WBD-2019年网络零售报告（英文）-2019.7-28页_626kb

The Digital Tipping Point - 2019 Retail Report Summary

Core Content

The 2019 Retail Report by Retail Economics and Gavin Matthews, Head of Retail at Womble Bond Dickinson explores the transformative changes in the retail industry driven by digital technologies. It highlights the shift from traditional, physical retail to a digital-first landscape, where online shopping is becoming the dominant channel. The report outlines the key factors influencing this change and predicts the future of retail as it moves toward a digital tipping point.

Main Viewpoints

• Digital Transformation is Accelerating: The retail industry is undergoing a period of unprecedented change, with the digital revolution reshaping consumer expectations and shopping behaviors.
• Online is the Future: Online retail is expected to surpass physical retail as the primary shopping channel, with forecasts suggesting that by 2028, it will account for over 50% of all retail sales.
• Consumer Behavior is Evolving: The customer journey is becoming more digital, with younger generations (Gen Z and millennials) leading the shift toward online shopping.
• Technological Advancements are Key: Innovations such as AI, 5G, and in-home delivery are enhancing the speed, convenience, and cost-effectiveness of online shopping.
• Data Security is a Growing Concern: Consumers are becoming more conscious of data privacy, demanding a fair exchange of value for their personal data.
• Store Closures and Market Polarisation: The number of physical retail stores is declining, leading to market polarisation and a shift in consumer behavior.

Key Information

1. The Tipping Point

The retail industry is at a digital tipping point, where online shopping is becoming the dominant channel. This shift is driven by technological advancements, changing consumer expectations, and the rise of digital natives.

2. Evolution of the Customer Journey

• Smartphones have become the primary device for online shopping, with 62% of time spent online now occurring on mobile devices.
• Younger consumers (16-24) are more connected and spend more time on smartphones, with 53% of them finding smartphones most useful for discovering new products and brands.
• Online shopping is becoming more integrated with physical experiences, blurring the boundaries between the two.

3. Online Spend Growth

• Online retail spend has increased more than four-fold in the last ten years, reaching over £70 billion.
• Gen Z and millennials are expected to be the main drivers of future online spending, with millennials currently spending £110.45 online each month.
• Despite higher frequency of online purchases, younger consumers spend less per transaction, which affects profit margins.

4. Age and Category Penetration

• Age demographics significantly influence online spending patterns. Younger consumers are more likely to shop online for fashion and lifestyle items, while older consumers are more likely to shop online for books.
• Gen Z and millennials are expected to account for over half of the adult population by 2029, making them the key demographic for future growth.

5. Faster, Cheaper, In-Home Deliveries

• Delivery speed and cost are among the top factors influencing online shopping.
• In-home deliveries are becoming more common, with 47% of consumers citing delivery cost as a key concern.
• AI and smart technologies are enabling faster, cheaper, and more convenient deliveries, including drone deliveries and autonomous vehicles.

6. Fewer Stores Drive Online Shopping

• The number of physical retail stores has been declining for five consecutive years, with 7,550 net closures in 2018 alone.
• Shopping centres have seen the biggest decline in retail units.
• Experiential stores are becoming more important, while secondary locations with excess capacity are struggling.

7. Better Connectivity and More Powerful Devices

• Improved connectivity and more powerful devices have enhanced the digital shopping experience.
• Smartphones are the most important device for online shopping, especially for younger consumers.

8. New Retail Business Models

• Subscription models and auto-replenishment are emerging as key strategies for online growth.
• Retailers are moving toward fewer but more experiential stores, which are expected to complement online shopping.

9. The Rise of AI

• Artificial Intelligence (AI) is playing a pivotal role in enhancing the online shopping experience.
• AI is enabling personalised recommendations, frictionless payments, and conversational commerce (e.g., Alexa, Google Home).

10. Risks to a Digital Future

• Data security is a major risk for retailers, with over a quarter of consumers taking steps to limit data sharing.
• Consumer trust is essential, as two-thirds of consumers believe businesses benefit more from their data than they do.
• Privacy concerns are increasing, and retailers must adapt to ensure equitable data exchange.

Conclusion

The digital retail revolution is only just beginning, and the industry is on the brink of a tipping point where online will dominate. Retailers must adapt quickly to new technologies, embrace innovative business models, and prioritise data security to remain competitive. With Gen Z and millennials expected to form the majority of the adult population in the next decade, the future of retail is increasingly digital, and the key to success lies in understanding and meeting the evolving needs of these consumers.