Shopper’s insights: Value for money

  • APAC Shoppers rank value for money as the top factor when choosing where to buy technical consumer goods – both online and offline

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In today’s challenging physical and digital global retail environment, it is imperative for both online and offline retailers to not only carry a good assortment of products but also include other accompanying after-sales offerings. According to a recent GfK study, a combination of these create the overall experience for the shopper and contribute to their sense of value over and above price.

When choosing which brick-and-mortar retailer to shop at, over half (52%) of all consumers in the region indicated that it is extremely important that the shop offers good value for money—making it the most important factor in this region and ranking top in five of the six markets.

“Value for money is a subjective concept with notions of quality, service, and experience amongst others, intertwined with price,” highlighted Jake Shepherd, APAC Retail Director at GfK. “In order to satisfy their customers, the most important thing is that retailers understand what constitutes value for money for their shoppers.”

Retailers having special price offers or good deals is placed second, agreed by 47% of the entire region, which is unsurprising given the belt-tightening measures of consumers in many of the region’s markets causing shoppers to make careful spending choices.

The top three factors that shoppers in this region deem extremely important when it comes to shopping online vary slightly from that which influences their choice of brick-and-mortar retailer. Although the same two key criteria – offering good value for money (49%) and having special price offer and good deals (47%) – remain among the top three, these have been pushed down to second and third ranking respectively, overshadowed by the greater importance of e-retailers offering fast and secure payment—concurred by over one in every two (52%) consumers surveyed.

“For the shopper, the transaction does not end with payment but extends to delivery, returns and refunds or exchanges, which are also factors ranked high on store choice criteria,” Shepherd added.

GfK conducted the Shopping Monitor study in Australia and five Asian countries – Australia, Indonesia, Malaysia, Singapore, Thailand and Vietnam – to find out the key factors that attract consumers to shop at a physical store, as well as an e-retailer.

“The proliferation of multi-channel shopping is presenting the region’s consumers with high engagement levels and options of digital channels and platforms to choose, compare, shop and pay from, and it is hence important that retailers and manufacturers continue to work together to understand their shoppers,” commented Shepherd. “With these increasing touch points, it is in one way easier than it has ever been to reach a potential shopper, but in another way, make it harder to be consistent and successful in providing an experience which meets the expectations of that shopper,” stressed Shepherd.

“The intensifying competition in retail makes it all the more vital for players to know exactly what the important dynamics are that help attract and retain shoppers and what they need to do better than the competition,” he concluded.

This study was conducted online with  6,000+ consumers in June 2016 across six countries in Asia Pacific who purchased in the last two years or plan to purchase in the next 12 months products in the monitored categories.