Nearly all consumers in Asia’s developing nations ‘showroom’: TNS

Among those who showroom in Asia, 62 per cent in developed nations use their mobile phones and 75 per cent in emerging nations, according to the research firm’s annual Mobile Life study, based on responses from 38,000 people in 43 countries, out of which about 8,000 are from 11 Asian countries.

The biggest drivers for showrooming are twofold: reassurance on price and reassurance on suitability, with 16 per cent globally reading reviews or checking social media whilst in-store to inform their decision-making, and a quarter asking friends and family what they would recommend buying (as high as 49 per cent in emerging Asia and 42 per cent in India).

This would indicate that markets where showrooming is at its highest are where consumers value price over convenience, and/or have less faith in the price and suitability of products sold in retail stores.

The showrooming trend has been regarded as a threat to bricks-and-mortar retailers in recent years. However, based on its research, TNS is confident that retailers can minimise risk by using mobile to their own advantage.

The survey found that shoppers from both emerging and developed Asian nations are equally likely to use their phones to compare prices (about 33 per cent). Shoppers in developed nations, however, are more likely to see if it’s easier for products to be bought online and delivered (18.4) than those in emerging nations (7.5). People in developed nations are also far more likely to use their phones to take a picture or note down product details for the future (26.2), particularly in South Korea (39), Singapore (37) and Hong Kong (32).

It’s worth noting that diverse Asia has two outliers. In terms of these behaviours, Japan seems more aligned with emerging nations and the Philippines more in tune with developed nations. For example, 21 per cent of people in the Philippines are likely to use their phones to take notes, compared with only 15 per cent in Japan. Filipinos are also more likely to check whether a product is easier to order online (21 per cent) than the Japanese (13 per cent)

Retailers however, are not without resources in competing for the shopper’s mobile attention. “In developed markets, mobile presents an opportunity to break established showrooming behaviours and make purchasing in retail more appealing,” observed TNS’ chief development officer, Matthew Froggatt .

The survey found that shoppers from Asia’s developing nations are open to interacting with brands while shopping.  More than a third (36 per cent) are keen to receive mobile coupons or offers based on their interests or even the product they are currently browsing. These shoppers are also open to taking a short mobile survey (34 per cent) or watching a mobile ad (33 per cent) in exchange for a coupon or deal from the brand.

Shoppers from developed Asian countries are also happy to interact with the store brand via their mobile phone for information, as 34 per cent prefer to use a ‘virtual assistant’ versus 29 per cent who’d rather speak to a shop assistant.

The top three markets that most prefer a virtual assistant to a live one are South Korea (47), Taiwan (45) and China (43). In this, Japan is once again an outlier, with 33 per cent preferring live sales assistants, versus 28 per cent who’d rather go virtual. An app that a chain-store retailer could consider would be one that allows shoppers to check product availability at various store outlets—the desire of 32 per cent of respondents from Asia’s more advanced nations.

Froggatt continued: “People still want the reassurance of seeing a product before they buy it, but actually purchasing elsewhere means retail outlets are left as loss-making display cabinets. Rather than seeing mobile as a threat to in-store sales, brands and retailers must embrace it as the most immediate and personalised way to engage shoppers to ensure they don’t leave empty-handed.”

Shoppers from emerging nations however are far less inclined to interact with brands via their mobile while shopping. At most, they are on the hunt for information with 21 per cent saying that they would like a mobile app or website that gave shopping tips or recommendations. These shoppers would also like an app that helps them navigate the store and locate products (20 per cent), while only 15 per cent would like to receive mobile coupons or offers.

“In emerging markets, where there is a greater tendency to embrace disruptive behaviours, there is an imminent threat of new showrooming behaviour driven by mobile,” said Froggatt.

They key to shoppers' hearts, it seems, lies not in mobile, but in customer service. Nearly half (45 per cent) of respondents from emerging nations prefer dealing with a shop assistant, especially in Indonesia (53) Thailand (42) and Vietnam (41).

Investing in knowledgeable sales staff and great customer service across all markets, especially in emerging nations, therefore is key to keeping shoppers engaged with the store brand and may reduce the urge to look elsewhere.

“Mobile might seem like the enemy—opening up the retail environment to a potentially limitless range of competitors. However, the key for brands and retailers is to find ways to make buying in-store the convenient option,” advised Froggatt.

Shops must be able to save the consumer time, money or angst or they risk having shoppers look elsewhere. “In understanding exactly how consumers are using their mobile in-store, brands and retailers can improve their own offering—whether through apps, mobile coupons or simply greater provision of information—and begin to nudge shoppers back towards the tills,” he concluded.