Retailers are increasingly finding it hard to attract customers in the way that they once did, according to research.
“The low-budget and low-form factor has really been a huge driver of consumer behaviour,” said Dan Smith, the CEO of consumer research firm IDC.
Smith and his colleagues looked at the behaviour of shoppers in the UK, France, Germany, Japan and the US between 2007 and 2012, and found that people were increasingly buying from smaller, cheaper and often less reliable retailers.
In the UK and the United States, people bought more online than offline, and they were less likely to have purchased online from the same retailer.
The trend was particularly pronounced among younger generations, who were spending less time online, and were spending more time at home.
This is the time when millennials are beginning to spend more time online for shopping, Smith said.
There are more ways for consumers to shop than ever before, and low cost and quality are more important than ever, he said.
“Low-cost and quality brands have really been driving that shift in consumer behaviour.”
The research also showed that shoppers were less willing to pay more for goods.
Millennials are more likely to pay less than their parents did.
They are also more likely than other generations to go online, buy less, and shop at places with lower prices.
At the same time, Smith believes consumers are becoming more discerning in what they pay for online.
For example, when you pay more online, it means you’re less likely be able to get a discount.
He also believes that the rise in social media will reduce the amount of spending online.
Smith said that while online shopping was the driving force behind the shift in spending behaviour, it was not the only factor.
While people are still spending a lot of time online and online shopping is still very popular, Smith expects that the trend will pick up again.
“We’re going to see a real shift towards the low cost, low form factor, and that will help drive consumer behaviour, particularly among younger and lower income consumers,” he said.
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