Global commerce company “commercetools” has released its new ANZ consumer shopping insights showing “there is a gap between ANZ consumers’ desire for more personalised and effortless retail experiences and their hopes and fears of AI as the tool to deliver them”, with Google Cloud and online auto buying platform Carma on the panel with insights, too – in the second video below!
commercetools enables some of the world’s biggest brands, including Australian ones, with its “composable commerce platform”, to flexibly customise, tailor and scale shopping experiences across markets.
But what is composable commerce for those who are wondering, for it’s a term I’d never heard of before. commercetools notes the term was coined by Gartner, and is “a component-based solution design approach that gives companies flexibility and freedom to build and run outstanding shopping experiences. A composable system combines three core traits: It should be cloud-native, component-based and tech-agnostic.”
Here’s a 60 second video that explains the concept:
commercetools says its platform “equips some of the world’s most influential businesses with tools to remain agile, future-proof digital offerings, reduce technical risks and costs, and build outstanding experiences that drive revenue growth.”
So, what do its new ANZ consumer shopping insights reveal – which you’ll find more about in the full event video below?
We’re told the findings reveal that while 70% of ANZ shoppers demand more personalised experiences from online retailers, they are failing to get the basics right. Inaccurate product photos and descriptions (36%), sudden unavailability of preferred products (32%), and the absence of real-time inventory information (24%) were among the top frustrations called out by consumers. At the same time, 62% of ANZ shoppers are concerned about AI persuading them to make unnecessary purchases, while 73% of shoppers are concerned about AI replacing people in online customer service. This indicates that retailers could benefit from aptly assessing advanced technology before investing in adoption.
Consumers are also expecting closer alignment between online and offline experiences from omnichannel retailers. This is shown in their demand for contactless commerce solutions within offline environments, with two in five (40%) of consumers expecting their shopping experience to be 100% contactless in five years. And nearly a third (28%) of ANZ shoppers agreed that they would be more likely to make a purchase from a retailer that offered contact-free checkout experiences.
“There’s a growing appetite for effortless checkout and payment processes, easy-to-navigate digital channels, and real-time stock information. We’re seeing this globally with our retail customers as they’ve come to rely on the core benefits of composable commerce architectures –– flexibility, scalability, and lowered risks and financial exposure,” said Bruno Teuber, Chief Revenue Officer at commercetools.
“Consumers’ hesitancy with AI underscores the importance of striking a delicate balance between innovation and addressing consumer concerns through mutually beneficial technology instead of tech hype,” Teuber continued.
Here is the full event video from last week’s launch of the ANZ findings – please watch for plenty more detail, and then please read on!
So, what else does the report reveal?
Despite the cost of living crisis, consumers are willing to pay more for exceptional, personalised online shopping experiences
In the face of high-interest rates and cost of living pressures, the commercetools report shows 56% of ANZ shoppers would pay for brands offering exceptional shopping experiences, underscoring the value they place on seamless, engaging transactions. Moreover, a staggering 70% of ANZ shoppers demand personalised experiences from online retailers, with millennials and Gen Y leading the charge at 88%.
“The findings reaffirm the pivotal role of personalisation in capturing consumer loyalty and driving sustained business growth. We’re seeing that enterprise retailers that embrace composability are positioned to meet these demands, adapting to evolving consumer preferences across markets and integrating innovative features like personalised recommendations and AI-driven customer service,” said Florian Pasquier, Chief Technology Officer at online automotive platform, Carma.
“By offering tailored experiences that resonate with individual shoppers, retailers can foster deeper engagement, enhance loyalty, and thrive amidst economic fluctuations.”
In the event video above, Florian and Bruno were also joined in the informative panel discussion after the reports findings were unveiled by Brenton Clarke, Head of ISV Partner Sales, Google Cloud APAC in which they all discussed the trends from the research results, how commerce is changing as technological innovations such as AI increase and the challenges that retailers are facing.
Consumers are checking for a better checkout experience
Across regions, cart abandonment remains a puzzle for most retailers. High shipping costs (70%), lack of value-for-money offerings (48%) and concerns over security and privacy (46%) are the top three factors for cart abandonment, underscoring the importance of an efficient and seamless checkout experience. While there is a growing demand from ANZ consumers for contactless commerce, only two in five of them foresee a fully contactless shopping experience in the next five years. Consumers see a gap here between their expectations and reality, with 24% expressing dissatisfaction with checkout speeds and frontend experience issues like real-time availability status.
Last year, commercetools launched its Checkout feature as a valuable solution for retailers. With its robust capabilities, the company explains Checkout “enables businesses to swiftly construct checkout experiences that facilitate smooth and intuitive transactions for customers. By leveraging this offering, retailers can optimise their checkout processes to meet the evolving demands of consumers, ultimately driving higher satisfaction levels and fostering increased conversion rates.”
From product discovery to checkout, social commerce and immersive technologies are going strong
The findings highlight a reliance on social media throughout the shopping journey, with 66% of shoppers engaging with brands on social media for shopping purposes, and over half (51%) of ANZ shoppers utilising platforms like Facebook, Instagram, and TikTok to make these purchases. Gen Z emerges as a driving force in this trend, with a staggering 79% engaging in social commerce.
Despite limited first-hand experience, there is a growing interest in immersive technologies such as augmented reality (AR) and virtual reality (VR) for online shopping experiences. So far, only a fraction of ANZ shoppers have utilised AR or VR technology for shopping (18%), and there is a notable generational disparity with Gen Z leading adoption and interest rates.
Businesses can capitalise on this trend by incorporating AR and VR features into their online platforms, providing customers with interactive and engaging shopping experiences. commercetools notes its customers –– such as Sephora, Ulta Beauty, and Volkswagen Group –– are familiar with this. We’re told composable commerce solutions “present an opportunity for businesses to remain agile and responsive to evolving consumer preferences. By adopting flexible architectures, businesses can seamlessly integrate social commerce, AR, and VR technologies, and even AI into their eCommerce strategies, thereby enhancing customer satisfaction and driving growth in the dynamic digital marketplace.”
About the Research
The research was conducted by Censuswide, among a sample of 1,001 ANZ Consumers (weighted to be representative of age, gender and country). The data was collected between 11/04/2024 and 15/04/2024. Censuswide abides by and employs members of the Market Research Society and follows the MRS code of conduct and ESOMAR principles. Censuswide is also a member of the British Polling Council.
