The woman is browsing shoes for her friend's upcoming wedding. Next to her, her husband is sound asleep. She covers him with the duvet, adjusts her own pillows and continues her 3am shopping spree. With a mere swipe of her finger, her tablet's display switches over to the clothing section of the retailer's Web site so that she can look for a matching dress. Thanks to the rapid adoption of smartphones and tablets, this any time, anywhere virtual store browsing is increasingly becoming the way in which consumers around the world are shopping. Late last year, research conducted by Cisco Systems predicted that global e-commerce would increase 13.5% annually over the next three years to reach an estimated $1.4 trillion in 2015.
The popularity of mobile devices is playing a significant part in consumers' changing shopping habits. In South Africa alone, where broadband Internet penetration is still low - with approximately 6.8 million people connecting to the Internet via desktops and laptops - almost triple that amount, 16.8 million, are reportedly accessing the Web via mobile devices. However, this is not necessarily translating into more e-commerce sales locally, since a large number of consumers now make use of multiple channels to shop.
"Many shoppers in South Africa access retailers' online stores on their desktops, laptops or mobile devices to merely compare and look up prices and specs for specific products, and then still go to the brick-and-mortar shop to actually make the purchase," explains Simon Campbell-Young, CEO of Phoenix Distribution, a South Africa-based distributor of software and technology brands. "There are various reasons for this: many people still distrust the security of making online transactions. But even those who aren't sceptical about paying online are often still put off by the amount of time it will take to have the product delivered to them and also by the amount it will cost in delivery fees. The postal service in South Africa is often criticised as being too slow and unreliable. Courier services, while faster, are too pricey to be a viable delivery option."
This evolving nature of buying, in which consumers are embracing digital technologies and devices in all stages of their shopping experience, has given birth to a new trend called omni-channel retailing. "This new buzz term in business describes the approach of connecting the Web, mobile and brick-and-mortar to make for a seamless customer experience," Campbell-Young says. "So in other words, it is the process of building a bridge between online and offline shopping. Brands have to do this in order to remain competitive. Brick-and-mortar shops can become more digital by, for example, using QR codes to provide more information about products. In fact, some retailers already allow customers to browse in-store merchandise and then skip the check-out queues by paying for it online on in-store tablets. From their end, online shops can encourage sales with a "click and brick" approach, allowing users to make the purchase online and then pick up the order in store."
The continuing importance of physical shops - where you have to jostle with crowds and stand in line at the cashier - in an increasingly virtual world might seem surprising to some, but a recent survey by UK-based Shoppercentric, called "Shopping in a Multichannel World", found that 87% of respondents are still using a store as part of their purchasing journeys, and 45% of shoppers said they will "always love going to the shops, no matter what new technologies are available".
Campbell-Young says this convergence of online/offline shopping is going to benefit everyone along the retail channel and that it makes the relationship between suppliers and retailers more crucial than ever before. "Retailers need to keep in mind that this new breed of omni-channel consumer is sophisticated and informed. They are going to have to anticipate the needs of their shoppers and see to it that the product they are searching for online is also in store. These shoppers have no patience with out of stock products or late deliveries. It will definitely be challenging at times, but beneficial to everyone."
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