Poor customer experience costs retailers in Asia
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Nearly two-thirds (63 per cent) of consumers in Asia will no longer shop with a retailer after just one poor customer experience. That is one of the conclusions of a research study conducted by unified commerce provider Tofugear in partnership with Rakuten Insight. Based on a survey of 6000 shoppers across 12 countries in Asia, the research underlines the importance of delivering on experience for retailers.
Top frustrations with stores included products being out of stock, long checkout queues and poor service from staff. When it comes to online shopping, consumers were turned off by high shipping costs, inaccurate product information and slow fulfilment speeds.
Philip Wiggenraad, head of research at Tofugear, says: “The connected consumer in Asia is empowered and not afraid to look elsewhere when their needs are not being met. Retailers need to understand that they often only have one chance to get it right.”
E-commerce is popular with consumers in the region: 59 per cent prefer to shop online rather than in stores.
However, there were considerable variations depending on the country. China led the way (88 per cent), while markets such as Hong Kong and Singapore (both 51 per cent) were more evenly split in their preferences between online or stores.
While millennials are the most prolific online shoppers, with more than half (55 per cent) doing so at least once a week, Gen Z also has a definite lean towards the online channel.
“Physical retailers expecting a resurgence of the store driven by Gen Z should think twice and continue to look at ways to make their stores relevant in the digital age,” says Wiggenraad.
Respondents to the survey showed a strong willingness to engage with store technologies in order to make their shopping journey more frictionless. Two-thirds (65 per cent) would use their mobile phone for self-checkout, while 62 per cent were open to using apps in stores as part of a connected retail experience.
Access the full findings of the Digital Consumer in Asia 2018 report by downloading the PDF here.
Questions & Answers
Q.Which specific issues cause consumers in Asia to abandon a retailer after a single negative experience?
Which specific issues cause consumers in Asia to abandon a retailer after a single negative experience?
For physical stores, consumers are frustrated by out-of-stock products, long queues, and poor staff service. Online, high shipping costs, inaccurate product details, and slow fulfilment speeds deter shoppers.
Q.How do online shopping preferences vary among Asian countries, despite overall regional popularity?
How do online shopping preferences vary among Asian countries, despite overall regional popularity?
While 59 per cent of consumers regionally prefer online, China leads with 88 per cent. However, markets like Hong Kong and Singapore show a more even split, with 51 per cent preferring online.
Q.What is the advice given to physical retailers regarding Gen Z's shopping habits?
What is the advice given to physical retailers regarding Gen Z's shopping habits?
Physical retailers should reconsider expectations for a store resurgence driven by Gen Z. Instead, they should focus on making their stores relevant in the digital age, as Gen Z leans towards online channels.
Q.What forms of in-store technology are consumers in Asia willing to use?
What forms of in-store technology are consumers in Asia willing to use?
Consumers show a strong willingness to engage with store technologies. Two-thirds (65 per cent) would use their mobile phone for self-checkout, and 62 per cent are open to using apps in stores.
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