Let’s scan minds, dig into the behaviors of 2017 shoppers and get to know “Behavior 4.0”.
Retailers must also be fast to handle the coming of 4.0 era. Beside the four basic needs, safety, love and the acceptance from the society; the ability to access information and people is becoming one of the important basic needs of people nowadays. These people are called “Generation C”.
Teeradet Dumrongbhalasitr, Head of Connect Media of dunnhumby (Thailand), gave a special talk at BRAND TALK No.11 from website BrandBuffet.in.th on the topic RETHINK RETAIL “Let’s scan minds and dig into the behaviors of 2017 shoppers”. He provided a very interesting information that “the mentioned Generation C is not separated by age or year of birth like other generations, but separated by particular behaviors called Behavior 4.0 as follows;
- Connection is a need to always talk and communicate with people.
- Current is to have less patience to wait and immediate need access both information and people.
- Convenient is to access easily and conveniently.
- Community is to create Crowd-Culture society without the limitation on space and distance but with the connection via Common Platforms.
The existence and the expansion of Gen C have caused the change towards society in many ways such as the expansion of urban community and lifestyle in term of family; there are the increase of single family with less members in the family, single people, preference to live in condominium and health care which results in long life and slow retirement.
“Thais’ average income per household has been increased at 4.6%, 27,545 Baht per month as each family earn income from more than 1 job. Most of them are trying to look for more convenient and better life causing the increase in living cost in residence or healthy products. Even though the average expense per household has also been increased, it is still lower than the average income. The average expense per household is at 21,818 Baht which most expense at 87.4% is for living; food and grocery”
When it comes to the increase of Thai people’s expenses, it is the good chance for retail business to grow according to such fact. The estimate overall growth of retail business is at 5.5% while grocery retail tends to be at 5.2%.
“Retail business needs adaptation to create opportunity from changing consumers’ behaviors. One way is to develop new method to create promotion or to engage with customers in order to enlarge the chances to spend money. This way is to continue from technology development or the study of changing consumers’ behaviors. From last year, it is found that each time of purchasing, customers’ spending decreased to 1%, but their number of shopping increased to 5% casing the average increase in spending through retail at 4%”
What happens to Thai customers is the decrease in loyalty as they are not adhere to either retail platform or brand. It is obvious that no customers will shop at only one brand of retail. However, 69% of customers spend on the average at 2.6% by brand and different platforms; 98% shop in big platforms like Hiper market, 91% shop in convenient store, 42% shop in particular food store and 41% shop online. For the need on promotion, they keen on quality rather than the amount especially, the products’ promotion “Every Day Low Price”.
From the happening change, business section must maintain the adaptation in order to respond to what customers are looking for in retailers. There are 3 things as follows;
- Mission Focus is to provide what the customers need.
- The increase in Shopping Engagement
- Multi-Channel where there are more different buying platforms to choose.
Trends which can help move forward the retail business are such as;
- Food To GO: or Ready to Cook food as it responds to the consumers’ convenience. In Europe, this kind of food is growing up to 35% while the growth in Thailand is more than 10% which is higher than the overall picture of grocery (5.2%).
- Online Engagement: when consumers nowadays start to look for products information online before purchasing, retail business has to also place the importance on Online Engagement in order to make connection to their products. Moreover, it is to educate and create confidence to consumers to make a proper purchase.
- O2O Strategy: even though there has been an increasing trend in online shopping from 18% in 2013 to 28% in 2016 especially, grocery shopping at more than 20%; because of the existence of different platforms to choose, retail business should still continue learning to connect both online and offline through the use of O2O (Online to Offline Strategy) to connect all consumers’ shopping experiences.
This is just a part of the conclusion from RETHINK RETAIL talk event via BrandBuffet.in.th. I am hoping that this talk will be the most beneficial to both listeners attending the event and the readers. For more detail, please stay in touch for chapter 2 and hoping that there will be another activity to help continue the knowledge and create inspiration to all.
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