No trade. “Complete surprise”: sales of electronics collapsed in Russia. Information is still an essential component of retail success

website– Current retail volumes are still lower than last year. For the first quarter, the retail turnover turned out to be 1.8% less than a year earlier. To somehow support sales, stores shout about discounts and promotions, and also fill the shelves with products in their own packaging at minimal prices.

According to sociologists, every third Russian buyer (34%) decides to buy only the cheapest brands of goods. Five years ago, only every fourth buyer (23%) adhered to such a strategy. On the other hand, experts note that stores are increasingly forced to sell goods at a discount and resort to marketing tricks to increase demand.

Among Russian consumers, a stable group of fans of discounts and special offers- in the Romir holding they call them Cherry Pickers (lovers of grabbing cherries from the cake). Five years ago, the proportion of those who wanted to “profit” through promotions was a barely perceptible 3%. But already in the fall of 2015, the number of "cherry hunters" reached 16% of all consumers, and now their number is almost 20%. If before the crisis people often bought just milk, just butter and just sour cream, not particularly interested in the brand and the price, which should have been just in some average range, now, after a sharp drop in the incomes of most citizens, the main criterion for buying has become precisely price.

According to the Institute social analysis and forecasting, the real disposable money income of the population in February 2017 decreased again, this time by 4.1% compared to the same period in 2016, and on Tuesday Rosstat reported that in March, incomes decreased by 2.5% compared to March 2016. Household incomes have fallen for the fourth year in a row. The poverty rate for the past year was 13.5%, this is the most high rate over the past nine years.

In such an environment, it is difficult to associate people who are trying by all means to maintain the level of consumption with rogues who strive to grab cheaper goods. Cherry Pickers are more of a product of a weak economy, and their appearance is provoked not only by low incomes, but also by the measures of retailers who are trying to somehow revive demand. Retail trade turnover in March decreased, according to Rosstat, by 0.4% in annual terms, in the first quarter - by 1.8% compared to the first quarter of 2016. Retail trade in Russia has been declining for the third year in a row.

Romir analysts believe that long before the crisis, there was an increase in the share of promotional products, which undermined customer loyalty to brands and retail chains. Today, the scale of promotions and all kinds of discounts and promotions has reached such a scale that in some categories it is simply impossible to purchase goods outside of promotions. A third of strong alcohol confectionery, juices, sauces is sold through promotional programs. Even more - water (37%), soda (39%), dried fruits (44%) and nuts (51%).

Over the past year, 96% of Russians voluntarily or involuntarily became participants in such marketing move stores, as the purchase of goods from the category of "own brand" (PL), which is a priori cheaper than competitors (if a liter of milk of some kind is usually sold for 70-80 rubles, then "your" milk with a brand invented by the store can be given for 43 rub.). Romir calls this model pseudo-discount, but, as the results of polls show, 44% of Russians know that we are talking about their own trademarks networks, and every fifth respondent (22%) perceives private labels simply as the cheapest goods in the store, which is basically true, since private label products are on average 20% cheaper than branded counterparts. Private labels are now present in more than 220 categories. The most common are dairy products, and from non-food categories - shampoos, washing powders, toothpaste and personal hygiene products.

The share of private labels in Russia in 2010 was 2%, and today in Central region this figure reaches 40%, in the Volga region the figure is smaller, but also tangible (17%). In other districts, chain brands still account for only a tenth of the total cash turnover of stores. By the way, in Europe the figures also vary. For example, in Poland every fourth product (24%) is sold under the chain's own brand, in France - 28%, and in the UK, Spain and Switzerland this figure exceeds 40%.

“The number of promotional goods we have can reach 5–10%, depending on the store,” says an analyst at the Finam group of companies. Bogdan Zvarich. - Some retail chains prefer to regularly vary discounted goods, based on regular customers - owners of discount cards. At the same time, discounts are provided not only by lowering the price of a particular product, but also by stimulating buyers through promotions, where the purchase of two or more products leads to a discount, for example, the sale of two products for the price of one. At the same time, I would not talk about the growth in the number of goods sold at a discount. Despite the decline in the purchasing power of the population, retail chains are not ready to reduce prices through discounts, as the difficult economic situation leads to a deterioration in their performance and results.”

A little more "bet" is made by other experts.

“The percentage of discounted items depends on the store, and it is rather difficult to calculate it, since the discount system is often fluid - the discount percentage and the duration of the promotion can change quickly. Permanent change makes the buyer be in good shape - follow the news of the store and remain loyal to him, - the managing partner of 2K told NG Tamara Kasyanova.

In addition, there are constantly various coupons and promotional codes that also give various discounts. Plus loyalty cards and off-season sales, including in connection with the liquidation of the store, which, in turn, can be purely a marketing gimmick. In total, the percentage of discounted goods can formally reach 50% or more, especially when it comes to an online store. It can be difficult to assess the overall picture also because there are “fake discounts”, that is, a product or service is offered at an inflated price and a noticeable discount is immediately made. Therefore, we can talk about a maximum of a quarter of the goods that come at a discount. Usually it is 10-15% or even less. Depending on the particular store and on the choice of the buyer, if we exclude “fake discounts”, the average actual share of discounted goods in the total check can be 10–30%.

The research company GfK recorded a collapse in sales of major types of home appliances and consumer electronics. The fall, which began last December, was a complete surprise for retailers, Vedomosti writes.

In the red were sales of phones, laptops, tablets, TVs, refrigerators, vacuum cleaners, washing machines and other equipment. In the first week of January, sales decreased by 2.1% in annual terms, and by mid-February, the decline in sales accelerated to 11-14%.

Tablets saw the largest decline, with sales dropping by more than 20%. Phones, in turn, "sank" by an average of 4%. In monetary terms, sales of basic goods of technology and electronics decreased for three weeks in January and two weeks in February.

Analysts attribute the collapse in sales to stocks that consumers made at the height of the 2014-2015 crisis. However, representatives retail chains admit that they are "in a misunderstanding of what is happening." Not only the check or conversion is falling, but traffic in stores is declining and practically does not grow online, says one of the sellers of home appliances and electronics. One explanation for why this is happening involves the impact of the strengthening of the ruble on the formation of consumer expectations, the newspaper notes. However, market participants do not have a common version of what is happening.

According to Rosstat, retail trade turnover has been falling almost non-stop for two years now. In 2015, retailers' revenue fell by 10.9%, the most since 1998. The past 2016 brought a new decline of 5.1%.

In monetary terms, sales of basic goods of technology and electronics decreased for three weeks in January and two weeks in February, in late January - early February, the drop in sales reached 11-14%, according to experts. A slight improvement in the situation was outlined only by the seventh week of 2017: according to its results, sales in pieces decreased by only 0.6%, and even increased in value terms - by 8.3%. This drop came as a surprise, but it started back in December 2016; then the decline was about 10% and affected all product categories, says one of the major retailers of household appliances and electronics, all the months before that were more or less positive, there was an increase in sales compared to 2015.

Earlier, an Initiative study recorded that in December 2016, Russian consumers eased their savings regime on food, leisure and alcohol, but began to save more on electronics. Stocks of equipment were made in the midst of the crisis of 2014-2015, when there was a rush demand, experts assumed.

“After January and February, we are at a loss as to what is going on,” says the home appliance and electronics retailer. “At first, everyone explained this to themselves by the fact that in January 2016 there was a small devaluation surge in demand, so in 2017 January sales look weaker, but then the decline continued in February.” Not only the check or conversion is falling, the retailer continues, traffic in stores is declining and practically does not grow online.

One of the reasons why this is happening is that the strengthening of the ruble affects the formation of consumer expectations, one of the major retailers of household appliances and electronics argues: “Maybe consumers are waiting for prices to fall, so part of the consumption adheres.”

In January 2017, the trends in consumer demand were the same as the whole of last year, the Svyaznoy representative believes. “If there is a drop, then it is small,” says Dmitry Alekseev, co-owner of the DNS network, one of the three largest retail chains selling electronics and household appliances. Alekseev also does not rule out that the restrained behavior of consumers may be due to the strengthening of the ruble against major world currencies and the expectation of falling prices in connection with this.

11.12.2017

Export-import of the most important goods for January-October 2017

According to customs statistics in January-October 2017 foreign trade turnover of Russia amounted to 471.1 billion US dollars and increased by 25.0% compared to January-October 2016.

Trade balance was positive in the amount of 102.9 billion US dollars, which is 22.3 billion US dollars more than in January-October 2016.

Russian export in January-October 2017 amounted to 287.0 billion US dollars and increased by 25.5% compared to January-October 2016.

The basis of Russian exports in January-October 2017 to the countries of the far abroad traditionally were fuel and energy products, specific gravity of which in the commodity structure of exports to these countries amounted to 64.8% (in January-October 2016 - 62.7%). Compared to January-October 2016, the value of fuel and energy goods increased by 30.1%, and the physical - by 3.5%. Among the goods of the fuel and energy complex, the physical volumes of exports of hard coal increased by 11.2%, natural gas - by 7.3%, diesel fuel- by 2.8%, crude oil - by 1.3%. At the same time, physical volumes of motor gasoline export decreased by 27.0%.

In the total value of exports to non-CIS countries, the share of metals and products from them in January-October 2017 amounted to 10.0% (in January-October 2016 - 9.9%). Export value specified goods increased by 26.6% compared to January-October 2016, and physical - decreased by 3.6%. The physical volumes of exports of cast iron decreased by 15.7%, aluminum - by 8.3%, ferroalloys - by 5.8%, semi-finished products from iron and non-alloyed steel - by 4.9%. At the same time, the physical volumes of exports of copper and copper alloys increased by 10.4%.

The share of exports of machinery and equipment in January-October 2017 amounted to 5.6% (in January-October 2016 - 6.3%). In January-October 2017, the value of exports of this commodity group increased by 12.8%. At the same time, the value of supplies of electrical equipment decreased by 21.0%, while supplies of optical and medical instruments and apparatus increased by 28.6%, mechanical equipment- by 22.4%. Increased physical volumes of deliveries cars by 66.0%, and trucks– decreased by 42.0%.

Share of product exports chemical industry in January-October 2017 amounted to 5.5% (in January-October 2016 - 6.2%). Compared with January-October last year, the value of exports of these products increased by 10.9%, and physical - by 2.9%. The physical volumes of supplies of plastics and products from them increased by 24.9%, inorganic chemical products - by 16.8%, rubber and rubber - by 3.9%. At the same time, supplies of organic chemicals decreased by 7.3%, nitrogen fertilizers - by 5.3%.

Export share food products and raw materials for their production in the commodity structure of exports in January-October 2017 amounted to 4.9% (in January-October 2016 - 5.2%). Compared to January-October 2016, the cost and physical volumes of supplies of these goods increased by 20.5% and 19.1%, respectively.

The share of exports of timber and pulp and paper products in January-October 2017 amounted to 3.2% (in January-October 2016 - 3.4%). The physical volume of exports of this commodity group increased by 6.4%. The volumes of supplies of sawn timber increased by 13.4%, while the export volumes of raw timber decreased by 4.5%, pulp - by 1.0%, plywood - by 0.4%.

In the commodity structure of exports to the CIS countries in January-October 2017, the share of fuel and energy products amounted to 33.0% (in January-October 2016 - 32.8%). The cost volumes of exports of these goods increased by 26.2%, and physical - by 1.5%. The physical volumes of supplies of coke increased by 71.7%, oil products - by 37.2%, natural gas - by 2.2%. At the same time, the physical volumes of electricity exports decreased by 16.5%, crude oil - by 8.9%.

The share of machinery and equipment in January-October 2017 amounted to 16.4% (in January-October 2016 - 15.7%). The cost volume of export of these goods increased by 31.6%. In particular, the cost volumes of supplies of funds increased land transport, except for railway, by 55.2%, mechanical equipment - by 24.1%. The physical volume of export of trucks increased by 33.2%, and cars - by 10.4%.

The share of chemical industry products in the commodity structure of exports to the CIS countries in January-October 2017 amounted to 15.3% (in January-October 2016 - 16.0%). Compared to January-October 2016, the cost and physical volumes of supplies of these goods increased by 20.5% and 8.0%, respectively. Exports of fertilizers increased by 43.1%, organic chemical products - by 13.9%, plastics and products from them - by 15.6%. At the same time, the physical volumes of exports of inorganic chemistry products decreased by 20.5%, pharmaceutical products - by 5.3%.

The share of metals and products from them in exports to the CIS countries in January-October 2017 amounted to 12.5% (in January-October 2016 - 11.9%). The value of exports of this commodity group increased compared to January-October 2016 by 31.2%, and physical - by 11.9%. The physical volumes of exports of ferrous metals and products from them increased by 12.0%, including ferroalloys - by 67.4%, semi-finished products from iron or non-alloyed steel - by 25.3%, flat rolled products from iron and non-alloyed steel - by 20 .0%.

The share of food products and raw materials for their production in the commodity structure of exports in January-October 2017 amounted to 10.1% (in January-October 2016 - 11.0%). Compared to January-October 2016, the value of supplies of these goods increased by 15.3%, and physical - by 8.7%. The physical volumes of exports of fresh and frozen pork increased by 37.7%, vegetable oil - by 11.0%, fresh and frozen fish - by 9.2%. At the same time, supplies of milk and cream decreased by 15.3%, cheese and cottage cheese - by 5.6%.

Export share timber and pulp and paper products in January-October 2017 amounted to 4.4% (in January-October 2016 - 4.6%). The cost and physical volumes of exports of this commodity group increased compared to January-October 2016 by 21.8% and 7.6%, respectively. The physical volumes of pulp exports increased by 13.5%, sawn timber - by 2.9%, plywood - by 1.8%.

Russian import in January-October 2017 amounted to 184.1 billion US dollars and increased by 24.3% compared to January-October 2016.

In the commodity structure of imports from foreign countries the share of machinery and equipment in January-October 2017 accounted for 51.2% (in January-October 2016 - 49.4%). The value of imports of these products increased by 27.3% compared to January-October 2016. The cost volume of deliveries of land transport means, except for railway, increased by 36.5%, mechanical equipment - by 28.4%, electrical equipment - by 24.4%, optical instruments and devices - by 22.4%. The physical volume of imports of passenger cars decreased by 6.7%, while trucks increased by 50.9%.

The share of chemical industry products in the commodity structure of imports in January-October 2017 amounted to 18.5% (in January-October 2016 - 19.2%). The cost volume of imports of chemical industry products increased compared to January-October 2016 by 19.3%, and physical - by 3.9%. The volume of physical supplies of rubber, rubber and products from them increased by 15.3%, organic compounds - by 11.3%, paints and varnishes - by 6.0%, pharmaceutical products - by 5.7%, plastics and products from them – by 4.2%.

The share of imports of food products and raw materials for their production in January-October 2017 amounted to 11.4% (in January-October 2016 - 12.3%). Cost and physical volumes of imports increased by 15.5% and 8.3%, respectively. The physical volumes of supplies of butter increased by 72.7%, fresh and frozen fish - by 14.5%, cheese and cottage cheese - by 9.4%, fresh meat and frozen meat - by 9.8%, citrus fruits - by 7.6 %.

The share of textiles and footwear in January-October 2017 amounted to 6.1% (in January-October 2016 - 6.0%). The cost and physical volumes of imports of these goods increased compared to the same period last year by 25.6% and 16.8%, respectively.

The share of metals and products from them in the commodity structure of imports in January-October 2017 amounted to 5.8% (in January-October 2016 - 5.4%). The value of this commodity group increased by 31.7% compared to January-October 2016, and the physical volume - by 42.4%. The physical volumes of imports of pipes increased by 82.4%, flat-rolled products made of iron and non-alloyed steel - by 12.4%.

In the commodity structure of imports from CIS countries in January-October 2017, the share of food products and raw materials for their production amounted to 22.6% (in January-October 2016 - 23.5%). The physical volumes of food supplies increased by 1.5% compared to January-October 2016, including milk and cream by 43.4%, fresh and frozen fish - by 28.1%, poultry meat - by 10, 3%. At the same time, the physical volumes of deliveries of citrus fruits decreased by 22.9%, cheeses and cottage cheese - by 2.9%, butter - by 0.7%.

The share of machinery and equipment in January-October 2017 amounted to 21.7% (in January-October 2016 - 22.6%). The value of imports of this commodity group increased by 21.0% compared to January-October 2016. The cost volume of deliveries of railway equipment and its parts increased 2.4 times, ground transport means, except for railway - by 47.6%, mechanical equipment - by 11.2%.

At the same time, the supply of optical instruments and apparatus decreased by 12.9%. The physical volumes of import of cars increased by 50.7%, trucks – by 25.5%.

The share of metals and products from them in the commodity structure of imports from the CIS countries in January-October 2017 amounted to 16.8% (in January-October 2016 - 13.8%). The cost volume of this commodity group increased by 54.3% compared to January-October 2016, and the physical volume - by 39.5%. The physical volumes of imports of flat-rolled products made of iron and non-alloyed steel increased by 41.5%, pipes - by 33.8%.

The share of chemical industry products in the commodity structure of imports in January-October 2017 amounted to 13.5% (in January-October 2016 - 14.5%). The cost volume of imports of chemical industry products increased compared to January-October 2016 by 17.3%, and physical - by 15.5%. The physical volumes of supplies of plastics and products from them increased by 13.1%, inorganic chemical products - by 7.9%. Physical volumes of deliveries of organic chemistry decreased by 14.4%.

The share of textiles and footwear in the commodity structure of imports in January-October 2017 amounted to 7.2% (in January-October 2016 - 7.9%). The cost and physical volumes of imports of these goods increased compared to the same period last year by 15.2% and 23.3%, respectively.

The share of imports of fuel and energy products in January-October 2017 amounted to 4.6% (in January-October 2016 - 3.9%). The cost volume of this commodity group increased by 47.8% compared to January-October 2016, and the physical volume - by 8.3%.

In the country structure foreign trade Russia The leading place is occupied by the European Union as the country's largest economic partner. To share European Union in January-October 2017, 42.7% of Russia's foreign trade turnover accounted for (in January-October 2016 - 43.2%), the CIS countries - 12.4% (12.3%), the EAEU countries - 8.8 % (8.6%), APEC countries - 30.5% (29.9%).

The main trading partners of Russia in January-October 2017 among the far abroad countries were: China, the trade turnover with which amounted to 68.9 billion US dollars (130.8% compared to January-October 2016), Germany - 40.1 billion dollars .USA (123.3%), the Netherlands - 33.0 billion USD (126.6%), Italy - 19.3 billion USD (118.6%), USA - 18.7 billion. USD (116.9%), Turkey - USD 17.1 billion (137.9%), Republic of Korea - USD 16.5 billion (131.4%), Japan - 15.0 USD billion (115.2%), Poland - USD 12.9 billion (124.1%), France - USD 12.1 billion (111.8%).

Volumes of trade with the CIS countries in January-October 2016-2017 are given below: million USD

COUNTRY	EXPORT		IMPORT
COUNTRY	January-October 2016	January-October 2017	January-October 2016	January-October 2017
AZERBAIJAN

BELARUS*
KAZAKHSTAN
KYRGYZSTAN

TAJIKISTAN
TURKMENIA
UZBEKISTAN

* Included adjustments for unaccounted volumes mutual trade Russian Federation with the Republic of Belarus.

The foreign trade turnover of Russia includes fish and seafood of the Russian Federation not subject to delivery for customs clearance on the territory of the Russian Federation; bunker fuel, fuel, food and materials purchased outside the territory of the Russian Federation; goods and vehicles, imported individuals; adjustments for unrecorded volumes of mutual trade with the EAEU countries.

Russian exports include fish and seafood of the Russian Federation not subject to delivery for customs clearance on the territory of the Russian Federation; adjustments for unrecorded volumes of mutual trade with the EAEU countries.

Russian imports include bunker fuel, fuel, food and materials purchased outside the territory of the Russian Federation; goods and vehicles imported by individuals; adjustments for unrecorded volumes of mutual trade with the EAEU countries.

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Development of online retail in Russia

Yandex.Market and GfK Rus have prepared another study on the development of the e-commerce market in Russia. The study is based on the results of a survey of 2,823 Russian online shoppers aged 16 to 55 living in cities with a population of 100,000 or more. The survey was conducted in September 2017. The full version of the report can be downloaded.

The number of online shoppers in Russia continues to grow rapidly. According to GfK Rus estimates for the spring of 2017, almost every third Russian aged 16 to 55 has bought goods online over the past six months. Over the year, this figure has grown by 20%, and since the spring of 2014 - by more than three quarters.

Where do they buy

Nine out of ten respondents over the past year, from September 2016 to September 2017, made purchases in Russian online stores. The proportion of buyers ordering goods in their city is growing - apparently, there are more local stores, and they are expanding their assortment. Vendors in small towns still have room for growth - if 91% of the surveyed Muscovites shop in Moscow stores, then in cities with a population of 100,000 to 500,000 people, only 56% of residents use the services of local stores.

About two-thirds of respondents have bought goods abroad in the last 12 months - this indicator has not changed much compared to last year. The audience of foreign online stores continues to refocus on China. This is especially noticeable in cities with a population of 500,000 to 800,000 people. Here, the share of those who make purchases on Chinese sites has grown from 58% to 66% since last year. In general, than smaller city the more popular there Chinese stores- and the less its inhabitants shop in other countries.

Buyers choose foreign online stores primarily because of more low prices- This reason was named among the main ones by 76% of respondents. Other common motives are a wider assortment (33%) and the opportunity to find goods that are not available in Russia (32%). The main reasons for not buying abroad are long delivery times (39% of respondents) and fear of becoming a victim of fraud (27%).

What do they buy

The top products by the number of online buyers have not changed in recent years. Both in Russian and foreign online stores, most of the respondents order clothes and shoes. In addition to clothes in Russia, many people buy small household appliances and cosmetics, in China - smartphones and products for children, in other countries - cosmetics and, again, children's products.

Average check

Over the past year, the average check in the online store has grown to 6,410 rubles, which is almost 1,000 rubles more than a year ago. The growth affected both Russian and foreign stores. For Russian and Chinese sites, this is the first noticeable increase in the last three years, while in stores in other countries, the average check has been steadily increasing since at least 2014.

Computers remain the main device for online shopping, but their popularity is gradually declining. Over the past year, approximately 20% of purchases were made from phones and tablets. The share of orders from tablets remains stable at about 5%, while the share of smartphones has grown by 70% since last year and almost seven times since 2014.

Most of the purchases made in Russian online stores from mobile devices were completed on sellers' websites. People used mobile applications only in 27% of cases. With foreign stores, the situation is reversed: 80% of purchases from smartphones and tablets were made through applications.

Discounts, promotions, spontaneous purchases

In Russian online stores, the share of discounted purchases is steadily growing, but so far remains lower than in foreign ones. Perhaps for this reason, unplanned purchases are more often made abroad. At the same time, the share of stock purchases in Russian stores is twice as high as in Chinese stores, and a quarter higher than in stores in other countries.

The material was prepared on the basis of the Vend report “Trends and Forecasts in retail 2017". Like the 2016 edition, it reveals the trends and issues (including personalization, in-store experiences, and advances in payment technology) that are having a significant impact on the retail industry.

1. Retailers that improve product quality, transparency, and stability will thrive

Because online today you can find any information, buyers no longer agree to be in the dark about the products they buy.

The rise of transparent, environmentally conscious companies such as Warby Parker and Everlane in recent years has initiated a radical change in the retail industry. We expect this trend to pick up pace.

Consumers are becoming more and more interested in where their money goes, rather than just the product they buy with that money. It is no longer enough to simply sell high-quality products without any information about their background.

On the contrary, buyers have reached out to retailers who show all the internal mechanisms of their work. Everlane, for example, discloses the cost of manufacturing its products: materials, labor, duties, and markup. They also include information about the factories where the goods are made, add photos and videos of workers and themselves. In this way, Everlane customers know exactly what was spent on the product they are about to purchase and can feel the satisfaction of the preparation and morale involved in their purchase.

Several factors are at play in this trend: the worldwide shift towards sustainability, the desire of consumers to be more ethically conscious in their purchasing decisions, and a greater interest in supporting brands with a "strong identity consciousness".

Example. Recently, a client of Vend, Bread and Butter Letter, a New Zealand-based vintage clothing and home furnishings boutique that sells exclusively New Zealand-made goods, told us: “We have noticed that our customers are increasingly asking serious questions: where do the goods come from, what are they made. We also noticed that people were more likely to abandon our paper bags and bring their own!

Until July 27, IKEA Centers Russia is looking for innovative retail solutions. If you have the technology to make shopping in mall more comfortable!

2. Stores that provide a unique in-store experience will thrive

In 2017, retailers will rule the roost by providing unique in-store experiences. After all, the only way to convince a customer to come to your store instead of shopping online is to give them an experience they can't get anywhere else.

When we hear "in-store experiences" in relation to retail, most of us think big: we think of the fact that Urban Outfitters buys Pizzeria Vetri to incorporate into their stores, or Rebecca Minkoff's smart fitting rooms.

But this is only one aspect of the two directions of the shopping experience trend. And what is the other? Finding ways to catch up and surpass the convenience of online shopping.

Most retailers are attempting to do this by creating an omnichannel shopping experience - in other words, bringing the benefits of the online world to brick-and-mortar physical stores.

Take, for example, Crate + Barrel. A home improvement store recently tested a program called Mobile Cart. Customers viewed the racks using the tablets provided by the store, could use them to scan barcodes and receive additional information about products, adding products to your wish list, and getting help from sales assistants when choosing products.

The in-store experience is becoming increasingly important for customers and we expect more retailers to invest in such initiatives.

3. All retailers will implement mobile payments

Mobile payments are the way of the (coming) future. Until the end of 2017, retailers who have not yet implemented them will make every effort to do so.

According to forecasts by the end of 2016, the number of mobile payment users worldwide will reach 447.9 million. TechCrunch estimates that 70% of all US mobile users in 2017 will make at least one mobile payment. Mobile payments are expected to reach $60 billion overall in 2017, and Business Insider writes that mobile payments will reach $503 billion in sales by 2020.

It's clear where the retail industry is heading in terms of payments - at least for now.

Retailers that do not implement mobile payment solutions soon will be left behind. per.] and risk losing their sales volumes, and this can mean losing a lot of money.

You can bet that all retailers will jump on this train by implementing mobile payment systems that suit them best, such as mobile POS systems, customized mobile payment apps (like Kohl’s Pay) or third-party solutions (like Apple Pay).

In 2017, the development of contactless transactions - be it a contactless card or a mobile device with a digital wallet - will accelerate. We are seeing robust double-digit growth in contactless transactions in Canada. The US will also be stimulating this growth due to its transition to EMV. Businesses that conduct transactions should think ahead and find a solution that supports contactless capabilities to upgrade their EMV systems in the future.

Consumers like touch and a business must prepare to excel in this area. With the continued proliferation of Apple Pay, Android Pay and Samsung Pay in North America and around the world, the importance of contactless payments will increase. Consumers will look forward to any opportunity desired way and the business will have to evolve with changing customer expectations.

4. Small shops are coming; big ones go

The evolution of consumer preferences will push even more chain retailers to focus on smaller stores.

When it comes to store size, in 2017 less means more. We're already seeing changes in retail giants like Target, Best Buy, and IKEA investing in small-format stores to satisfy consumers' desire for more controlled merchandise.

To better understand why shoppers are leaving big-box stores, we need to look at another big retail trend: the importance of convenience and accessibility. When people can shop online and have their purchases delivered directly to their homes within hours, they need to be promised a quick and easy shopping experience to entice them to go to a physical store.

Shoppers no longer want to waste valuable time wandering through the endless aisles of hefty hypermarkets. On the contrary, they want simplicity and efficiency in the form of small shops with a specialty selection.

Small shops have other advantages as well. Required less cost to open and serve them, they take up less space in an urban environment, allowing retailers to capitalize on the potential of densely populated centers.

5. Personalization will become more important for consumers

Sure, Nike is big and financially successful, so they have the resources to push personalization to its limits, but smaller retailers can take advantage of this trend too.

Ideas? Targeting content (using means such as purchase histories) to users based on their preferences, using location technologies such as beacons to display personalized offers on customers' mobile devices. Small shops have other advantages as well. They require less cost to open and maintain, and they take up less space in an urban environment, allowing retailers to capitalize on the potential of densely populated centers.

Consumers are starting to expect more from retailer loyalty programs. They want more personalization and offers that money can't buy. According to a Virtual Incentives survey, 56% of consumers said that receiving personal bonuses would improve brand perception.

The means of gaining access to customer data that makes these personalized bonuses and offers possible are typically loyalty programs. Consumers are increasingly willing to give access to personal data for honest loyalty offers or personalized incentives. According to Accenture, 54% of consumers say they are willing to share personal information and shopping preferences with retailers in order to receive personalized offers (up from 33% in 2014).

In 2017, retailers will see the benefits of this amazing new technology, which makes it easy to collect customer information, and are aware of the need to use this data to create more personalized loyalty programs and offers instead of past generic and boring options.

6. Same day delivery will come to the fore

Free shipping to modern world It's no longer just an option, but a requirement. Name new game? Speed.

Consumers may no longer want to go to physical stores themselves, but still want the immediate enjoyment of being able to take their purchases home immediately. The best way ensure it is same day delivery.

Take iPic Theaters for example. The company's website greets visitors with the headline "Your Best Night Out" - and they really mean it. iPic combines the classic movie experience with luxurious seating, cocktails, and award-winning gourmet restaurants. Customers can even order food and drinks from their seats while watching a movie.

These innovative concepts provide enough incentives for people to take a trip to a physical location, and so we'll see even more of this next year.

9. Information is still an essential component of retail success

More retailers will use every part of the process, from the supply chain to the post-purchase stage.

Retailers who make data-driven decisions will outperform those who don't. More and more merchants are recognizing this - which is why we think companies will double down on data collection and analysis.

JustFab is one example of a company that puts their customer data to good use. To learn more about its community, a fashion retailer conducts style surveys and then makes recommendations based on preferences. individual people. JustFab also carefully tracks the products that each member of their program reviews, rejects and buys, and uses this data to suggest choices.

Using information to personalize the interaction with each customer is just the beginning. Data analysis also plays important role behind the scenes, especially when it comes to inventory management and distribution. Retailers rely on data to predict demand and make critical inventory control decisions.

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