Global Consumer Insights Survey 2023 - Frictionless Retail and Other New Shopping Trends - PWC

11/10/24, 4:11 PM Global Consumer Insights Survey 2023: Frictionless retail and other new shopping trends | PwC
PwC Global Industries and sectors Consumer markets Global Consumer Insights Survey 2023
February 2023 Global Consumer Insights Pulse Survey
Consumers seek frictionless experiences in a

world of disruptions
Survey 15 minute read February 16, 2023
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Consumers’ behaviours, technological preferences and expectations

continue to evolve. How can companies meet them where they want to
be?
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As 2023 unfolds, powerful internal and external forces are weighing on consumers
and companies, producing frictions that can gum up the gears of commerce and
stand in the way of more satisfying customer experiences. Concerned about
inflation and the cloudy macroeconomic climate, consumers are realigning their
shopping habits and adopting cost-cutting behaviours. Fully half of all consumers
are either very or extremely concerned about their own personal financial situation.
And 96% of surveyed consumers intend to adopt some type of cost-saving
behaviour over the next six months. Still, eager to resume their pre-covid habits,
they’re returning to stores and travelling again. Empowered by technology, they’re
seeking and demanding seamless in-store and online experiences that better suit
their lifestyles—and pocketbooks.
96%of surveyed consumers intend to adopt cost-

saving behaviours over the next six months.
Source: PwC’s February 2023 Global Consumer Insights Pulse Survey
To a large degree, covid continues to influence the experiences of consumers and

the industries that cater to them. E-commerce grew massively during the pandemic
in part because in many areas it was the only type of commerce available. Some of
that boom is subsiding. But what seem like short-term declines may simply be
mean regression in the context of long-term growth; 43% of consumers said they
plan to increase online shopping in the next six months. These are among the
central findings of the latest Global Consumer Insights Pulse Survey, conducted in
December 2022 among 9,180 consumers across 25 territories.
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The demand and supply shocks brought about by covid continue to ripple through
the economy and factor into consumers’ decision-making, habits and attitudes.
Yet, even as they take defensive actions, consumers remain resilient, demanding
and eager to experiment. Consumers are seeking less friction—but that doesn’t
necessarily mean opting only for e-commerce, or for physical experiences that are
entirely mediated by technology. They’re continuing to experiment with the next
generation of digital platforms, including the metaverse. And as more of everyday
work and leisure life continues to go digital, mobile and virtual, concerns about
data security and privacy remain a significant source of friction.
The survey makes it clear that companies must go beyond responding to

consumers’ evolving attitudes, actions and aspirations. They must identify, isolate
and mitigate the many frictions that stand between them and their customers, and
between their customers and optimal experiences. Beyond meeting consumers
where they are—physically and psychologically—companies must invest to ensure
that they’ll be able to meet them where they will be in the future.
69%
of consumers have changed non-essential spending in the past six months.
63%
identify as non-hybrid workers.
43%
plan to increase online shopping in the next six months.
26%
have participated in metaverse-related activities in the last six months.
1. Inflation deflates sentiment
In 2022, a source of friction rarely seen in our prior surveys entered the field:
inflation. Though inflation in a number of markets is coming off the boil, it remains a
powerful factor. It would be expected to dampen consumers’ spirits, because
prices have been rising more rapidly than incomes in many parts of the world. For
many consumers, especially in the US and Europe, this may be the first experience
of sustained increases in price levels.
Half of consumers are extremely or very concerned about their personal financial
situation (50%), with one-fifth extremely concerned (22%). And looking ahead, fully
96% of surveyed consumers intend to adopt cost-saving behaviours over the next
six months. The most pessimistic group (42%) expects to significantly decrease
their spending across all retail categories. They’re less likely to travel, for instance,
and more likely to switch to a cheaper brand of a particular product or even go
without a regularly used one. In groceries, the area where consumers are least
likely to cut back, 24% said they plan to decrease spending, compared with 12% in
the prior survey.
There are some exceptions, though. Consumers have displayed a willingness to

put their money where their values are. More than 70% said that ‘to some or to a
great extent’ they’re willing to pay more for food produced by local farmers and for
goods made by a company known for ethical practices, such as supporting human
rights or avoiding animal testing.
Four distinct
Question 1: Considering the current
economic climate and potential cost-
of-living impact, how concerned are
consumer you about your personal financial
situation?
segments
Question 2: Considering the current
emerge economic climate, which of the
following statements best describes
your situation regarding non-essential
spending?
Select a generation to explore

varying levels of concern about the
economy.
All generations
Generation Millennials Generation Baby Greatest
Z X Boomers Generation
10% 20% 28% 42%
Not concerned Concerned but Concerned to Most concerned

2. Consumers in a “phygital” world
Diving deeper into consumers’ shopping and behaviour trends, some shifts were
evident from the prior survey, conducted early in 2022. When asked about their
shopping frequency (daily, weekly, etc.) over the last 12 months across different
channels, consumers in the present survey still chose shopping in-store as the
most popular channel, holding steady at 43%. Use of mobile phones and
smartphones was next (34%), followed by PCs (23%).
Shopping habits stabilise

Question: In the last 12 months, how often have you
bought products (e.g., clothes, books, electronics) using the
following shopping channels?
Share of consumers stating they’ve shopped daily or weekly
by each channel
50%
49%
47%
44% 45% In-store
40% 43% 43%
40% 41%
39%
36% Mobile/smartph
34%
30%
30%
28% 28%
24% PC
20% 23%
19% 19% 20% 20% 20% 19%
17% 16% Tablet
15% 15%
10% 12% 11% 12%
In a nutshell, many of the trends that got supercharged in the depths of the covid
crisis, which is still ongoing in many parts of the world, have unwound. In-store
shopping has rebounded. But the data also shows that the long-term growth
trends remain intact. Looking ahead, when consumers were asked about how their
spending and shopping behaviour might change in the next six months, 43% said
they plan to increase online shopping, down from 50% in our last survey. At the
same time, plans to increase shopping in physical stores dropped significantly, too,
from 33% to 23%.
Perhaps most important, what people expect and experience in all shopping
environments—physical and digital—is changing. And it’s incumbent on market
participants to meet consumers in both physical and digital spaces—and to meet
their changing expectations. As is evident throughout the survey, it’s not an either–
or proposition. Increasingly, consumers are saying that they want the physical
shopping experience to be enhanced, facilitated or mediated by digital
technologies: call it phygital.
Asked to rank what factors would most enhance their in-store shopping
experiences, 27% of respondents put access to knowledgeable and helpful sales
associates on top—with half of Baby Boomers ranking that as the leading factor. At
the same time, 16% of all respondents said the ability to use self-service checkout
kiosks was their most-favoured attribute, followed closely by in-store use of a
retailer’s website or mobile app to browse for particular products (15%). Next, at
12%, was the ability to use retailers’ “scan-and-go” devices and apps, allowing
shoppers to bypass both staffed checkout lanes and self-service kiosks.
More tellingly, consumers who said they intend to spend more time in brick-and-
mortar environments in the coming six months signalled that they expect more
technological bells and whistles. They said they’d be attracted by in-store
entertainment (34%), immersive digital experiences (30%), such as donning a virtual
reality (VR) headset to try out new products, and being able to book appointments
with a sales adviser or personal shopper (28%).
Consumers seek physical and

digital in-store experiences
Question: Which of the following potential attributes of the
physical store shopping experience do you find appealing?
Knowledgeable and helpful sales associates
Ability to use self-service checkout kiosks 42%
Ability to use retailer website/app in the store to browse

for the product you want to find in-store 41%
Offers click-and-collect services 38%
Ability to use “scan-and-go” technology (i.e., scan your

own products) to monitor spending and check out 34%
In-store entertainment 27%
Ability to try immersive digital experiences 24%
Ability to book retail appointments 21%
3. Kinks in the supply chain
There are continuing signs that supply chain disruptions are affecting day-to-day
shopping behaviour, including which channels consumers choose to make
purchases. Thirty-nine percent of those surveyed remain most likely to shop at
multiple retailers—whether in-store or online—which is two percentage points

higher than in our earlier survey. And more than one-third said that they visit
multiple websites to check for availability of the products they want (38%).
Nearly seven in ten of those surveyed said that rising prices are having the greatest
impact on their in-store shopping experiences (68%), followed by products being
out of stock (42%) and the hassle of standing in longer queues (39%). Similarly,
when asked to identify issues they’ve experienced ‘almost always or frequently’
while shopping online in the last three months, 48% named the rising prices of
household goods. Nearly one-quarter cited the inability to buy a product because it
was out of stock or that delivery time was longer than they were told (both 24%).
Consumers continue to experience

frictions in the aisles
Rising prices remain the most frequently experienced issue
when shopping in-store, followed by busier store locations
and product availability.
Issues experienced while shopping in-store in last three
months
Never Rarely Occasionally Frequently

Almost always
Rising prices for household goods 28% 37%
Large queues in-store and/or busier store

26% 36% 22%
locations
Unable to purchase a product due to it being

29% 37% 20%
out of stock
Reduced product ranges available 30% 37% 18%
Significant unavailability of your favourite

33% 34% 17%
foods/groceries
A product taking longer to be delivered than

14% 31% 33% 16%
you were told at time of purchase
Being given a delivery time for a product that

14% 30% 34% 16%
4. Hybrid working
In this survey, as in the previous one, we asked consumers about their ways of
working. More than one-third (36%) said they’re in hybrid mode, in which they can
work from home or the office or other job sites. That’s down from 41% in the last
survey. Indeed, 63% of respondents identify as non-hybrid, meaning they’re
required to be in their office or other place of work or at home all the time, up from
57% in the prior survey. Digging deeper, 56% of respondents indicated they’re now
required to be physically in their place of work all the time, a substantial increase
from 47% in the previous survey. Only 7% said they work exclusively from home,
down from 10% in the previous survey. As would be expected, these ways of work
differ across territories, although the hybrid model is most prevalent in Southeast
Asia.
Back to the office

Question: Thinking about what your
employer requires at this time, which of
the following statements best reflects a
typical working week for you?
Select a territory to see how

working-from-home options differ
according to location.
I am able to choose how and

where to work.
Non-
10%
Hybrid hybrid
Global
36% 63%
Select country/territory
26% I am required to work in a hybrid

way.
5. Confronting frictions, in-store and online
The goal of frictionless retail is to remove the barriers that customers face in stores,
whether it’s standing in a checkout line or having to swipe a card to pay. In PwC’s
recent US customer loyalty survey, 82% of respondents say they’d be willing to
share some kind of personal data in exchange for a better customer experience.
Conveniently for retailers, frictionless technologies are seen as a way to reduce
labour costs. But consumers also have high and growing expectations for
assistance and convenience that would seem to introduce more friction. That
dichotomy presents a mix of opportunities and challenges for retailers, which are
explored in a recent PwC UK report on the future of frictionless retail. Computer-
vision AI technologies—which enable consumers to enter a store, pick up their
products and simply walk out without the need to scan, queue or check out—are
slowly being rolled out across retail markets. Our research shows that both
consumers and retailers can benefit from these digital developments.
But that doesn’t mean retailers can reflexively reduce their workforces. They’ll likely
have the same number of employees, but they’ll need to train new hires and reskill
or upskill existing ones. Also, because data collection and analysis inherently grow
with these systems, tech developers and retailers must be able to assuage
consumers’—and regulators’—concerns about the privacy, security and
dissemination of their personal information.
Consumers aren’t approaching where to shop as an either–or

proposition but as a this-and-that set of options.
PwC’s February 2023 Global Consumer Insights Pulse Survey
E-commerce, and the digital technologies that enable it, are designed to remove
friction. But they also create their own frictions, many of which have been
exacerbated or aggravated during the disruptions of the past two years. Since the
onset of the pandemic, e-commerce consumers have experienced higher delivery
costs, longer wait times, bungled deliveries and stock shortages. In our survey,
more than half of consumers who opt to shop in physical stores or to place orders
online and pick up at the store (54%) said they do so because it offers them the
ability to check that products are not broken or faulty and to be certain that they’re
the products they ordered. Another reason, cited by 41% of those planning to shop
in physical stores, is that they simply missed doing so during pandemic lockdowns.
The bite of higher costs and concerns over an economic downturn are also playing
a role: 40% of consumers who intend to increase in-store shopping and decrease
online shopping said it’s because delivery costs are too high.
A slow pullback
Smaller numbers of consumers are saying they plan to
increase the amount of shopping they do online and in
stores in the next six months.
Expected changes in consumers’ behaviour
Shopping online Shopping in physical stores
I will not do this activity at all Decrease No change

Increase
These trends in consumer preferences point to a hybrid shopping strategy that

producers and retailers are grappling with: consumers aren’t approaching where to
shop, regardless of what’s on their list, as an either–or proposition but as a this-
and-that set of options. This duality was apparent well before the pandemic.
Despite persistent economic and social headwinds, consumers aren’t simply
switching from online to in-store shopping. Rather, they’re choosing one or the
other—or both—based on preferred attributes of each, such as in-store technology
or improving delivery times and costs for online orders. These trends are likely to
continue throughout 2023.
0
of consumers who intend to increase in-store

shopping and decrease online shopping said it’s
because delivery costs are too high.
Source: PwC’s February 2023 Global Consumer Insights Pulse Survey
6. The next platform: The metaverse
Digital environments are evolving, whether it’s the continuing rollout of 5G or the
integration of shopping into social media apps. And so, a great deal of attention is
being paid to what may be the next large-scale digital platform: the metaverse,
which promises to erase many of the frictions between the digital world and the
physical world. But the metaverse is still very much in its infancy, and is riven by its
own set of frictions. As the PwC report Demystifying the metaverse concluded:
‘The metaverse is an evolution, not a revolution. And it’s one that business leaders
should not ignore.’
The countries with the highest percentage of metaverse users

have young populations and growing middle classes.
PwC’s February 2023 Global Consumer Insights Pulse Survey
Our survey finds that various components of the metaverse are already available
and being explored by consumers. Just more than one-quarter said they have
participated in metaverse-related activities in the last six months for entertainment,
virtual experiences or purchasing products (26%). For example, 10% have used a
VR headset to play games or watch a movie, or for work-related activities. Nearly
as many said they’ve experienced a retail environment or a concert virtually or
they've purchased an NFT, or non-fungible token (both 9%).
Use of the metaverse varies widely by age and across countries. Not surprisingly,
the younger the person, the more likely they are to engage with the metaverse.
Demographically, young Millennials (36%) and Gen Z (31%) are the top metaverse
users, while only 8% of Baby Boomers and 6% of the Greatest Generation cohort
have used it. And the countries with the highest percentage of respondents who
said they had used the metaverse in the past six months were India (48%) and
Vietnam (43%)—countries with young populations and growing middle classes.
  Virtual experiences
1 of 2
7. Data privacy is increasingly important to consumers
Whether they’re using the metaverse or not, consumers already inhabit a

thoroughly digital universe. The billions of daily transactions, interactions and
downloads that occur digitally are both enabling and compelling a pervasive
sharing, collection, analysis and dissemination of consumer data by companies,
organisations and governments across the globe. Control over all of that data has
become a source of friction for consumers. Asked about their level of concern
about personal data privacy when interacting in routine activities and with various
entities, nearly half said they are extremely or very concerned when engaging with
social media (47%). Concern is also high regarding the media in general (41%),
third-party travel websites (36%) and healthcare companies (34%).
There’s lesser but still substantial concern among respondents when engaging with
consumer companies (32%) and retailers (30%). It’s possible that retail performs
comparatively well here because the return for consumers on providing data is
clearer and more transparent, in the form of vouchers, discounts and special offers.
Consumers are acting on their concerns. Half said they don’t share any more
personal data than necessary (49%), and 32% opt out of receiving emails, texts and
other communications. And this is another sort of friction. Companies will be more
effective and efficient and provide better value to their customers if they have more
data about them. But when it comes to both regulation and behaviour, there are
efforts to reduce the flow and use of data. To regain trust, leaders need to persist
in their efforts to establish innovative data-privacy systems and operations—
especially as lawmakers and regulators consider legislative remedies.
Retailers gain
Question: To what extent, if at all, are
you concerned about the privacy of
your personal data when interacting
greater trust on with the following types of companies?
(Respondents answering ‘extremely
data concerned’ or ‘very concerned.’)
Select a channel to see to what

extent each generation and region
have privacy concerns.
Generation
⬢ Territory
Social Media Third- Healthcare Travel Consumer Retail

media party/portal operator companies companies
Global Generation Z Millennials Generation XBaby Boomers

Greatest Gen
47%45%48%46%50%50%
8. The future of frictionless retail depends on customer
loyalty
As we look ahead, there are three essential sets of frictions.
There’s a set of frictions that are beyond the control of companies—macro levels of
inflation, a global recession or contraction, wars, and disruptions to trade caused
by the pandemic. In response, consumer-facing companies must focus on
resilience, conduct scenario planning, and ensure that their supply chains,
operating models and staffing levels are fit for a range of potential short-term
outcomes.
There’s a set of frictions that companies themselves can introduce relating to

experiences—by not having sufficient staffing in stores or by failing to meet or
manage expectations surrounding the experience. To guard against this,
companies should focus on operational excellence and continue to experiment and
innovate with the use of technology in stores and the creation of satisfying phygital
experiences.
And there’s a set of frictions that consumers themselves introduce into the system,
including changes in behaviour due to economic or personal circumstances. In
response, companies must monitor and stay on top of the latest trends, and plot
investments and initiatives that will meet customers wherever they are and build
loyalty.
The term frictionless retail may be an important buzzword and a worthy goal. But a
deep understanding of what consumers think, the stresses that concern them, and
the demands and expectations they have should lead to a more sophisticated and
strategic understanding of the frictions that exist—and the steps necessary to
mitigate or remove them.
9. About this survey
The Global Consumer Insights Survey is a biannual study that seeks to keep a
closer watch on changing consumer trends. For our February 2023 pulse survey,
we polled 9,180 consumers across 25 territories: Australia, Brazil, Canada, China,
Egypt, France, Germany, Hong Kong SAR, India, Indonesia, Ireland, Japan,
Malaysia, Mexico, Philippines, Qatar, Saudi Arabia, Singapore, South Africa, South
Korea, Spain, Thailand, United Arab Emirates, United States and Vietnam. The
respondents were at least 18 years old and were required to have shopped online
at least once in the previous year.
February 2023 Global Consumer Insights Pulse Survey

Explore the full report.
Download
Get in touch
Reach out to start a conversation.
Sabine Durand-Hayes
Global Consumer Markets
Leader, Partner, PwC
France
Myles Gooding
Advisory Leader, Partner,
PwC Canada
Brian Crane

Assurance Leader, Partner,
PwC United States
Herve Roesch
Deals Leader, Partner,
PwC United Kingdom
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11/10/24, 4:11 PM Global Consumer Insights Survey 2023: Frictionless retail and other new shopping trends | PwC

February 2023 Global Consumer Insights Pulse Survey

Consumers seek frictionless experiences in a

Survey 15 minute read February 16, 2023

Consumers’ behaviours, technological preferences and expectations

96%of surveyed consumers intend to adopt cost-

To a large degree, covid continues to influence the experiences of consumers and

Manage cookie settings

The survey makes it clear that companies must go beyond responding to

1. Inflation deflates sentiment

There are some exceptions, though. Consumers have displayed a willingness to

Select a generation to explore

10% 20% 28% 42%

Not concerned Concerned but Concerned to Most concerned

2. Consumers in a “phygital” world

Shopping habits stabilise

Consumers seek physical and

Knowledgeable and helpful sales associates

Ability to use self-service checkout kiosks 42%

Ability to use retailer website/app in the store to browse

Offers click-and-collect services 38%

Ability to use “scan-and-go” technology (i.e., scan your

In-store entertainment 27%

Ability to try immersive digital experiences 24%

Ability to book retail appointments 21%

3. Kinks in the supply chain

multiple retailers—whether in-store or online—which is two percentage points

Consumers continue to experience

Never Rarely Occasionally Frequently

Rising prices for household goods 28% 37%

Large queues in-store and/or busier store

Unable to purchase a product due to it being

Reduced product ranges available 30% 37% 18%

Significant unavailability of your favourite

A product taking longer to be delivered than

Being given a delivery time for a product that

Back to the office

Select a territory to see how

I am able to choose how and

26% I am required to work in a hybrid

5. Confronting frictions, in-store and online

Consumers aren’t approaching where to shop as an either–or

Shopping online Shopping in physical stores

I will not do this activity at all Decrease No change

These trends in consumer preferences point to a hybrid shopping strategy that

of consumers who intend to increase in-store

6. The next platform: The metaverse

The countries with the highest percentage of metaverse users

7. Data privacy is increasingly important to consumers

Whether they’re using the metaverse or not, consumers already inhabit a

Select a channel to see to what

Social Media Third- Healthcare Travel Consumer Retail

Global Generation Z Millennials Generation XBaby Boomers

As we look ahead, there are three essential sets of frictions.

There’s a set of frictions that companies themselves can introduce relating to

9. About this survey

February 2023 Global Consumer Insights Pulse Survey

Global Consumer Markets

Global Telecom and Entertainment & Media Outlook 2024–2028