www.pwc.

de

A Major Shift for Shopping:

how Digital Trends are Transforming
Customer Behaviour in Europe

#2 of PwC Europe Consumer Insights Series

About this study

For ten years now, we have been Our analysis aims to provide retailers
conducting our annual survey of and consumer goods manufacturers
consumers’ shopping habits around with valuable information about
the world. For the first time, this year’s how they can successfully position
survey looks at the specific patterns themselves as a strong presence in
that exist for shopping habits within the minds of European consumers.
Europe – exploring the areas in which
European consumers show similar For this study, we surveyed
purchasing behaviour and those in 9,700 representative consumers
which they differ. In our analysis, in 11 European countries in the
we focused on consumers in six summer of 2018. This report is the
major European retail markets that second in the PwC Europe Consumer
represent 64% of the total European Insights Series. The first report in this
retail market: France, Germany, the series is called “Surviving the Retail
Netherlands, Poland, Spain and Apocalypse – What to learn from
the United Kingdom. In doing so, Clicks-to-bricks” and it focuses on
we also considered differences the changing role of the store, as well
when compared to the behaviour of as ways of digitising store-related
consumers in the US and China. operations and business models.1

1
 f. PwC (2019): Surviving the Retail Apocalypse – What to learn from “Clicks-to-bricks”, www.pwc.de/de/human-resources/studie-surviving-the-retail-
C
apocalypse.pdf.
Table of Contents
A Online Shopping.............................................................................................. 4
1 Online shopping drives retail sales growth in Europe..................................... 4
2 Online shopping for fast-­moving consumer goods (FMCG) is on the rise...... 6
3 Approaching a breakthrough moment for online
grocery shopping............................................................................................. 8
4 Dominant platforms – winner takes all............................................................. 9

B Retail Technologies........................................................................................ 10
1 From mobile-first to next-generation voice commerce................................. 10
2 Mobile payment makes in-store shopping more convenient........................ 13

C Consumer Habits........................................................................................... 15
1 The conscious consumer – rising awareness of sustainability..................... 15
2 The last mile – a major delivery challenge..................................................... 17
3 Generation Z sets new rules for advertising.................................................. 18
4 Consumer habits in Europe – same or different?.......................................... 19

D Retail Way Forward........................................................................................ 20

Methodology.......................................................................................................... 22

Contacts................................................................................................................. 23

Table of Figures
Fig. 1 Online shopping drives retail sales growth in Europe.............................. 5
Fig. 2 Online shopping in FMCG is on the rise in Europe.................................. 6
Fig. 3 Online shopping in the health and beauty market segment.................... 7
Fig. 4 Online shopping in the grocery market segment..................................... 8
Fig. 5 Amazon is the most commonly used online shopping platform
in Europe................................................................................................... 9
Fig. 6 Smartphones have become the go-to technology for online
shopping..................................................................................................11
Fig. 7 Considerable potential for voice commerce.......................................... 12
Fig. 8 Stores remain an important channel for consumers............................. 13
Fig. 9 Mobile payment is gaining traction........................................................ 14
Fig. 10 Packaging plays a key role in sustainable shopping............................. 16
Fig. 11 Consumers are willing to pay a premium for sustainable
food products......................................................................................... 16
Fig. 12 Europeans are willing to pay for same-day and next-day delivery........ 17
Fig. 13a Traditional ways of advertising are still the most influential
in Europe................................................................................................. 18
Fig. 13b Digital advertising is replacing traditional advertising channels
worldwide............................................................................................... 19
Fig. 14 The “Europe Consumer Insights Survey” covers 9,700
respondents in 11 countries in Europe................................................... 22

#2 of PwC Europe Consumer Insights Series 3

About this study

A Online Shopping
The new normal

1 Online shopping drives retail sales growth in Europe

Online shopping has become a normal • Polish consumers (81%, 48%)
habit for consumers across Europe. • German consumers (75%, 35%)
Two out of every three Europeans • Dutch consumers (71%, 33%)
(68%) shop online at least once a
month, while one in three (30%) shop These groups shop online more
online at least once a week. The frequently than US consumers (67%,
heaviest online shoppers are: 33%). Belgian (59%, 22%) and Swiss
• British consumers (82% monthly, (57%, 21%) consumers shop online
43% weekly) less than the European average.

4 #2 of PwC Europe Consumer Insights Series

 Online Shopping

Online retail has been the main driver This trend is expected to continue in
of retail sales growth in Europe in the next few years. However, online
the past four years. Between 2014 retail will grow at a slower pace (CAGR
and 2018, online retail sales grew at 2019–22 forecast for Europe: 10%) in
an average annual rate of 11%, while many European territories, while offline
offline sales grew by just over 1%. retail sales will start rising again.

Fig. 1 Online shopping drives retail sales growth in Europe

Online retail sales growth

11%
Europe
10%

16%
NL
13%

7%
Germany
8%

11%
France
10%

9%
UK
7%

6%
Spain
8%

18%
Poland
13%

Offline retail sales growth

1%
Europe
2%

1%
NL
1%

2%
Germany
3%

1%
France
2%

1%
UK
2%

2%
Spain
3%

4%
Poland
4%

CAGR 2014–2018 CAGR 2019–2022 (forecast)

Source: Euromonitor, PwC analysis.

#2 of PwC Europe Consumer Insights Series 5

Online Shopping

2 Online shopping for fast-­moving consumer goods (FMCG) is on the rise

For many years, the FMCG sector
Fig. 2 Online shopping in FMCG is on the rise in Europe
seemed like an impenetrable
stronghold for offline retail. However, Growth in percentage of consumers making all or most of their purchases online,
new online offers from traditional 2018 vs 2015
retailers, as well as direct-to-consumer
offers from manufacturers and offers Global
17%
from new online retailers, have led to 53%
the breakthrough of online retail in the
46%
FMCG sector. The share of European Europe
81%
consumers who buy all or most of
their FMCG products online has grown 36%
France
rapidly in recent years. Since 2015, 63%
this share has increased by 46% for 94%
health and beauty products and by Germany
119%
81% for groceries. Almost one in five
(18%) Europeans now buy most of their 39%
Poland
16%
FMCG products online. This trend is
particularly evident in Germany, where 23%
Spain
the share of consumers who buy 80%
the majority of their FMCG products
15%
online has doubled in the past three UK
42%
years, rising by 94% (from 9% to
18%) for health and beauty products,
Health and beauty
and rising by nearly 120% (from 8%
to 17%) for groceries. However, this Groceries
trend is not yet reflected in the share Q: For each of the following product categories, how many of your purchases have you
of online retailing sales for groceries in made online over the last 12 months? Answers: “exclusively purchase online” and “most
Germany, which remains low at 1.2%.2 of my purchases”.

Growth in the categories that were

among the first to achieve high levels
of online sales – such as books,
music, movies and video games –
has slowed down significantly due
to the increasing use of streaming
services. In fact, the proportion of
consumers who make the majority of
their purchases in this category online
has actually declined in Germany and
the UK.

2
Cf. HDE Handelsverband Deutschland (2019): Online Monitor 2019, www.einzelhandel.de/online-monitor.

6 #2 of PwC Europe Consumer Insights Series

 Online Shopping

The health and beauty sector is with almost half of Chinese consumers
particularly attractive because almost buying the majority of their beauty
20% of European consumers shop (49%) and health (47%) products in the
in the premium segment across premium price range.
channels. China is the global leader,

Fig. 3 Online shopping in the health and beauty market segment

Percentage of consumers making all or most of their purchases online, 2018 vs 2015

24% 24%
23%

19% 19% 19%

18% 18% 18%
17%
16%
15% 15%
13%

10%
9%

Global Europe France Poland Spain NL UK Germany

2015 2018

Q: For each of the following product categories, how many of your purchases have you made online over the last 12 months? Category
health and beauty, answers: “exclusively purchase online” and “most of my purchases”. Thinking of the majority of your purchases
across the following categories, please indicate whether you tend to buy low, mid or premium price ranges. Categories: beauty and
cosmetics, health and wellness products.

#2 of PwC Europe Consumer Insights Series 7

Online Shopping

3 A
 pproaching a breakthrough moment for online
grocery shopping
Grocery shopping is still very different with 7% of total grocery retail sales in
to other categories. The majority of 2018. This is forecasted to reach 10%
European consumers prefer buying by 2023.3
groceries in stores because they
want to see and touch the products About half of consumers in France,
(64%). They are also concerned about the Netherlands, Spain, Poland and
product quality (29%) and delivery the UK are likely to buy groceries online
costs (28%) when buying groceries over the next 12 months. German
online. However, online grocery consumers, however, remain hesitant
shopping is gathering momentum (32%). This is also reflected in the
in most of the European countries very low market share of online retail
surveyed. Almost one in five (18%) for food in Germany (1.2%) compared
European shoppers (24% in France, to other European markets. German
23% in the Netherlands, and 22% in consumers are very price-sensitive
the UK) now make the majority of their when buying food, and also benefit
food purchases online. Since 2015, from a high density of grocery stores.
this share has grown by 80% – a faster The food sector is the online segment
rate of growth than any other product that presents the greatest challenges
category. When it comes to the market for retailers in terms of profitability, but
share of online retail for groceries, the is also the most attractive segment due
UK is clearly leading the way in Europe, to the overall size of the market.

Fig. 4 Online shopping in the grocery market segment

Percentage of consumers who are likely to purchase groceries online

58%

50%
47% 46% 45% 44%
42%

32%

Global Europe Poland UK France Spain NL Germany

Q: Over the next 12 months, how likely are you to purchase grocery online? Answers: “extremely likely” and “likely”.

3
Cf. Mintel (2019): UK Online Grocery Retailing Market Report, www.store.mintel.com/uk-online-grocery-retailing-market-report.

8 #2 of PwC Europe Consumer Insights Series

 Online Shopping

4 Dominant platforms – Fig. 5 Amazon is the most commonly used online shopping platform in Europe
winner takes all Q: Do you shop with Amazon?
Amazon is the most commonly used
online shopping platform for the large Global 65% 35%
majority of European consumers (67%)
and has set the bar for a convenient
Europe 67% 33%
online shopping experience. More
than 80% of consumers in France,
Germany, Spain and the UK shop on Germany 88% 12%
Amazon.
France 83% 17%
Consumers have integrated Amazon
into every stage of the customer
journey. One in three European UK 88% 12%
consumers checks prices on Amazon
(34%), starts their product search Spain 87% 13%
on Amazon (29%), or reads product
reviews (28%).
Poland 43% 57%
Nearly 40% of European shoppers
have an Amazon Prime account. Yes No
Prime membership across Europe has
increased by 19% compared to 2018
and is particularly popular among Q: Do you have an Amazon Prime account?
Spanish (53%), German (47%) and
British (38%) consumers. This has
significantly changed the way people Global 43% 51% 5%
shop, with one in three Europeans now
shopping via Amazon more frequently, Europe 38% 58% 3
and one in five shopping at other
retailers less often.
Germany 47% 52%

Amazon is even more important

in the US, where more than half of France 34% 65%
consumers (56%) stated that they
are a member of Amazon’s loyalty
UK 39% 61%
programme. However, the Chinese
market has the most dominant
online platform: 95% of Chinese Spain 53% 46%
consumers shop with Alibaba
and 76% are members of Alibaba’s Poland 30% 62% 8%
88 Membership programme.

Yes No I was not aware of Amazon Prime

#2 of PwC Europe Consumer Insights Series 9

 B Retail Technologies
From mobile to voice

1 From mobile-first to next-generation voice commerce

Today, almost 20% of European accustomed to having immediate
consumers shop via their smartphone access to information and products,
at least once a week – with particularly and are also used to having their
high levels among consumers in the needs met instantly. One in three (28%)
UK (24%), Germany (23%), Poland European consumers under the age
and Spain (both 20%). The younger of 35 shop using their smartphone at
generation is the driving force behind least once a week. British, Dutch and
the rising acceptance of mobile German consumers are far ahead of
shopping. As digital natives, they are their European peers, at 37%.

10 #2 of PwC Europe Consumer Insights Series

 Retail Technologies

Despite this considerable growth, Netherlands) already shop via smart

purchasing via smartphone in Europe home assistants such as Amazon
continues to lag well behind levels Echo or Google Home at least once
of mobile shopping in China, which a week. From a global perspective,
remains a category of its own. More China is leading the way at 14%. This
than half (55%) of Chinese consumers new shopping trend is amplified by the
across all generations, and 61% of growth of digital natives. In Germany,
younger Chinese consumers, use their 19% of consumers under the age of
smartphone for shopping every week. 35 shop via smart voice assistants,
and 15% shop via wearable devices
With smart home voice assistants every week. Similar shopping habits
and wearable devices on the rise, the are developing in the Netherlands
next major change in the way retail (17% voice, 19% wearables) and
companies interface with customers Belgium (13% voice, 15% wearables).
is about to occur. In Europe, 8% of
consumers (11% in Germany and the

Fig. 6 Smartphones have become the go-to technology for online shopping

Percentage of consumers using their smartphone daily or weekly to buy products

Digital Natives1

31% 27% 38% 25% 37% 30% 37% 25%

24% 24% 24%

23%

20% 20%
x2 19% x2 x1.6
18%
x3.4
x2.5 x2.2
x2.4 14% x2
12% 12%

9% 9%
8% 8%
7%

Global Europe UK Poland Germany Spain NL 2 France

2015 2018

Q: How often do you buy products using a mobile or a smartphone? Answers: “daily” and “weekly”.
1
“Digital Natives” refers to consumers aged under 35.
2
Data for the Netherlands is for 2017 and 2018.

#2 of PwC Europe Consumer Insights Series 11

Retail Technologies

Looking at the spread of smart use the device for shopping, voice
devices, it becomes clear that there commerce could increase from 8%
is considerable potential in the near today up to 18% – giving it the same
future. 11% of European consumers relevance as mobile shopping. This
already own a smart voice assistant will depend on making sure voice
and 21% plan to purchase one. If only commerce is just as convenient as
half of the consumers who plan to buy shopping via smartphone or PC, and
a smart device implement this plan that it offers the same level of security
within the next two years and then in terms of data privacy.

Fig. 7 Considerable potential for voice commerce

Shop daily + weekly via Own a smart Plan to purchase a smart

Voice commerce smart voice assistant voice assistant voice assistant
Germany 11% 13% 19%
Netherlands 11% 12% 17%
France 9% 14% 23%
Switzerland 9% 9% 16%
Belgium 8% 11% 17%
Poland 7% 9% 26%
Spain 7% 10% 30%
Hungary 7% 5% 15%
Ireland 7% 13% 24%
UK 6% 17% 24%
Denmark 6% 8% 17%
Europe average 8% 11% 21%

Q: How often do you buy products via smart home voice assistants?, Which of the following smart home devices do you currently own
or plan to buy in future?

12 #2 of PwC Europe Consumer Insights Series

 Retail Technologies

2 Mobile payment makes in-store shopping more convenient

Stores are still a relevant shopping German (59%), Irish (54%), Swiss (53%)
channel in Europe because of high and Polish (52%) consumers leading
store density, long opening hours and the way. The younger generation is
increasing urbanisation. At least 40% of particularly active in this regard. 70% of
European consumers make an in-store digital natives in Germany, for example,
purchase at least once a week, with buy products in stores.

Fig. 8 Stores remain an important channel for consumers

Percentage of consumers that shop in-store at least once per week

49%
39%

43%
54%
41%
52%
59%
45%

35%
46% 52%

48%

35% 40% 45% 50% 55% 60%

Q: How often do you buy products in-store?

#2 of PwC Europe Consumer Insights Series 13

Retail Technologies

Nevertheless, consumers see a need A quarter of European consumers

to improve the in-store shopping already use mobile payment to pay for
experience. In particular, they want their purchases in-store. This is still a
more convenient store designs (42%) relatively small number compared to
and more knowledgeable sales staff China, where almost all consumers
(36%), as well as quick and easy (86%) use Alipay for in-store payment.
checkouts (32%). These factors are However, there has been a significant
specifically important in situations year-on-year increase in mobile
where a consumer’s visit to a grocery payment adoption in Europe (up from
store or supermarket takes less 17%), driven by new payment services.
than five minutes. More than half of Germany is the only country where
European consumers (53%) make such this development is stagnating, at
microtrips two or three times per week, 22%. However, due to the introduction
especially consumers in Poland (73%), of new payment apps from German
Spain (64%) and Hungary (63%). banks as well as the launch of Apple
Retailers can significantly improve the Pay and Google Pay on the German
shopping experience for microtrips market in 2018, the use of mobile
by offering quick and easy payment payment can be expected to increase
methods like mobile or contactless significantly in the next few years.
payment. Seven out of every ten Germans under
the age of 40 intend to use mobile
payment in the next five years.4

Fig. 9 Mobile payment is gaining traction

Percentage of consumers that have paid in-store by mobile payment

34%
32%
28%
25% 26%
24% 23% 23% 23% 22%
22%
20%
17% 18%
15%
12%

Global Europe Spain Poland UK France NL Germany

2017 2018

Q: Which of the following payment activities have you undertaken using your mobile/smartphone/wearable device when shopping
in-store? Summary by region (paid for my in-store purchase using mobile payment).

4
Cf. PwC (2019): Mobile Payment Report 2019, p. 15, www.pwc.de/de/digitale-transformation/pwc-studie-mobile-payment-2019.pdf.

14 #2 of PwC Europe Consumer Insights Series

C Consumer Habits
Digital, sustainable and easy

1 The conscious consumer – rising awareness of sustainability

European consumers are concerned environmentally friendly packaging Traceability and transparent product
about the environment while shopping. (32%). Packaging plays a particularly origin are of above-average importance
The most popular ways for consumers important role in sustainable shopping for consumers in Poland (46%) and
to reduce their negative impact on for consumers in Germany, Ireland Hungary (42%) compared to the
the environment are by avoiding the and Hungary, where around half European average (27%). Irish (31%)
use of plastic where possible (42%), of consumers are reducing their and Spanish (31%) consumers are
buying items with less packaging consumption of packaging and most attracted to brands promoting
(41%), and looking for products with plastics. sustainable practices compared to the
European average (24%).

#2 of PwC Europe Consumer Insights Series 15

Consumer Habits

One in five British, Danish and and 34% of Japanese consumers

Dutch consumers have no interest in do not consider sustainability while
sustainability. One interesting finding shopping. Sustainability is a very
from our survey is that consumers relevant issue for consumers from
from traditionally industrial countries emerging markets, especially those
are more likely to have no interest in from China, the Philippines, Thailand
sustainability: 23% of US consumers and Vietnam.

Fig. 10 Packaging plays a key role in sustainable shopping

Above European average

I avoid the use of plastic Ireland (52%), Spain (51%),
42%
where possible Hungary (48%), Germany (47%)
Packaging Germany (53%), Ireland (49%),
I buy items with less packaging 41%
priorities France/UK/Switzerland (44%)

I look for products with Hungary (48%), Poland (41%),

32%
environmentally friendly packaging Ireland (37%), Germany (34%)

I choose sustainable products to Switzerland (38%), Spain (35%),

32%
help protect the environment Denmark, France/Germany (34%)

I choose products with a traceable Poland (46%), Hungary (42%),

27%
and transparent origin Ireland/ Switzerland (32%)

I buy brands that promote Ireland (32%), Spain (31%),

24%
sustainable practices France (24%)

I choose sustainable products to France (21%), Hungary (20%),

17%
set an example to others Switzerland (19%)

Netherlands, UK, Denmark (19%),

I have no interest in sustainability 14%
Belgium (18%)

Q: Please indicate which statements best reflect how you purchase in a sustainable way.

European consumers are becoming

Fig. 11 Consumers are willing to pay a premium for sustainable food products
more focused on sustainability, and
(Top 5)
they are also willing to pay a price
premium for sustainable food products. Food Europe Above Europe average Germany UK USA China
The majority of European consumers
Poland (75%),
(79%) are willing to pay a price Locally
63% Switzerland (73%), 59% 52% 66% 70%
premium when buying food, especially produced
Hungary (72%)
for locally produced items (63%) and
Denmark, Ireland,
organic food (48%). Consumers in Organic 48% 49% 34% 48% 70%
Switzerland (all 55%)
Poland (75%), Switzerland (73%) and
Hungary (72%) show a particularly Ireland (49%),
Sustainable
strong preference for local food 43% Poland (48%), 45% 38% 37% 48%
packaging
products. Organic food is specifically Switzerland (48%)
relevant for Danish, Irish and Swiss Eco-friendly Poland (52%), Spain/
42% 42% 29% 33% 46%
consumers (all 55%). On the other offering Switzerland (51%)
hand, almost half of British consumers Poland (51%), Switzerland
Sustainably
(43%) and one third of Belgian (30%) 39% (49%), Spain (44%), 41% 29% 34% 47%
produced
and Dutch (29%) consumers are not Germany/Ireland (41%)
willing to pay a price premium for any None of UK (43%), Belgium (30%),
sustainable attributes for food items. 21% 23% 34% 21% 5%
the above Netherlands (29%)

Q: Which of the following are you willing to pay a premium for when purchasing food items?

16 #2 of PwC Europe Consumer Insights Series

 Consumer Habits

The willingness of European

Fig. 12 Europeans are willing to pay for same-day and next-day delivery
consumers to pay a higher price for
sustainable attributes for non-food Percentage of consumers willing to pay for delivery
items is significantly lower. Around
one third of consumers are willing to 9%
pay a price premium for sustainably A specific one/two 7%
10%
(38%) or ethically produced (37%) hour time window
5%
items, or for products that have eco- of my choosing 5%
friendly properties (34%). In Hungary 3%
(44%), Spain (40%) and Ireland (37%),
10%
sustainable packaging plays an 8%
important role for non-food items. 8%
Less than 3 hours
Again, British (42%) and Dutch (37%) 4%
consumers are reluctant to pay a price 8%
5%
premium for any sustainable attributes.
23%
20%
21%
2 The last mile – a major Same day
12%
delivery challenge 14%
16%

European consumers are very 12%

demanding when it comes to the 18%
17%
delivery of their online orders. The Next day
22%
majority are willing to pay for delivery 15%
as long as the order arrives on the 14%
same day or the next day. Dutch 5.0%
consumers are the most demanding, 12%
with more than one in three (36%) not 9%
Two days
willing to pay anything for delivery and 15%
one in three (36%) expecting same- 15%
26%
day delivery. European consumers
consider free returns (46%), fast 3%
delivery (43%) and a specific delivery 9%
Three to five 8%
date (43%) to be the most important 19%
business days
factors in delivery. These are also the 17%
key factors worldwide. 27%
1%
2%
More than five 3%
business days 3%
6%
7%
36%
25%
I am not willing to 25%
pay for delivery 19%
18%
5%

Netherlands: availability of free return

Most Germany: availability of free return
important
France: getting the product as quickly as possible
aspect for
UK: knowing the delivery date at the point of order
consumers
in delivery Spain: availability of free returns
Poland: knowing the delivery date at the point of order

Q: For the majority of your online purchases, what is the longest delivery lead time you are
willing to pay a charge for?

#2 of PwC Europe Consumer Insights Series 17

Consumer Habits

3 G
 eneration Z sets new rules for advertising
Customer touchpoints have multiplied is amplified among the younger
with the increasing importance of generation. Generation Z consumers
smartphones and social media. In our (18–24 years old) expect more
survey, we asked consumers which flexible and individual approaches to
types of advertisements they find advertising.
most influential. European consumers
across all generations are still very In Germany, for example, young
much influenced by traditional media consumers consider social media
such as TV (37%) and personalised advertising such as sponsored ads on
email (25%), as well as magazine and social media (33%) or ads with famous
newspaper ads (25%). However, digital influencers (29%) to be more relevant
channels are becoming increasingly than traditional TV ads (25%). 76%
relevant for shopping decisions. In of German Gen Z consumers have
France, Poland and Spain, social become aware of a product through
media advertising already ranks among influencers and 51% have purchased
the top three channels. The trend products recommended by social
towards digital advertising channels influencers.5

Fig. 13a Traditional ways of advertising are still the most influential in Europe

38%
Europe 25%
24%

42%
Germany 29%
24%

39%
France 28%
25%

41%
Poland 28%
25%

36%
Spain 28%
27%

47%
UK 27%
25%

Traditional TV ads
Personalised advertisements via e-mail
Traditional magazine/newspaper print ads
Personalized flyers/leaflets through letter box
Ad link to brand or product offers/promotions
Interactive social media ads

Q: Which types of advertisements do you find most influential? Ranked top 3.

5
 f. PwC (2018): Zwischen Entertainer und Werber – Wie Influencer unser Kaufverhalten beeinflussen, www.pwc.de/de/handel-und-konsumguter/pwc-
C
zwischen-entertainer-und-werber.pdf.

18 #2 of PwC Europe Consumer Insights Series

 Consumer Habits

Digital advertising is replacing (35%), followed by social media ads

traditional advertising channels that allow them to interact (32%),
worldwide. The relevance of media traditional product placement in
channels in China is completely movies and TV programmes (30%),
different to Europe. The majority of and ads with famous influencers and
Chinese consumers of all ages prefer celebrities (30%).
ads with direct links to the product

Fig. 13b Digital advertising is replacing traditional advertising channels worldwide

35%
Global 26%
25%

38%
Europe 25%
24%

45%
US 29%
23%

35%
China 32%
30%

Traditional TV Ads
Personalised advertisements via email
Traditional magazine/newspaper print ads
Ad link to brand or product offers/promotions
Interactive social media ads
Product placement in movies, TV programmes and other media

Q: Which types of advertisements do you find most influential? Ranked top 3.

4 Consumer habits in Europe – same or different?

Overall, consumption patterns across are leaders in Europe when it comes to platforms: 95% of Chinese consumers
European countries are homogeneous. the use of smartphones for accessing shop with Alibaba and 76% are
However, there are differences loyalty coupons for payment. members of Alibaba’s 88 membership
between consumers in Eastern Europe. programme. Chinese consumer
While Polish consumers have fully China is in a category of its own for behaviour shows what the future of
adopted Western European shopping online shopping. Two out of three retail may look like.
behaviour, Hungarian consumers have Chinese consumers buy products
preserved a more traditional approach online at least once a week. Using a Today, European consumers are still
to shopping. Only 22% of Hungarian smartphone every week for shopping very different to Chinese consumers.
consumers shop online every week (55%) and for paying in-store (86%) are However, our survey shows how quickly
compared to over 30% across Europe, very common. China has the highest European consumers have adapted
while only 8% use their smartphone share of premium shoppers worldwide, to new trends over the past three
at least once a week for shopping. especially when it comes to beauty years. With new retail trends evolving,
However, Hungarians are more likely and cosmetics (49%), and health and European retailers must continue to
to buy groceries online (41%) than wellness products (47%). China also adapt their business models and offers
German consumers (32%), and they has the most dominant online shopping to remain relevant to consumers.

#2 of PwC Europe Consumer Insights Series 19

Consumer insight

D Retail Way Forward

How to keep pace with European
shopping trends

Get the data right channel business models. Retailers

Managing product and customer data should take a holistic approach to
are key enablers for retail operations. create data transparency throughout
Retailers must have robust and fast the entire supply chain and across
IT systems with high-quality data in various systems, from the supplier
order to offer services like same-day through to the customer. This is the
delivery. However, most retailers today key factor in success in the next
do not even have the quality of data wave of mobile shopping and voice
needed to run their current omni- commerce.

20 #2 of PwC Europe Consumer Insights Series

 Retail Way Forward

Make in-store shopping Go green

an experience Sustainability is increasingly important
The role of the store in the relationship for European consumers. The most
between customers and retailers will popular ways for consumers to
be different in 2025, but the store reduce their negative impact on
will continue to be one of the most the environment are by avoiding
important touchpoints for customer the use of plastic and buying items
loyalty. However, stores will become with less packaging. Europeans are
social meeting points and showrooms buying more sustainable products
where it will not be necessary to and they are also willing to pay a
have all items from the product range price premium for sustainable food
in stock in every possible size and products. Sustainability is not a
variation at all times. Retailers should marketing initiative. Retailers should
ensure an appealing and intuitive redesign their retail brand portfolio by
store design, as well as a well-trained enlarging their organic product range
team in order to meet the minimum and reducing packaging, as well as by
expectations of customers. Digitising developing new logistics partnerships
store operations can free up time to reduce the overall carbon footprint.
for staff to interact with customers,
and investing in new point-of-sale Get the delivery right
systems and offering different payment The delivery process is one of the
methods can ensure quick checkout – biggest pain points in the customer
which will eliminate one of the largest journey. Getting deliveries within
pain points for consumers, especially a short timeframe – which means
when buying groceries. same-day or next-day delivery – can
give retailers a strong competitive
Expand digital advertising channels advantage when it comes to attracting
While traditional types of advertising, consumers. The most important
especially TV ads, are still the most attributes for delivery are speed, clarity
influential forms of advertising in regarding arrival time, and the option
Europe today, social media ads are of free returns.
on the rise worldwide. This trend will
also become mainstream in Europe
because younger generations expect a
more flexible and individual approach
to advertising. Retailers should find
meaningful ways of engaging with
customers, for example by building
communities using mobile and social
tools – because engagement on these
platforms is growing. They should also
be sure to deliver seamless, end-to-
end experiences that are tailored to
a specific shopping context, rather
than segmenting customers by
demographics alone.

#2 of PwC Europe Consumer Insights Series 21

Methodology

Methodology

In the course of our annual “Global we are able to present how and where
Consumer Insights Survey”, we consumers shop and what they expect
interviewed almost 22,000 consumers from retailers. We can provide you
across 27 countries about their with detailed analysis of consumer
shopping preferences. As a result, behaviour in all 27 countries.

Fig. 14 The “Europe Consumer Insights Survey” covers 9,700 respondents in 11 countries in Europe

Denmark

Nether­
lands
UK Poland
Ireland Germany
Belgium
France
Russia
Canada Switzer­­ Hungary
land
Spain
Japan
USA Philippines
China
Vietnam
Thailand
Hong Kong
Middle East Malaysia
Singapore
Indonesia

Brazil

South Africa Australia

Global: Europe:
27 countries 11 countries
21,480 respondents 9,700 respondents

22 #2 of PwC Europe Consumer Insights Series

 Contacts

Contacts

Dr. Christian Wulff Dr. Stephanie Rumpff

Partner Senior Manager
Retail and Consumer Leader Head of Industry Business
at PwC Germany Development at PwC Europe
Tel: +49 40 6378-1312 Tel: +49 211 981-2118
[email protected] [email protected]

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© November 2019 PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft. All rights reserved.

In this document, “PwC” refers to PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft,
which is a member firm of PricewaterhouseCoopers International Limited (PwCIL). Each member firm
of PwCIL is a separate and independent legal entity.
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