NielsenIQ: 5 challenges retailers need to consider in the future

More customers are buying online and doing so more frequently in Asia, while e-commerce is transitioning to the next phase, according to NielsenIQ.

In its latest thought leadership piece, NielsenIQ suggests that there are five challenges that retailers need to face, including greater fragmentation in retail, redefining of the role of physical stores, divergent realities, increased fight for consumer attention, and the race to last mile fulfillment.“Technological advancement and creativity of the last decade have made the retail world more advanced — leading to an environment where trust is solidified, where it is more than logistics but more about pushing the envelope on personalised discovery and curation, where there is exploration of new categories, and seamless omnichannel integration," said Vaughan Ryan, Nielsen IQ’s consumer intelligence managing director in Asia.

Undoubtedly, the pandemic has accelerated the transition of retail to the next phase. For example, in Hong Kong, the growth was among the most dramatic with a 46% increase in households shopping online in 2020. The frequency of shopping increased significantly than penetration with consumers purchasing online 75% more frequently in 2020. Consumers in Hong Kong spent on average 2.5 times more per trip online than offline, with the value per buyer showing an increase of 52% from 2019 to 2020.“Online growth mostly comes from local consumers adding online to their shopping repertoire meaning that consumers don't stop purchasing offline but, instead, are looking for more omni-channel opportunities,” commented Alix van Langendonck, consumer intelligence head in Hong Kong.

“The future of retail in Hong Kong will be driven by online in general but even more by hybrid channels offering solutions both offline and online," she added.

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