REDWOOD CITY, Calif.,
June 25, 2019 /PRNewswire/ -- Despite
clear differences in expectations among shoppers of different
generations, almost half of retailers (44 percent) have made no
progress in tailoring the in-store shopping experience according to
a recent study conducted by Oracle NetSuite, Wakefield Research and
The Retail Doctor. The global study of 1,200 consumers and 400
retail executives across the U.S., U.K. and Australia dispelled stereotypes around
generations and found big differences in generational expectations
across baby boomers, Gen X, millennials and Gen Z.
"We have seen decades of diminishing experiences in brick and
mortar stores, and the differences identified in these results
point to its impact on consumers over the years," said Bob Phibbs, CEO, The Retail Doctor. "Retailers
have fallen behind in offering in-store experiences that balance
personalization and customer service but there's an opportunity to
take the reins back. The expectation from consumers is clear and
it's up to retailers to offer engaging and custom experiences that
will cater to shoppers across a diverse group of generations."
Beauty is in the eye of the beholder: Retailers struggle to
keep stride with generational shoppers
The in-store shopping experience remains an important part of
the retail environment for all generations, but the progress
retailers are making to improve the in-store experience is being
viewed differently by different generations.
- Despite the stereotypes of "digital natives", Gen Z and
millennials (43 percent) are most likely to do more in-store
shopping this year followed by Gen X (29 percent) and baby boomers
(13 percent).
- Gen Z and millennials (57 percent) had the most positive view
of the current retail environment feeling it was more inviting,
followed by Gen X (40 percent). Baby boomers (27 percent) were more
likely to find the current retail environment less inviting than
consumers overall.
- Gen Z valued in-store interaction the least with 42 percent
feeling more annoyed from increased interaction with retail
associates. In contrast, millennials (56 percent), Gen X (44
percent) and baby boomer (43 percent) generations all noted they
would feel more welcomed by more in-store interactions.
Retailers view emerging technologies through rose-colored
glasses
While more than three quarters of retail executives (79 percent)
believe having AI and VR in stores will increase sales, the study
found that these technologies are not yet widely accepted by any
generation.
- Overall, only 14 percent of consumers believe that emerging
technologies like AI and VR will have a significant impact on their
purchase decisions.
- Emerging tech in retail stores is most attractive to
millennials (50 percent) followed by Gen Z (38 percent), Gen X (35
percent) and baby boomers (20 percent).
- Perceptions of VR varied widely across different generations.
Fifty-eight percent of Gen Z said VR would have some influence on
their purchase decisions, while 59 percent of baby boomers said VR
would have no influence on their purchase decision.
Insta-famous brands reach Gen Z and millennial consumers, but
not as much as retailers think
While almost all retail executives (98 percent) think that
engaging customers on social media is important to building
stronger relationships with them, the study found a big disconnect
with consumers across all generations.
- Overall, only 12 percent of consumers think their engagement
with brands on social media has a significant impact on the way
they think or feel about a brand.
- Among those who engage with brands on social media, Gen Z (38
percent) consumers are much more likely than other generations to
engage with retailers on social to get to know the brand compared
to millennials (25 percent) and baby boomers (21 percent).
- Gen Z (65 percent) consumers and millennials (63 percent)
believe their engagement with brands on social media platforms have
an impact on their relationship with brands.
- More than half of baby boomers (53 percent) and 29 percent of
Gen X consumers do not engage with brands on social media.
"After all the talk about brick and mortar stores being dead,
it's interesting to see that 'digital natives' are more likely to
increase their shopping in physical stores this year than any other
generation," said Greg Zakowicz,
senior commerce marketing analyst, Oracle NetSuite. "Stepping back,
these findings fit with broader trends we have been seeing around
the importance of immediacy and underlines why retailers cannot
afford to make assumptions about the needs and expectations of
different generations. It really is a complex puzzle and as this
study clearly shows, retailers need to think carefully about how
they meet the needs of different generations."
To read more about NetSuite's insights into the report's finding
visit NetSuite's cloud blog.
Methodology
For this survey, 1,200 consumers and 400 retail executives were
surveyed around the overall retail environment, in-store and online
shopping experiences and advanced technologies. Both retailers and
consumers were surveyed from three global markets including the
U.S., U.K. and Australia with
retail executives representing organizations between $10-100 million in annual sales.
About Wakefield Research
Wakefield is a full-service market research firm that uncovers
insights for brands to help them solve problems and grow their
business. Wakefield Research is a partner to the world's leading
consumer and B2B brands, including 50 of the Fortune 100. Wakefield
Research conducts qualitative and quantitative research in 70
countries. For more information, please
visit https://www.wakefieldresearch.com
About The Retail Doctor
The Retail Doctor is a New
York-based retail consulting firm created by expert retail
consultant and leading business mentor Bob
Phibbs. With over 30 years of experience in retail, Bob has
worked as a consultant, speaker, and entrepreneur, helping
businesses revolutionize their brand and grow their success. Bob is
also the author of three highly-praised books, including The Retail
Doctor's Guide to Growing Your Business (WILEY). His clients
include some of the largest retail brands in the world including
Bernina, Brother, Caesars Palace, Hunter
Douglas, Lego, Omega and Yamaha. For more information,
please visit www.retaildoc.com
About Oracle NetSuite
For more than 20 years, Oracle NetSuite has helped organizations
grow, scale and adapt to change. NetSuite provides a suite of
cloud-based applications, which includes financials / Enterprise
Resource Planning (ERP), HR, professional services automation and
omnichannel commerce, used by more than 18,000 customers in 203
countries and dependent territories.
For more information, please
visit http://www.netsuite.com.
Follow NetSuite's Cloud blog, Facebook page
and @NetSuite Twitter handle for real-time updates.
About Oracle
The Oracle Cloud offers a complete suite of integrated
applications for Sales, Service, Marketing, Human Resources,
Finance, Supply Chain and Manufacturing, plus Highly Automated and
Secure Generation 2 Infrastructure featuring the Oracle Autonomous
Database. For more information about Oracle (NYSE: ORCL), please
visit us at www.oracle.com.
Trademarks
Oracle and Java are registered trademarks of Oracle and/or its
affiliates.
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SOURCE Oracle NetSuite