Ever since the pandemic became worse, people around the world have been staying indoors as much as possible. Even their shopping preferences have changed over the course of the last few months. A recent survey by Counterpoint Research on smartphone shopping in the UK, Germany, and Spain paints a similar picture.
UK
Talking about the UK first, the online smartphone sales currently sit at ~35% in the country. According to the research firm, the online sales has moderately increased since Q1 2020. Above all, they sustained even after the re-opening of brick and mortar stores.
The survey revealed that 90% of UK consumers preferred to make their purchase from either electronic stores or supermarkets. That’s because consumers in this country want to experience the device in a “more engaged manner”.
Even retailers like Carphone Warehouse and Currys PC World are aware that consumers prefer buying from large format stores rather than smaller standalone mobile shops
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That’s because these companies allow consumers to buy the latest phones without making an upfront full payment. They also provide options to bundle plan charges with phone instalments, in addition to direct debit options with offers and treats.
As per the UK consumers who participated in the survey, convenience was their top-most priority while shopping followed by probability of cheaper pricing.
That said, almost 60% of this survey respondents have a monthly income of less than £ 1600. More than 40% of individuals are planning to buy a phone from an operator are self-employed. Whereas, more than 50% of those willing to make an upfront payment are either homemakers or unemployed.
Germany and Spain
Unlike the consumers in the UK, those in Germany and Spain have changed their preference for buying smartphones to online by a high margin.
For instance, the survey revealed that 35% and 30% of respondents from Germany and Spain respectively purchased their current phone online. Most importantly, a whopping 90% of Germans said that their next smartphone purchase will be online compared to 76% Spaniards, which is not a small number anyway.
Further, consumers in these two countries mostly prefer full up-front payment and retailers like Amazon, Media Markt, Saturn, Comtech, Fnac, Conectrol and Walmart.
As for numbers, 41% of Germans chose upfront payment in the survey and 42% of these respondents are salaried. The numbers for Spain is 53% and 61% respectively.
Last but not least, consumers who selected upfront payment earn less than €1,900 per month. They prefer this mode of buying because of cheaper deals and better offers.
Conclusion
Counterpoint Research says that ASPs (average selling prices) of smartphones will decrease as consumers are expected to reduce their budget. Also, going by their survey, most of the consumers will opt for a full upfront payment for their next phone to reduce a deferred liability.
Lastly, respondents from all the three countries said that they are not looking to reduce touchpoints despite they are concerned about the COVID-19 pandemic.
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