• by Jack Loechner , Staff Writer @mp_research, March 7, 2016

According to a new PricewaterhouseCoopers (PwC) study, looking at the areas where US CEOs and their designates plan to increase spending over the next year, 28% of respondents said they planned to increase advertising spending within the next 12 months.

And, some areas where respondents are not increasing as much spending. For example, research and development has seen a decline in respondents who plan to increase spending, from 15% in 2015 to 11% in 2016.

The PwC US Total Retail 2016 survey findings uncover how retailers can compete in the race for relevance.

US Total Retail 2016 Key Findings

The 2016 PwC Total Retail survey this year confirms the imperative for relevance in relatively uncharted territory such as mobile commerce and online social communities, as well as in traditional retail and consumer mainstays such as brand equity and the in-store shopping experience.  

The survey uncovered 6 key findings for retailers to leverage in the race for relevance, says the report. Shoppers reported that they want convenience at an affordable price. They want a trip to the store to be worth the effort, with trained employees to help sort through options. They want to feel an emotional connection with their favorite brand because it stands for the values they believe in. And they want to be part of a larger online community where they share ideas and aspirations.

1. Global Trends Set A High Bar For US Mobile Commerce

Only 26% of US shoppers say their mobile phone will become their main purchasing tool in the future while 59% of Chinese shoppers, 68% of Indian shoppers, and 36% of Turkish shoppers do.  One reason for the lag in US mobile purchasing, is the lack of convenient mobile purchasing options, such as “buy” buttons and mobile wallets, commonly used in China, which allow consumers to move seamlessly between chatting about a product and buying it, all within a mobile app. 

2. Digital Natives Lead The Mobile Commerce Charge

Born after 1980, digital natives grew up with technology at their fingertips, which makes them more facile with all things digital. No surprise then that millennials, aged 18-34, use their mobile device as a shopping tool far more than older shoppers, says the report. Almost 40% buy products online monthly while close to 30% shop online weekly.  

3. How Online Shoppers Define Value

When it comes to online shopping, Americans value convenience above all else: 58% of survey respondents say convenience is the main reason they shop online, with price a distant second at 32%. US Shoppers ranked innovative delivery options high on the list of their favorite retailers; from crowd sourced last-mile delivery or free shipping and returns, or delivery within hours of ordering a product.

Online Shoppers Tradeoffs Between Convenience, Price, Speed and Variety

• Amazon.com marketplace: 230 million delivered in 3-4 days
• Amazon com prime:            20 million with free 2 day delivery
• Amazon.com fresh: 500,000 items same or next day
• PrimeNow: 10,000 in 1-2 hours

Source: PwC, February 2016

4. Entice Me In, Then Keep Me Interested So I’ll Stay

Respondents in the survey said the top two factors that enhance their in-store shopping experience are ease of checkout  and sales associates with deep product knowledge .The ability to check other store or online stock quickly, and fast, simple login for in-store WiFi, are desirable but rank lower than human interaction with knowledgeable associates.

5. Brand Trust Requires Continual Attention

The survey found that brand trust is among the top three reasons consumers shop at their favorite retailers.  The analysis of 6,700 brands by PwC found that over the past 15 years, brands that are considered leaders by consumers have grown in value at nearly five times the rate of the average S&P 500 company.  With new entrants popping up at a moment’s notice to eclipse established brands, brand trust is ever more in need of constant nurturing.

6. Social commerce: The power of community

Consumers have an appetite for social commerce, the fusion of online social communities with seamless purchasing capability.  More than two-thirds of US respondents in the survey said social media influences their online shopping behavior, ranking reviews and feedback as their foremost activity, followed by browsing promotional offerings, and checking digital ads.

More than 2/3 of US consumers say social media influences their online shopping behavior:

• 40% reading reviews, comments feedback
• 37% receiving promotional offerings
• 26% viewing advertisements

To read the full PwC report, please visit here.