Every link in the supply chain can benefit from understanding what consumers expect when buying electronics and how behaviors have changed over time.
Understanding the Customer Journey
Consumer engagement varies by industry. The trends, preferences, and expectations differ based on what is being purchased. Analyzing industry-specific shopping behaviors reveals valuable insight that benefits suppliers, manufacturers, retailers, and ultimately, consumers.
Considering the global consumer electronics market is projected to reach $3 trillion annually by 2020, there is immense earning potential for anyone who understands the implications associated with the customer journey.
In-Store vs. Online
One area that stands out is consumers’ preferences for researching and purchasing goods. Shoppers use the internet to research their electronics purchases, but they still show a strong preference for shopping in stores, especially in Italy, Brazil, Germany, and the United Kingdom. This suggests missed opportunities, as consumers come to retailers’ sites, but click away before completing a purchase.
Desktop vs. Mobile
While the number of online shoppers grew considerably between the beginning of 2016 and 2017, most purchases were made from the desktop. However, online purchasing is shifting from desktops computers to mobile. Just in the last year, mobile phone purchasing in the consumer electronics industry saw a 50% increase, while the number of consumers who did most or all their shopping online grew by 65%.
If that trend continues, consumers may be conducting roughly 60% of all consumer electronics purchases online by 2020. But if sites aren’t optimized for mobile, consumers will quickly leave for a more user-friendly option.
Profits vs. Costs
As consumers transition from brick-and-mortar to e-commerce, retailers will experience an increase in earning potential. However, they’ll also see a spike in competition—which could be a serious threat.
Today's consumers aren't loyal to brands, they are loyal to low prices and convenience. When asked what compels them to shop with their favorite retailer, 60% said the merchant had reasonably-priced merchandise.
Whichever merchant has the best prices and makes the purchasing process as easy as possible will win.
This means merchants need to focus on increasing efficiencies in their supply chain. If price is the most compelling component costs will need to be kept to a bare minimum. Otherwise, margins will continue to shrink as retailers try to meet consumer demands.