Global

Details

  • Industry: Media, Telecommunications
  • Type: Survey report
  • Date: 12/5/2011

Consumer preference is radically changing the retail business model 

Retail business model
As consumers shift much of their shopping to online stores, the retail sector will need to move quickly to ensure that their assets and business models are properly aligned to market demands.

"The integration of the various channels is becoming increasingly important to retailers as they begin to see many of their consumers move to online and application-based purchases."


- Mark Larson, KPMG's Global Head of Retail


For most consumers, a trip to the mall rarely involves leaving the home these days. That's because – across every category of goods – the majority of consumers now prefer to purchase an item online rather than at a physical outlet.


"I'm an avid user of eBay, even for all of my household items. I tend to know exactly what it is that I want, and have found that it is a lot cheaper buying it online," one consumer told our research team.


Even within the store, the customer experience is rapidly changing. More than a third of consumers now use their mobile devices to store, access and redeem coupons for in-store purchases. What's more, one in five used their mobile phone to gain more information about an in-store product or campaign by scanning product barcodes or QR codes on advertisements.


"The ubiquitous smart phone empowers the consumer and presents a challenge for retailers who will need to understand the opportunities and risks that mobile devices might present," added Mark Larson. "So while display ads and flyers are still an important part of the retail promotional mix, mobile innovations are rapidly capturing the imagination of consumers and changing the business models for retailers."

 

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