Klarna: Shopping Pulse Report

Klarna Shopping Pulse Report

Overview

Welcome to Klarna’s Shopping Pulse! Three years post-pandemic, which accelerated digital transformation at an unprecedented pace, online shopping habits have solidified among consumers. Retailers have adapted their online strategies to meet evolving shopper expectations. However, physical stores remain relevant; our research indicates they still play a crucial role in shopping experiences. Notably, many anticipate an increase in online shopping frequency in the future. This report provides  serves as a vital resource for understanding current consumer shopping behaviors and preferences across various markets. Happy exploring!

Methodology

This report draws on Klarna’s consumer research conducted in partnership with Nepa across 18 countries, including the US, UK, Australia, Germany, and others. The research is conducted quarterly, encompassing at least 1,000 respondents per country, totaling 19,293 consumers in Q2 2023 (April-June). The sample is nationally representative, including both Klarna users and non-users.

Online Shopping Trends

Digital Transformation in Retail

The shift towards online shopping has accelerated significantly in recent years, with no signs of slowing. Preferences for online shopping continue to rise globally, particularly among younger generations, while older consumers are also becoming more tech-savvy. ^‍

Shopping Preferences

In countries like the US, UK, Germany, Sweden, and Italy, the majority of consumers prefer online shopping over physical stores. A notable 63% of Millennials and 52% of Gen Z would choose to shop exclusively online if necessary.

Current Shopping Habits

Despite the growing inclination towards online shopping, physical stores are still frequented for certain product categories. For instance, 45% of Swedes purchased pharmaceuticals online in the last quarter, almost double the global average.

Categories Ripe for Disruption

Products such as children's items and clothing have seen significant increases in online shopping preferences, while groceries and pharmaceuticals, traditionally bought in-store, are also gaining traction online.

Overall Experience

A global average of 60% of consumers believe the in-store shopping experience is superior. Shoppers often choose based on whether they seek time and cost savings or a better social interaction and customer service.

Bridging Digital and In-Store Experiences

Consumers express a desire for real-time assistance while shopping online, akin to having a personal shopping assistant. A significant 85% believe retailers should invest in technology to enhance shopping experiences.

Online Shopping Patterns

Shopping Timing

Most online purchases occur in the evening, with older generations preferring morning shopping. Fridays are the most popular shopping day in the US.

Payment Preferences

Buy Now, Pay Later (BNPL) options are increasingly favoured over credit cards, with 51% of shoppers expecting retailers to enhance frictionless payment options.

Sustainability Concerns

Many consumers seek brands that demonstrate environmental sustainability. Millennials, in particular, prioritize ethical practices, with one in three considering it important for brands to act sustainably.

Social Shopping Dynamics

Social media significantly influences shopping behavior, especially among younger generations. About 39% of shoppers report purchasing products after seeing them on social media, with influencers impacting Gen Z more than retailers do.

Price Comparison and Delivery Preferences

Price comparison is a common practice, with 95% of consumers engaging in it. Most shoppers prefer home delivery, yet many find the delivery experience scattered and seek a streamlined process.

Mobile Shopping Trends

Mobile devices have become the preferred platform for online shopping, surpassing computers and tablets. This trend is expected to continue as digital shopping evolves. This report highlights the ongoing evolution of shopping behaviors and preferences, underscoring the importance of adapting to meet consumer expectations in both online and physical retail environments.

Key Findings

Consumer Behaviour

• Shopping Frequency: The report reveals a significant increase in the frequency of online shopping, with consumers embracing digital platforms for their purchasing needs. This trend reflects a shift in consumer habits, where convenience and accessibility drive more frequent online transactions.
• Preferred Channels: There is a marked preference for online shopping over traditional brick-and-mortar stores. Consumers are increasingly turning to e-commerce platforms for their shopping experiences, valuing the ease of browsing and purchasing from home.

Market Trends

• E-commerce Growth: E-commerce continues to expand rapidly, fueled by advancements in technology and changing consumer expectations. The report highlights that a diverse range of products is now available online, making it easier for consumers to find what they need without visiting physical stores.
• Mobile Shopping: The rise of mobile shopping is a key trend, with consumers using smartphones and tablets to make purchases. The report emphasizes the necessity for businesses to optimize their websites and apps for mobile users, ensuring a seamless shopping experience that caters to this growing demographic.

‍Consumer Preferences

• Payment Methods: Flexible payment options, particularly Buy Now, Pay Later (BNPL) services, are gaining traction among consumers. This trend indicates a shift towards more accommodating payment solutions that enhance the shopping experience, allowing customers to manage their finances more effectively.
• Sustainability: There is an increasing consumer focus on sustainability and ethical sourcing. Shoppers are more likely to support brands that prioritize environmentally friendly practices and transparency in their supply chains. This shift presents an opportunity for businesses to align their offerings with consumer values.

Conclusion

The Klarna Shopping Pulse Report underscores the dynamic nature of consumer shopping habits and the ongoing shift towards online and mobile shopping. By leveraging these insights, businesses can better meet consumer needs, enhance their offerings, and stay ahead of market trends. Adapting to these changes will be essential for success in an increasingly competitive retail landscape

To read the full report, view here

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