Article:
TOKYO -- There has been a spike in the number of online purchases made by elderly people in Japan while offline transactions in physical stores are on the decline following the novel coronavirus outbreak, according to research conducted by a major credit card company.
As the elderly have a higher risk of developing severe symptoms if they contract the virus, the coronavirus pandemic may lead to advances in a shift to digital forms of shopping for this group of people.
Ideas:
Its only natural the some groups have less of the desire to buy online. But the situation now is not normal and as such more of the older groups are now forced to buy online when maybe it was not part of the normal shopping/buying patterns.
Also some might still find it challenging to buy online.
In that case companies should try to simplify online purchases as much as possible. It becomes a win win situation for companies and consumers.
Article:
Sumitomo Mitsui Card Co. examined the transaction data of a total of about 10 million customers' cards. Between April 1 and 14, the number of transactions through e-commerce sites and other forms of online shopping made by customers in their 70s had increased by 9.5% compared to the same period of the previous year. The amount of payments during this period had barely changed from the same time frame a year earlier, which suggests a trend in making more frequent purchases of low-priced products.
On the other hand, the number of offline transactions at supermarkets had dropped by 3.4% from the same period of the previous year, while transactions at convenience stores and electronic retail stores had also decreased. The amount of payments made at supermarkets had increased by 6.5%, suggesting an overall tendency of bulk buying, while reducing the number of visits to stores.
Ideas:
A 9.5 percent increase really doesn't seem that much considering the severity of the situation. More frequent online purchases but maybe buying either what is only needed and or more concern with price as consumers/families and whomever are worried because of job losses and the economy.
The drop in offline transactions/purchases is no surprise. Even at electronic retail stores is no surprise. But the decline in convenience stores, conbinis, is a little of a surprise, as consumers,office workers, would stop by a conbini on the way home, maybe, instead of going to a supermarket for something, such as buying a takeout dinner bento from the conbini.
Most likely consumers were also worried about crowds at conveniences stores too.
Whenever I went to a conbini, especially 7/11 but all conbinis in Japan, the supply and variety of takeout conbini food was incredible.
But I wonder now, with the virus situation, do they still have the same supply and variety.
Yes, most like, there was a decrease in the actual visits to a supermarket and bulk buying was/is the trend, to avoid large crowds which are common at supermarkets and even department store.
Whenever I was in Yokohama and went to Sogo department store at Yokohama station, you couldn't walk in the store sometimes it was so crowded. Even the supermarket area in the back.
Further in the Yokohama station,eki, there is a small supermarket near Sony Plaza, a small brand name store, which usually attracts younger customers, but even this somewhat small but well stocked supermarket was always full with customers.
I would go there sometimes just to see all of the takeout bento type meals/foods that you could get.
Article:
The number of online transaction cases for customers in their 20's saw a large increase, while supermarket transactions also rose for this generation as well.
A PR representative for the card company said, "The consumer behavior of the elderly, who until now apparently weren't used to online shopping so much, may change greatly prompted by the novel coronavirus."
Ideas:
The online shopping habits have been slow to develop compared to other countries, maybe because of the preference for cash by many.
But now because of the virus situation, maybe more and more Japanese consumers, including the elderly are going to purchase more online than before.
Maybe it will be the new normal in Japan.
And at the same time it should not and hopefully won't affect those stores and places that place a priority on face to face customer service.
And stores and places need to find ways, if not already to embrace the new normal of shopping online but still have a store presence if at all possible.
Have a nice day and be safe out there!
© 2020, Tom Metts, all rights reserved
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