1、x1$x3$Retail ParadigmTheThe evolution of consumer shoppingA joint research study from:2The Retail Paradigm Shopping Behaviors and PreferencesAbout CatalystCatalyst is a performance marketing agency,serving some of the largest brands in the world.Omnichannel marketing services include paid search,SEO

2、,digital commerce,and advertising solutions across programmatic,social platforms,Amazon,Instacart and advanced analytics.As a part of the GroupM and WPP agency portfolio,Catalyst focuses on driving more impactful acquisitions through integrated,full-funnel performance marketing strategies.These stra

3、tegies extend beyond short-term KPI goals to fuel longer-term growth,drive deeper consumer relationships,and achieve enterprise-level objectives.Learn more at About XaxisXaxis is the outcome media company and GroupMs advanced programmatic business.Xaxis helps global brands achieve the outcomes they

4、most value from their digital media investments.Xaxis does this by combining innovative AI technology,advanced omnichannel solutions,data-driven creative,and worldwide programmatic expertise to transform digital media into real business outcomes.Learn more at 3The Retail Paradigm Executive Summary47

5、1116212528323638Executive SummaryIntroduction The Changing Nature of RetailSection 1The Evolving Buyer JourneySection 2 Shopping Behaviors and Preferences Section 3 Which Factors Drive the Consumer Purchase?Section 4 More People Buying Direct from BrandsSection 5 Consumers are Receptive to Retail Me

6、diaSection 6 The Future of the Retail ExperienceSection 7 Key TakeawaysMethodologyContent4The Retail Paradigm The rise of retail mediaboth on ecommerce sites and targeted to other digital properties based on retailer datais shortening customer journeys significantly.The entire buying process,from di

7、scovery to purchase,is increasingly happening on a single platform,whether an ecommerce site such as Amazon or Walmart,a search engine like Google,or a social platform such as Instagram empowered by shoppable media.Simultaneously,the pandemic-driven acceleration of growth in ecommerce has increased

8、the retail media opportunity dramatically over the last two years.According to GroupM estimates,the worlds largest CPG manufacturers grew their ecommerce revenues by 57%year-over-year in 2020.The same report projected global ecommerce sales growth of 19%in 2022,to$6.2tn,and a further 16%in 2023 and

9、15%in 2024.The most important finding of this report is that these new,single-platform customer journeys are answering the changing needs of brands,retailers,and shoppers.Brands get more direct access to their customers,retailers can deliver more direct results,and shoppers have more streamlined exp

10、eriences.Retail media,which creates the environment for these journeys,is a win-win-win.This report from Catalyst and Xaxis,in partnership with London Research,examines consumer attitudes and behaviors around ecommerce and retail media.It is based on a survey of 2,000 U.S.As the world begins to navi

11、gate the new normal after two years of pandemic,the retail sector is waking up to the emergence of a new paradigm.Executive Summary5The Retail Paradigm:Executive Summaryconsumers in March 2022,and interviews with a range of brands,agencies,and retail platforms.Other major findings include:Consumers

12、post-pandemic shopping behaviors are still fluid and flexible.For them,omnichannel means adopting whatever mix of in-store and online,or collection and delivery,best suits their needs in the moment,and changing whenever things no longer work for them.As a result,the pressure is on marketers to deliv

13、er a coherent,consistent experience at every touchpoint,and to be able to respond to every customer interaction,no matter how fleeting.Consumers are returning to physical stores,but they are not abandoning the lockdown behaviors that made their lives easier.Younger shoppers,in particular,intend to i

14、ncrease their use of ecommerce sites dramatically.The role of search engines is changing.It is no longer the default starting point for customer journeys.For most consumersthat honor now goes to ecommerce websitesbut search plays a crucial role in the research and comparison phase.The ritual of the

15、big weekly shop is disappearing as consumer lifestyles change.Its being replaced as consumers adopt a variety of new collection/delivery options,and increasingly test new products and shop around for the best deals.Saving money is the single biggest factor in consumer choice,as the cost of living st

16、arts to increase significantly.Free shipping is now regarded as a must-have,rather than a differentiator.Two-thirds of 18-34s say they are buying directly from brands more often since the start of the pandemic.While that figure drops with age,a third of over-55s say the same,indicating that the dire

17、ct-to-consumer(D2C)opportunity will continue to grow.Consumers have become even more accepting of retail media in the past year.In particular,the proportion of over-55s saying theyre receptive has increased by 22%to 72%.6The Retail Paradigm AcknowledgementsCatalyst,Xaxis,and London Research would li

18、ke to thank the following people for their input into this report:Nora Abrego Director,Lead Generation,Catalyst Doug Chavez VP Strategic Partnerships,WPPKerry Curran Executive Director,Performance Strategy&Growth,U.S.,GroupM NexusJohn Denny VP eCommerce&Digital Marketing,CAVU Venture Partners Kelley

19、 Drake Marketing and Communications,XaxisTanner Elton VP,U.S.Advertising Sales,Amazon AdsWhitney Fishman Managing Partner,Innovation&Consumer Technology,WavemakerAlice Fournier VP Global Digital Development and Chief Digital Officer,WD-40 Srishti Gupta Director,Media Measurement,Performance Advertis

20、ing Tech,Amazon AdsJohn Karl Head of Client Development and Growth,CatalystBrittny Schoeneman Director of Programmatic Commerce Solutions U.S.,Xaxis Michael Schuh VP of Media Strategy,Kroger Precision MarketingKristina Smith Head of D2C,Big Island Coffee Roasters Benjamin Sylvan GM,Retail Data Partn

21、erships,The Trade DeskRich Tan Director of Revenue Management,OrgainThe Retail Paradigm 7Brands are trying to cope with these changes in behavior,while also gearing up for a world where the third-party cookie is replaced by first-party data as the cornerstone of online advertising.And retailers are

22、dealing with volatile fuel prices,unpredictable supply chains,consumer belt-tightening and the need to build and evolve their ecommerce experiences;this after two years of vastly increased costs.Each stakeholder wants something another can offer.Retailers want moreand more loyalcustomers,and access

23、to greater marketing budgets.Brands want moreand more completedata about their customers and the effectiveness of their advertising.And customers want better products,better deals,and more personalized communications.Add to this the near ubiquity of programmatic advertising and the growing media cap

24、abilities of retailers,and the forces driving the emergence of a new retail paradigm start to become apparent.Introduction The Changing Nature of Retail Every aspect of retail is changing.And its changing fast.Customers are once again rethinking their shopping behaviors,not just in response to the r

25、e-opening of society,but also a sharp rise in the cost of living.8The Retail Paradigm:Introduction The Changing Nature of RetailThe customer journey,from inspiration to purchase(and repeat purchase),is becoming simpler.The entire process is increasingly happening on a single platform,whether thats e

26、commerce sites such as Amazon or Walmart,or on search and social properties empowered by shoppable media.However,understanding user behavior in aggregate is becoming more complex because,as every touchpoint becomes shoppable,its ever harder to predict where a customers journey will start,which chann

27、els they will visit,and in what order they will visit them.The retail media opportunityOffline retail is still huge,but the ecommerce juggernaut continues to gain momentum,boosted by the pandemic.According to GroupM research,global retail ecommerce will reach$5.4tn in 2022.Research for this report f

28、ound that consumers across all age groups plan to spend more time on each of the sites included in the survey(Figure 1),with the youngest age group being the most enthusiastic about ecommerce.9The Retail Paradigm:Introduction The Changing Nature of RetailFigure 1 Proportion of consumers planning to

29、use the following web properties more than in the past in the next year.TwitterKrogerCostCoTargetPinterestHome DepoteBayWalmartInstacartMacysFacebookGoogleTikTokInstagramBest BuyAmazon49%42%35%40%27%10%29%19%10%25%22%14%49%42%29%38%27%17%28%20%10%24%15%6%48%43%34%34%23%7%28%22%14%24%18%7%41%24%11%32

30、%33%20%25%16%11%23%17%6%1834 3554 55+10The Retail Paradigm:Introduction The Changing Nature of RetailRetail media can be defined as the advertising that appears within a retailers properties,or that uses retailer data to target consumers outside those properties.Forrester predicts the global retail

31、media industry could be worth around$50bn by the end of 2022.According to a report from Goldman Sachs:“The rise of retail media,like the rise of trade marketing in the 1970s,will create another vector of separation between leaders and laggards among CPG companies.”1 In addition,our research shows th

32、at young people are significantly more likely than their elders to accept and respond to advertising on retail sites.This makes it imperative for marketers to understand the nuances between different age groups in terms of behavior and attitudes.Assuming the younger age group remain more open to dig

33、ital experiences as they age,it also suggests that this new retail paradigm will only become more important.1 The Merchant-Media Model:A New Era for Retailers,Goldman Sachs11The Retail ParadigmOne of the key trends underpinning the new retail paradigm is that,increasingly,all digital media are shopp

34、able.One click on a recipe blog takes you to a grocery site and a basket pre-filled with the ingredients for the dish you were reading about.Fashion spreads with QR codes,YouTube videos,influencer blogs and vlogs,and even shows on connected TV,allow shoppers to click on items in the content and go s

35、traight to purchase.The Evolving Buyer Journey “In this shifting world where consumers are making buying decisions at accelerated rates and have increased expectations,marketers need to be tactful in the way they plan and execute their retail media strategies.Its never been more important to ensure

36、omnichannel presence to capture attention and reach the right audience with tailored creative messaging and precise targeting at or near the point of purchase.”Brittny Schoeneman,Director of Programmatic Commerce Solutions U.S.,XaxisSection 112The Retail Paradigm:The Evolving Buyer JourneyAt the sam

37、e time,the big ecommerce sites have become experts at targeting shoppers on their digital properties with advertising intended to persuade them to add extra items to their basket.The main effect of this is to shorten customer journeys;for many people the entire process,from inspiration to checkout,h

38、appens on the same platform.More than half of U.S.consumers(51%)now say their online purchasing journey most often starts on ecommerce/retail sites,a figure that rises to 55%for over 55s(Figure 2).“We approach the space through the lens of the customer.We capture data from 96%of transactions through

39、 our loyalty card,which gives us this really rich view into how customers change their behavior over time.And how we layer data science on top of that helps us understand the different intent signals and different touchpoints that influence our customers journey.The way the ecosystem evolves will de

40、pend on how we use that data and how we leverage science to influence each one of those touchpoints throughout the customer journey to make it relevant,and reduce waste for brands.Michael Schuh,VP of Media Strategy,Kroger Precision Marketing13The Retail Paradigm:The Evolving Buyer JourneyFigure 2Whe

41、re do you most frequently start your online purchasing journey?Meanwhile,almost half(47%)say theyre now more likely to buy directly from social media sites,rising to almost two-thirds(63%)of 18-34s(Figure 3).This younger age group is also much more likely to be swayed by social influencers.Figure 3P

42、ercentage of consumers agreeing with statements.1834 3554 55+63%43%20%63%42%20%Im more likely to buy directly from social media sitesSocial influencers are having a greater impact on what I buy 1834 3554 55+48%50%56%40%Ecommerce/retail websites(e.g.,Amazon,Walmart)39%42%Search engines (e.g.,Google,B

43、ing)13%8%Social media sites (e.g.,Facebook,Instagram,TikTok and YouTube)4%14The Retail Paradigm:The Evolving Buyer Journey“Amazon advertising influences all channels,and it has a powerful influence.It turns out theres a hell of a lot of consumers who are standing in the aisle in front of the beverag

44、e section,seeing a new beverage and saying,Well,what is this?Whats the sweetener in this stuff?Theyre pulling out their smartphone,and saying Let me see on Amazon.Well,its got great reviews.Let me try some of it.”John Denny,VP Ecommerce&Digital Marketing,CAVU Venture PartnersThe role of social media

45、 as the start of the path to purchase is confirmed by the high inspiration&discovery scores for sites such as Facebook,Instagram and Pinterest.More traditional retailersWalmart,Targettend to be used for inspiration and purchase,but less so for research&comparison.Google is the second most important

46、site for research&comparison,and the third for inspiration&discovery,but scores much lower for both initial and repeat purchases.Set against this,some sites are still used more for some aspects of the buying process than others(Figure 4).Amazon customers are almost equally likely to use the site for

47、 each stage of their journey,from inspiration and research through to purchase and repeat purchase.The same is trueon a much smaller scalefor retail sites such as BestBuy,eBay and Costco.15The Retail Paradigm:The Evolving Buyer JourneyFigure 4Role of web properties in the shopping journey.Proportion

48、 of consumers using each web property for different aspects of the shopping journey.Retail media also has another role to play across the customer journey.In 2013,Amazon launched a DSP-based audience extension offer using its shopper data.Since then,a number of other retailers have unveiled retail m

49、edia networks,including Target with Roundel and Walmart with Walmart Connect.These make the retailers shopper data available to brands to target their programmatic buys on sites not owned by the retailer.Once again,this offers brands more precise targeting,while creating a significant new revenue st

50、ream for the retailers.Inspiration&discovery Research&comparison Actual purchase Repeat purchaseTwitter13%14%11%Kroger19%16%18%16%Costco28%21%29%24%Target18%11%Pinterest17%14%20%14%Home Depot23%20%27%21%eBay47%39%52%46%Walmart9%12%Instacart14%15%11%Macys31%24%19%16%Facebook42%47%21%17%Google16%12%7%

51、6%7%TikTok24%17%13%12%Instagram26%22%25%19%Best Buy73%65%73%68%Amazon10%10%9%7%10%10%8%8%7%16The Retail Paradigm Even after a pandemic that kept people out of stores for almost two years,the majority of shopping across all categories is still done in-store(Figure 5).Shopping Behaviors and Preference

52、s Figure 5For the categories shown,please indicate whether most of your shopping over the next year will be done online,in-store or click-and-collect.Online In-store Even mix of online and in-store Click-and-collect3%29%36%32%Household groceriesHomeware3%18%63%16%Footware5%24%38%33%Household applian

53、ces3%20%41%36%Apparel/clothing2%14%57%27%Babycare3%28%34%35%Alcoholic beverages3%21%45%31%Beauty and healthcare3%19%44%34%Consumer electronics2%24%38%36%Petcare/pet food4%21%43%32%Furniture3%18%50%29%Luxury items (e.g.,watches,handbags)3%45%30%22%Section 217The Retail Paradigm:Shopping Behaviors and

54、 PreferencesHowever,anyone expecting the rise of ecommerce to be thwarted by the world starting to open up again is likely to be disappointed.Figure 6 shows almost three-quarters of U.S.consumers(71%)are shopping more online than they did before the pandemic.For over half(54%),this is because theyre

55、 working from home more often,meaning they dont need to go to the store on their way home from work.“Some retailers may be thinking ecommerce is going to subside now that mask mandates are starting to fall off.Two facts they should keep in mind are that humans are creatures of habit,and research sho

56、ws that habits are formed in a little over two months.And given ecommerce adoption over the last two years,shopping habits are formed and now entrenched.”Doug Chavez,VP Strategic Partnerships,WPP37%34%16%13%26%28%20%26%Figure 6Percentage of consumers agreeing with statements about shopping behavior

57、compared to before the Covid pandemic.Strongly agree Somewhat agree Somewhat disagree Strongly disagreeIm doing more online shoppingIm doing more online shopping because Im working from home more often18The Retail Paradigm:Shopping Behaviors and PreferencesEven if going back to the store feels like

58、a treat after two years away,people are reluctant to give up things that make their lives easier.This is certainly something that more than three-quarters of people(78%)feel about the variety of collection and delivery options available from online retailers(Figure 7).Changing behavior is also evide

59、nced by the decline of the weekly shop among all age groups,and the move to click-and-collect and curbside collection,among younger shoppers in particular(Figure 8).Curbside collection is effectively a sub-set of click-and-collect where,instead of going into the store to collect their items,the cust

60、omer lets the store know theyve arrived,and store staff bring their shopping out.According to eMarketer,of the$127.72bn in new ecommerce spending in the U.S.in 2022,$15.59bn will come from click and collect.Even though click-and-collect will account for only 9%of total retail ecommerce,it will make

61、up 12.2%of ecommerces growth.35%43%14%8%32%36%19%13%Figure 7Percentage of consumers agreeing with statements about shopping behavior.Strongly agree Somewhat agree Somewhat disagree Strongly disagreeOnline retailers are making things easier for me (e.g.,in-store pick-up or same-day delivery)Im using

62、more online shopping sites and apps than beforex1$x3$19The Retail Paradigm:Shopping Behaviors and PreferencesAnother convenience-related trend accelerated by the pandemic was super-fast delivery.This started with meal delivery and groceries,and evolved to conveniences powered by UberEats,DoorDash,In

63、stacart and newcomers such as Drizly and GoPuff.As Figure 9 shows,enthusiasm for these offerings remains high among younger people,although concerns about the cost of living are casting doubt on how many different services the market can support.Around 80%of U.S.consumers admitted they are more cost

64、-conscious with their shopping than they were before the pandemic(see Section 4).What all this makes clear is that consumers post-pandemic shopping behaviors are still flexible.For them,the term omnichannel means adopting whatever mix of in-store and online,collection and delivery best suits their n

65、eeds in the moment and changing whenever things no longer work for them.As a result,the pressure is on marketers to deliver a coherent,consistent experience at every touchpoint,and to respond to every customer interaction,no matter how fleeting.Figure 8Proportion of consumers agreeing with statement

66、s about their current shopping behavior compared to before the Covid pandemic.1834 3554 55+Im doing more curbside shopping63%51%28%Im doing more click-and-collect shopping65%52%31%Im less likely to do one large weekly shop65%54%43%20The Retail Paradigm:Shopping Behaviors and Preferences“In the groce

67、ry category,theres been greater adoption of online orders over the past few years largely due to consumer behavior shifts brought on by the pandemic.These changes present exciting new opportunities for brands to deliver omnichannel experiences,as todays grocery shoppers are constantly checking off t

68、heir grocery lists in both the digital and in-person worlds.As omnichannel shopping continues to be the norm,its important for brands to adapt their strategies to meet these customers when and wherever theyre shopping in order to stay top-of-mind.”Tanner Elton,VP,U.S.Advertising Sales,Amazon AdsFigu

69、re 9Proportion of consumers planning to use delivery services more in the next year.1834 3554 55+Amazon/PrimeUber EatsInstacartDoorDashGrubHubShiptSeamlessPostmatesGoPuff43%41%26%31%20%8%20%13%4%34%24%10%24%17%6%22%13%3%25%20%7%24%16%5%20%13%2%21Figure 10Percentage of consumers agreeing theyre more

70、cost-conscious compared to before the Covid pandemic.1834 3554 55+Im more cost-conscious with my shopping80%83%81%The Retail Paradigm Section 3Which Factors Drive the Consumer Purchase?Low prices are top-of-mind for consumers of all ages as the impact of rising inflation and volatile fuel prices sta

71、rts to bite(Figure 10).For many,this is a continuation of attitudes adopted during the pandemic,when job losses,furloughs,and pay cuts were commonplace.22The Retail Paradigm:Which Factors Drive the Consumer Purchase?As a result,free shipping and low prices are the most important factors in the initi

72、al choice of a shopping site or app by consumers.And although all age groups say theyre more cost-conscious,its the over-55s who are most likely to act on those concerns(Figure 11).Theyre almost twice as likely to want to save money as the 18-34s.Trust in the brand,convenience and ease-of-use,and fa

73、st and reliable delivery,also rank highly.Perhaps surprisingly,given the marketing industrys obsession with prescriptive analytics(delivering the best message to move a consumer on to the next stage of their journey),anticipation of my needs and requirements scores low,particularly for over-55s.Figu

74、re 11What is the single most important factor when initially choosing a shopping site or app?19%9%5%14%8%5%11%6%2%10%6%5%Low prices/opportunity to save moneyTrust in the brandFree shippingVery convenient and easy-to-useFast and reliable deliveryAvailability of products(i.e,not out of stock)Range of

75、productsFavourite brands availableRewards/loyalty pointsAnticipation of my needs and requirementsClick-and-collect/curbside collectNone of the above23The Retail Paradigm:Which Factors Drive the Consumer Purchase?The ranking of drivers of loyalty follows a similar pattern(Figure 12).Once again,low pr

76、ices are the most important factor,although here its equally significant for 35-54s and over-55s.Free shipping ranks second,and is again more important to over-55s than the other two age groups.After that there is little to distinguish between the other factors,although personalization again scores

77、in the bottom three.Figure 12What is the single most important factor in making you loyal to a particular shopping site or app?18%8%7%13%7%5%11%7%3%9%7%5%Low prices/opportunity to save moneyTrust in the brandFree shippingVery convenient and easy-to-useFast and reliable deliveryAvailability of produc

78、ts(i.e.,not out of stock)Range of productsFavorite brands availableRewards/loyalty pointsAnticipation of my needs and requirementsClick-and-collect/curbside collectNone of the above24The Retail Paradigm:Which Factors Drive the Consumer Purchase?Figure 13 shows the factors behind repeat purchases.Fre

79、e shipping is the most important for all age groups,and again becomes more important with age.This time rewards,loyalty points and discounts are more significant,and are rated roughly equal by all ages.In contrast,younger people are more likely to make a repeat purchase in response to online communi

80、cationsparticularly influencer posts and SMS messagesthan their older counterparts.Figure 13Which of the following have prompted or inspired you into making a repeat purchase from a brand or retailer?46%19%12%37%16%27%16%20%16%Useful content/information about the brandFree shippingEmail messageOnlin

81、e advertisementTimely app notificationSocial media influencer postSMS messageRewards/loyalty points or discountsNone of the above25The Retail Paradigm The impending demise of the third-party cookie has led to a scramble within the online advertising industry for a replacement.Attention has focused o

82、n first-party data,leading many brands to experiment with D2C offerings,creating a new set of challenges.This sees them rubbing shoulders with businesses such as H,Warby Parker and Allbirds,which led the way with D2C models.For consumers,this creates more choice and alsoin the case of subscription s

83、ervices removes the need to remember to stock up on pet food,toilet paper,razors or whatever.This is reflected in Figure 14,which shows a third of over-55s,half of 35-54s,and two-thirds of 18-34s now choosing to increasingly buy direct from brands rather than general retailers.Section 4More People B

84、uying Direct from Brands “We have seen a significant increase,across all industries,in brands seeking to develop a DTC approach to the market.However,this can be highly complex to maneuver,with increased channel conflict and big-box retailer competition,and requires coordination across all of the br

85、ands media and strategic partners.John Karl,Head of Client Development and Growth,Catalyst26The Retail Paradigm:More People Buying Direct from Brands At the same time,over half of U.S.consumers are experimenting with new brands when supply issues mean their usual choices are out of stock,contributin

86、g to the unusually fluid nature of current consumer behavior.This makes the retail environment even more challenging for established brands,but it allows new brands and new business models to break into the market more easily than before.“This is the first time Ive seen the average consumer understa

87、nd supply chain issues at a deeper level and how it impacts their shopping decisions.The amount of out-of-stocks theyre dealing with,their preferred brands potentially not being present,has created a unique dynamic we have not seen before.I believe that its important for manufacturers to consider wh

88、at tactics to use to retain their current users,especially if they are dealing with supply chain issues.”Rich Tan,Director of Revenue Management,OrgainFigure 14Percentage of consumers agreeing with statements about shopping behavior.1834 3554 55+67%52%33%68%67%53%Im now buying more products directly

89、 from brands(rather than from general retailers)Im trying out new brands because my usual products are out of stock27The Retail Paradigm:More People Buying Direct from Brands Figure 15 shows the impact of these changes by sector.Retail sites still dominate in all cases,although the gap is significan

90、tly narrower for both babycare and luxury items.In the former case,this is presumably due to sleep-deprived or over-worked new parents not being able to make it to the store;in the latter because a significant part of a luxury purchase is the overall brand experience.Figure 15For the following categ

91、ories,are you more likely to buy online from a general retail website(e.g.,Amazon,Target or Walmart)or directly from a brand manufacturer website(e.g.,A,B or H)?Retail site Directly from brand Even mix of retail and direct52%21%27%Household groceriesHomeware41%25%34%Footware46%22%32%Household applia

92、nces41%25%34%Apparel/clothing35%33%32%Babycare51%27%22%Alcoholic beverages44%23%33%Beauty and healthcare41%23%36%Consumer electronics49%22%29%Petcare/pet food44%24%32%Furniture39%30%31%Luxury items(e.g.,watches,handbags)22%33%45%28The Retail Paradigm A key aspect of retail media is the way it links

93、advertising to purchase within the same site.This enables advertisers to test their creative,their targeting,even their products,directly with consumers,and then use the results to inform all their advertising activity.The result should be a better experience for customers and better results for the

94、 brand.Figure 16 looks at consumer attitudes to advertising on ecommerce sites and compares them with those expressed in the 2021 Catalyst/Xaxis report,Closing the Gap:Omnichannel Strategies for Stronger Brand-Consumer Connections.2 In general,U.S.consumers are slightly more responsive to retail med

95、ia advertising in 2022 than they were in 2021.This is likely due to rapid improvements in the quality and targeting of the advertising,driven in part by the capabilities described above.Increased consumer habituation is also a factor.Consumers are Receptive to Retail Media Section 52 Closing the Gap

96、:Omnichannel Strategies for Stronger Brand-Consumer Connections,Catalyst and Xaxis29The Retail Paradigm:Consumers are Receptive to Retail Media Figure 16How receptive are you to advertising on ecommerce sites(e.g.,Amazon,Target,Walmart)?The surprise is that the biggest change in attitudes is seen am

97、ong the over-55s.For this age group,the proportion saying theyre not receptive to advertising on retail sites has dropped from 41%to 28%.In comparison,the proportion of 18-34s who say theyre not receptive has only fallen from 21%to 16%,while 35-54s have become slightly more resistant,with 20%saying

98、theyre resistant in 2022 compared to 16%in 2021.To put this into context,Figures 17 and 18 look at attitudes to online advertising more generally,once again comparing results from this years survey with those from our 2021 Closing the Gap research.38%41%21%41%43%16%14%45%41%34%50%16%38%42%20%19%53%2

99、8%Very receptive Moderately receptive Not receptive2021202120211834355455+20222022202230The Retail Paradigm:Consumers are Receptive to Retail Media Figure 17Proportion of consumers agreeing(strongly or somewhat)with statements relating to online advertising.Looked at across the entire sample,there h

100、as been slight improvement in peoples attitudes.Four out of five are still sometimes bothered by the number of times they see an ad.Just under three-quarters say theyre happy to engage with relevant branded content,and the same proportion dont mind ads if theyre personalized.Finally,around two-third

101、s say the ads they see online usually feel relevant to them.Breaking these down by age group,we see a similar pattern to that for attitudes to retail media advertising;an increase in enthusiasm among the oldest and youngest consumers surveyed,a decrease among the middle group(Figure 18).Sometimes I

102、see the same advertisement repeatedly and its too muchIm happy to watch or engage with videos and other content from brands if theyre relevant to meI dont mind seeing ads when they feel personalized to my interests and needsThe ads I see when Im online usually feel relevant to my interests and needs

103、 2021 202286%71%71%63%81%70%69%66%31The Retail Paradigm:Consumers are Receptive to Retail Media In particular,over-55s are less concerned about ad frequency(83%down from 91%),and more likely to feel the ads they see are relevant(49%up from 41%).In contrast,while 35-54s attitudes to ad frequency have

104、 barely changed,theyre significantly less likely to feel the ads they see are relevant(66%down from 77%),to engage with branded content(72%down from 83%),and to respond to personalized ads(70%down from 79%).In other words,retail media advertising appears to be a channel that will work for all ages,b

105、ut marketers need to respect a growing level of discontent with online advertising in general among the high-spending middle age group.Figure 18Proportion of respondents agreeing(strongly or somewhat)with statements relating to online advertising.1834 3554 55+83%85%91%77%84%83%Sometimes I see the sa

106、me advertisement repeatedly and its too much2021202278%83%52%74%72%57%Im happy to watch or engage with videos and other content from brands if theyre relevant to me20212022I dont mind seeing ads when they feel personalized to my interests and needs76%79%58%72%70%60%2021202270%77%41%72%66%49%The ads

107、I see when Im online usually feel relevant to my interests and needs2021202232The Retail Paradigm Section 3 looked at how consumers feel about the convenience of online shopping(Figure 7).More than three out of four(78%)said they felt online retailers are making things easier for them with services

108、like in-store pick-up and same-day delivery.The next phase of retails evolution will make things easier still,while adding to the entertainment aspect of shopping.Augmented reality(AR)and virtual reality(VR)are expected to change the nature of online shopping in many sectors,particularly for big-tic

109、ket items,like cars and vacations,and could eventually tip the overall balance of retail in favor of ecommerce.Of course,the impact of these technologies will depend on how widely accepted they are by consumers.Figure 19 shows the extent to which AR has been adopted so far for different types of sho

110、pping,whether trying out furniture,overlaying make-up or trying on clothing or shoes.The Future of the Retail Experience Section 633The Retail Paradigm:The Future of the Retail Experience The use of AR by brands such as Coach,IKEA,and Sephora has helped to drive significant uptake by U.S.consumers,i

111、ncluding for the use cases mentioned in Figure 19.Unsurprisingly,younger consumers are more likely to have used AR than their older counterparts.About a third have tried each of the three use cases specified.Only a quarter havent tried any,compared to half of 35-54s and three-quarters of over-55s.Da

112、ta is also starting to emerge showing the benefits of AR.According to AR and 3D ecommerce specialist Vertebrae,retailers using AR see a 19%increase in customer engagement,while the conversion rate increases by 90%for customers engaging with AR compared to those who dont3.Figure 19Have you used techn

113、ology in any of the following ways when you are shopping online or through an app?35%28%13%Seeing how furniture looks in my home32%20%7%Overlaying make-up to see how it works32%22%13%Trying on clothes or shoes virtually at home26%50%75%None of the above 1834 3554 55+3 Why retailers should embrace au

114、gmented reality in the wake of Covid-19,RetailCustomerE 34The Retail Paradigm:The Future of the Retail Experience Figure 20 shows early attitudes to VR.Over half(55%)of 18-34s have tried it,and a further third would like to.That compares with a third(34%)of 35-54s whove tried it and 38%whod like to.

115、Once more,the surprise comes from the over-55s.Only one in 10 of this age group have tried VR,but almost half(47%)would like to.If we assume the people who havent yet tried VR show the same split in acceptance/rejection,about half of 18-34s and 35-54s would carry on using VR(the number of over-55s w

116、ho have tried it is not statistically significant).This suggests the technology is already approaching mainstream acceptance.Figure 20Have you ever used a virtual reality(VR)headset to experience something first before buying(for example a car or vacation destination)?1834 3554 55+31%24%7%Yes,and Id

117、 do it again24%10%Yes,but I wouldnt do it again32%38%47%No,but Id like to try13%28%43%No,and I dont like the idea of it3%35The Retail Paradigm:The Future of the Retail Experience The other potentially game-changing technology in the making things easier category is stores without checkouts,such as A

118、mazon Go(Figure 21).Here again,younger people are more likely to have tried it,and older people are more likely to want to.A similar analysis as before suggests that,once everyone interested has tried it,just under half(46%)of 18-34s will continue checkout-less shopping,compared to just over half(51

119、%)or 35-54s.Figure 21How do you feel about shopping in stores where you can walk out with no checkout required because you are automatically charged(e.g.,Amazon Go)?“An engaging retail offering no longer means a digitally optimized ecommerce experience,nor a hands-on in-store experience;it means eve

120、ry physical,digital,and emotional touchpoint requires both experience and entertainment embedded into its DNA.The result is that 2022 will be the year of retailtainment,a merging of on-and offline experiences with an overall sense of enveloped engagement through entertainment.”Whitney Fishman,Managi

121、ng Partner,Innovation&Consumer Technology,Wavemaker 1834 3554 55+31%27%12%Ive done this and will happily do it again26%13%4%Ive done it,but didnt feel comfortable28%36%41%I havent done this yet,but like the idea15%24%43%I havent done this yet,and dont like the idea36The Retail Paradigm Shopping Beha

122、viors and PreferencesKey takeaways Both retail media and the ecommerce sector are growing fast.The enthusiasm shown for both by younger consumers suggests that growth will continue.Attitudes to online advertising have nudged up from an already very positive level,despite ongoing privacy concerns.How

123、ever,advertisers still need to be aware of the differences in feelings between different age groups.Consumers of all ages want their lives made easier,but theyre also more cost-conscious than before the pandemic.Add to that the fluid nature of their current behaviors,and the retail landscape is more

124、 competitive than ever.In response to lifestyle changes and the cost-of-living crisis,consumers are shopping more often,through more channels and increasingly often directly with brands.This puts greater pressure on pricing but increases the number of opportunities to increase basket size dramatical

125、ly.Section 737The Retail Paradigm Executive Summary The balance of on and offline shopping will continue to change,driven in part by the adoption of new technologies.Customers are open to experimenting with virtual reality and checkout-less shopping,while augmented reality has already been widely ac

126、cepted.It is imperative for brands and retailers to work together to understand and respond to changing customer behaviors.Brands need omnichannel strategies for the retail environment,but they also need to tailor their individual strategies to the precise channels their customers are using.“Consume

127、rs today move at a pace and speed motivated by convenience,value,connection,and entertainment.With so many touch points,brands have both the challenge and opportunity to move as fast as consumers by connecting retail,etail,and ecommerce.To do so they must foster further collaboration across marketin

128、g,supply-chain,pricing,and product teams with an ongoing strategy to test and invest.”Kerry Curran,Executive Director,Performance Strategy&Growth,U.S.,GroupM NexusThe Retail Paradigm:Key takeaways MethodologyThis research conducted by London Research is based on a nationally-representative online survey of 2,000 U.S.consumers carried out in March 2022.This report includes data split out by age group.Additional demographic information is available by contacting Catalyst and Xaxis.39The Retail Paradigm Executive SummaryStay tuned for Part 2 of The Retail Paradigm