More buyers in US, UK opt for online shopping during festive season: Wipro survey

Survey says buyers opting for e-commerce for convenience; shipping charges remain a barrier

Even as online retail has a fairly deep penetration in the US and UK, the industry is steadily growing in the two regions, reflected a survey conducted by information technology (IT) services major Wipro. According to the survey that covered 2,000 buyers, over 60% consumers expect to do their holiday shopping online this year, a rise from 50% a year ago.

The main reason for this growth is not price discounts but convenience, as nearly three-fourths of the respondents to the survey said they opted for shopping online more for the ease of it.

"The large number of consumers choosing convenience over price as their top reason for shopping online is a reminder that brands need to compete on experience not just price," said Avinash Rao, global head, Wipro Digital (the digital transformation business of Wipro). "This holiday season, it looks as if physical stores have not yet done enough to draw consumers into their stores. Improving the in-store experience, for example by offering virtual wardrobes side-by-side with displays, could give consumers a reason to reverse the trend of shopping more online."

In contrast to the high indulgence in 'showrooming' (practice of researching an item across physical stores and making the purchase online) and 'webrooming' (practice of researching online before going into a local store to purchase it), in the US and UK buyers said they do not plan to indulge in such activity. As per the survey, less than five% consumers said they would indulge in showrooming or webrooming.

Also, about 50% of the respondents said that they don't only indulge in researching for stuff online, but also make purchases.

The survey also showed that consumers have not abandoned physical stores altogether, as over 80% said they want to be able to match an in-store promotion when shopping online, and six in 10 consumers expect difficulty in doing that.

However, consumers said there are not enough incentives to shop at physical stores. "Less than 10% think prices are more competitive in-store or that the sales staff is knowledgeable and only slightly more believe physical stores provide a more personalised experience," the survey said. "Parking is another disincentive with nearly half expecting to have trouble finding parking space."

While convenience of shopping from anywhere scores when it comes to buying online, Wipro said that shipping charges may have the potential to drive people away, particularly in the US where this is seen as a larger concern by buyers.

"While we see an increase in online shopping at this time of year, people are still looking for the best ways to combine online and offline experiences," Rao said. "Brands that can peel apart all the interactions that form a customer journey and offer what customers want are the ones who will succeed not only this holiday but going forward."

The survey was conducted between December 8-10, and included consumers between 18-50 years of age. Wipro Digital will also conduct a post-holiday consumer survey in January 2015 to compare expectations with actual experiences.