The rise of the internet, social media and smartphone devices, has radically changed consumers’ shopping habits, according to a new report by Deloitte.
The report, Navigating the New Digital Divide, has revealed that digital interactions will influence 64 cents of every dollar spent in 2015, or $2.2 trillion. That marks an increase of half trillion dollars from the $1.7 trillion of in-store sales influenced last year. Two years ago that figure was $0.33 trillion.
Mobile influence on in-store sales has actually jumped to nearly $1.0 trillion from only $0.16 trillion in 2012.
One-third of consumers who use digital devices to make purchases say they actually spend more because of their use of digital devices. The report says that it is because digital shopping allows users to do a product search, which leads them to buying complementary or more expensive items. Another explanation is that users take advantage of discounts or vouchers that leads them to spending more overall.
The rise in digital purchases has also lead to much higher conversion rates – people who use digital whilst they are actually in-store convert at a 20 per cent higher rate compared to those who do not use digital as part of their shopping process.
Also, the report finds that many consumers are using digital as a way of generating ideas, rather than simply as a price comparison tool. In fact, digital consumers are 30 per cent less likely to use mobiles to perform price comparisons than they were a year ago.
Social media can also boast to have a significant impact on retail sales. The report found that shoppers are 29 per cent more likely to make a purchase the same day when they use social media to help them make a purchase.
Furthermore, the consumers who use social media are four times more likely than non-users to spend more or significantly on purchases.
All of these findings seem to suggest that the rise of digital purchases is less of a threat to retailers than originally thought. In fact, 45 per cent of respondents said that digital has made in-store shopping easier.
“While retailers tend to view digital technologies as a threat, our research suggests that digital technologies can complement—if not help to revitalize and grow—their core store businesses,” said Kasey Lobaugh, a principal with Deloitte Consulting LLP.
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