When it comes to delivery, consumer expectations seem to revolve around next-day delivery - chosen as the preferred method consistently in the US (78%), ROI (70%), the UK (68%), Germany (65%), Australia (65%) and France (62%).
However, next day is arguably already considered the standard delivery method in most developed retail markets. Perhaps more interesting is to look at speedier options. In particular, same day has generated a lot of noise in the market but many have argued the method is not profitable unless a retailer has a large store estate to fulfil orders from, or has signed a deal with a retailer that does.
Same-day delivery is important in the UAE and Kenya, where it surpasses next day as the preferred delivery method. Interestingly, the US, China and Australia round out the top five for same day, despite the wide expanses of these countries. This shows that internationally consumers are beginning to expect speedier fulfilment, and retailers will need to be set up to be able to deliver this.
The other big emergent trend is certainty. Consumers want to know exactly when they will receive their goods. The next most popular delivery choices internationally were named day, collect in store and time slot.
It was hard to miss the change in the data protection legislation across the EU in May 2018 and global businesses are still adapting as they look to trade in, and with, Europe. In the digital age, targeted advertising is opening up huge opportunities for retailers, but it is more important than ever that businesses ensure their data systems are secure and crisis management is in place as any business can suffer a breach.
In terms of supply chain, it is clear efficient forward logistics are vital to meet consumer demand but, in a world where customers want to ‘try’ goods at home before returning them, it is equally important to ensure reverse supply chain and reverse payments systems work smoothly. Do your logistics contracts and supply chain arrangements address this and are your teams dealing with returns able to spot if the items being returned are fake?
Five key takeaways
The DWF and Retail Week Global Consumer 2019 report surveyed 1,000 consumers in each of the following jurisdictions: Australia, China, France, Germany, Italy, Kenya, the United Arab Emirates, the Republic of Ireland, the UK and the US. Research took place in October 2018.
Understanding consumers’ propensity to buy is one thing, but knowing how they are going to spend their money is crucial if retailers want to stand a chance of winning their custom. This means understanding which channels factor into their purchasing journey, how they like to pay, the fulfilment options they want to use and what encourages them to spend.