A shopping revolution

Supermarkets will shrink in size to aid confused consumers tired of being bombarded with too much choice.

Huge changes are on the horizon, promising to revolutionise shopping in hi-tech malls — but for many informal township traders, cash will be king for some time to come.

Shopping in the future

Future shopping trends were outlined this week by Arnaud Frade, TNS Research Survey's regional director of retail and shopper practice for the Asia Pacific, Latin America, Middle East and Africa regions, who was visiting South Africa.

Frade predicts a futuristic world in which a consumer will walk into a store, be recognised by a Radio Frequency Identification (RFID) chip in his or her cellphone and be sent a coupon via SMS for a special on orange juice in aisle 14, because data on the shopper shows regular juice purchases.

“There are already two concept stores, in Germany and the US, which use this technology,” said Frade.

“The longer a customer stays in a store, the more frustrated they get and the less they buy, so this active retailing helps to know what the shopper wants and to deliver it right away.”

RFID revolution

RFID is the next step in the evolution of cellphones, said Arthur Goldstuck, information technology guru and managing director of World Wide Worx.

“These types of science fiction shopping experiences would theoretically be possible, but would require lots of information and technology to work together.

“The fatal flaw is that people do not want to be scrutinised,” he said.

“RFID phones will start appearing on the South African market next year, but it will be between two to four years before a substantial number of people have them.

“RFID chips will become a powerful tool, with increasing efforts to discourage people from using cash — but it will take people five to 10 years (before they are comfortable using it),” said Goldstuck.

South African trend expert Jon Cherry, founder of innovation company Cherryflava, described RFID chips as a gimmick that would appeal to the economic elite. “For the masses, cash is king. They are still getting to grips with credit cards.”

Dynamic pricing

According to Frade, dynamic pricing — where prices will constantly change as a shopper moves through a store — will become popular.

“Someone who shops when there are fewer customers might pay less for their milk than a customer who shops during peak hours.”

He said other global future shopping trends, which South Africa will follow, included:

• Transparency: Consumers will know where their food comes from. One Cape Town restaurant “states on the bottom of its menu that only super ‘A' grade, traceable beef is used”;

• Curated choice: Consumers will help other shoppers to decide which products to buy, by listing their favourites;

• Nichetailing: Retailers will soon focus on “tribes” rather than the mass market. This trend will involve basic food products, with a focus on specific diets and genders;

• Hyper-personalisation: Stores will have membership requirements, shops within a shop and limited-edition products; and

• Permanent reinvention: Shoppers' interest will be maintained through new products and changing store layouts, giving smaller shops the edge.

The new big thing

Small is the new big, as shoppers choose stores with limited offerings and easy parking.

Pick n Pay has started rolling out its Daily stores, which carry 6,000 products, compared with a standard supermarket which stocks between 15,000 and 20,000 product lines.

But while some South African shoppers can spend thousands on a handbag, most of the population has to economise.

Frade points out that traditional township trade is tailored to a cash-strapped clientele. “Single-cigarette sales abound, as do single-use shampoo sachets.

“There is a trend towards building malls in townships, but you find consumers who live across the road still prefer to walk further to a cheaper store, or one which packages a product differently.”

Forget about too much, too low

Two trends to forget about in retailing are “low price everything” and “too much choice”.

“Safety scares such as toxic milk in China mean consumers don't want to buy cheap — they want value,” says Frade.

He maintains that the recession will see a surge in nationalism, with consumers opting for locally made products.

“Only in extreme cases do consumers stop buying in times of recession. But smaller luxuries will replace the big splurge as people go for cheap and instant cheer,” he added.

Source: Sunday Times

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