As a result of the corona pandemic and the war in Ukraine, many companies are struggling with supply chain problems. This causes delivery bottlenecks that retailers and consumers feel when certain products are not available. The additional inflation dampens the buying mood. The “Global Consumer Insights Pulse” survey by the auditing and consulting company PwC summarized how much.
“Many people are currently having to pay more attention to their spending. For retailers and manufacturers, this means that there is a risk of losing customers unless they actively take countermeasures,” summarizes Christian Wulff, Head of the Retail and Consumer Goods division at PwC Germany and EMEA.
The semi-annual study conducted among consumers in 25 countries, including 500 people in Germany, recorded that around a quarter (27 percent) of those surveyed had experienced that certain products were not available online or offline. This dampened the buying mood; also long delivery times for online purchases and queues in stationary trade, which observed a third. The result: Half of those surveyed stated that they migrated to the Internet at least occasionally due to the current situation in retail; half of them even regularly.
But here, too, the previously spoiled customers have to be patient: A fifth of those surveyed complained about long delivery times and as a result looked around at the competition. “63 percent use digital comparison portals to check product availability,” the survey found.
60 percent said they would consider an alternative product, even if it’s more expensive. “Under certain conditions, German consumers are quite willing to pay more than usual for a product. This applies in particular if it is tailor-made or individualised, was produced regionally or consists of sustainable materials,” explains Wulff.
“Made in Germany” is gaining in importance
The online and offline trade could observe a trend for products made in Germany. When asked why, 50 percent of respondents said they wanted to support their own economy, while 42 percent said manufacturing location and conditions were important. Two-thirds of those surveyed stated that the way a company is positioned when it comes to the environment influences their purchasing decision – i.e. whether it reduces its CO2 emissions or does without plastic packaging. “In any case, the aspects of the environment, social issues and responsible corporate management play an important role in the purchase decision,” the study summarizes.
Corporate governance is also important for 72 percent, such as dealing with data protection or a commitment to transparent business practices. According to the study, customers particularly appreciate it when retailers rely on transparency in business practices and admit mistakes.
“Consumers reward those companies with a leap of faith that can credibly convey that they are making efforts to reduce CO2 emissions, respect human rights or high data protection standards. In addition to the purchase probability, the recommendation rate also increases,” advises Wulff.
Second-hand and technology are still on the rise
In order to use fewer new resources and to protect the environment and climate, more and more consumers are open to the second-hand market. According to the study, the majority of respondents have already bought used items or could imagine doing so. “For clothing, 56 percent of those surveyed have shopped second-hand items; in Generation Z, i.e. the 18 to 27 year olds, it is even 64 percent,” the study found.
“For retailers, these developments mean that they have to strengthen their ESG positioning. In addition, they can win the trust of customers if they ensure a successful customer experience. This could be exceptional customer service, for example. But attractive discounts or the offer for simplified repeat purchases also strengthen the loyalty of the buyers,” summarizes Wulff.
Innovative technologies such as virtual reality (VR) as an additional shopping channel also help, because almost a quarter of Germans (23 percent) already actively use virtual worlds and products; For example, they watch films with VR headsets, buy digital products, test products in a virtual world or take part in virtual events. Here, too, young consumers are showing the way: “The target group of virtual offers is primarily Gen Z, who are already gaining the most active experience in the virtual world,” confirms Wulff.