The speed of convergence between the countries of the world which is based on constantly evolving technology identifies the transition to another new era that is constantly renewed at a high rate.
The rapid adjustment or non-adjustment of countries to the new technological challenges is also the tool of a country that determines whether a country will go through from the situation of economic downturn to the situation of growth or if it will remain in stagnation.
by Thanos S. Chonthrogiannis
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The technological developments and the constantly adjusting consumer behaviour
The e-commerce, the use of smart devices, the purchase of products and services through social media, the facilitation for the speedy completion of daily tasks, the rapid information in order to optimise the purchasing consumer experience at a personalised level, as well as the added value which is directed more to the consumer and less to the product (customer driven) affect the retail sector and the behaviour of retail business and in particular the department of design, strategic analysis and marketing equally of new consumer products.
Photo by Gridprop
The consumer on his side is in a state of continuous interconnection-interlocking (engaged customer) and wants to spend more and more, seeking primarily more and higher levels of satisfaction aiming at the continuous improvement of his standard of living.
At the same time, the consumer in order to achieve total satisfaction is constantly involved in market research, reads posted reviews on the internet about the product he is interested in, compares prices and product quality, changing the way he makes his purchases.
Based on all these elements and data, a modern enterprise should use them to design its respective strategy in order to maximise the chances of a better and more meaningful approach to these potential purchasers of its products.
The Consumer groups based on their age
So, these high demands create a field of business action with high profit margins due to the ever-increasing specific population group, which seeks the use of such services and due to the increasing expectancy of lifetime.
Based on age and disposable income per age, consumers are divided into the following main groups:
1. Youth 16-24 Years
This consumer group is the most dynamic part of consumers because it spends the total of its disposable income mainly on technology products while selecting products labeled trying to create their own identity in their social environment. It is very much up to date with technological developments.
2. The 25-35-year-old consumer group
This group of consumers presents the most increased per capita consumption and since it has stop to depend on the income of parents and entering fully into the labour market, it is fully independent in economic terms and tries to create their own family and whatever that means as it concerns the obligations it undertakes (e.g. mortgage loans, school fees etc.).
Their consumption is high, but it takes place after a thorough examination of all the factors and their needs before making purchases.
3. The 35-50-year-old consumer group
It is the consumer group, which is the first subgroup of the mature market, who are looking for quality rather than the quantity in terms of satisfying their consumer needs. In addition, they are the ones who save more than the other consumer groups for their children’s studies etc. In the EU, half the population is over 42 years old.
4. The 50-65-year consumer group
This consumer group now enters the phase that consumes less but more qualitative and looks to save money either to have better retirement years while seeking the purchase of a second home or a country residence.
5. The consumer group of 65 years and over
This consumer group presents the greatest interest because seeing that life expectancy is constantly being prolonged begins to consume products and services of health and good appearance. At the same time, the elderly over 80 years are looking for better and more quality services and care products for the elderly at home.
In the EU, 1 in 5 Europeans are over 65 years old and 1 in 20 are over 80 years old. In China, 250 million people are over 60 years old, while by 2050 this age group is expected to reach the number of 500 million (36% of the total population of China). In Japan, the age group of over 65 years is expected to constitute the 2030 in 1/3 of the total population. So, it is evident the tremendous momentum that this consumer age group presents.
The international trends in retail trade
These trends are those that are changing, and the retailers should take them into consideration in their product and customer approach design equally. More specifically:
1. The digital age and the e-commerce that is gaining an ever-increasing share of world trade pie.
2. The ever-increasing uses that the consumer can make through his smart mobile device for the rapid market research done through his internet access and online stores. The overwhelming proportion of the population in developed countries has access to the internet through smart mobile devices, while in developing countries the pace of population coverage is rapid.
3. One of the most dynamically developing markets is that of tourists, as they are a strong consumer potential, this market is estimated to be close to 1 trillion. While by 2030 it will surpass 1,5 trillion dues to the total increase in per capita income in China.
4. So, given that 50% and more of consumers want to have physical contact with the product in the shop before purchasing the product, while 20% of consumers make multiple purchases retail stores should be organised and they adjust in such a way to these consumer requirements and behaviors respectively in order to increase the electronic and physical traffic to their stores.
5. 55% of buyers prefer e-shop purchases due to money savings.
Ease of purchase means saving time for the customer and increased efficiency in the retail trade. For this reason, the supermarkets shops are created today with intention to operate 24 hours a day, without employees but with the use of multiple cameras (exposition places) where the consumer through his smart mobile device is able to scan the barcode of the product which he searches for and wants to buy and the charge is automatically made in his account. The consumer achieves a saving of time and ease of purchase without suffering in the queues of funds and without using cash.
The shopping experience should be completely linked to the consumer as a significant part of the product representing among others the feelings of joy from the whole market experience that the future retail store should offer (petailtainment).
