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WTC - The Future Shopper Report 2021
WTC - The Future Shopper Report 2021
With this in mind, this year’s Future Shopper delves deeper and wider than ever
before, covering more than 28,000 consumers across 17 different markets. This
has enabled us not only to form a picture of the global online shopper, but also
to identify differences across geographies and demographics.
HUGH FLETCHER
GLOBAL MARKETING DIRECTOR
AND HEAD OF THOUGHT LEADERSHIP
2
CONTENTS
04 HEADLINES YOU NEED TO KNOW 51 SECTION 5: WHERE ARE WE WITH SOCIAL COMMERCE?
52 Chapter 1: Are consumers switched on to social commerce?
06 THE FUTURE SHOPPER 2021 CONDENSED 55 Chapter 2: Leading social channels for commerce
57 Chapter 3: Growing the social commerce channel via “influence” &
“recommend”: two growing trends in social
09 SECTION 1: COVID-19 AND ITS IMPACT
10 Chapter 1: Online saved consumers during the pandemic 59 SECTION 6: DIFFERENCES ACROSS SECTORS
11 Chapter 2: The pandemic has changed consumer behavior for good
13 Chapter 3: But it’s not just about online, it’s about omni-channel 62 SECTION 7: ETHICS & SUSTAINABILITY
14 Chapter 4: Whether it’s online or across channels, “good enough” is no longer
4
5
6
7
9
SECTION 1:
COVID-19 AND ITS IMPACT
Let’s begin our 2021 report with a close look group, a much lower-than-average figure of ONLINE SHOPPING CAME TO MY RESCUE
at what consumers have made of digital 54% said eCommerce had come to their
commerce during the pandemic, and how it rescue, even though we might presume that
has changed their attitudes, expectations and a higher proportion of older people had to
behaviors. self-isolate or shield from the virus, while 26%
were neutral on its impact.
CHAPTER 1: ONLINE SAVED
CONSUMERS DURING THE Similarly, 51% of over-55s said online
PANDEMIC shopping would be more important to them
in 2021, with 34% having no opinion one way
Despite the crippling impact of COVID-19 on or the other. This compares to 79% of 25 to
many retail and commercial brands, in another 34-year-olds saying they will lean on digital
age, without the ability to trade online, the even more this year.
One of the key drivers of these changes is But it is not just technical comfort that is the
a greater comfort with technology. 60% of catalyst. Another driver in this change is the
global shoppers said they were now more ongoing fear factor. On average, 41% told
comfortable using digital technology – a us they are still frightened about shopping
logical result after being forced to embrace
11
THE PERCENTAGE OF
CONSUMERS WHO SAY THEY
WILL USE DIGITAL CHANNELS
MORE IN 2021
12
CHAPTER 3: BUT IT’S NOT JUST And 66% of all shoppers aged under 45
ABOUT ONLINE, IT’S ABOUT said they wanted better cross-channel
OMNI-CHANNEL communication, more than halving to just
30% of over-55s.
So, if a high percentage of consumers are
genuinely worried about going back to Looking at other responses, it is clear why
stores, whilst at the same time they are more younger shoppers in particular value the
comfortable using digital channels and want option of both online and physical stores –
more digital products, is it finally time to ring they want maximum flexibility in how and
the death knell for physical retail? where they buy.
Certainly not according to our survey findings Nearly three-quarters of consumers (74%)
and the encouraging, initial reports of told us that they like to research products
shoppers returning to the high street. online before buying in-store. 64% also
told us that they thought it was important a
More than 3 in 5 respondents (62%) this brand or retailer offered Click and Collect, an
year told us that they think it is important for indication of wanting greater flexibility around DID YOU KNOW:
a brand to have a physical store – a notable fulfillment. There was also a clear age gap
13
CHAPTER 4: WHETHER IT’S We can see a clear correlation across WHICH COUNTRIES’ CONSUMERS THINK THAT RETAILERS NEED
ONLINE OR ACROSS CHANNELS, countries in terms of how engaged shoppers TO GET BETTER AT GIVING THEM THE PRODUCTS, SERVICES AND
“GOOD ENOUGH” IS NO LONGER say they have been with digital commerce EXPERIENCE THAT THEY WANT FROM ONLINE SHOPPING?
GOOD ENOUGH! through the pandemic and their levels of
expectation going forward.
Our survey results show that not only are
consumers behaving differently in the wake For example, across Asia, consumers
of COVID-19, but their expectations have reported that digital commerce has been
changed, too. To put it bluntly, people are more important to them during the pandemic
less prepared to put up with mediocre or than anywhere else, and it is shoppers in
even “satisfactory” shopping experiences. this region who are also now demanding
They demand excellence. the most from digital retailers. Thailand tops
14
WHAT PERCENTAGE OF COUNTRIES’
CONSUMERS REFUSE TO SHOP WITH ANYONE
WHO DOES NOT MEET THEIR DEMANDS?
15
CHAPTER 5: PEOPLE ARE The country to experience the biggest
SPENDING MORE ONLINE IN THE increase once COVID-19 is vanquished
WAKE OF THE PANDEMIC is Argentina, which, according to our
respondents’ estimates, will see a 14%
To conclude our overview of how the increase in online spend. Meanwhile, both
COVID-19 pandemic has affected consumer Chinese and Indian consumers say that their
shopping habits and attitudes, we need to online spending would be marginally down in
look at one key area – how much shoppers a post-COVID-19 world compared to what it
are spending online. was in a pre-COVID-19 world.
The pandemic has been a gamechanger Perhaps, most interestingly of all, even though
for digital. Consumers reported that prior to older shoppers have been less likely to talk
the pandemic, the online-offline split in their up the importance of digital through the
spending was 45%-55%. pandemic or its impact on their shopping
habits, the oldest age group has seen the
In the midst of the pandemic and at the biggest shift in spending towards digital.
height of restrictions, the online share of
spend soared to 61%. Over-55s reported an 11% increase in
16
THE PERCENTAGE SHIFT
TO DIGITAL SHOPPING IN
A POST-COVID-19 WORLD
18
THE FUTURE SHOPPER REPORT 2021
SECTION 2:
THE CUSTOMER JOURNEY
19
SECTION 2:
THE CUSTOMER JOURNEY
Digital commerce has changed what we spoke to. The next most popular source for
now call ‘the customer journey’ significantly. inspiration was retailer sites, named by 19% EXPERT OPINION: WHY GETTING YOUR MARKETPLACE
Compared to traditional offline commerce of respondents. We speculated then that STRATEGY RIGHT IN APAC IS KEY TO BUSINESS SUCCESS IN
channels, digital has added previously this was a sign of the biggest digital players THIS REGION
unimaginable levels of choice and variety consolidating their grip over the entire online
in terms of how we shop, where we shop, consumer journey. For many brands in APAC, marketplaces have become a
how we discover products and much more critical part of their sales strategy, providing for exposure
besides. The picture we get this year suggests that and consumer discovery, inspiration through an ever-evolving
the consumers are looking for inspiration in a experience framework, and, of course, conversions, as the
It is also clear that, just as digital technology richer variety of places than ever before, but marketplaces are ultimately about driving sales. So, while
keeps on evolving, so do the processes it also largely depends on which countries we selling on marketplaces may sound like a simple choice, it is
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For example, Mercado Libre is the most aggregator and delivery apps, highlighting
popular channel in Latin America, being used yet another emerging trend to watch develop
by 50% of online shoppers when they want across the world.
some inspiration; including Argentina where
it’s used by a resounding 76% of shoppers Finally, a global high of 29% of shoppers
for inspiration. The various marketplaces that in China said they used branded direct-to-
compete in the giant markets of Asia, such consumer sites as a source of inspiration,
as Tmall, Taobao, and Lazada, are even more putting that channel third behind dominant
dominant, and used by 48% of shoppers. marketplaces like Taobao and Tmall, and
social media. As far as China can nowadays
EXPERT OPINION: WHY MERCADO LIBRE IS VITAL TO A Whether it is Amazon, Mercado Libre, one be considered a pacesetter in global
GLOBAL MARKETPLACE STRATEGY of the Alibaba-owned platforms or anything consumer trends, that’s good news for
else, the high percentage of consumers brands wondering if and how they can break
Mercado Libre is the largest online commerce and payments using marketplaces at the earliest stage of through the noise of increasingly crowded
ecosystem in Latin America and is still growing in reach and the online shopping journey is a challenge for digital markets. In China, brands clearly do it
depth of offering. Supporting its growth, it has also developed a retailers and brands. successfully early in the customer journey.
strong value offer for small-medium sized businesses specifically
through the development of an accessible payment solution But it’s not all doom and gloom for anyone While there is a lot of variation in how and
GLENDA KOK
CHIEF OF TECHNOLOGY BUSINESS FOR LATAM 80% OF GLOBAL SHOPPERS SAY THAT THEY
WANT TO MOVE FROM PRODUCT INSPIRATION TO
PURCHASE AS QUICKLY AS POSSIBLE. WE CALL
THIS “COMPRESSED COMMERCE”, WHERE SPEED
IS OF THE ESSENCE
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THE LEADING SOURCES OF INSPIRATION FOR ONLINE SHOPPERS
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WHERE DO GLOBAL SHOPPERS SEARCH FOR PRODUCTS ONLINE?
40%
38%
35%
27%
25%
21%
13%
13%
13%
11%
AMAZON
OTHER MARKETPLACES
(E.G. EBAY, ALIBABA)
RETAILER SITES
(E.G. JOHN LEWIS, SELFRIDGES, TARGET)
MERCADO LIBRE
COMPARISON SITES
(E.G. SKYSCANNER, BOOKING.COM, TRIVAGO)
NB. As searches can start in different places for different purchases, respondents were able to choose multiple
options – the reason why the totals do not add up to 100%.
*Aggregators are sites that collect data from other online sources and present the information in one place so
consumers can assess the best items, services or deals to meet their needs. Examples include Deliveroo, Rappi,
JustEat and Comparethemarket.com 24
THE LEADING CHANNELS FOR SEARCH ACROSS COUNTRIES
Given what we have said about where The only real challenge to the dominance
shoppers around the globe like to find of the marketplaces, in terms of where
purchase inspiration and search for specific consumers spend their money online, comes
products, it shouldn’t be a surprise that from supermarkets and grocery sites, which
WHERE DO GLOBAL SHOPPERS SHOP?
marketplaces command the biggest share of globally enjoy the second biggest share
online consumer spend. (18%).
Another standout from the frequency of As we have seen from how many consumers
purchase figures is aggregators and delivery in these two countries say they turn to these
apps, which consumers worldwide now types of apps for purchase inspiration,
report using 5.76 times a month on average. aggregators have scope to extend far beyond
Aggregators have capitalized on the wholesale providing a simple delivery service. As a
closure of restaurants and the hospitality mobile-first solution that can connect any
sector, greatly extending their hold over the customer to any brand or retailer from the first
takeout market. to the last mile, we expect aggregators to be a
force to be reckoned with in the coming years
as they extend their reach from food service
to retail.
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CHAPTER 4: WHAT DRIVES Merchants also need to be aware of new and THE TOP 10 FACTORS THAT INFLUENCE
CONSUMER PURCHASING emerging influences on buying behaviors. PURCHASING DECISIONS ONLINE GLOBALLY
DECISIONS? Our survey results throw up some very clear
differences in influence across age groups
As always, when we asked consumers to which give an indication of how today’s
name the factors that most influence their younger consumers will be making their
online purchasing decisions, price came out purchasing decisions for years to come.
on top. Overall, 94.8% of respondents said
price was important, and 64.5% said very For example, 16 to 24-year-olds are much
important. more likely to make purchases based on
recommendations from friends (67.0%)
We can see from the makeup of this list – compared to over-55s (43.8%). Similarly,
accurate product descriptions, ease in finding half of 16 to 24-year-olds (49.9%) now say
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CHAPTER 5: WHO INFLUENCES
CONSUMERS?
We also wanted to know who influences consumers’ purchasing. The largest majority of
consumers globally actually claimed that no one influenced their decision. But we also saw
the importance of consumers’ close circle of friends and family. In the section on social
commerce, we will also look into the effect of social media influencers in decision making.
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IMAGE COURTESY OF ADIDAS
SECTION 3:
MAKING THE
CASE FOR D2C
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For consumer brands, D2C offers something All of this has translated into some
different. From a business perspective, it gives encouraging signs in our 2021 consumer
you control over customer data, relationships survey data that D2C is on the rise.
and service that you just don’t get through Most encouraging of all, when we asked
other channels. But it also provides space to consumers to give a breakdown category-
create experiences for your customers that by-category of where they were most likely
they don’t get through other channels. to buy different items, brand sites averaged
15% in purchase intent across all sectors, in
CHAPTER 1: MORE ONLINE second place behind marketplaces (Amazon
SHOPPERS MEANS MORE and other marketplaces combined).
DEMAND FOR D2C
32
There are some countries where brand sites It is important that brands keep these figures
rank even higher than marketplaces – in in perspective. Despite its second position
Australia (23% of all product purchases), behind marketplaces in terms of purchase
France (22%) and Colombia (20%), D2C is intent, it only claims the sixth largest share of
EXPERT OPINION: WHAT MUST DIRECT-TO-CONSUMER the single most popular online channel. In the sales online, accounting for 8% of consumer
SITES DO TO ENSURE THE BEST EXPERIENCE FOR THEIR UK (18%), Brazil (17%), Netherlands (22%) digital spend – behind retailer sites and apps
CUSTOMERS? and UAE (19%), it is second. (12%) and aggregator and delivery apps
(11%).
Over the years we’ve seen the consumer preference for These numbers are buoyed by some real
convenience, low price and rapid delivery accelerate, with mega strength categories. For example, across And when we asked consumers to rate which
brands and marketplaces creating new ‘norms’ in customer all markets we surveyed, consumers said online shopping channel gave them the best
expectations cross-industries. they were most likely to buy clothing and experience across a range of criteria, D2C
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CHAPTER 2: WHAT MAKES Service is a key word for brands looking to WHAT WOULD ENCOURAGE SHOPPERS
CONSUMERS BUY DIRECTLY establish and build their D2C proposition in TO BUY DIRECTLY FROM BRANDS?
FROM BRANDS? such crowded digital markets. We know that
brand loyalty is not what it used to be, and
If you want a straight answer, you’re always are increasingly seeing “loyalty to service”; 58% BETTER PRICE
best off asking a straight question. So we one of the reasons marketplaces like Amazon
asked consumers directly – what would have become so successful is because of
encourage you to buy products directly from their relentless focus on service. 51% FREE DELIVERY
a brand online?
The product offer also has a big role to play.
The first answer was no surprise; 58% said a
better price. However, price was mentioned
Compared to last year’s responses, more
consumers this year said they would be
36% FREE RETURNS
by a much smaller proportion of people than tempted to buy from D2C sites by better
last year, down from 77%, suggesting brands
have more scope to compete than just on
product information (23% v 16% last year),
bundled products (20%) and personalized
36% FAST AND CONVENIENT DELIVERY
It is clear from the rest of the list how In addition, 26% of respondents this year 26% LOYALTY PROGRAM
24%
aside – they are looking for great service. In them to buy direct from a brand. The benefits
second place with 51% was free delivery, of loyalty schemes could be interpreted in EXCLUSIVE PRODUCTS
followed by free returns and then fast and two ways – firstly, as consumers looking for
additional value from brands (e.g. loyalty
23%
convenient delivery (both with 36%). This
goes to prove what we have been talking discounts), and secondly, the additional BETTER INFORMATION ABOUT PRODUCTS
about for a number of years – the delivery and level of service that being a member affords
returns process must be easy, slick, and if consumers, whether it is access to exclusive
possible, free. In other words, service is key. products, priority purchasing and deliveries,
and so on.
23% ACCESS TO FULL PRODUCT RANGE
FROM BRANDS
12% ADVANCE / PRE-ORDERING OPTION
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Compared to other questions, there was a CHAPTER 3: WHAT DO SHOPPERS WHAT WOULD GLOBAL SHOPPERS CHANGE
remarkable degree of consistency in what WANT TO CHANGE ABOUT ONLINE ABOUT THE ONLINE SHOPPING EXPERIENCE?
consumers said would encourage them SHOPPING?
to buy more from brand sites across all 17
countries we surveyed. There were, however, We also asked consumers what they would 11.2% FASTER DELIVERY
some clear differences across age groups. change about online shopping. In line with the
idea that service is becoming more important,
Older shoppers emerged as more price
oriented – 63% of 45 to 54-year-olds and
the number one factor globally was faster 8.1% FREE RETURNS
delivery, which came out on top with 11.2%
62.9% of over-55s said a better price would of votes.
persuade them to shop with a brand site,
compared with 51% of 16 to 24-year-olds. What’s clear is that consumers have a very
7.3% CREDIBLE REVIEWS AND RATINGS
THAT I CAN TRUST
5.3%
24-year-olds.
EASY RETURNS
There is also a clear youth slant on the
product-related demands mentioned above. FASTER DELIVERY
25% of 16 to 24-year-olds and 27% of 25 to
- THE NUMBER ONE 5.0% FASTER REPLACEMENT OF PRODUCTS
THAT ARE OUT OF STOCK
34-year-olds say exclusive products would
attract them to a brand site, versus 13% of FACTOR THAT GLOBAL
over-55s. Similarly, 22% of under-35s said
they would be interested in bundled product
CONSUMERS WOULD 4.8% BETTER CONTENT
(E.G. FULLER DESCRIPTIONS, MORE IMAGERY)
deals, and 19% said they would switch CHANGE ABOUT
for personalized products, compared with
just 10% and 7% respectively among the
ONLINE SHOPPING 4.7% BETTER PAYMENT OPTIONS
over-55s.
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CHAPTER 4: FULFILLMENT fulfillment options. The differences might WHO IS BEST AT SPEEDY DELIVERY IN EACH COUNTRY?
be slight, but marginally more shoppers we
One of the key battlegrounds when it comes spoke to ranked convenient delivery as an
to digital commerce is something that is not important purchasing factor (92%), ahead GLOBAL AMAZON 36%
digital at all – fulfillment – or to put it more of free delivery (91%) and speed of delivery
plainly, delivery. (90%). US AMAZON 60%
What’s clear, is that in this new world, This corresponds to the fact that two in five
consumers would prefer to know a precise GERMANY AMAZON 64%
consumers want fast delivery! When we
asked consumers what they would change delivery time, right up there with speed
about the delivery of products they ordered and cost on things they would most like to FRANCE AMAZON 60%
online, speed came out as the most popular change.
answer, mentioned by 48% of people we UK AMAZON 65%
spoke to worldwide. This beat cost of delivery In Colombia, more than half (54%) want more
(42%) into second place, and more clarity on clarity on delivery times, while in the UK, this
was cited by slightly more people than faster SPAIN AMAZON 71%
exact delivery times (41.6%) into third.
30% OF GLOBAL
on fulfillment can be directly linked to the INDONESIA OTHER MARKETPLACES 69%
COVID-19 experience. Three quarters (75%)
SHOPPERS EXPECT said they now rate the availability of no-
INDIA AMAZON 60%
contact delivery as an important factor in
THE GOODS THEY choosing where they buy from online.
ORDER ONLINE AUSTRALIA AMAZON 26%
And who is best at speedy delivery? The
TO ARRIVE WITHIN answer is clear; Amazon, with 36% of global ARGENTINA MERCADO LIBRE 64%
24 HOURS shoppers identifying it as the best. Amongst
Prime members, it scores even higher, with
66% citing it as best for speed of delivery and BRAZIL MERCADO LIVRE 35%
However, data from elsewhere in our survey 61% for free delivery.
suggests that consumers are looking for COLOMBIA MERCADO LIBRE 28%
digital brands and retailers to offer a lot more These findings underline just how much work
than just the fastest delivery times possible. rivals have to do to catch up with Amazon MEXICO AMAZON 40%
on fulfillment. They also suggest that speed
In place of speed alone, we are seeing of delivery is the area all digital brands and
retailers have to focus on, first and foremost. UAE AMAZON 51%
consumers ask for a broader range of
36
CHAPTER 5: DIGITAL PRODUCTS booming interest in products that consumers
ARE THE FUTURE can buy and access remotely and instantly,
without having to wait for delivery.
But delivery speed is really only a concern for
physical products. Increasingly, we see digital Of course, not all products can be ‘digitized’
products being bought. and many retail categories might argue this
is a trend that applies to the likes of the
entertainment and tech sectors, and not
them! But it lays down a challenge to brands
33% OF ALL and retailers to think creatively about what
they can offer in a digital format, whether
PRODUCTS AND they can develop digitized services in place
SERVICES BOUGHT of products, and whether it is something they
ONLINE ARE DIGITAL, can use to add value to the overall customer
experience or to be monetized directly.
AND NOT PHYSICAL.
EXPERT OPINION: WHY DIGITIZING PRODUCTS AND SERVICES
Unsurprisingly, there are some very obvious
COULD BE KEY TO FUTURE SUCCESS
demographic differences in our survey
RANDY KOHL And when a product is digital and instantly WHAT PERCENTAGES IN WHICH
HEAD OF MARKETING, GORILLA GROUP, downloadable, the expected “delivery” time is AGE GROUPS WANT DIGITAL AND
A WUNDERMAN THOMPSON COMMERCE COMPANY suddenly very different. For a physical product INSTANTLY DOWNLOADABLE
to arrive in just a few hours is nothing short of PRODUCTS?
a miracle, for a digital product to take a few
hours to download is unacceptably slow.
38
SECTION 4:
39
SECTION 4:
THE RISE AND RISE OF MARKETPLACES
WHICH CHANNELS ARE SEEN AS GIVING
THE BEST CUSTOMER EXPERIENCE?
29%
(E.G. EBAY)
8%
40
WHAT PERCENTAGE OF GLOBAL ONLINE
SHOPPING GOES THROUGH EACH CHANNEL?
23% 18%
OTHER SUPERMARKETS
MARKETPLACES AND GROCERS
(E.G. ALIBABA, JD.COM,
EBAY, GUMTREE)
7% 8% 11%
In fact, shoppers in the APAC region,
SOCIAL ON
PLATFORM
BRANDED SITES
AND APPS
VIA AN AGGREGATOR
/ DELIVERY APP
led by China, Thailand and Indonesia,
PURCHASING (E.G. NIKE,
APPLE, DYSON)
(E.G. UBER EATS,
DELIVEROO) rated these marketplaces as
The pattern we see, then, is that in countries marketplaces are most evenly matched. In
offering the best experience in
where Amazon is most established – the US, Mexico, for example, Mercado Libre has a all 12 categories we quizzed them
most of Europe, India, Argentina, UAE – it 16% share of digital spend, Amazon 15%
is streets ahead of the competition in how and other marketplaces 14%. In Brazil, about.
customers rate the service and experience the figures are an 18% share for other
they get. Likewise, in regions where other marketplaces, 16% for Mercado Libre
marketplaces are dominant, for instance, in (known as Mercado Livre locally), and 9% for
Colombia, China and especially Indonesia and Amazon. Undoubtedly, the rapid growth of
Thailand, these channels win the approval of Mercado Pago, Mercado Libre’s virtual wallet
local consumers hands down. and financial platform, has helped strengthen
the latter’s position in Latin America. In
Perhaps the most interesting results are Japan, consumers spend 45% of their money
therefore from countries like Japan, Mexico online through other marketplaces, and 24%
and Brazil, where Amazon and other through Amazon.
41
What becomes clear looking at the data We got a further indication of why
across these countries where competition marketplaces are so popular. For some
between rival marketplaces is tightest is just consumers, the concept of buying everything
how well Amazon performs in consumers’ through one retailer might not be ideal,
eyes on delivery. 49% of shoppers in Japan however, to the vast majority, buying
rate Amazon the best platform for speed everything they need online through a single
of delivery, and 47% for free delivery – well retailer is actually preferable.
ahead of all other channels, despite Japanese
consumers spending nearly twice as much Nearly two-thirds (64%) said they were
through other marketplaces. excited by this prospect. Only in the
Netherlands again (34%) and Australia (47%)
In Mexico, 40% of shoppers rate Amazon were the numbers who agreed with this in
as best for speed of delivery, and 35% the minority, as were those aged 55 or over
say it is best for free delivery, top in both (41%).
Thailand want more services like Lazada, with what we might call ‘traditional’ online
84% in LATAM relating to Mercado Libre. commerce. But as we will now see, their
ambitions don’t stop there by any means.
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CHAPTER 2: AMAZON EXPANDS
ITS REACH
As we saw earlier in the report, just under 40% of participants in this year’s Future
half of consumers now say they have bought Shopper survey said they were impressed
digital or downloadable products. With its with Prime Video’s coverage of sports,
Kindle ebooks, Audible audio books, Amazon slanted towards younger viewers, with 45%
Music and Prime Video brands, Amazon is a of under-45s saying they liked watching sport
recognized leader in this category, drawing on Prime Video compared to just 17% of
undoubtedly on its origins in books and over-55s.
entertainment retail. Worldwide, Amazon
accounts for just over a quarter (28%) of all As well as positioning itself as a major
online entertainment purchases, its biggest broadcast media player, Amazon also has
share of any single category. eyes on the financial services industry. More
than half (54%) of consumers we spoke to
Amazon is just as active in making the said they would be open to banking through
transition to selling digital services online as it it (likewise Mercado Libre or Lazada in their DID YOU KNOW:
is digitized products. There are clear synerges respective markets); with nearly half (48%)
40% OF GLOBAL
banking and buying financial products from
the marketplace (76% and 75% respectively).
SHOPPERS SAID THEY Given Amazon’s relatively low penetration
WERE IMPRESSED in the retail markets of these two countries,
WITH AMAZON PRIME’S compared to other marketplaces like the
Alibaba conglomerate, financial services could
COVERAGE OF SPORTS well be part of Amazon’s strategy to extend
its global reach, as well as push into new
verticals where it is already a dominant force
in digital commerce.
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CHAPTER 3: LOYALTY AND THE
PRIME EFFECT
We’ve already touched on Prime’s reputation Across the board, the number of people THE MOST POPULAR LOYALTY SCHEMES GLOBALLY
as an exemplar of the kinds of experiences saying they belonged to loyalty schemes is
and levels of service consumers around 86%.
the world demand, even in countries where
Amazon itself is not such a dominant force. As with last year’s results, grocery and
supermarket loyalty programs were the most
Prime’s influence is best understood as part popular, with half (50%) of the shoppers we
of the wider phenomenon of loyalty schemes. spoke to this year saying they are a member
of one.
Yes, there are things that distinguish Prime
from what we might call ‘traditional’ retail Supermarket schemes rank as the most
loyalty schemes – the fact that you pay for it, popular type of loyalty program in Australia
for one, which crosses over into the premium (70%), the UK (70%), France (62%), Thailand
membership category, and the fact that it is (61%), the Netherlands (59%), UAE (54%),
service rather than rewards-oriented. Colombia (52%), China (52%) and Germany
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HOW BEING A PRIME MEMBER CHANGES PERCEPTION
OF AMAZON AND ITS SERVICES:
What we see consistently across our survey rating Amazon as the best and non-Prime
data is that Prime members are much more members. The swing was over 25% in
positive about Amazon across a range of another six categories.
metrics. What this tells us is that Prime
conditions them to engage with Amazon Take Prime membership out of the equation,
even more – one of the key reasons Amazon and there is little to choose between the
pushes Prime membership so strongly. Prime quality of experience consumers feel they get
members also spend more and more often, through Amazon and other marketplaces.
and we call this the ‘Prime Effect’. Prime literally locks consumers into a
passionate sense of loyalty to the experience
Most notably, in Section 1 of this chapter they are provided.
we saw how Amazon topped the rankings
for providing the best experience on every This translates directly to the bottom line.
category we quizzed consumers about. Prime users make double the average
This is driven by the positive opinions Prime number of purchases per month from
non-
46
These figures give the rest of the retail 54-year-olds, 49% of over-55s) cited price, WHY WOULD GLOBAL SHOPPERS SELECT ANOTHER
ecosystem hope. To capitalize on the this fell to just 39% of 16 to 24-year-olds. RETAILER OVER THEIR CHOSEN MARKETPLACE
spaces left between Amazon and other
marketplaces, it is important that brands and This is good news for businesses that
retailers understand where consumers would
like to see an alternative provided – what is
might balk at the idea of trying to compete
with companies with the buying power of 46% CHEAPER PRICING
often referred to as What Amazon Can’t Do, Amazon on price. As we saw when we asked
aka #WACD. what would attract consumers to use D2C
channels more, they are looking for more than 20% MORE CONVENIENT DELIVERY OPTIONS
better value alone.
2% OTHER
47
Another thread to this is consumers’ feelings On the flipside, one in five (21%) said they had
about having organizations the size of encountered reviews they suspected were
Amazon dominating the retail landscape. fake, and 18% said they had come across
Worldwide, half (49%) of online shoppers we products they thought might be counterfeit.
spoke to said this worried them. 13% said a In addition, consumers seem to have
preference to support independent retailers particular issues with sponsored items, with
would make them avoid shopping through 21% saying they get in the way of what they
Amazon and other dominant marketplaces. are looking for (reaching as high as 36% in
This then leads onto questions of brand India) and 20% questioning the credibility of
values and ethics, with 14% saying they sponsored items (again, reaching 30%
would spurn Amazon and the like to shop in India).
with companies that demonstrate better
environmental practices, and 13% looking
for better brand ethics.
22% OF 16 TO
48
EXPERT OPINION: IS AMAZON UNBEATABLE?
THE CASES FOR AND AGAINST
49
SECTION 4:
KEY CONSIDERATIONS
& ACTIONS
ENSURE YOUR INTERNATIONAL MARKETPLACE
STRATEGY IS FIT FOR PURPOSE.
50
THE FUTURE SHOPPER REPORT 2021
SECTION 5:
WHERE ARE WE WITH
SOCIAL COMMERCE?
51
SECTION 5:
WHERE ARE WE WITH SOCIAL COMMERCE?
Social media has been a channel to watch in penetration in Europe, where the figure was
digital commerce for a number of years now. just 22%, and lowest of all Japan at 12%.
We’ve already seen continued evidence of
its rise in this year’s survey results, with large
44% OF GLOBAL
numbers of consumers across Asia, Latin
America, the US and Australia now using
social as their channel of choice for inspiration SHOPPERS SAY THAT
and search.
THEY HAVE ALREADY
At Wunderman Thompson Commerce, we BOUGHT FROM A
have been advising clients for a number of
SOCIAL PLATFORM
53
WHAT WOULD MAKE SHOPPERS USE SOCIAL COMMERCE MORE? In second place, 31% pointed to the ease On a similar theme, 23% of people said they
of purchasing, suggesting that consumers would buy more through social if they could
don’t yet see social commerce as being as see products on real customers – a nod to
31%
to fix. Sellers need to have clear strategies see genuine customers using products as an
EASE OF PURCHASE for optimizing the customer journey through extension of user feedback and reviews.
social, including how it fits with the rest of
their digital channels. Video would be a natural medium for this
27% EXCLUSIVE OFFERS and ties in directly with the influencer and
Some other interesting feedback from recommendations phenomenon which we will
customers includes the fact that 24% of discuss in more depth shortly. We also saw, in
24% MORE CUSTOMER REVIEWS shoppers would like to see more customer
reviews on social. Social media is, after all,
certain countries especially, consumer interest
in leveraging the immediacy of livestream
meant to be the channel for peer-to-peer video for the likes of influencer events or sales
23% SEEING THE PRODUCTS ON REAL CUSTOMERS recommendations and genuine customer
endorsements. This figure suggests brands
and service calls with agents. In Thailand,
for example, 28% of shoppers said more
19% NOTHING
APAC 17%
14% EXCLUSIVE RANGES
LATAM 8%
11% LIVESTREAM COMMERCE (VIA INFLUENCER
STREAMS & VIDEO CALLS WITH SALES ASSISTANTS)
US 14%
9% ENDORSEMENTS / INFLUENCERS
UAE 16%
2% OTHER
54
CHAPTER 2: LEADING SOCIAL
CHANNELS FOR COMMERCE
Having established that a majority of In both cases, Facebook was the clear
consumers are very much onboard with social winner. Overall, 31% of people said Facebook
commerce, the next key question for brands was the social media platform they were most
and retailers is – which platforms should we likely to buy from, and 32% rated it the best
build our social strategy around? for social commerce.
We asked two questions to gauge consumer Facebook’s popularity peaks with the 35 to
sentiment on this. Firstly, which social media 44-year-old age group, 41% of whom said
platform digital shoppers were most likely to they were most likely to buy from it. There is
EXPERT OPINION: WHY THE WORLD SHOULD LEARN FROM buy from, and secondly, which channel they an argument that Facebook was very much
THE EXPLOSION OF LIVESTREAM COMMERCE IN CHINA thought was the best for social commerce. a phenomenon for the Millennial and slightly
Both produced very similar answers, even older Gen X generations, and that, as they
China is entering the ‘trillion’ era of livestream commerce. down to the regional and age differences get older, it will eventually be overtaken by
Taobao Live alone reached over 400 billion RMB in GMV in 2020. businesses need to take account of for what are today seen as more youth-friendly
Beyond scale, livestreaming in China is becoming increasingly targeting the right platform for their markets. alternatives.
JAMES BAY
MANAGING PARTNER, COMMERCE,
WUNDERMAN THOMPSON CHINA
WHICH SOCIAL
PLATFORMS ARE
SHOPPERS MOST
31+26+238732
LIKELY TO BUY FROM:
26%
I WOULD NOT BUY VIA
ANY SOCIAL PLATFORM
23%
INSTAGRAM
31% 8%
TIKTOK
FACEBOOK
2% 3% 7%
OTHER PINTEREST MESSAGING
PLATFORMS
(E.G. WHATSAPP) 55
To a certain extent, our data supports this. And then there is TikTok. While other
For the 16 to 24-year-olds we spoke to, channels barely make a dent in Facebook
Facebook ranks only second as the channel and Instagram’s dominance across most
they rate best for social commerce and that of the world, in China, TikTok is the hottest
they are most likely to buy from. Top of the social commerce ticket in town. There,
pile for this generation is Instagram, which TikTok accounts for a massive 68% of social
39% say they prefer to buy from, and 42% purchases, and 70% of consumers rate it as
rate as the best social commerce channel. the best channel for social commerce.
EXPERT OPINION: WHO WILL WIN THE RACE TO BECOME THE
NUMBER ONE SOCIAL COMMERCE CHANNEL?
Of course, Instagram and Facebook are part
of the same company. Together, a massive
54% of all consumers we spoke to worldwide
said they were most likely to buy through one
70% OF CHINESE Social media platforms have performed a key role throughout
the pandemic, with shoppers spending more time on social
of the two if they did use social commerce. SHOPPERS BELIEVE media channels. This is unlikely to dwindle, and, undoubtedly,
social channels will become even stronger when it comes
Globally, that puts the pair in a hugely THAT TIKTOK IS THE to commerce, not just for inspiration and search, but for
56
CHAPTER 3: GROWING THE When we asked who or what influences
SOCIAL COMMERCE CHANNEL VIA peoples’ purchasing decisions most, 21%
“INFLUENCE” & “RECOMMEND”, of 16 to 24-year-olds worldwide said social
TWO RISING TRENDS IN SOCIAL media influencers and online bloggers, putting
this second only to friends (25%) – who may
In this year’s survey, 57% of consumers told well be influencing each other through social
us they actively recommend products to their media anyway. The figure for 25 to 34-year-
friends through tagging, direct messaging olds was only slightly less at 19%.
etc. – a defining aspect of the ‘social’ element
57
SECTION 5:
KEY CONSIDERATIONS
& ACTIONS
START PREPARING THE GROUNDWORK FOR
SOCIAL COMMERCE.
→ D
on’t keep it siloed - it needs to be part of a
balanced channel strategy. Our consultancy
team can help you.
→ O
ur APAC social commerce experts can share
their learnings and devise and manage your
strategies.
58
SECTION 6:
59
WHEN YOU BUY THE FOLLOWING TYPES OF PRODUCTS ONLINE, WHERE ARE YOU MOST LIKELY TO ACTUALLY PURCHASE?
PHARMACEUTICAL
ENTERTAINMENT
CLOTHING AND
ACCESSORIES
TECHNOLOGY
FURNISHINGS
MOTORS AND
HEALTH AND
PRODUCTS
PET CARE
GROCERY
FASHION
GARDEN
LUXURY
BEAUTY
HOME
TOYS
AT THE WEBSITE OF
THE BRAND I WANT 16% 14% 8% 22% 20% 17% 11% 15% 9% 23% 12% 13%
AMAZON 10% 28% 24% 13% 22% 15% 13% 14% 16% 13% 16% 9%
OTHER MARKETPLACES
(E.G. EBAY) 14% 16% 23% 14% 18% 18% 16% 21% 17% 21% 17% 14%
MERCADO LIBRE 2% 6% 8% 3% 6% 4% 5% 5% 7% 3% 8% 1%
VIA AN AGGREGATOR /
DELIVERY APP 5% 2% 2% 1% 1% 2% 3% 1% 2% 1% 2% 18%
(E.G. UBER EATS)
SECOND-HAND SITES 1% 2% 2% 2% 1% 1% 1% 2% 2% 2% 2% 1%
OTHER 4% 3% 1% 2% 2% 3% 3% 2% 2% 2% 2% 3%
I NEVER BUY THIS
PRODUCT ONLINE 23% 9% 12% 20% 8% 14% 22% 14% 22% 6% 22% 19%
STREAMING (E.G. VIA
SPOTIFY, VIDEOLAND, 0% 1% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
NETFLIX)
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SECTION 6:
KEY CONSIDERATIONS
& ACTIONS
CHOOSE YOUR CHANNELS AND PLATFORMS
WISELY.
62
SECTION 7:
ETHICS & SUSTAINABILITY
There have been concerns that the COVID-19 Even more significantly, 67% said that they
pandemic would deal a major blow to the considered a company’s ethics and morals
cause of ‘ethical consumerism’. when making purchasing decisions, with 60%
claiming they actively choose companies that
There is no doubt that the collective power are more environmentally responsible – both
of the consumer wallet can and does force noticeable increases from 2020 (55% and
even the most steadfastly profit-oriented 46% respectively).
corporations to take heed of issues like the
environment and social responsibility.
63
A brand’s ethical and environmental We might expect this to be an area where
credentials is also something that influences eco-conscious consumers were most
younger shoppers considerably more than keen to apply pressure on brands, then.
older generations. Close to three-quarters But actually, our survey findings are a little
(70%) of under-45s we spoke to overall said more ambiguous. On the one hand, 73% of
a company’s ethics and morals play an active shoppers told us that the country a product
role in their purchasing decisions, dropping is being delivered from is an important
sharply to 58% of over-45s. purchasing consideration. However, this could
be influenced by concerns about lengthy
waiting times from distant countries as much
as by wanting to choose a more sustainable
70% OF UNDER-45S option.
a more eco-friendly option to its next day to shop somewhere other than their preferred
delivery Prime service, by allowing customers marketplace by better environmental
to select a single day for receiving all their practices, and 13% by better brand ethics –
ordered items. (Among the countries we both a long way behind cheaper prices (46%)
surveyed, 34% of our UK audience have and more convenient delivery options (20%).
already used Amazon Day, with Japan at
30%, and the US double that at 60%).
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SECTION 7:
KEY CONSIDERATIONS
& ACTIONS
ENSURE THAT YOUR SUSTAINABILITY
CREDENTIALS ARE ROBUST AND AUTHENTIC, AND
COMMUNICATED EFFECTIVELY.
65
THE FUTURE SHOPPER REPORT 2021
SECTION 8:
THE FUTURE
OF COMMERCE
66
SECTION 8:
THE FUTURE OF COMMERCE
As the world begins to look beyond the Our survey results provide a similarly clear
COVID-19 pandemic, a key question that message about consumer hunger for digital
everyone in business has to grapple with is innovation. Two-thirds (66%) told us they wish
what success will look like in the altered world brands would be more digitally innovative – a
we emerge into, and what the ingredients for notable increase on the 52% who said the
that success will be. same in 2020.
67
CHAPTER 2: EXTENDING THE There is a very sharp age divide here. More
DIGITAL REACH than half of under-45s like the concept of
biometric payments (54%), dropping to 41%
In terms of some of the innovations of 45 to 54-year-olds, and under a quarter
consumers are looking for, 60% said they (24%) of over-55s.
were excited about a future with cashless
payments – another big increase on 2020 Looking at other digital innovations
(when the figure was 44%) and another popular with consumers, on the topic of
big trend in Asia, where the figure in China, personalization, three-quarters of people we
Thailand, India and Indonesia was over 80%. spoke to (76%) said they would be happy
for retailers and brands to use their purchase
EXPERT OPINION: WHY WE’RE HEADING TOWARDS Similarly, 62% said they were excited history and preference data to send them free
A CASHLESS SOCIETY AND WHAT IT MEANS about no-checkout, no queue stores. The samples of products. This figure rises to 91%
suggestion hidden in both of these figures, in Brazil, with Thailand (89%) and Colombia
With much of the world starting to open up, things are slowly of course, is that consumers are no longer (87%) not far behind.
getting back to some kind of normal. However, this time around seeing digital shopping technology as
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The main appeal of this is for people hanging out and making new friends online
concerned, for example, about leaving a as they play. Some connect via video and
family behind and wanting to continue to voice, sure. But lots of gamers have avatars
provide for them, as an alternative to standard which become their ‘public face’ in the digital
inheritance – a kind of futuristic digital trust gaming world.
fund, if you like. There would, of course, have
to be appropriate filters applied to make We know lots of people have had more time
sure purchases were appropriate for the on their hands to play video games through
purpose, and there are lots of ethical and the pandemic. According to our survey, 68%
moral questions to answer before it becomes of consumers play games on mobile, 47% on
a reality. a computer and 33% on consoles. From a
commerce perspective, the more interesting
It is interesting how much more open to finding is that 59% of people who play
this idea consumers in some regions are games also spend money through the games
compared to others. In Thailand, for example, platforms they use.
69
In terms of geographic splits, gaming
commerce is a much bigger trend in APAC,
where 62% of gamers spend money as they
play, and Latin America (63%) than it is in
56% OF GLOBAL
Europe (45%), with notable highs in the giant GAMERS SAID THAT
markets of India (80%), China (77%) and the THEY WOULD BE
US (70%).
INTERESTED IN BUYING
As you might expect, there is a very clear PRODUCTS FOR THEIR
age split. Two-thirds of 16 to 44-year-olds
(66%) spend via gaming platforms, falling to
‘DIGITAL SELVES’ /
just 25% of over-55s (46% of this age group AVATARS
70
CHAPTER 4: SMART ASSISTANTS Similarly, the proportion who have never used
AND VOICE COMMERCE voice commerce and say they don’t intend to
do so is shrinking, down at 25% from 32%
Ownership of smart assistants like Amazon’s last year.
Alexa and Google Home is on the rise,
achieving double-digit growth in the US in Interestingly, a higher proportion of men (43%)
2020 and reaching more than a third of the use voice commerce than women (34%).
population. The more people own and use Younger shoppers are also more active
smart assistants, logic suggests that ‘voice using smart assistants to buy – 46% of 16
commerce’ – the ordering of products online to 24-year-olds say they currently use voice
through these devices using your voice only – commerce or have in the past, and 47% of
should also be on the up. 25 to 34-year-olds.
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CHAPTER 5: SUBSCRIPTIONS subscriptions. Last year, we also reported
a sharp increase in the number of US
In previous years, we have reported a steady consumers signed up to one to three
increase in the number of consumers signing subscription services, up from 29% in 2019
up for online product subscription services to 53% in 2020. But this has slipped back to
such as Graze, Birchbox and Harry’s. This 43% this year.
38% OF GLOBAL
said they were signed up to no subscriptions.
This rose considerably to 56% this year.
SHOPPERS ARE
Similarly, last year, 58% of consumers
reported being signed up to one to three SIGNED UP TO ONE TO
subscription services. This fell to 38% in this THREE SUBSCRIPTION
year’s survey.
SERVICES
India (68%), UAE (62%), Mexico (62%) (DOWN FROM
and especially Colombia (83%) showed 56% LAST YEAR)
the highest rates of engagement with
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CHAPTER 6: AUTOMATED consumers in Japan saying they have never
PURCHASING used such services and have no intention of
doing so.
Finally, we have seen a notable uptick in the
number of people using automatic reordering The figures also indicate considerable growth
devices like HP Instant Ink, Brita water filters, in the US, with current or previous use
Nespresso coffee machine capsules, and so topping 56% – well above last year’s highest
on. We call this Programmatic Commerce™, figure, 38% in Spain, and a big jump up from
73
SECTION 8:
KEY CONSIDERATIONS
& ACTIONS
INVEST THE TIME TO GET FULLY UP TO SPEED
WITH WHAT’S NEW IN COMMERCE AND WHAT
TECHNOLOGIES ARE SHAPING ITS FUTURE.
75
So what have we learnt from our research? Two thirds still want the option of being able
to buy from the same brand in a store as well
The COVID-19 pandemic will be seen as a as online. Led by grocery, buying in-store is
tipping point for online commerce around the still a more popular option than any single
world. Digital was what kept the wheels of digital channel across five different retail
commerce turning globally, providing a lifeline categories.
to businesses and stuck-at-home consumers
alike. Throw in the fact that brand-owned, direct-to-
consumer channels appear to have enjoyed
Consumers are spending more online a surge in popularity over the course of the
compared to before the pandemic, they are pandemic, and that the rise of aggregators
But that’s not the whole story. As much as Above all, it will take a deep understanding of
the idea of buying everything from one place your market, your customer base, your local
appeals to many consumers, marketplaces and regional conditions, to give you insight
aren’t the sum of what digital shoppers want. into how best to respond to the challenges
laid down in the post-COVID-19 commerce
landscape, and to lay the foundations for
success going forward.
76
HOW WE CAN HELP
Connect with our Global CTO, Glen Burson. Connect with our Social Strategy and Insights Consultant, Chloe Cox.
Connect with our Customer Experience Director, Rachel Smith. Connect with our Business Services Director, Andrew Waugh.
Connect with our Head of UX & CX Consultancy, Mike Rokes. Connect with our Head of Commerce Data Management, Dwayne Manzano.
Connect with our Head of Service Operations, Mario D’Cruz. Connect with our PIM Lead, Dennis Peek.
78
ABOUT WUNDERMAN THOMPSON COMMERCE
Our clients include Bayer, Bosch, DFS, Johnson & Johnson, MAC, Nestlé, Sainsbury’s, kaythaya.maw@wundermanthompson.com
Selfridges, SharkNinja, Shell, Specialized, Tempur and Tiffany & Co.
Wunderman Thompson Commerce is a WPP agency, recognized as a Leader in For Latin America sales enquiries:
The Forrester Wave™: Commerce Services, Q1 2021. More details on the achievement glenda.kok@wundermanthompson.com
can be found here.
For more information on Wunderman Thompson Commerce, please visit us at For Middle East sales enquiries:
www.wundermanthompson.com/service/commerce and follow us
on Twitter, Facebook, LinkedIn, and Instagram. +971 (04) 4507200
©2021 Wunderman Thompson Commerce. All rights reserved. All company and product names, brands
and symbols mentioned herein are brand names and/or registered trademarks of their respective owners.
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