Baby boomers born between 1946 and 1965 are at the forefront of online spending. This generation spends more than, for example, generation X with a year of birth between 1966 and 1981. However, generation X is again ahead of the young people born between 1982 and 2001. This information comes from KPMG from the Global Online Consumer Survey.
It is noteworthy in itself that the baby boomers have high online expenses when buying products. You would rather expect the younger generations to take this route the most to make purchases. However, this shows that there is a shift in the channels where products are purchased. The baby boomers appear to have found their way to online shopping en masse and are no longer standard with obvious suppliers. It is therefore high time for companies to pay the necessary attention to Distribution Strategy.
Ecommerce online publications
The older generation is getting an increasing share of Ecommerce. However, it will not be long before the youngest generations also get a larger share. For example, it only takes a few years for this group to become the leader in North America. This means that a further shift can be expected from physical shopping to online shopping. This is also the case when looking at what makes online purchases.
It is true that the survey shows that 60 percent of respondents shop online via the desktop or laptop. There is a much smaller percentage of 17 percent who prefer to shop via the smartphone. There will also be a further shift in this area in the future. The online stores are increasingly being perfected for mobile use or are launching a special application for this. That makes it mobile shopping with the smartphone also easier.
Consequences for Distribution Strategy
The increase in online spending also has consequences in other areas, such as the Distribution Strategy. Customers are no longer bound to a customer to purchase a certain product or service. This is because dissemination takes place. A computer can already be obtained from the supermarket and health insurance can be arranged collectively through the employer.
There are many more products and services that are no longer offered via the regular route, but via other sales channels. As mentioned, a loyal customer no longer buys from the trusted supplier. These suppliers can influence the buying process by choosing other channels. But also by becoming a distribution point for other brands that have not yet lost customer confidence.
It is therefore high time to adjust the Distribution Strategy accordingly. This does not only apply to companies towards the consumer. There are also shifts in business-to-business. Adjustments are often necessary in order not to lose the connection with the customer.