By Brian Walker
CEO & Founder, Retail Doctor Group
By way of example, the growth of the Amazon Prime streaming model is critical to the success of their retail offer through a subscription and predictive model – others are following suit with entertainment, AI, targeted offers underpinned with the offer of range, convenience, speed, and accessibility to consumer via streaming and all in fast time.
The rise in the stealth of a competitor takes time away from classic retail shopping to a collaborator offering new ways to reach customers.
And the ground is fertile with updated data showing us the following:
The average amount of time spent each day (2)
- Internet: 6hrs 13 mins
- Broadcasting and Streaming: 3hrs 44 mins
- Social Media: 1hr 57 mins
- 86% of 25-34-year-olds use social media to interact with retailers
- 15% of 18-32-year-olds now use TikTok to interact with retailers – higher than Twitter and LinkedIn
- 76% of Australians (v/s 64% global) state they own a smart speaker (e.g. Apple homepad) (5)
- 58% of Australians use paid video streaming services to watch content.
The average number of hours spent per week on media consumption channels
- Live Free-to-Air TV: 13 hrs
- Paid Video Streaming Services: 9.5 hrs
- Free Video Streaming: 7 hrs
Many consumers—over 90 per cent—see two to three days as the baseline, and 30 per cent expect same-day delivery. (McKinsey Research 2022) (7)
Based on the 2022 Consumer and Retailer Sentiments (RDG Insights, 2022) (4)
- 2 in 3 Gen Z and Millennials state they are interested in retail subscriptions
- 38% of 18-24-year-old customers are interested in subscriptions to try new products each month
- 1 in 4 Gen Z and Millennials are interested in subscriptions for discounts on feed and drinks at a café/ takeaway
Source: RDG Insights 2022
- More than 1 in 3 consumers who currently work from home state that they expect to work from home 1-2 days a week
- 22% expect to continue to work exclusively from home
According to research (8), mobile app downloads continue to increase year-over-year, from 140.6 billion in 2016 to 218 billion in 2020. It’s projected that this will rise to 258 billion by the end of 2021, a large 83% increase in five years.
And what does this all mean for retailer distribution and growth strategies in evaluating preparedness?
Questions to consider include:
- Will my unified commerce system support these transactions?
- Who is my core customer, and what is their elasticity/ responsiveness to a home-based offer?
- How do they use time, precisely leisure time?
- What are their core profiles and segment attraction?
- What is the addressable market?
- What is the product development, innovation strategy and deployment?
Oh, and what is the one commodity that they all trade on and that waits for no one?
Competing on available leisure time and collaborating as a vital part of the retail ecosystem.
Brian Walker is founder and CEO of Retail Doctor Group, a retail advisory and consultancy group and the Australian elected partner member of the global retail expert’s alliance Ebeltoft Group. For further information on where to begin to improve your retail performance, contact our Strategy expert via [email protected] or read more on our successful retail transformation projects here!
- Australians are spending less time on Facebook and much, much more on TikTok – ABC News
- Consumer and Retailer Sentiment 2021 – Retail Doctor Group
- Consumer and Retailer Sentiment 2022 – Retail Doctor Group
- Australian Consumers: Market Insights on Buying, Social Media – GWI
- The Future of Commerce: Industry Report (2022) | Shopify
- The five zeroes transforming retail | McKinsey
- Annual number of mobile app downloads worldwide 2021 | Statista