Corona has changed buying behaviour permanently

The Swiss population is increasingly shopping online as a result of the Corona crisis. According to the respondents, the main reasons for this are the contact restrictions and the lack of shopping experience due to the hygiene measures. This is the result of the latest KPMG survey among 3,152 consumers from Germany, Austria and Switzerland. Almost half of the 1,051 Swiss respondents consider online shopping to be practical, convenient and easy - 43% of those surveyed even shop online several times a month. According to the survey, the greatest potential for future purchases, even after the Corona crisis, lies in the product categories of fashion, leisure, cosmetics and drugstore, and electronics.

Generational differences in shopping behaviour

The younger the shopper, the higher the online spending compared to bricks-and-mortar retail. A third of Generation Z (18 to 24 years) in Switzerland spend more than half of their shopping expenditure online. Among Millennials (25 to 39 years old), a quarter spend more online than in physical stores. Among Generation X (40 to 55 years), the proportion is still 16%. Baby boomers (ages 56 to 89) spend most of their money in physical stores. Only 9% of this age group do more than half of their spending on the Internet.

"Although online retail has grown in importance, brick-and-mortar retail will continue to play an important role in the future," Jürg Meisterhans, Partner and Sector Head Retail at KPMG Switzerland, is convinced. "The shopping experience, social contacts as well as personal face-to-face advice cannot be replaced by an online experience. The past few months have clearly demonstrated this to us."

Online purchases are mainly made via websites among the 'baby boomers' and Generation X. The younger the age group, the more frequently apps are used for purchases. The younger the age group, the more frequently apps are used for purchases. Generation Z even makes more than half of its online purchases via an app.

High shipping costs often lead to purchase cancellation

Online shoppers who are willing to buy do not always actually complete their purchase. The most frequent reason given by respondents for abandoning a purchase was that the shipping costs were too high. 69% of respondents have already stopped an online purchase for this reason. 48% of respondents cited not being offered their preferred payment method as a reason for abandoning a purchase. For 46% of the survey participants, the hurdle was insufficient availability of goods or too long delivery times.

For the respondents, meaningful product descriptions and correct product data as well as free shipping and returns are the most important quality features of an online shop. Trust in the retailer with regard to data protection and delivery of the goods as well as the user-friendliness of the shop are also key decision-making criteria when buying online.

Online willingness to buy food increased

The survey shows that the acceptance of grocery shopping in Switzerland has increased. Thus, food was the product category most frequently purchased online for the first time during the Corona pandemic. Around a third of consumers buy groceries online occasionally, 11% even regularly. The survey also shows that shelf-stable products have a high acceptance rate, as they carry lower quality and transportation risks than fresh and refrigerated products. Thus 89% of the respondents are open to buying long-life products. The willingness to buy fresh and chilled food as well as fruit and vegetables online is markedly lower at 44%. This is mainly due to the fact that customers want to convince themselves of the quality or be inspired in the store.

Online retailers: no market dominance of one supplier in Switzerland

In Germany and Austria, Amazon is clearly the number one online retailer in terms of sales. In Switzerland, on the other hand, Zalando is number 1, followed by Galaxus and Amazon. It is striking that the Swiss population shops at many different shops compared to their neighbouring countries and that no online retailer has a dominant market position.

 Source: KPMG

Methodology

The analysis is based on an online market research survey and includes 3,152 people, of whom 1,050 are from Germany and 1,051 each from Austria and Switzerland. The survey is representative of the population in terms of the quotas for age x gender (quota combination), location size, household size and net household income. The survey took place in the period from 12.01. to 19.01.2021.