INTERNATIONAL

OMNI-CHANNEL^^H

RETAILREPORT2021

Shoppinginthepandemicand

theimplicationsforthefuture

/retailYbuGov

CONTENTS

03Executivesummary

05Overview

06Methodology

08Globalbrick-and-mortarand

onlineretailpurchasebehavior

17Onlinechannelkeystowinning

20Brick-and-mortarkeystowinning

22Channelbarriersbygeography

25Improvingtheexperience:

Interest&intentfor

virtualreality/augmentedreality

28Winninginretail-nowand

thefuture

30AppendixA:Marketsnapshots

EXECUTIVE

SUMMARY

Globalinsights

?Bothbrick-and-mortarandonlinechannels

arepervasivewithshoppers,withanaverage

penetrationacrossmarketsof86%and81%,

respectively.

?Mostshoppersgloballyusebothonlineand

brick-and-mortartomeettheirneeds,with

nearlythree-quarters(74%)havingmade

purchasesthroughbothchannelsinthepast

threemonths.

?Channelreliancevariesdependingonproduct

types,asessentialsaremorelikelytobe

purchasedinbrick-and-mortar(78%)than

online(57%),whilediscretionaryitemsaremore

oftenboughtonline(72%)versusin-store(57%).

?Whileshoppinghasshiftedonlineduringthe

pandemic,manyconsumersstillprefertoshopin

person.Thisisparticularlytrueincategorieslike

clothing,whereproductinteractionisimportantto

theshoppingexperience,andwhereonly41%of

thosepreferringtobuyin-storedidso.

?Brick-and-mortarandonlinechannelspresent

shopperswithdifferentbenefitsandbarriers

thatmustbeweighedwhenmakingthe

decisionwheretoshopdependingontrip

missionsandcategoryneeds.

-Brick-and-mortarispreferredwhenneeds

areimmediate,oritisimportantto

physicallyexperiencetheproducts.

一Onlineshoppingispreferredforthe

convenienceofnothavingtoleavethe

home,socialdistancing,andthebenefits

ofwiderassortmentanddetailedproduct

information.

Differencesaroundtheworld

?COVID-19andgovernmentalresponsehas

impactedshoppingbehaviorglobally.Nations

withthemoststringentsocialrestrictions,such

asinGBandGermany,showmuchhigherrates

ofonlinepenetrationversusin-store,especially

fordiscretionaryitems.

?Thebenefitsandbarrierswhichshoppersperceive

inshoppingonlineandviabrick-and-mortarvary

betweendevelopedandemergingmarkets.

Forexample,shoppersinemergingmarkets

aremorelikelytomentiondatasecurity,

paymentmethods,anddeliverytimesas

barrierstoshoppingonline.

Divergenceacross

demographics

?Globally,categorypurchasebehavioronline

varieslittleacrossagecohortswithfew

exceptionssuchas55+buyingmedicineand

booksmoreoften,ortheyoungestcohorts

spendinglessonfurniture.

,Theyoungertheshopper,themorelikelythey

aretoshowinterestinvirtualoraugmented

reality,emergingtechnologieswhichaim

tobridgetheproductexperiencegapwhen

shoppingonline.

OVERVIEW

Nowmorethaneveritiscrucialforretailers

andbrandstounderstandthedynamicsimpacting

shopperswithintheretailindustry.Nosingleevent

hashadamoreprofoundimpactonshopping

attitudesandbehaviorsgloballythanCOVID-19,

raisingthestakesforretailersandmanufacturers

tobetterunderstanddirectcompetitiveforces,

cross-channelinterplaybetweenonlineand

brick-and-mortaroutlets,andthecertaintyaround

howbehaviorswillnormalizepost-pandemic.

YouGov,withitsrichdatabaseandprofilingsystemsof

consumers,conductedaglobalstudytounderstand

severaloftheseretaildynamics.Theinsightsinthis

reportcanhelpretailers,andthebrandsthatcompete

within,focusonwhatmattersmost:concentrating

onthelargestbenefitspacesandovercoming

barrierstodrivegreaterpenetrationandtripvisits.

METHODOLOGY

Thispaperwasproducedusingacombinationandattitudesacrosstheworld.Forthisanalysis

ofdatafromacustomRealTimesurveyamongweleveragedourRealTimesurveylinkedto

YouGov'sindustry-recognizedpanel,executedYouGovProfiles,ouralways-onsyndicated

across17globalmarkets,andtheYouGovCube,audienceprofilingsolutionthattrackshundreds

ourproprietaryconnecteddatasetencompassingofthousandsofconsumervariablesinover

hundredsofthousandsofvariables,collected55markets.Oursurveywasfieldedtheweek

overthecourseofadecadefrompanelmembers.ofJanuary11ththroughtheweekofFebruary

ItisthecombinationoftheCube'slargepanel22nd,2021,withrespondentsreflectingon

size,breadthofvariables,longitudinalhistory,theirshoppingbehaviorsandattitudesoverthe

andglobalcoveragethatallowsustoprovidepreviousthreemonths.

acomprehensiveviewofconsumerbehaviors

TheYouGovpanelprovidesanaturallyaccurateandrepresentativeviewofthepopulation.Dataisadjusted

usingamildweightingschemeusinginterlockingdemographiccharacteristics—methodologyconsidered

advancedinthemarketresearchindustry.Forthispaper,thefollowingpopulationrepresentationwasused:

MarketPopulationsampledrepresentationSamplesize(n=)

AustraliaNationalrepresentative-16+1,031

ChinaNationalonline-16+1,011

DenmarkNationalrepresentative-18+1,024

FranceNationalrepresentative-18+1,012

GBNationalrepresentative-18+2,113

GermanyNationalrepresentative-18+1,014

HongKongNationalonline-18+504

IndiaNationalonline(urbanonly)-18+1,021

IndonesiaNationalonline-18+1,018

ItalyNationalrepresentative-18+1,015

MexicoNational(urbanfocus)-18+1,069

PolandNationalrepresentative-18+1,011

SingaporeNationalrepresentative-18+1,013

SpainNationalrepresentative-18+1,064

SwedenNationalrepresentative-18+1,012

UAE(UnitedArabEmirates)Nationalrepresentative-18+1,005

USNationalrepresentative-18yearsofage+2,251

6YOUGOV.COM/RETAILYouGov'sInternationalOmni-ChannelRetailReport2021

Definitionsanddataaggregations

Severaldatapointsandchartshaveaggregatedinformationacrossmarketsandcategories.Areviewofthe

definitionsusedinthispaperarefoundinthetablesbelow.

Productcategoriesgrouping

EssentialsDiscretionary

CosmeticsBooks

Householdcleaning&laundryClothing

Householdfood&drinkEntertainmentitems

MedicinesandmedicalsupplieseReaders,tablets

Personal,hair,facialandskincareFootwear

SanitarycareFurniture&homedecor

Householdappliances

Householdconsumerelectricalitems

Jewelryandwatches

Mobilephones

Personalcomputers

Videogaming

Markettypes(basedonMoraanStanleyCapitalIndex(MCSI)MarketClassification)

MatureEmerging

AustraliaChina

DenmarkIndia

FranceIndonesia

GBMexico

GermanyPoland

HongKongUAE

Italy

Singapore

Spain

Sweden

US

Regions

EuropeNorthAmericaAsiaPacificMEA

DenmarkMexicoAustraliaUAE

FranceUSChina

GBHongKong

GermanyIndia

ItalyIndonesia

PolandSingapore

Spain

Sweden

7YOUGOV.COM/RETAILYouGov'sInternationalOmni-ChannelRetailReport2021

GLOBAL

BRICK-AND-MORTAR

ANDONLINERETAIL

PURCHASEBEHAVIOR

Globalandcountrychannelpenetration

Brick-and-mortarandonlinechannelsareThestrengthofonlineretailisnotjustamature

pervasiveamongshoppersaroundtheglobe.Themarketphenomenoneither.Emergingmarkets

incidenceofonlineandbrick-and-mortarchannelssuchasIndonesiaandIndiastillhaveonline

wherepeoplehavepurchasedinthepast90dayspenetrationratesoverthepast90dayshovering

rangesfrom70-90%acrossallmarketsanalyzed.at80%+ofthepopulation.

8YOUGOV.COM/RETAILYouGov'sInternationalOmni-ChannelRetailReport2021

Intermsofmarketpenetration,onlinechannelsreportedahigherincidenceofonlineversus

stillslightlylagbehindbrick-and-mortarinmostbrick-and-mortarpurchases,whileallothermarkets

countries.Onlytwomarketsanalyzed(GBandChina)reportedhigherbrick-and-mortarpenetration.

Channelpast90daypenetration(%ofrespondents)

Brick-and-mortaraverage:86%Onlineaverage:81%

Figure1

Which,ifany,ofthesecategorieshaveyouboughtinperson(fromstore)inthepastthreemonths?

(pleaseDONOTincludeitemsthatyouhaveboughtonlineandcollectedinperson).Pleaseselectallthatapply.

(Abovedepictsnetsacrosscategories)

Which,ifany,ofthesecategorieshaveyouboughtonlineinthepastthreemonths?

(Pleaseincludeitemsthatyouhaveboughtonlineandcollectedinperson)Pleaseselectallthatapply

(Abovedepictsnetsacrosscategories)

Intermsofmarketpenetration,onlinechannelsstill

slightlylagbehindbrick-and-mortarinmostcountries

9YOUGOV.COM/RETAILYouGov'sInternationalOmni-ChannelRetailReport2021

Exclusivevsdual-channelshoppingbehavior

Muchlikeotherindustrylearningson“repertoire”toshopbrick-and-mortarandonline.GBhasthe

marketswhereconsumershaveavarietyofhighestproportionof"onlineonly"whileAustralia

choices,veryfewconsumersshopexclusivelyathasthegreatestproportionof((brick-and-mortar

onechannelorretailer.Thegraphbelowdepictsonly"whichisdrivenatleastpartiallybythe

howconsumersshopacrossretailchannels.pandemicandthecountry'sretailrestrictions

Mostconsumersshopbothacrossallgeographies,inresponse.

withnearly75%ormoreofconsumersclaiming

Cross-channelpast90daypurchasebehavior(%ofrespondents)

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」Brick-and-mortaronlyDualchannel?Onlineonly

Figure2

Which,ifany,ofthesecategorieshaveyouboughtinperson(fromstore)inthepastthreemonths?

(pleaseDONOTincludeitemsthatyouhaveboughtonlineandcollectedinperson).Pleaseselectallthatapply.

(Abovedepictsnetsacrosscategories)

Which,ifany,ofthesecategorieshaveyouboughtonlineinthepastthreemonths?

(pleaseincludeitemsthatyouhaveboughtonlineandcollectedinperson)Pleaseselectallthatapply

(Abovedepictsnetsacrosscategories)

10YOUGOV.COM/RETAILYouGov'sInternationalOmni-ChannelRetailReport2021

Channelandproductcategorypurchasebehavior

Whilebothonlineandbrick-and-mortarchannelsitemssuchasfood,drinks,toiletriesandmore.

arewellpenetrated,itisshoppers,differenttripConversely,onlineretailchannelsarethepreferred

types,missions,andcategoryneedsthatoftenchannelfordiscretionaryitemssuchasshoes,

drivewhethertheywillshopinpersonoronline.clothing,andelectronics.Laterwewillexaminethe

Wecanstarttodistinguishbetweenthechannelsreasonspeopleareusingonlineretailchannelsfor

andtheirrelevancybylookingatthetypesofdiscretionaryitems,drivenbyamixofpandemic

productcategoriesconsumersarebuyingintherestrictions,benefitsofconvenience,andin

respectivechannels.somemarkets,techadvancesthatimprovedthe

shoppingexperience.

Brick-and-mortarcontinuestobethego-to

methodforpurchasingeverydayessential

Globalproductpenetration(past90days)bytypeofgoods(%ofrespondents)

Figure3

Which,ifany,ofthesecategorieshaveyouboughtinperson(fromstore)inthepastthreemonths?

(pleaseDONOTincludeitemsthatyouhaveboughtonlineandcollectedinperson).Pleaseselectallthatapply.

(Abovedepictsnetsacrosscategories)

Which,ifany,ofthesecategorieshaveyouboughtonlineinthepastthreemonths?

(pleaseincludeitemsthatyouhaveboughtonlineandcollectedinperson)Pleaseselectallthatapply

(Abovedepictsnetsacrosscategories)

Brick-and-mortarcontinuestobethego-tomethodforpurchasing

?everydayessentialitemssuchasfood,drinks,toiletriesandmore

11YOUGOV.COM/RETAILYouGov'sInternationalOmni-ChannelRetailReport2021

Channelandproductcategorypurchasebehaviordeepdive

Zoominginonthetypesofgoodspeoplearemeasuredapartfromcosmetics,hasahigher

lookingtobuybetweenbrick-and-mortarandonlinepenetrationonlinethaninbrick-and-mortar

highlightskeydifferencesinshoppingbehaviors.Apparelandentertainmentaretwosectors

showingsignificantlyhigherpenetrationlevels

Brick-and-mortarpenetrationlevelsarenearlyonline.Booksandclothingcategoriesshow

doubletheonlineratesacrossessentialcategories.thegreatestpenetrationgapbetweenonline

Thelargestgapisseenwithfoodanddrinkitems,andofflinepurchasing,at+13and+12points,

wherepenetrationis32pointshigherinrespectively.Itisworthnotingwhileonlineis

brick-and-mortarchannels.advantagedinthesecategories,thedifferencesin

favorofonlinearemuchsmallerthanwhatwesee

Weobserveadifferentnarrativeplayingoutin

ontheinverseinessentials.

discretionarycategories,whereeverycategory

Channelpast90daypenetration(%ofrespondents)

Online

32%

33%

20%

17%

Clothing-30%

Cosmetics21%19%

Footwear19%

Books*12%

Furniture&homedecor11%14%

Mobilephones8%13%

Householdappliances11%

Jewelryandwatches■■6%10%

Householdconsumerelectricalitems6%9%

Personalcomputers5%8%

Entertainmentitems□4%14%

Videogaming口4%10%

eReaders,tablets■2%?4%

Figure4

Which,ifany,ofthesecategorieshaveyouboughtinperson(fromstore)inthepastthreemonths?

(pleaseDONOTincludeitemsthatyouhaveboughtonlineandcollectedinperson).Pleaseselectallthatapply.

(Abovedepictsnetsacrosscategories)

Which,ifany,ofthesecategorieshaveyouboughtonlineinthepastthreemonths?

(pleaseincludeitemsthatyouhaveboughtonlineandcollectedinperson)Pleaseselectallthatapply

(Abovedepictsnetsacrosscategories)

Wording:*BRICK-AND-MOFlTAR:HardcopiesandnoteBooksoraudiobooksOnline:Physical,eBook,audio

Everyessentialcategorymeasuredapartfromcosmetics,

hasahigherpenetrationonlinethaninbrick-and-mortar

12YOUGOV.COM/RETAILYouGov'sInternationalOmni-ChannelRetailReport2021

Onlineproductbehaviorbygender

Targetingwomen,versusmen,foronlineretaildiscretionaryproductcategories.Importantly,

isperhapsthegreaterofthetwoopportunitiesthebiggestdifferencesshowupamongthemost

atthemoment.Ourresearchshowsthatwomenpenetratedcategoriesonlineincludingpersonal

havemuchstrongeronlineretailpurchasecare,clothing,andcosmetics.

behaviorversusmenforavarietyofessentialand

GlobalonlineproductpenetrationGlobalproductpenetration(past90days)(%ofrespondentsbygender)

FemaleMaleDifference

%%Pt.

Samplesize9,5309,658

Personal,hair,facialandskincare4125+16

Cosmetics2712+15

EssentialsSanitarycare2014+6

Householdcleaning&laundry2621+6

Medicinesandmedicalsupplies2218+4

Householdfood&drink3431+3

Clothing4935+14

Books2822+6

Footwear2722+5

Furniture&homedecor1612+4

Jewelryandwatches128+3

DiscretionaryHouseholdappliances990

eReaders,tablets45-1

Entertainmentitems1216-3

Personalcomputers610-4

Mobilephones1116-5

Householdconsumerelectricalitems814-6

Videogaming714-7

Figure5

Which,ifany,ofthesecategorieshaveyouboughtonlineinthepastthreemonths?

(pleaseincludeitemsthatyouhaveboughtonlineandcollectedinperson)Pleaseselectallthatapply.

Ourresearchshowsthatwomenhavemuchstronger

onlineretailpurchasebehaviorversusmen

13YOUGOV.COM/RETAILYouGov'sInternationalOmni-ChannelRetailReport2021

Onlineproductbehaviorbyage

ThedataalsoshowsthatonlinepurchasebehaviorTheproductcategoryexceptionstothesemaybe

islargelysimilaruntilyouapproachthe55+agedrivenbycategoryrelevancytoparticularcohorts.

cohort,whereincidenceisloweracrossmostTheyoungestcohortexhibitslowerpenetration

measuredcategories.Whileonlinepenetrationacrosshouseholdcleaning&laundry,medicines,

isloweramongtheoldergeneration,itisstillafurniture&homedecoraandhouseholdappliances—

sizeabledemographicacrosscountries,thatoffersallcategoriestheyaregenerallylesslikelytoengage

alargeopportunityforpenetrationgrowthwhichwithversusmiddleandolderagecohorts.

shouldnotbeignored.

Globalonlineproductpenetration(past90days)(%ofrespondentsbyage)

All18-2425-3435-4445-5455+

Samplesize19,1882,4514,1023,5093,1335,993

Personal,hair,facialandskincare333539373425

Householdfood&drink323037383327

EssentialsHouseholdcleaning&laundry241626302620

Medicinesandmedicalsupplies201622202020

Cosmetics192324231913

Sanitarycare171620221712

Clothing424446464436

Books252223252628

Footwear252327302720

Furniture&homedecor141016161613

Entertainmentitems141516171410

Mobilephone/p>

Discretionary

Householdconsumerelectricalitems11812131210

Videogaming10161614103

Jewelryandwatches10131211107

Householdappliances958101110

Personalcomputers89101085

eReaders,tablets445544

Figure6

Which,ifany,ofthesecategorieshaveyouboughtonlineinthepastthreemonths?

(pleaseincludeitemstha