The Changing Consumer Landscape

The influence of the internet and marked alterations in consumer behaviour will be at the heart of a new and exciting era in the retail and wholesale sectors, said Mary Portas at an RBS conference to discuss the changing consumer landscape. The Retail Advisor, Journalist and Broadcaster – best known for her role in the transformation of fortunes at Harvey Nicholls and her television series, Mary Queen of Shops – was the keynote speaker at the event, which attracted senior figures from companies such as House of Fraser, Mothercare and PricewaterhouseCoopers.

"We are entering a completely new age of consumerism," Portas said, in her presentation, entitled Beyond the Binge, "the demands are very different."

"Desire doesn't change in a downturn," she told the RBS Retail and Wholesale Conference, "people still want things, but the way they're going to buy them and the way they behave will change." It's become only too apparent that one of the factors influencing the changing landscape is the internet. It has the capacity to generate immediate, individual conversations with (and between) consumers and to cater for their individual tastes, said Portas. This sentiment was echoed in the panel discussion by Peter Williams, of the online fashion retailer, Asos: the new generation of consumers simply doesn't see the lack of opportunity to touch or try things before buying as a disadvantage. Internet shopping has become an accepted norm.

However, according to Portas, the internet will not make physical spaces obsolete. Shops on the High Street offer retailers the opportunity to provide an experience that the Internet can't match. Whether it is the didactic process of learning about products or adding value to brands with theatricality, these places still have an important role to play.

Portas gave examples such as the 'genius bar' in Apple stores – offering consumers the chance to learn from expert staff, discover products and develop emotional attachments – and the spectacular flagship Levi store on Regent Street – using awe-inspiring design to define the brand's identity. There may be fewer of them in the future, but the physical places that offer consumers the chance to have an experience and build up an affinity with a brand will continue to improve.

Portas also argued that this 'post-binge' shopper is more scrupulous and discerning than ever before. Campaigns that jump on the bandwagon of celebrity and glamour are now less likely to have success than those which exhibit integrity, sincerity and concern for the wellbeing of customers and the wider community. Portas cited the example of the shoe company Toms, which donates a pair of shoes for every pair sold, or the public treadmill set up by Nike that generated money for charity with every kilometer run. These are simple ideas that ask for nothing in return and the new generation of consumers like to do business with companies that do good. "We are moving," said Portas, "from an age of mindless consumption to an age of mindful consumption. From reckless shopping to responsible shopping."

The panel discussion that followed assessed the fortunes of independent shops and the future of the UK High Street, concluding that there are difficult times ahead, particularly for retailers that operate away from large shopping centres. As the internet detracts from footfall and supermarkets take up a larger and larger market share of non-food items, life becomes difficult. However, there are ways to compete. Supermarkets, with philosophies akin to Tesco's 'stack it high and sell it cheap', can't compete with the service that specialist shops have the power to provide, with attentive and knowledgeable staff. While there are sweeping changes that will affect the whole sector, it's important to realise that each individual consumer has more particular needs than ever before – and where these needs differ, there is the opportunity to fulfill them.

Beginning the day's discussions, RBS economist Ross Walker offered a frank appraisal of the macroeconomic conditions facing retailers in the wake of the global downturn. Walker said that although the UK had passed through the nadir of the recession, the attempt to tackle the deficit, the country's unemployment predicament (the true scale of which is masked, to an extent, by official figures) and the effects of inflation would continue to put the retail sector under strain.

So, the retail landscape is in a state of flux, but this need not be cause for panic. Portas perhaps summed it up best with her closing remarks: "It's an exciting time in retail. It's an exciting time to push boundaries, to experiment and to innovate like never before. Those retailers who rise to the challenge will not only survive; they'll flourish."