Pandemic Accelerates Retail Technology-Investment Plans

A study from Zebra Technologies has analyzed the behaviors of Brazilian and Latin American consumers, sellers and decision makers in the wake of the COVID-19 crisis.
Published: December 28, 2020

Zebra Technologies, a provider of automation solutions, has announced the results of its 13th annual  global shopper study. The survey indicates that the COVID-19 pandemic accelerated Latin American retailers’ technology investment plans by 72 percent, the company reports. Consumers, workers and executives in the retail sector in Brazil, Mexico, Colombia and Chile were interviewed for the study, which analyzed the behaviors of these groups. The results point to technological trends that are impacting online shopping at the point of sale.

Smart payment solutions, labor-management software and prescriptive analysis were identified by more than 90 percent of decision makers as the main technological trends for the sector until 2025. “They point to more omnichannel retailing focused on the consumer experience, centered on the visibility of operations and decision making based on data,” says Vanderlei Ferreira, the president of Zebra Technologies Brazil. Even before the pandemic, he says, the transformation toward a more fluid shopping experience and automated operations was already a reality, and it only gained more strength with the onset of the coronavirus.

The study identified other trends that accelerated after the pandemic began, such as stock availability, which have pushed consumers to shop online. The pandemic has accelerated the growth trend of e-commerce, according to the study, and almost 71 percent of consumers surveyed said they have placed at least one order online within the past three months. They choose that channel due to the availability of products. A lack of stock, long lines, and difficulty with locating desired products at stores were the main reasons cited by customers for leaving the point of sale without buying anything.

In addition, the study indicated that mobile purchases are on the rise. Purchases made via cell phones and tablets grew as a result of the pandemic, as well as consumers’ desire for convenience, efficiency and social distancing. According to the study, 88 percent of Latin Americans have purchased items through mobile devices, while 91 percent expressed a desire to maintain that habit in the future.

Mobile commerce—buying products using mobile devices—has been widespread in all generations, according to the survey, especially with younger consumers: 93 percent of the millennial generation, 90 percent of Generation X and 76 percent of Baby Boomers. Offering a good shopping experience from mobile devices was deemed essential by 95 percent of consumers interviewed, as well as by 98 percent of decision makers and 93 percent of salespeople.

Smart payments also generate a better shopping experience, the survey indicated. Approximately 37 percent of buyers surveyed said they have interacted with self-service and self-checkout terminals within the past six months. More than 70 percent said such solutions improve the customer experience. Younger generations more endorsed this type of technology: 80 percent of millennials, 73 percent of Gen-Xers and 67 percent of Baby Boomers. Likewise, 92 percent of leaders and 88 percent of employees in the sector said they believe such solutions provide a better shopping experience.

“Self-service terminals free up workers to fulfill more strategic functions,” Ferreira states, “and to pay more attention to customers who, in fact, need them. At the same time, they help consumers and stores to maintain social-distancing protocols.” Added to this are the social-distancing and protection protocols incorporated into the store experience. Disinfection of spaces and contact with other people at stores is a concern for 84 percent of buyers, explaining why 59 percent of respondents said they prefer contactless payment options.

Vanderlei Ferreira

Although 98 percent of decision makers indicated that their customers believe protection and health to be a priority for retailers, only 71 percent of shoppers expressed this opinion. “Currently,” Ferreira says, “there is a considerable gap between the trust perceived by industry leaders and buyers, which shows that stores must reinforce their efforts to maintain security protocols and communicate customers about it.” Proximity and traceability solutions, such as sensors and mobile devices, can be combined with this challenge, and these would make 88 percent of industry workers feel more secure.

In addition, the survey provided analysis from other markets. In the Asia-Pacific region, 70 percent of consumers said they prefer products to be delivered directly to their homes, rather than having to pick them up at a store, while 65 percent said they prefer contactless payments when buying at the point of sale. In Europe and the Middle East, 83 percent of industry leaders said the pandemic accelerated their plans to deploy mobile devices and solutions, which was the highest percentage of all regions. Approximately 76 percent of consumers in that area said they prefer to buy online when a store also has a physical point.

In North America, 72 percent of workers said they prefer to have prescriptive tasks that help them make their journey more efficient, rather than following reports. Meanwhile, 77 percent of decision makers on that continent reported feeling pressure to improve the compliance and efficiency of operations, with the aim of offering different options and delivery speeds.

The Zebra survey involved approximately 4,175 consumers, 577 employees and 412 retail industry executives from North America, Latin America, the Asia-Pacific region, Europe and the Middle East. These individuals were interviewed by  Azure Knowledge Corp. between August and September 2020.