With the majority of shops in the UK opening at some stage in April 2021 (and English stores next Monday) Underlines takes a look at consumer expectations of both small and large shopping outlets. Will we see an initial rush to shops followed by flat-lining after summer 2021? or will we experience the Roaring 20’s Part Two*? Last century we saw the end of World War I followed by the Spanish Flu of 1918, then the 1920’s saw not just a new normality but an upsurge of hedonism and a boom economy. Consumerism reached new heights and the mindset of society changed from one of fear and deprivation to one of seemingly endless possibilities – whilst this deprivation cannot be compared to 2020-2021, there are parallels to be drawn when assessing consumer behaviour.
The pandemic of 2020 bears many similarities to that of over a century ago…consumers becoming more careful with/saving more money (becoming risk averse while the threat to life and livelihood are most apparent). However just as the 1920s saw the wider access to telephone, radio, cinema, r-to-w clothing as well as more assembly line production (a series of firsts that completely changed the way people lived and worked), we are experiencing seismic and swift changes to the way we work, live and shop in 2021 and beyond.
As we ‘emerge’ from our socially deprived and distanced bubbles it is pretty certain that consumers will spend more freely and indulgently not just this year but at least for the next 2-3 years especially when allowed to travel more freely. Generations of consumers who have taken regular foreign holidays absolutely for granted, city break weekends to virtually anywhere they like have been under ‘house arrest’ for over 12 months and will continue to have limited options to at least the end of this year. And for those workers who have been furloughed or WFH many are richer cash-wise with little access to travel, eating out, health & beauty treatments, hair and nail salons… The signs are already apparent that we will be stay-cationing with sales of camper vans outstripping supply and bookings of holiday caravans throughout the UK already at capacity.
Consumers are craving exciting, in ‘real life’ experiences due to a dearth of stimuli and the eagerness to return to ‘normality’ (any with surplus of savings literally burning a hole in their pockets) reveals tangible opportunities for both brands and retailers in the retail industry. And other key prospects come from sustainability and recyclability of clothing and intimate apparel – consumers have had time to look at the fashion industry much more analytically than ever before so premium priced products with a good providence and little carbon footprint have much to gain going ahead. Whatever else is likely, 2021 will continue to be another milestone year for business, politics and society. The UK is on the verge of re-opening but meantime France, Germany and Italy have been forced into or have had to extend their lockdown periods for non-essential retailing.
Underlines was fortunate to get access to an illuminating report by UPS** which measures what consumers want from both bricks & mortar and e-commerce across the UK, Germany, Italy, Spain, Netherlands, Belgium and Poland. Across all the countries common reasons for shopping at smaller or independent stores were cited: 50% want to help small business, 40% believe customer service is better and 37% think that they can offer a more personal experience. However this has to be balanced by the rise of online shopping which has now reached 25% of all purchasing in the UK (but the biggest move away from the physical was in household & electrical, cosmetics and grocery categories). Another important driver for consumers to shop in store was the perception that goods are easier to return in person (29%) alongside a more unique/innovative product offer (25%).
What is interesting here is that the desire to help small or local businesses was highest in the UK (62%) and Spain (61%). Align this with the real desire for shopping enjoyment and personal contact (and of course personal advice on fitting for intimate apparel specialists) with the shop-owner and prospects in the short term look auspicious. And of course it is those smaller retailers who have had an active online presence over the last 12 months (even if not selling online) in various social media who stand to gain the most. They have garnered new Facebook friends, Instagram followers and indeed opened up direct marketplaces on social media (with or without transactional websites) and in many cases have shared their emotional rollercoaster of being a small business owner with their sympathetic customers.
These smaller retailers have another key advantage over pure play insomuch as many consumers believe local retailers and shopping locally is a much more sustainable and eco-friendly method of shopping. Perceptions of excess/unnecessary packaging and a large carbon footprint for deliveries mean sustainability has become a key topic for e-commerce operators. Level of returns is another issue doubling up on environmental concerns. This is felt most acutely by the active ‘digital natives’ who shop mostly if not completely online but are also environmentally more aware than previous generations (although the gap is closing as more generational awareness is growing).
Much has been written on how that larger retailers operating in bricks and mortar must bring the so-called ‘shopping experience’ with the public relations emphasis on experience rather than shopping. In the short-term this is not a major issue as consumers will have the pent-up desire to shop, shop and shop again but in the medium to long term, this ‘experience’ will become more essential to gain and retain consumer interest and loyalty.
It is impossible to ‘turn back the clock’ in terms of heightened purchases online but the smaller, independent retailers now have the opportunity to truly shine on re-opening. Most consumers have had a great deal of screen time, be that for work, keeping in touch with family or indeed shopping. The one great advantage of e-commerce (convenience) can be over shadowed in clothing/footwear and intimate apparel by personal service, personal advice and the actual desire of consumers to spend their money with smaller retailers to whom their purchases make a real difference in a competitive marketplace. Individual, personalised fitting and attention will be in huge demand and the widely adopted and safe appointments system only adds to that very special customer experience. I for one can’t wait!
*The Green Room Design
**UPS Smart E-commerce Report 2021 (10,699 adults interviewed across 7 countries)
