OMD predicts the future of retail

OMD  RESEARCH   SONY WONG

Global - Almost 90% of global consumers trust online recommendations from people they know while about 81% of them received advice from friends before purchasing products through a social site.

In a recent event by OMD, titled OMD Predicts, the agency highlighted changes in the retail segment and how technology has influenced the way consumers buy products.

Around 82% of Latin Americans used the web to compare prices before making a purchase followed by 78% in Europe and 75% in Asia, in the last six months. Around 44% of Asian consumers used consumer review sites to find out about products followed by 35% of those in Latin America and only 33% in North America, the study said.

Consumers trust customer reviews 12 times more than they did brand advertisements, OMD said adding that 45% of consumers now use mobile phones to find a third party or consumer reviews of a product during the purchase process.

A growing number of consumers, nearly 37%, also purchased goods directly from their smartphones in the last six months.

Other devices such as Tablets are also playing an increasingly important role in the way retail brands operate to connect with consumers.  Globally 65% of Fortune 100 companies are now integrating tablets into the retail environment either to showcase customised product features or concierge service and so on. OMD predicted that by 2015, 147 million tablets will have been sold globally.

The study also showed that a noticeable 49% of consumers enjoy interactive or video based advertisements when it comes to viewing ads on their tablet devices. It further added that 80% of brands experienced increased sales with point of sale digital OOH placements and 68% of shoppers said in-store messaging helped their purchase decisions.

According to Sony Wong (pictured), CEO of Omnicom Media Group Singapore, the possibilities for marketers and advertisers are endless due to the rise of technology.

"Innovation and technology are two key areas that are creating new dimensions in the retail environment and building relationships with consumers that go beyond just the transactions."

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