Kingdom leading the world in using social media to shop: PwC
THAI consumers are leading the world in embracing social media as a way to buy goods, leading to a new set of opportunities and challenges for retailers.
More than half (51 per cent) of online shoppers in Thailand said they purchased goods directly via a social-media channel, outpacing India (32 per cent), Malaysia (31 per cent) and China (27 per cent), according to PricewaterhouseCooper’s annual “Total Retail” survey.
The global report, titled “They Say They Want a Revolution”, polled some 23,000 online shoppers in 25 countries to track consumer behaviour across retail channels, including mobile shopping and social-media influence.
Social media influenced 78 per cent of shoppers globally, up from 68 per cent in a similar study last year, with 92 per cent of emerging-market shoppers buying products based on social-media recommendations. Some 60 per cent of all respondents cited price as the biggest influence on where and how they shop.
Sira Intarakumthornchai, chief executive officer for PwC Thailand, said Thai consumers were moving quickly towards social media as the explosive growth of mobile devices offered a new shopping tool.
“Social media is set to become a driving force in influencing online shopping behaviour,” Sira said.
“As more consumers buy online products and services based on peer reviews, comments and feedback through the use of virtual social networks, the stakes for Thai retailers and consumer-goods companies have never been higher.”
The report found that 53 per cent of Thai online shoppers said customer reviews influenced their buying behaviour. Some 48 per cent compared prices using mobiles while in a store.
More than half (56 per cent) also said they were likely to buy from offshore online retailers if prices are better.
Although Thai shoppers are conscious about price, convenience offered by the retailer also plays a significant role in determining value. PwC’s survey data show that Thais buy online primarily because of convenience (51 per cent), followed by price (38 per cent).
Geography and age are also crucial factors.
Consumers in emerging markets are far more influenced by social media (92 per cent) than those in established markets (66 per cent). Millennials and those in their mid-30s are likely to have more interactions with their favourite brands on social media than consumers aged 45 or over.
Despite the increased popularity of online shopping, many consumers still prefer a physical store when researching and buying certain products such as groceries, jewellery, furniture and home appliances, the findings showed.
Furthermore, many customers are seeking an in-store experience and want to interact with a knowledgeable store employee.
“Shopping in-store in many ways still offers the best option of getting the right product that we want,” Sira said.
“Many people, especially the older generation, like to touch and feel the actual products before buying. They also don’t like to wait for items to ship and, in many cases, like to get advice from a sales person.”
When looking at specific age groups, 24 per cent of millennials (18-34 years old) pay for purchases on their mobile compared with 16 per cent for everyone else, while 23 per cent of them access loyalty and reward programmes, compared with 18 per cent for other age groups.
While the number of online shoppers is likely to continue to grow, today’s consumers also want to be part of a retailer community where they can engage through loyalty programmes on top of picking up the perks of membership, such as discounts and offers, reward points or free shipping.
Higher degrees of customisation, personalised marketing offers and access to special member events are also listed as key benefits that a consumer looks for when joining a loyalty and reward programme.
