E-commerce is beginning to wake up in Spain although the physical store remains the preferred channel

The Total Retail Report 2017 analyzes consumer habits around the world

Spanish consumers who already buy online at least once a week grow from 19% to 27%; and from 48% to 58%, those who do it once a month.

---

Little by little the E-commerce starts to wake up Spain Although, the physical store continues to be the preferred purchasing channel for consumers.

 

This is one of the main conclusions of the report Total Retail 2017, prepared by PwC based on interviews with 24.471 consumers from around the world, more than 1.000 Spaniards. If our report last year reflected the lack of maturity of online shopping in the country, now we see how the situation is gradually changing. The percentage of consumers who already buy online at least once a week increases from 19% to 27%; and from 48% to 58%, those who do it at least once a month.

 

Purchasing habits that are getting closer to the world average but that still remain very far from the countries around us and from those that are at the forefront. In it United KingdomFor example, 45% of consumers make their purchases online at least once a week, ahead of Italy (42%), Germany, (40%),  France (33%), United States (30%) and Spain (27%). China It continues to be the great world reference in electronic commerce: 73% of its consumers buy online every week.

 

 

The physical store continues to be the preferred purchasing channel but those who go there at least once a week have dropped from 66% to 45%.

 

 

The physical store continues to be the preferred channel for Spanish consumers when making purchases but it is slowly losing weightSpaniards who go to it at least once a week have dropped more than twenty points - from 66% to 45% compared to last year. The greater knowledge of the product or the range of products, the possibility of knowing the availability of an item in other associated establishments, the existence of personalized offers and an attractive environment are, in this order, the motivations that lead consumers to continue coming as an option. majority to traditional stores.

 

In the online environment, The computer continues to be the preferred means of purchase in our country ahead of the mobile phone and the tablet. 51% of Spanish consumers buy through their PC at least once a month, nine points more than in our previous study. There are still 46% and 43% of Spanish consumers who never use either the tablet or the smartphone, respectively. In the case of the mobile phone, although its use as a shopping tool in the country is still very limited, those who use it to make purchases at least once a week have grown compared to last year – from 7% to 14% - and also those who do it at least once a month - from 18% to 30% -. A trend that, if we pay attention to the consumption patterns of countries similar to ours, should grow in the coming years.

 

But Why aren't mobile purchases taking off in Spain? Spanish consumers point out three major obstacles they face when purchasing with their mobile phone:the screens of the smartphones are still very small; web pages adapted to screen They are still not easy to use and, furthermore, they are not safe or, at least, that's how consumers perceive it.

 

 

What products are we Spaniards most likely to buy online?Books, music, movies and video games continue to be - according to 62% - the favorite products to purchase online; followed by electronics and computers -for 44%-, and fashion items (clothing and footwear) -for 40%-. On the contrary, food products, jewelry and watches, and furniture are, in that order, those that Spaniards are least willing to buy online.

 

From the document it appears thatFor a majority of Spanish consumers – 53% – price is the main argument when they go to buy at their favorite store  -whether it's online or physical-, followed by trust in the brand –34%-; of the return policy -33%- and that it takes into account stock the products I buy –for 32%-. 

 

The study includes a series of areas in which distribution and consumer companies should focus their investments if they want to compete successfully in an environment as complicated as the current one. Below we highlight some of the main ones:

 

1.- Invest in mobile websites, not in apps. The report reflects how the mobile phone is gaining more and more weight among consumers around the world as a purchasing tool: it has already surpassed thetabletsand reduces distance from the PC. And, although it is still far from the physical store, its use will increase to the extent that distribution companies are able to use interfaces that are as simple, comfortable and intuitive as possible for consumers. And in the classic debate between making a website adapted for mobile or an app, the first option prevails.

 

2.-Invest in talent for the physical and digital. The physical store is not going to disappear and, to the extent that the traditional establishment is becoming a place where having a different shopping experience, it will demand that retail companies retail have increasingly more trained professionals. An investment to which we must add having the best expertise in terms of digital marketing and social networks and with having new profiles in terms of omnichannel, operations and digital transformation within the management committees themselves -C-Suite- of the companies. 

 

3. Invest in data analysis, not just collecting it. One of the main pending issues for companies in the sector is to be able to transform the large amount of data they have on consumers into concrete actions. Such as, for example, personalized offers in real time, as demanded by 60% of Spanish consumers surveyed in the study.

 

4. Invest in more secure platforms. Technology is providing a wide variety of opportunities for consumers but is also opening the door to new risks in terms of cybersecurity and information theft. 66% of Spanish consumers surveyed in the study fear that their personal data will be hacked while shopping through their mobile phones.

 

5. Invest inshowrooming.As we have said before, the physical store is not going to disappear but its role is changing. It is clear that consumers want to enjoy the physical experience of trying products but are still not very satisfied with their in-store shopping experience. An alternative solution could be the so-called showrooms:physical stores in which products are presented, but in which nothing is sold in the strict sense of the word. Only the product is displayed, advice is given about it and, ultimately, orders are taken and sent to the customers' homes from another location.

 

6.- Invest in stories and avoid traditional advertising. Consumers feel less and less attracted to traditional advertising and want first-hand information that has to do with what their friends are doing, with the most relevant brands on social networks and with what their friends say. influencers favorites. 40% of Spanish consumers questioned in the report look for information about the products they are going to buy on the websites of their favorite brands and 33% on social networks –facebook and twitter.

 

Finally, the study shows how many retail They are beginning to incorporate the sale of products or services related to the world of health in countries such as, for example, the United States and Mexico.