Amid evolving consumer trends in the retail space, physical retail has witnessed a resurgence in recent years, while online shopping has decreased globally this year, Standard Bank Group behavioural science and innovation head Shalia Naidoo has said.

During a media roundtable hosted by Liberty Two Degrees on October 24, she discussed the importance of understanding consumer behaviour and decision-making processes in the retail context.

She noted that trends indicate the emergence of a hybrid retail model that involves a co-existence between physical and online retail, with a greater emphasis being placed on convenience for the consumer, thus prompting an increase in investment globally in physical retail stores.

“While consumers really want the convenience of online shopping, they still crave the sense of tangible, sensory experiences that you can only get from physical retail. So what we're seeing is this kind of symbiotic relationship between brick and mortar and e-commerce,” she said.

Naidoo added that, in a post-pandemic era, luxury consumption has evolved from loud to quiet luxury, with a greater emphasis being placed on quality, craftsmanship and authenticity of products.

She cited a decline of luxury consumption globally, owing to various economic, social and psychological factors, with consumers aligning their personal values with their consumption choices.

Hence, consumer priorities have shifted from conspicuous consumption to conscious consumption.

“People are becoming a lot more critical,” she said, noting that consumers are placing value on products, as well as on their overall experiences with the brand, which differentiates the physical retail experience from online retail.

Naidoo thus highlighted the importance of understanding the psychology behind customer experiences, arguing that retailers need to ensure that they consistently provide good experiences and implement fundamental retail principles to build long-term customer satisfaction.

“People don't necessarily need these massive, immersive experiences. People actually really want to go back to basics. That's the desire. In a world that is completely digital . . . people just want the basics done right. They kind of want to go back to the retail fundamentals,” she said.