Online shopping not taking over yet

Australian shoppers continue to research most products and services online, but prefer to purchase in store according to the Deloitte 2008 consumer behaviour survey, released today.

The products most likely to buck that trend, according to the survey, are entertainment items - books, DVDs, music and computer hardware/software - where a significant percentage of consumers feel comfortable researching and buying online.

For the majority of products, however, particularly expensive items, the internet is seen as a very useful tool for researching and comparing prices, but not for actual purchasing. Consumers research furniture, white goods and appliances online, and then go to a shop to see the product and complete the transaction.

Katrina Doney, Director of Deloitte Growth Solutions and consumer behaviour expert, said that increasing numbers of consumers are using the internet to research and compare products, prices and store offerings.

"Results of the survey show that online research is important regardless of whether or not the consumer is buying the product on the internet. Even for things that are less likely to be purchased online - like sports equipment, white goods, apparel and furniture - the internet can be a useful tool to research products and compare prices," Doney said.

"Consumers are still going to retail stores to make purchases. This indicates that for the moment, the internet will not replace retail stores as consumers look for flexibility in how they are served.

"Retailers must not assume that the in-store experience is not important. It comes back to good old fashioned service. People are now more educated before purchasing big-ticket items, but they also like to go to stores and perhaps even treat shopping as a social experience".

Source: Inside Retailing

Comment from Rachael Milne, Business Development Manager @ Simple Net.

This is a great article with some interesting results. It's no surprise that consumers are using the internet for research and that small ticket items such as DVD's, books etc are still the best seller's. Consumers are spoilt for choice in this competitive market. I wonder if the trends would shift if consumers have more options to buy online for other goods?

The results showed that white goods were still purchased in store - interestingly only radio rentals (bigbrownbox) that launched a couple of weeks ago offers an option to buy online. Furniture - not even IKEA offer a "click and collect" option here in Aus.

The sports equipment findings surprised me, ref="http://www.rebelsport.com.au">www.rebelsport.com.au have a good online store, and I believe they are setting the pace. Specialised sports stores are growing in popularity with www.golfclearanceoutlet.com.au being a good example of a company who are doing it well. But it is still a very limited area.

So are people choosing to buy these products in store - or don't they have a choice?

Thursday, 11 December 2008

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