52% of millennials visit something new

build an experience rather than a shop

This is the sixth of 10 ‘BEST OF THOUGHTS’ from the more than 200 THOUGHTS published in 2018.

This ‘thought’ was part of a series examining the trends in marketing in 2018 and beyond.

Having products for sale, even the best products, is no longer enough. When asked why they shop online, shoppers tend to cite the following three reasons, in this order:

  • Range
  • Convenience
  • Price

The online environment is seen as offering greater range, a more convenient experience, and lower prices, so, unless a product is needed in an hour, why visit a bricks and mortar shop? Increasingly, consumers are asking themselves this question and concluding that online shopping is the way to go. In December 2017, 22% of Australian retailing was transacted online. It is predicted that by 2025 50% of all retailing will be online.

So, will bricks and mortar retailers survive?

Yes, if they can offer a unique experience that is not available online and one that is worth giving up range, convenience, and price for. Amazon offers 80 million products – a number Wallmart with its 14 million can never compete with. Bricks and mortar stores offer immediacy. However, this offering requires the customer to drive, park, fight their way through the shop, and endure time with a sales assistant they would rather not meet.  They are also likely to (or perceive they will) pay more.

However, if the shopping experience stands alone as an attraction, there is a reason why consumers will come to the shop – for the experience – and possibly purchase while they are there. This in part explains:

  • Ski slopes in a shopping centre in Dubai
  • The new trend towards ‘inside out’ shopping centres, with the entertainment on the outside
  • Shops offering a tactile and highly interactive experience as in Apple stores
  • Restaurants offering great food – e.g. Ikea where the meatballs are a significant attraction

Recent research found that:

  • 52% of millennials will visit a shopping centre for a new experience
  • 49% of millennials will visit a shopping centre for food or entertainment
  • 45% of millennials currently visit a shopping centre for pick up purposes only

Millennials like to shop online and many will only go to a shopping centre to collect something already purchased online. This reflects the growing trend towards click and collect. This practice, while effective, can reduce the average sale per customer.

Attractions that include a new experience, food, or entertainment can attract millennials into a shopping centre. This, in turn, creates an opportunity for retailers to sell them stuff.

INSIGHT

Customer experience is becoming increasingly important as both a defence against online shopping and a competitive advantage for one ‘bricks and mortar’ retailer over another.

Stores such as Ikea and Apple truly embrace customer experience at every level – from the standards of service to the unique or highly enjoyable experiences (playing with technology or enjoying food) which become attractions, and reasons for visiting the stores in their own right.

Create a great customer experience and the visitors to that experience will shop.

Use quality content to educate your market and position your business.

SOURCES OF CORE DATA

Smart Insights, TheDrum, Social Media Week, CSR matters, Louder Milk, Forbes, Quicksprout, WiderFunnel, Trends and Insights, Core DNA, Digital Current

52% of millennials visit something new

This is the sixth of 10 ‘BEST OF THOUGHTS’ from the more than 200 THOUGHTS published in 2018.

This ‘thought’ was part of a series examining the trends in marketing in 2018 and beyond.
Having products for sale, even the best products, is no longer enough. When asked why they shop online, shoppers tend to cite the following three reasons, in this order:

  • Range
  • Convenience
  • Price

The online environment is seen as offering greater range, a more convenient experience, and lower prices, so, unless a product is needed in an hour, why visit a bricks and mortar shop? Increasingly, consumers are asking themselves this question and concluding that online shopping is the way to go. In December 2017, 22% of Australian retailing was transacted online. It is predicted that by 2025 50% of all retailing will be online.

So, will bricks and mortar retailers survive?

Yes, if they can offer a unique experience that is not available online and one that is worth giving up range, convenience, and price for. Amazon offers 80 million products – a number Wallmart with its 14 million can never compete with. Bricks and mortar stores offer immediacy. However, this offering requires the customer to drive, park, fight their way through the shop, and endure time with a sales assistant they would rather not meet.  They are also likely to (or perceive they will) pay more.

However, if the shopping experience stands alone as an attraction, there is a reason why consumers will come to the shop – for the experience – and possibly purchase while they are there. This in part explains:

  • Ski slopes in a shopping centre in Dubai
  • The new trend towards ‘inside out’ shopping centres, with the entertainment on the outside
  • Shops offering a tactile and highly interactive experience as in Apple stores
  • Restaurants offering great food – e.g. Ikea where the meatballs are a significant attraction

Recent research found that:

  • 52% of millennials will visit a shopping centre for a new experience
  • 49% of millennials will visit a shopping centre for food or entertainment
  • 45% of millennials currently visit a shopping centre for pick up purposes only

Millennials like to shop online and many will only go to a shopping centre to collect something already purchased online. This reflects the growing trend towards click and collect. This practice, while effective, can reduce the average sale per customer.

Attractions that include a new experience, food, or entertainment can attract millennials into a shopping centre. This, in turn, creates an opportunity for retailers to sell them stuff.

INSIGHT

Customer experience is becoming increasingly important as both a defence against online shopping and a competitive advantage for one ‘bricks and mortar’ retailer over another.

Stores such as Ikea and Apple truly embrace customer experience at every level – from the standards of service to the unique or highly enjoyable experiences (playing with technology or enjoying food) which become attractions, and reasons for visiting the stores in their own right.

Create a great customer experience and the visitors to that experience will shop.

Use quality content to educate your market and position your business.

SOURCES OF CORE DATA

Smart Insights, The Drum, Social Media Week, CSR matters, Louder Milk, Forbes, Quicksprout, Wider Funnel, Trends and Insights, Core DNA, Digital Current

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