifeline to connect with,service and satisfy,consumers.When done right,the benefits are invaluable,including reinforced loyalty,maximized conversion,improved differentiation and growth.But how right are b
201、usinesses getting it for todays consumers?Lets take a closer look51CHAPTER 2:Understanding the customer experienceThere also seems to be the sense that online brands and retailers do not truly understand what consumers want online.Almost two-thirds(65%)of global consumers told us that retailers need
202、 to get better at giving them the products,services and experiences they want in online shopping(up from last years 61%).One of the key elements of this is understanding the consumer and their journey.Once again,consumers believe that brands and retailers are falling short,with just over half(51%)cl
203、aiming they dont think that brands and retailers understand all the steps they take to purchase a product again,up on last year(49%).And this dissatisfaction will result in lost sales,as 56%of global consumers say that,in future,they will not shop with retailers,brands or marketplaces that do not ma
204、tch their expectations of online shopping.So,what can retailers and brands do?Understand the customer journey across channels for one,and what drives purchasing(in this section well take a closer look).Or take a leaf out of the book of a brand like Supreme who typically combine hype,branding(often v
205、ia collaborations)and exclusivity in view of the fact that 59%of shoppers said they like online experiences where exciting online moments are created around the launch or sale of new products.52EXPERT OPINION:Why product drops and the likes of Supreme are injecting excitement into the online shoppin
206、g experienceConsumers crave excitement a connection to the heart of the brand so brands and retailers cannot afford to present online shopping experiences that are simply transactional and forgettable.This is particularly true in Latin America,where passion runs deep and experiences are meant to be
207、felt.Product drops and collaborations,like those pioneered by Supreme,tap into this desire.They transform a simple purchase into an event,a chance to be part of something exclusive,engaging and special.This energy and excitement however needs to extend beyond the drop itself.Brands need to weave cre
208、ativity and a cohesive brand story across the entire buyer journey.Whether navigating online marketplaces,engaging on social media,browsing an e-retailer,or stepping into a physical store,the experience must resonate with that same energy,reinforcing the brands unique identity.Glenda KokChief of Tec
209、hnology&Commerce LATAME:53Where does offline triumph?The first area is in the ability to try the right product or to get the right fit,although its telling that the difference is small(37%vs 40%)which may well point to the maturity and adoption of AR visualization tools that do a good job of recreat
210、ing the in-store experience.The second area is in the freshness of the products(35%vs 38%).So,while physical shopping might be showing signs of a resurgence,its clear that there are a number of areas where it still struggles to compete.CHAPTER 3:Online vs offline which channel is better at what?In a
211、ddition to looking each year at the percentage of spending through online and offline,we also put a number of different elements of the shopping experience under a lens,and ask“Whats best online or offline?”Whilst it may sound a flippant question,the results are compelling.Across most,online wins ha
212、nds down,just beaten by offline in two areas.Whats particularly notable are the overwhelming differences in the percentages offline is not even close in most of the shopping criteria.Overall,47%of consumers believe online offers the best experience,with 22%pointing to offline,and 30%claiming both ar
213、e the same.47%OF GLOBAL CONSUMERS BELIEVE ONLINE PROVIDES A BETTER EXPERIENCE THAN OFFLINE RETAILING54How do you compare online shopping with offline shopping?“Online is better”“Offline is better”Difference2023“online is better”score2022“online is better score”Wide variety of products/items62%11%51%
214、61%61%Review/evaluation of products60%12%48%57%60%Accessibility for those with disabilities(if applicable)59%13%46%57%57%Low price/cost of purchase(including shipping cost)57%16%41%56%56%Comparison of brands/products56%14%42%55%55%Better value overall51%13%38%N/AN/ABetter comprehension about brands/
215、products49%18%31%45%48%Fun of shopping46%23%23%42%44%Return process45%25%20%42%42%Speed of delivery44%31%13%43%44%Sense of loyalty to a retailer or brand42%18%24%39%41%Groceries are better value overall 41%27%14%N/AN/ACredibility of products/retailers40%22%18%36%39%Getting consultation with/advice f
216、rom store or website staff 38%36%1%34%35%Ability to try the right product or get the right fit37%40%-4%34%36%Freshness of products35%38%-3%35%35%55CHAPTER 4:Improving the delivery experienceWith delivery being so important when it comes to online buying,we wanted to know what consumers would change
217、about it if anything.As has been the case for the last few years,“faster delivery”is the number one thing on their list.However,if we look at the table,what we see is a more exacting consumer versus last year with a higher percentage wanting not only better price,but more clarity on timing,a more ta
218、ilored approach to delivering to where the consumer is,with better packaging.Interestingly,there is a slightly lower percentage than last year wanting cheaper delivery.But overall,as we have always said,speed,ease and convenience are what consumers want when it comes to delivery.What would consumers
219、 change about the delivery experience?20242023202201Faster delivery51%48%48%02More clarity on exact times for delivery42%39%39%03 It would be cheaper41%43%41%04 Able to deliver to me wherever I am32%27%26%05Better packaging30%26%27%06 More options for pick up26%23%22%07 It would consider the environ
220、ment more(e.g.reduced carbon footprint options,eco-delivery vehicles)23%23%24%08Roadside/curbside item collection option(no need to step in-store)15%15%15%09No contact delivery13%13%20%10 Nothing5%6%5%56CHAPTER 5:Speed of deliveryConsumer craving for speedy delivery shows no sign of abating.In 2022,
221、consumers expected their orders to arrive in 2.36 days.In 2023,this dropped to 2.16 days.In 2024,this has fallen further to 1.85 days.And the demand for super-fast delivery less than 2 hours has risen too.In 2022,just 4%of consumers expected delivery in less than 2 hours.That spiked in 2023 to 24%an
222、d has jumped even further in 2024 to 31%.Consumers are saying quite clearly what they want and what they want is super-fast delivery!And whos the best at super-fast delivery?By a long shot,its the lead marketplace in each region(Amazon,Mercado Libre,Alibaba etc.)with 44%.And just to reinforce the po
223、int,in second place with 12%are other marketplaces(like eBay for instance).Clearly marketplaces are still the benchmark when it comes to speedy delivery.Its not just fast delivery theyre getting right,44%also identify the lead marketplaces as being the best at convenient delivery,and 43%say they are
224、 best at free delivery too!Marketplaces clearly represent the gold standard on delivery for other channels to aspire to.31%OF GLOBAL CONSUMERS EXPECT THE PRODUCTS THEY HAVE ORDERED ONLINE TO ARRIVE IN LESS THAN 2 HOURS!How quickly do consumers expect the delivery of their online orders to take?DaysL
225、ess than 2hrsLess than 24 hrsAll1.8531%50%Grocery(e.g.food and drink)0.9249%72%Health and pharmaceutical1.2543%62%Alcohol1.3140%57%Financial products(e.g.Insurance)1.3840%61%Elderly care products1.5534%54%Household products1.7531%52%Beauty(e.g.haircare,skincare,makeup)1.9427%46%Technology(e.g.smart
226、phones,tablets,computers,headphones)2.2122%42%Second-hand products2.2624%42%Toys(e.g.board games,soft toys)2.2823%40%Clothing and fashion(e.g.high-street clothing,footwear)2.3422%39%Luxury(e.g.high-end clothing,watches,jewelry,bags,art)2.3822%39%Automotive and accessories(e.g.seat covers,hubcaps,sat
227、nav)2.4322%38%57This downward trend is an interesting one given that this year 38%of consumers admitted to over-ordering with the intent of returning unwanted items.This is up from last years 35%.And what are the reasons for these returns?The table presents the main reasons,with the first two center
228、ing around issues with the products ordered working properly.This suggests there is still room for improvement on product quality,and potentially issues around the delivery process too.And who is best at easy returns?It wont surprise you to know,that like with delivery,the leading marketplace in the
229、 region is in number one spot(42%)followed by other marketplaces(12%).As with delivery,marketplaces are setting the benchmark and customer expectations.CHAPTER 6:ReturnsAs we all know,but sometimes forget,the experience of online shopping does not stop once the product has been bought.Nor for that m
230、atter does it stop when the product has been delivered.As weve seen in this report,and in previous years,the returns process is a key consideration for consumers.First,lets start by looking at the percentage of items that are returned.Last year,this figure was 19%,and this year,we see a slight fall
231、to 17%.This is an interesting trend,as back in 2022,the figure was 23%.Could this be evidence that online businesses are addressing issues around sizing,fit,and appropriateness using visualization tools and more detailed content?Or is this counter-balanced by more businesses introducing additional c
232、osts or penalties based on the number of returns by customer?We see it as a mixture of both.17%OF PRODUCTS ORDERED ONLINE ARE RETURNED,DOWN FROM 19%IN 2023AND 23%IN 2022Top ten reasons for returning online orders01 Defective or does not work31%02 Item received is damaged or defective28%03 Wrong item
233、 was sent27%04 Item doesnt fit properly27%05 Item received doesnt meet expectations22%06 Missing parts or accessories21%07 Item received is of lower quality than expected21%08 Product and delivery box both damaged18%09 Performance or quality not adequate17%10 Description on website not accurate15%Pe
234、rcentages have been rounded,so reasons with the same percentages are likely to have very small differences.58But,of course,the content that the consumer sees is just the tip of the iceberg.Getting content strategy,systems,technology,syndication,processes and people right all contribute to consumers
235、receiving the right content,at the right time,to encourage conversion.CHAPTER 7:ContentWe also wanted to investigate what content influenced consumers most when it came to online purchasing.Top of the list sits“ratings and review”(37%)closely followed by accurate product descriptions(35%).37%OF GLOB
236、AL SHOPPERS SAY RATINGS AND REVIEWS ARE THE MOST IMPORTANT PIECE OF CONTENT WHEN SHOPPING ONLINEWhich content influences consumers the most?01Ratings and reviews37%02Accurate product descriptions35%03The brand28%04High quality images24%05Video content18%06Easy to read content16%07User-generated cont
237、ent(e.g.imagery and video from other buyers)15%08Good looking site14%09Speed of checkout14%10Influencers and influencer content11%11Augmented reality(e.g.seeing the product in my own home on my phone or tablet)8%12Blog posts and news on the site7%13No content influences me the most when buying a pro
238、duct online6%Percentages have been rounded,so content with the same percentages are likely to have very small differences.59EXPERT OPINION:Why getting content right is more than just what the customer sees the whole content value chain must be right!To ensure meaningful,appropriate and timely conten
239、t is available to the customer,organizations must ensure that they are producing,developing and distributing the right content.As customer engagement channels and modes continue to proliferate,it is more fundamental than ever to have a mature approach to aligning the production of content with its m
240、anagement,and in particular,ensuring alignment with the underlying product catalog and/or product propositions.In delivering an effective content value chain,there are three critical considerations:1)Ensure the entire content ecosystem of often disparate producers is united through good governance a
241、nd operations.2)There should be an underlying taxonomy and metadata model capable of reflecting the relationships between various types of content.3)The“core trio”of technology functions digital asset management,product information management and syndication must work together to effectively deliver
242、 content into the hands of customers wherever they are.Mark DealTechnology Strategy DirectorE:60Key takeaways1Online shopping falls short of expectations:Consumers desire more engaging and multisensory online shopping experiences,with many expressing dissatisfaction with the current state of online
243、retail.This highlights a need for brands to prioritize entertainment and create more immersive digital environments.2Understanding the customer journey is paramount:Consumers feel misunderstood by brands and retailers,leading to frustration and lost sales.Brands must invest in understanding customer
244、 needs,preferences,and pain points throughout the entire shopping journey.3Delivery and returns remain critical battlegrounds:Fast,convenient,and transparent delivery and returns processes are non-negotiable for online shoppers.Marketplaces currently set the bar high in these areas,challenging other
245、 retailers to elevate their logistics and customer service.4Content is king,but authenticity matters:Ratings,reviews,and accurate product descriptions are crucial for online shoppers,but consumers are wary of fake content and seek authentic experiences.Brands need to prioritize genuine customer feed
246、back and transparent communication to build trust.VML can help talk to us about:Creative Commerce Journey mapping S.C.O.R.E.(VMLs powerful partnership methodology)Foresight(VMLs partnership matching tool)Promotion&Experience design Content Management(Digital Shelf,PIM/PXM,DAM,Syndication)Category&Ai
247、sle Assortment audit Product content generator Brand Guardian(VMLs AI-driven,content management and compliance platform)61SECTION 7Marketplaces62CHAPTER 1:Balanced channel strategyThe key to commerce success is the ability to operate efficiently across multiple channels.So,given what weve seen,opera
248、ting on marketplaces is a vital part of online success.But what about other channels like D2C?What would encourage consumers not to default to marketplaces and what would make them choose another retailer?As we often see,the key driver is price,with 50%of global consumers saying that they would choo
249、se another retailer over a marketplace based on cheaper pricing.And if we look at the trends over the years from our survey data,it would appear that cheaper pricing is becoming even more important.Next on the list comes more convenient delivery options(29%).Once again,this is up on last years figur
250、e(21%).And backing up the trend that weve seen throughout this report,the existence of physical stores comes in third position(24%),up on last years figure of 20%.50%OF CONSUMERS SAY THAT THEY WOULD CHOOSE ANOTHER RETAILER OVER A MARKETPLACE IF THEY HAD“CHEAPER PRICING”But what about the phenomenon
251、of branded marketplaces,where brands and retailers are choosing to promote and sell multiple brands through their own sites?Are consumers happy with this relatively new breed of marketplaces?The answer is a resounding yes,and each year the percentage grows.In 2022,54%of global shoppers told us that
252、they liked buying from branded marketplaces,and in 2023,this figure had risen to 58%.This year,the figure has jumped to 66%.So,if you havent already,perhaps its time to start considering the creation of your own marketplace.66%OF GLOBAL CONSUMERS SAID THAT THEY LIKED BUYING FROM BRANDED MARKETPLACES
253、What weve seen so far paints an interesting picture when it comes to marketplaces.On one side,they are the dominant force when it comes to inspiration,search and purchase,as well as being“best-in-class”across most key consumer metrics,including delivery and returns.On the other side,their commanding
254、 position notably in purchasing appears to be weakening slightly,with consumers prepared to research more,and to use alternative channels to purchase.63The reasons that consumers would choose another retailer over a marketplace202420232022202101Cheaper pricing50%46%42%46%02More convenient delivery o
255、ptions29%21%20%20%03Existence of physical stores24%20%18%16%04More attractive loyalty program21%18%15%19%05Better/more specialized product range19%17%17%19%06Better-looking website16%10%11%12%07Better environmental practices(e.g.less packaging,reduced carbon footprint,eco-delivery vehicles)14%13%14%
256、14%08Better ethics14%12%12%13%09Better personalization so they know and treat me better as an individual13%12%14%12%10I prefer to support other independent retailers13%11%13%13%11I dont wish to support the increasing growth of the leading marketplace8%7%8%8%NB.Consumers were able to choose multiple
257、options,so the totals do not add up to 100%.Also percentages have been rounded,so reasons with the same percentages are likely to have very small differences.64EXPERT OPINION:What does it take to create your own marketplace?Creating a marketplace is an exciting,yet daunting venture for any business
258、and requires a well-rounded approach.First and foremost,understanding your target audience is crucial,and creating distinction in the market is critical.There is no point creating the same value as another competitor the unit economics will not end favorably.It is essential to identify customer segm
259、ents and analyze their purchasing trends,ensuring you cater to their needs effectively to drive interest and long-term stickiness.Making your marketplace digitally accessible and easy to navigate is essential.This can be achieved with a user-friendly website and mobile app,employing strategies to bo
260、ost your search engine ranking,and leveraging social media to extend your reach.Offering unique features,such as advanced search options,AI-based services,and more personalized omni-channel experiences will differentiate and significantly enhance the user experience.Utilizing AI-driven approaches ac
261、ross the full value chain is critical,whether this is around recommendation engines and chatbots for customer support,or supply chain and distribution.Differentiating your marketplace involves offering competitive pricing,attractive and sustainable packaging,reliable delivery options,and a seamless
262、shopping journey from start to finish.The unboxing experience alone can create a highly tailored shopping experience.High-quality content and branding help establish your marketplaces distinctiveness and will drive mental,physical into digital availability to stand out from all aisle and shelves.Add
263、itionally,strategic marketing campaigns across various channels,along with robust analytics tools to monitor performance,are essential for driving traffic and conversions.Gemma SpenceChief Digital Commerce Officer EMEAE:65And what about recommended products that we often see when purchasing via mark
264、etplaces?These clearly have an effect on purchasing,with 59%of global consumers saying that marketplace-recommended products influence their purchasing,and 58%admitting they often buy additional products to those they were intending to buy based on these personalized suggestions.What can we take fro
265、m this?The right product,served to the right consumer at the right time via a recommendation is highly likely to end in an additional sale.But what about“sponsored”items?When it comes to this,the feedback is less positive,with 58%of shoppers questioning the credibility of sponsored items,and 57%find
266、ing that they get in the way of what theyre looking for.The learning?Clearly look at how effective these sponsored items are,as the data may tell a different story,but from a user perspective the feedback is not encouraging and may undermine credibility.Finally,lets talk about fake and counterfeit p
267、roducts.Sometimes buying from a marketplace can leave consumers open to unscrupulous third-party sellers and their products.Again,the picture here is mixed with 69%of global consumers saying that they trust products to be what they say they are,but a significant 55%claiming that they have encountere
268、d a product that they suspect may be fake.CHAPTER 2:Suggested,sponsored and fake productsIn the previous chapter,we talked briefly about the content that helps consumers to convert online.In top spot was ratings and reviews.But we wanted to get a little more information about ratings and reviews,par
269、ticularly within the context of marketplaces.And while 70%of consumers say they trust reviews,60%say that they have encountered a review that they suspect to be fake.Clearly one of the important strategic jobs not just for marketplaces,but for anyone wanting to sell online,is to minimize the lack of
270、 belief that consumers might have in ratings and reviews.70%OF GLOBAL SHOPPERS TRUST REVIEWS THEY SEE ON MARKETPLACES.THAT MEANS ALMOST A THIRD DONT!55%OF GLOBAL CONSUMERS SAY THEY HAVE ENCOUNTERED A PRODUCT THEY SUSPECT MAY BE FAKE66While this section may seem initially trite,it makes a clear point
271、.Marketplaces are so ubiquitous in our lives,and our trust of them so great,that we would happily engage with them across numerous touchpoints and ventures.This opens up a world of possibilities for marketplaces in the future.CHAPTER 3:Marketplaces skys the limit?With marketplaces playing such a key
272、 role in our lives shopping,voice assistants,content,and much more we like to investigate what else marketplaces might offer in the future,and what the consumer appetite may be.One area that weve tracked for several years is the idea of financial services.Last year,48%of consumers globally told us t
273、hat they would be open to banking and purchasing other financial products sold through marketplaces such as loans,mortgages,pensions and insurance.This year the figure rose to 53%.And what about utilities?Once again,this year we see a slight increase,with 53%saying that they would be open to buying
274、their energy and water(utilities)from a marketplace.Last year this figure was 51%.Finally,like last year,we wanted to test our theory that consumers trust marketplaces so much(and have so much of our data),that they would be happy to use a dating app from them.Once again,this year the figure grew fr
275、om last year rising from 42%to 48%.48%OF CONSUMERS GLOBALLY SAID THEY WOULD BE HAPPY TO USE A DATING APP PROVIDED THROUGH A MARKETPLACE67Key takeaways1Marketplaces face growing competition:While still dominant in online shopping,marketplaces face increasing pressure from price-sensitive consumers an
276、d the resurgence of alternative channels,particularly brand websites and physical stores.2Consumers respond to value and convenience:Cheaper pricing,convenient delivery options,and the existence of physical stores are key drivers for consumers choosing retailers over marketplaces,highlighting the ne
277、ed for a balanced and competitive offering.3Branded marketplaces gain traction:Consumers are increasingly receptive to branded marketplaces,appreciating the curated selection and brand-backed experience they offer.This presents a significant opportunity for brands looking to expand their reach and c
278、ontrol their brand narrative.4Trust and transparency are crucial:While consumers generally trust marketplaces,concerns remain around fake reviews,counterfeit products,and intrusive sponsored content.Marketplaces must prioritize transparency and authenticity to maintain consumer trust and long-term s
279、uccess.VML can help talk to us about:Marketplace management Owned marketplace strategy,creation and operating Marketplace strategy across Amazon,Mercado Libre,Alibaba,etc.In-channel planning Content asset optimization Creation of personalized product recommendations Ratings&Reviews strategy and exec
280、ution WPP Open Creative Studio68SECTION 8Artificial Intelligence69Now,when it comes to its impact,the sentiment is mixed.On a positive front,53%see AI as a great opportunity to free them up from mundane tasks,and 50%of consumers believe that the positives of AI outweigh the negatives.More negatively
281、,58%of global consumers said that they were worried about AI and its effect on the world,while 48%said that they were fearful about their job security due to the advances of AI.This all paints a picture that underlines consumer uncertainty on how AI will affect them.This is probably a pretty fair vi
282、ew.Despite all the noise,its hard to truly grasp how palpably and deeply AI will be integrated into our lives,and how it will affect businesses.There has also been a lot of discussion about generative AI.How do consumers feel about consuming AI generated content?Are they concerned?The overall sense
283、is that theyre not,with 48%of consumers saying that it does not currently bother them that content could be AI generated.Meanwhile,24%admit they are concerned.And it would appear that the majority of consumers are open to AI helping them and shopping for them,with 41%saying they would let an AI orga
284、nize their life,including what things to buy and even what to do at the weekend(36%were against this,though).Taking it one step further,40%of global consumers said that they would let an AI take full control of their food shopping including sorting out delivery and payment!CHAPTER 1:AI adoption and
285、usageIt seems like you cant converse about commercial,societal or cultural trends without someone referencing AI.But whats the consumer perspective on AI?We started by asking how many consumers had(knowingly)used artificial intelligence,such as ChatGPT.The answer was surprisingly high at over half(5
286、5%).55%OF GLOBAL CONSUMERS SAY THAT THEY HAVE USED AI(SUCH AS CHATGPT)41%OF GLOBAL CONSUMERS SAID THAT THEY WOULD LET AN AI ORGANIZE THEIR LIVESThe percentage of consumers who have used AIAgeOverall55%16-2461%25-3462%35-4459%45-5448%55-6435%65+21%70Once again,we need to delve a little deeper to unde
287、rstand what businesses should do,because consumers are driven by immediacy,and despite the concerns about chatbots,41%of global consumers would rather use a chatbot than wait for a real person.CHAPTER 2:Programmatic Commerce(automated ordering)The concept of machines ordering on our behalf(AKA Progr
288、ammatic Commerce)is not new.In fact,weve been talking about it for quite some time,even coining the trademarked phenomenon.But sometimes the technology is ahead of the consumer.We found that this year,15%of consumers say they use machines to automatically order products on their behalf.This is 1%up
289、on last year,but not what you might call an accelerated adoption curve.On the flipside,27%of consumers are clear that they do not and will not use this in the future.Incidentally,this is down from 31%last year.What does this tell us?It tells us that consumers are still to be convinced about programm
290、atic commerce,but in the right scenarios,they might be persuaded.CHAPTER 3:ChatbotsOften linked to AI are chatbots.Yet consumer sentiment is not great when it comes to our automated friends.A huge percentage(68%)say they get fed up with not being able to speak to a real person when they call a compa
291、ny,and worryingly,57%say that they are less likely to buy from a business that they know uses chatbots instead of real people to resolve customer service issues.57%OF GLOBAL CONSUMERS SAY THEY ARE LESS LIKELY TO BUY FROM A BUSINESS THEY KNOW USES CHATBOTS INSTEAD OF PEOPLE TO RESOLVE CUSTOMER SERVIC
292、E ISSUES71Key takeaways1Consumers express mixed feelings towards AI:While many consumers have used AI tools like ChatGPT,theres uncertainty and concern about their impact on jobs and society.However,theres also optimism about AIs potential to improve efficiency and free up time.2AI-driven commerce f
293、aces adoption challenges:Concepts like Programmatic Commerce and AI-powered shopping assistants show promise but havent gained widespread adoption.Consumers remain hesitant to relinquish control over their purchases,indicating a need for greater transparency and demonstrable benefits.3Human interact
294、ion still holds value:Despite the convenience of AI-powered chatbots,consumers express frustration with the lack of human interaction in customer service.Brands need to strike a balance between automation and human touchpoints to ensure customer satisfaction.4Transparency and control are key for AI
295、acceptance:Consumers are more likely to embrace AI when they understand its benefits and have control over its use.Brands need to prioritize transparency,explain AIs role clearly,and offer consumers choices in how they interact with AI-powered systems.VML can help talk to us about:AI strategy and co
296、nsulting AI inspiration,education and key note speaking Discovery workshops Explore integration of AI into existing service offerings and processes(including chatbots)AI governance,tools and ethics Cloud&Data engineering,Native apps,MACH architectures WPP Open(WPPs AI-powered intelligent marketing o
297、perating system)72SECTION 9Sustainability73Consumers are looking more closely at products too.Seemingly,businesses who are modifying their products to improve sustainability are favored,with two-thirds(66%)of consumers saying they like brands that are adapting their products and services based on cl
298、imate change.CHAPTER 1:The demand for sustainabilityAsk consumers if sustainability is driving their purchasing and the answer is yes:56%say that they have changed their shopping habits due to concerns about global warming and the environment thats up from 52%in 2023.Each year,the matter of our clim
299、ate and environment becomes ever-more critical and political,regularly monopolizing the news as the impact of extreme temperatures,flooding and wildfires are felt near and far.Naturally,it makes sense to gauge the extent to which sustainability is influencing consumer behavior and our relationship w
300、ith brands and retailers.56%OF GLOBAL CONSUMERS SAY THEY HAVE CHANGED THEIR SHOPPING HABITS DUE TO CONCERNS ABOUT THE ENVIRONMENT54+46+M54%Agree29+71+M29%Neither agree nor disagree17+83+M17%DisagreeProducts labeled“Climate Friendly”influence my purchase decision:74CHAPTER 2:Consumers want better pra
301、cticesIn line with last years results,67%of consumers wish that retailers offered better environmental practices such as less packaging.This chimes closely with the results over the last four years weve tracked the number:in 2023 it was 66%,in 2022 it was 68%and the year before that,it was 71%.When
302、it comes to seeking less packaging with online orders,the percentage remained the same as last year at 69%.With the advances being made,and claimed,by businesses,we might be hoping for these percentages to decline.Instead,we can perhaps speculate that consumers still believe that businesses simply a
303、rent doing enough.However,it would appear that certification might help.Consumers are clearly looking for some third-party accreditation,rather than business-made claims,to prove sustainability credentials with 62%of consumers saying that they are more likely to purchase a product that has a sustain
304、ability certificate.Additionally,54%of consumers said that products labeled“climate friendly”on marketplaces influence their decisions too.This focus on purpose also touches upon diversity and social issues,and once again,more than three in five consumers(62%)say they are more likely to buy from a c
305、ompany that speaks and acts positively about diversity and social issues.CHAPTER 3:PurposeSo,what about the role of purpose?For several years businesses have been encouraged to think beyond just selling their products and services,and to consider and articulate a greater contribution impact.Is this
306、still an important consideration?With 63%in agreement,theres a clear message that consumers like to shop with brands and retailers that have a purpose beyond simply selling products and services,while a similar percentage(64%)say that they try to buy from brands with ethical labor practices.63%OF GL
307、OBAL CONSUMERS SAY THEY LIKE TO SHOP WITH RETAILERS AND BRANDS THAT HAVE A PURPOSE BEYOND JUST SELLING PRODUCTS OR SERVICES75However,there is still an education job to be done,as while most consumers understand that higher carbon emissions are bad,almost half(48%)do not understand what constitutes h
308、igh or low carbon output.CHAPTER 4:Understanding impactThere is a huge amount of noise around carbon impact and footprint,and consumers are certainly interested in understanding more,with 60%welcoming the idea of being shown the carbon output and impacts of their purchase decisions,and 62%saying tha
309、t they would like to understand more about the impact of how their product reaches them (CO2 produced,materials used,distances covered,etc.).60%OF GLOBAL CONSUMERS WELCOME THE IDEA OF BEING SHOWN THE CARBON OUTPUT AND IMPACTS OF THEIR PURCHASE DECISIONSCHAPTER 5:The environment and returnsAs we all
310、know very well,what consumers say and what consumers do can sometimes conflict.Take the issue of returns.Earlier on in this report,we talked about the importance of returns,and particularly free returns in driving purchasing.This in turn has a negative impact on the environment.So,its interesting to
311、 see that almost half(49%)of global consumers say that they are more likely to over-order when returns are free.On the flipside,this does seem to be something that preys on the minds of consumers,as 45%claim they have not returned an item as they believe returns negatively impact the environment.Of
312、course its worth considering what impact keeping the item has on the environment too.Clearly consumers are conflicted when it comes to the convenience and ease that they crave,versus the impact that this will have on the environment.Balancing these countering desires could be a key to unlocking conv
313、ersion.76This is good news,but perhaps not as strong a rise as we might have hoped.Of course,the other side of the coin is that 41%of consumers have not used sustainable delivery methods!It is perhaps proof that while sustainability does drive purchase behavior and brand and retailer love,other fact
314、ors(price,availability,delivery,returns,etc.)also play vital roles.CHAPTER 6:Sustainable delivery optionsGiven the importance of delivery when it comes to online shopping,we also like to track how delivery and sustainability demands match up.And for a number of years,we have used a very simple metri
315、c to judge this:namely the uptake of sustainable delivery options.Why is this important?Because,as we mentioned before,what consumers say and do are often at odds.Using sustainable delivery options shows a willingness of consumers to take a personal hit,and have their deliveries arrive slightly late
316、r than they could.So,whats the news?In 2021,34%of consumers had used sustainable delivery options;in 2022 it was 43%,in 2023 it was 46%,while this year,the percentage has risen to 49%.CHAPTER 7:Sustainability:whos responsible?But while many consumers are cognizant of their purchasing on the environm
317、ent,there is a sense that perhaps the same cannot be said of retailers and brands.An overwhelming 61%of consumers believe that when it comes to sustainability,too much responsibility is with consumers instead of companies(that figure was 58%last year).While 63%claim that companies are not doing enou
318、gh to offset their impact on the environment,that figure was 59%last year.Clearly over the course of the last 12 months,the issue of businesses taking more responsibility has not been thoroughly addressed according to todays consumers.And as we see across all of our reports,despite many factors infl
319、uencing purchasing,price is ever-important.And consumers are demanding more from businesses,with 67%believing they should absorb the costs of making their products carbon-neutral and not pass these costs onto consumers.49%OF GLOBAL CONSUMERS HAVE USED SUSTAINABLE DELIVERY OPTIONS WHEN ORDERING ONLIN
320、E(UP 3%FROM LAST YEAR)67%OF GLOBAL CONSUMERS BELIEVE THAT BUSINESSES SHOULD ABSORB THE COSTS OF MAKING THEIR PRODUCTS CARBON-NEUTRAL AND NOT PASS THESE COSTS ONTO THEM77Key takeaways1Consumers want sustainable practices and products:A growing number of consumers prioritize sustainability,favoring br
321、ands that adapt products and practices to be more environmentally friendly.This includes reducing packaging and offering transparent certifications.2Purpose-driven brands resonate:Consumers actively seek out brands with a strong purpose beyond profit,including ethical labor practices,diversity,and s
322、ocial responsibility.This highlights the importance of brand values and actions.3Consumers want more action,less talk:While aware of their own environmental impact,consumers feel businesses arent doing enough.They demand greater transparency on carbon footprint,affordable sustainable options,and for
323、 companies to bear the cost of environmental responsibility.4Sustainable choices remain complex:Despite good intentions,consumers grapple with balancing sustainability with other priorities like price and convenience.This emphasizes the need for brands to make sustainable choices easy and accessible
324、.VML can help talk to us about:Sustainable ShelfMaster(bridging consumer and business needs on sustainability)Carbon footprint calculator Creative Commerce Inclusion Experience Sustainability gap analysis Carbon accounting scores Compliance reporting Sustainability certifications Digital Product Pas
325、sports(DPP)Sustainable supply chain scenario modeling Sustainable product content78SECTION 10Social commerce/social media79CHAPTER 1:Buying through social commerceOver the course of the last four years,weve been tracking“buying”through social media channels.The data highlights a clear trend that soc
326、ial commerce is on the up:Its interesting to note the regional differences too,with the European countries particularly being much slower to embrace this form of purchasing.73+27+M73%202467+33+M67%202365+35+M65%202244+56+M44%2021Social commerce is a channel that is waiting to explode albeit seemingl
327、y for a number of years now!In terms of global revenue,its set to reach$913 billion this year and predicted to grow by 31.6%per year to reach$6.2 trillion by 2030.So,it goes without saying that it carries a heightened sense of opportunity.As social platforms become more embedded in our lives,it make
328、s sense that retailers and brands should look to convert a captive audience into a buying audience.So,lets look into the current situation and the feelings towards social commerce.80The percentage of consumers who have bought through social commerceIt wont come as a huge surprise that its being driv
329、en by younger consumers with the highest percentage(87%)being in the 16-24 age category and decreasing as consumers get older.But where and how are these purchases taking place?Are they on-platform or is the consumer being linked to a retailer or brand site?This is important to know because true soc
330、ial commerce lies,ultimately,with the user remaining on the social media platform and transacting there.And this is what the majority of consumers crave 59%of global shoppers want to buy from within a social app,rather than having to leave to complete the transaction.Our finding is quite surprising
331、48%of shoppers claim that they purchased on the platform(despite the limited availability of this)and 36%say that they have bought off-platform(i.e.pushed to another platform or site).We also wanted to gauge how much live shopping events watching brands,retailers and influencers discussing products
332、to buy on social media platforms were influencing purchasing.Amazingly,53%of global shoppers said they had purchased via one of these live shopping events,with only 3%admitting they didnt know what it was.There is a clear geographical split though.Unsurprisingly shopping via live events is most popu
333、lar in APAC.China sits at the top of this list(87%),with Indonesia next(83%),followed by Thailand(82%)and India(77%).It is the European countries where uptake is lowest,with Italy at the bottom(23%),then Germany(25%)and France(26%).73%OF GLOBAL SHOPPERS CLAIM TO HAVE BOUGHT SOMETHING THROUGH A SOCIAL MEDIA PLATFORMChina95%Thailand94%Peru92%Colombia91%India90%Indonesia88%UAE87%Saudi Arabia86%Mexico