Home Big Grid 69% customers want to know about product in zero-contact manner: EY Survey

    69% customers want to know about product in zero-contact manner: EY Survey

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    Tailoring technology investments with product and customer strategy will enable retailers to optimize customer experiences and stay ahead of competitors, said the latest EY study “Life in a pandemic: future of retail”. Retail has always been a very competitive industry with an unpredictable chase for margins. The study, however, unveils how the pandemic has led  to a shift in consumer preferences for in-store retail shopping, challenging the status quo with reduced footfalls, disrupted supply chains, and a distant recovery ahead..
    • 69% of customers reported that they would like to know about the product in a zero-contact manner
    • 67% are unwilling to travel farther than 5 km to meet their shopping needs
    • About 76% would prefer their purchases to be sanitized at the point of purchase

    To understand the near-term pandemic as well as the long-term impact of the pandemic on  consumer preferences,  the study assessed responses of 436 salaried professionals of different age-groups, gender and cities whose incomes were not affected by the outbreak of COVID-19. The survey traced the transformation of their shopping experience at each stage of their purchase journey during the pandemic.

    As per the survey findings, it was observed that:
    • The pre-purchase i.e. the consideration stage has prolonged considerably as the consumer gives much more thought before making the actual purchase.
    • Electronics, cosmetics, and home appliances witnessed a shift in buying behavior with approximately 40% of customers preferring to buy online
    • Less than 20% of customers still value in-store experiences to purchase jewelry, automobiles and furniture

    , Partner – Design Thinking and Digital Transformation, EY India, said, “As health and safety continues to be a priority during the ongoing pandemic, these uncertain times have brought newfound innovation as retailers rethink their business operations and invest in technology in order to adapt to their new normal as well as enhance the shopping experience. Smart technology solutions have been helping retailers maintain hygiene, provide contact-less shopping, introduce new sanitization practices and even expand to e-commerce to help customers several ways to shop and order deliveries at their convenience.”

    Customers plan the items they wish to purchase before visiting shops and would rather prefer a shop in their locality over a mall.

    • Three out of four customers would avoid crowded places.
    • 67% of them showed unwillingness to travel beyond 5 km.
    • Nearly 50% customers have switched from their preferred shops to new grocery stores even as factors like proximity, availability, variety, safety and hygiene take precedence

    “There is a significant change in consumer behavior that is impacting how purchase decisions are made and altering the retail shopping experience. This is a double win for retailers, compelling them to deploy emerging technologies to increase the efficiency of operations in the short term and enable sustainable cost savings across the value chain in the long-run.” added , Sector Leader, Consumer Products and Retail, EY India.

    With the onset of COVID-19, customers are looking for efficient ways of shopping as they want to limit their exposure outside the sanctuary of their homes to protect themselves from the pandemic. Given that majority of the customers are neither willing to enter the store nor comfortable spending more than 30 minutes inside the store, the entire in-store shopping experience that might have been therapeutic for some has instead become a cause of anxiety.  While the concern to limit contact with others is driven by the pandemic, point of purchase and delivery are quick wins in the contactless technology implementation plans.

    • 76% customers want their purchases to be sanitized again at the point of purchase
    • 76% customers prefer to pay via UPI or digital wallets
    • 78% customers would prefer to use self-checkout kiosks.
    Besides, adoption of emerging technologies like AI and IoT will enable organizations to transform their contactless offering.
    Survey Methodology
    The study planned on survey questionnaire on Qualtrics based on industry standards, and by reviewing the available literature and best practices is based on the hypothesis. The insights are based on the findings of a survey of 436 respondents, out of which 385 account to salaried professionals, from different age groups, gender and city types.