Irish consumers are increasingly open to intelligent technologies taking an active role in their purchasing decisions, according to a new report by Accenture Strategy, which finds that consumers are willing to exchange some personal data to get a more convenient and intuitive service from retail providers. The report, ‘Painting the Digital Future of Retail and Consumer Goods Companies’, also reveals that consumers continue to shift their spending to online, expecting digital innovation to provide more meaningful shopping experiences.
The report reveals the transformative business models being welcomed by Irish consumers in digital commerce;
– Sharing economy (the next-generation rental market) – Convenience and experience over ownership, at a fraction of the price. 48% of Irish consumers said they would use a rental subscription for clothing, renting an item for an occasion and returning it after, instead of purchasing it outright.
– Personalization economy (‘surprise me’ subscriptions) – Expertly curated products tailored to the individual and automatically delivered. 38% of consumers said they would use this subscription for clothing, where an expert personally selects items they might like based on previous purchases.
– Replenishment economy (auto-replenishment) – Smart sensors detect when a product is running low and automatically re-orders and delivers it. Half (50%) of consumers would use auto-replenishment for household goods like detergent. Another 49% would consider it for fresh food items.
– Services economy (‘do it for me’) – Services are outsourced so someone else does the heavy lifting. 43% of consumers would use this service for their laundry – pick-up, wash-and-fold, and delivered back to their door.
“The next decade will be transformative in retail and consumer goods companies. The industry is reaching a tipping point, where the demands of consumers are evolving and companies need to innovate in order to meet the new requirements of convenience, simplicity and engagement,” said Tim Cody, a managing director in Accenture’s Products group, serving clients in the retail, consumer goods & services, travel, automotive and life sciences industries.
“This report reveals that Irish consumers are relying more and more on digital methods of purchasing and the ease that this can provide – and that a significant percentage will compromise on privacy to achieve this. In order to thrive in this new world of automated purchasing channels and digital consumer behaviour, organisations must aggressively pursue innovation and be willing to disrupt themselves.”
The study also identifies the following trends in Irish consumer behaviour;
– 40% of Irish consumers would allow retail and FMCG companies to collect their personal data via intelligent devices in return for a better experience or financial reward.
– 40% would subscribe to a service that constantly looks for the best pricing deals on their behalf, and actively recommends which company to switch to, and when.
– Over a fifth (21%) of Irish consumers would use sensor-based digital services that pre-emptively address their needs without human intervention.
– 20% would subscribe to brands that analyse their shopping history to select products especially for them, and orders them automatically.
To find out more information about the report, please visit www.accenture.com/futureretailcpg.