While interest and uptake in connected technology in retail is growing – from wearables to smart fitting rooms – levels of consumer usage and acceptance fluctuate from country to country across Europe, according to Retail Week’s latest report.
It compiled research from seven territories, including Belgium, France, Germany, Italy, the Netherlands, Spain and the UK, as per the infographic below.
Titled The European Connected Consumer, and written in association with Osborne Clark, the study outlines the fact European consumers should not be targeted as one homogenous group by retailers. Understanding behavioural nuances presents great opportunities to businesses whether interacting with consumers in retail, digital health, transport, logistics or emerging innovations, it explains.
“By discovering the game-changing shifts in European consumer behaviour we believe your business will be better equipped to navigate the digital revolution and drive future innovations,” writes Laura Heywood, commercial editor of Retail Week Connect.
As an integral part of the consumer’s need to be constantly ‘on’, there’s a growing appetite for connected wearables, for instance. Fitness trackers take the lead, with Italy, the world’s second healthiestcountry according to Bloomberg, showing the highest take-up (48%), followed closely by Spain (47%) and Germany (36%). Moving forward, trackable devices will need to seamlessly blend into busy lifestyles, as demonstrated by Levi’s’ and Google’s Project Jacquard jacket, it outlines.
The UK meanwhile shows the lowest adoption of fitness tracking and virtual health technologies – 68% use neither, compared with 59% across Europe. The report indicates this could be a result of public concerns following recent high profile data breaches, such as TalkTalk’s cyber attack in October.
One of the areas to have shown the biggest improvement and uptake is payment and shopping technologies, exemplified by the rise of contactless cards. These have been widely adopted across Europe, with 45% of respondents having used them in the past three months. Spain has the highest usage at 57% and Italy the lowest at just 26%.
Alternatively, only a minority of consumers in the UK (33%) and the Netherlands (40%) use mobile payments apps like Apple Pay. This may soon change as big retailers such as Tesco in the UK and Inditex in Spain, which owns Zara and Pull & Bear among others, launch their own mobile payment apps in the near future.
Physical retail is still generally the preferred mode of shopping in many regions otherwise, sitting at 69% compared to 31% who chose online. Belgium shows the most conservative results, with an 80% majority preferring to shop in store, largely due to heavy retail regulations that make it harder for advanced technologies to enter the country, according to analysis from Euromonitor International.
Meanwhile, consumers across territories were unanimous in their biggest concern when shopping online, 54% voted security. They ranked it higher than convenience, speed and reliability. French consumers are most keenly aware of the importance of security (71%), while the UK closely followed at 63% and Germany at 59%.
There’s a willingness to share personal data however, with 53% of Europeans overall being open to it. The Italians were most confident at 66%, followed by the Brits at 61%. German respondents revealed the most reluctance, with 59% stating they are not comfortable sharing data, compared to 47% across Europe.
The report suggests that businesses that are transparent about data usage, stating how it will be shared with partners or allowing the customer to personalise their profile, manage to remove anxieties and establish trust.
In exchange, 78% of Europeans expect differentiated pricing, while additional perks such as discounts and personalised offers based on search and purchase history also help boost a willingness to share for 82% of them.
As for the future, the report outlines the fact concepts such as 3D body scanning and virtual fitting rooms are becoming more accepted features of physical stores, while there is somewhat hesitant appetite for drones and driverless vehicles to become logistic realities.
More than half of European consumers (57%) are excited by the concept of virtual fitting rooms, for instance, although the UK scores low (42%) in comparison to countries such as Spain (82%) and Italy (70%).
Opinion is more divided when it comes to drones – less than half of Europeans (46%) say that if drones were to be used in parcel delivery they would consider this a positive development. Italy is the most favourable to it (67%) followed by Spain (60%). At the other end of the scale, and once again revealing some hesitation regarding innovation, is the Netherlands and the UK, where 68% and 64% respectively say they would not consider drone delivery as positive.
You can download the full report here: The European Connected Consumer.