The new shopping mindset: SmartOSC decodes the pragmatic consumer

This post is sponsored by SmartOSC.

It’s official – the era of the pragmatic consumer has arrived, whether retailers are ready or not.

With inflation continuing to drive prices upwards and wages not rising alongside them, consumers face a perfect storm which is driving pragmatism. For retail leaders, this means adapting strategies to better serve this new generation of consumers because they want new things.

Who are they? What do they want? How can we give it to them? All these questions and more are answered in SmartOSC’s latest report, Retail Tech Forecast 2025 – Empowering Customers Decode.

The report is packed full of research, strategies and tips for navigating the changing retail landscape, and we’re going to dive into some of them now. Read on.

Meet the pragmatic consumer

First things first, just what is a pragmatic consumer?

These consumers are practical and sensible with their money, which means prioritising value when it comes to purchase decisions. They're not just penny pinchers though, but are sophisticated strategists who think about how they shop differently than their predecessors.

According to Forbes, pragmatic consumers have three key characteristics:

• Intentionality: Purchases are calculated decisions, with a focus on quality and long-term value instead of marketing or brand prestige. They want products that actually make their lives better.

• Tech as a superpower: Using smartphones and social media, these consumers are incredibly well-informed decision-makers who crowdsource insights and reviews. They aren’t afraid to take the time to hunt for the best deals across platforms.

• Selective spending: Cautious about unnecessary expenses, pragmatic consumers only want to spend in areas that truly improve their quality of life, like travel and technology, while avoiding frivolous purchases. Gucci handbags are out, discounted hotel deals are in.

It’s vital retailers understand these consumers, and understand them now, because they’re redefining how retail works by how they shop, and who they shop with.

Three key strategies to focus on

The SmartOSC forecast report clearly shows there are three key strategies for retailers to focus on if they want to win the hearts (and wallets) of pragmatic consumers.

Social commerce

Social commerce is reshaping retail strategies in 2025, with 91% of APAC retailers planning to invest in or maintain social commerce channels. Simply put, if you don’t have a dedicated social commerce strategy in 2025, you’re missing out on boatloads of revenue.

Social commerce means many things today and you’ll need unique strategies for them all, including social platform commerce, live commerce, conversational commerce, and community group buying.

Importantly, 74% of APAC consumers use social media to discover brands, while 76% seek reviews before purchasing, so your social game had better be on point, as it’s the first place a consumer will find you.

*Source: Retail Tech Forecast: Empowering Customers Decode, SmartOSC, 2024.

Everyone in retail knows social is important, but knowing is not even half the battle – 77% of retailers report fragmented brand communication, and 83% are concerned about customer privacy on third-party platforms, so you should dedicate deep resources to your social commerce plans.

Success hinges on authentic, community-based strategies. With 88% of brands recognising the importance of building emotional connections, user-generated content, live-streaming, and influencer marketing are becoming crucial tools in engaging pragmatic consumers.

Omni-channel at the centre

Omni-channel isn’t the flavour of the month, but it should still be a critical focus for retailers in 2025. As consumer shopping journeys become increasingly complex, brands must ensure their digital and physical channels are seamlessly integrated.

Key omni-channel capabilities to consider include buy online/pick up in-store, shared shopping carts across platforms, cross-channel loyalty programmes, and mobile app integrations that enable in-store stock checks and purchases. The goal is to create a cohesive customer experience across all touch-points.

*Source: Retail Tech Forecast: Empowering Customers Decode, SmartOSC, 2024.

Simon Torring, co-founder of Cube Asia, a market insights company for online retail in Southeast Asia, emphasises that “operating eCommerce in a silo is no longer an option”, as modern consumers research and shop both online and offline while comparing prices and options. This makes it worth investing in centralised data strategies to unify customer insights and personalise experiences.

However, this approach isn’t without challenges. Data privacy remains a significant concern, with 87% of executives anticipating data security as a top challenge in 2025 – and you can bet consumers care about their privacy deeply, so you have to as well.

AI for (nearly) all

Artificial intelligence is already transforming retail, and 95% of executives are concerned about falling behind technological adoption. By 2025, 20% of top APAC retailers will leverage distributed AI systems across personalisation, marketing, supply chain, and operations – and you had best be one of them.

AI’s potential spans multiple domains: personalised shopping experiences through dynamic pricing and conversational commerce, optimised in-store operations with smart shelves and analytics, and enhanced supply chain management via demand forecasting and inventory optimisation.

However, challenges remain significant. Talent acquisition is a major hurdle, with 74% of respondents citing skill gaps as a key risk. Strategic implementation is crucial – businesses must prioritise AI initiatives that solve specific challenges rather than pursuing technology for its own sake. Basically, always ask if you really need AI for this part of the business.