How a 'digital Christmas' could help foster long-term change - comment

Christmas will not be the same this year.
This year’s ‘digital Christmas’ can spark many new ventures in 2021, Ms Hawkins believes. Picture: Mykola Tys/Sopa Images/LightRocket via Getty Images.This year’s ‘digital Christmas’ can spark many new ventures in 2021, Ms Hawkins believes. Picture: Mykola Tys/Sopa Images/LightRocket via Getty Images.
This year’s ‘digital Christmas’ can spark many new ventures in 2021, Ms Hawkins believes. Picture: Mykola Tys/Sopa Images/LightRocket via Getty Images.

The restrictions put in place to curb the pandemic are affecting how we meet our family and friends, socialise and embrace traditional Christmas festivities. Furthermore, the impact of Covid-19 has drastically shifted consumer behaviour. Shopping, whether at Christmas or any other time of the year, has changed dramatically.

In the first four months of 2020, e-commerce penetration grew by 11 per cent as a percentage of retail sales. That is more than in the past ten years combined. In-app ordering, shopping via social media platforms and home deliveries rose sharply as the pandemic hit and have been sustained throughout the crisis.

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On the one hand, this is driving the use of data and digital technologies for customers to find that perfect, customised purchase with guaranteed delivery. On the other, it has been a catalyst for more immersive technology that is reimagining the whole consumer experience.

Michelle Hawkins is the managing director of Accenture in Scotland. Picture: contributed.Michelle Hawkins is the managing director of Accenture in Scotland. Picture: contributed.
Michelle Hawkins is the managing director of Accenture in Scotland. Picture: contributed.
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As much as consumers love the convenience of digital commerce, there is no purchasing certainty when we shop online for products we haven’t evaluated in person. Is this cashmere sweater well made? Does this sofa suit the proportions of the living room? Is this lipstick shade flattering? It’s all guesswork and crossed fingers until the product shows up on the doorstep, and we can actually judge for ourselves.

Immersive experiences, such as augmented and virtual reality and 3D content, however, give consumers purchasing confidence. In a recent Accenture survey almost half (48 per cent) of British respondents stated that viewing a product without visiting a physical store is their top motivation for using immersive technologies, while nearly a third (30 per cent) said these experiences make them feel a human and physical connection with a product.

In fact, the research indicates that immersive experiences can boost consumer confidence in an online purchase by 6 per cent in the UK. Many leading consumer brands already understand this. Our analysis reveals that 64 per cent are already starting to invest in immersive experiences to enhance sales.

For Scotland’s diverse tech sector, the blurring of previous physical boundaries between ecommerce, entertainment, digital and experience poses exciting opportunities. Staying in is the new going out: our research found that 82 per cent will be dining in their own home for their main festive meal this year. This means new ways to party in family bubbles, enjoy boardgame nights and access personalised and premium experiences, without leaving the living room or kitchen, are increasingly in demand now and will continue to be well into the New Year.

Substitutes

The drinks market is particularly ripe for more and new consumption models that recreate the feeling of going out, at home. As a recent report by drinks producer Diageo has shown at-home consumer occasions are serving as a replacement for events like the traditional Christmas party, while home drinks kits, or the likes of Drinkworks’ new Home Bar, recently launched with Accenture’s support, which prepares bar-quality cocktails, brews and ciders at the push of a button. Could these also be combined with online lessons from a master brewer, sommelier or expert bartender?

In years gone by, we accepted that we had to order our goods well in advance before Christmas to get them on time, but the shift to online has also meant a growing expectation for “fast and free” deliveries, often with next and same day delivery as standard.

We are also seeing a two-fold increase in purchases of local brands over global brands as people choose to support neighbourhood businesses. The more health-conscious consumer is anticipated to stick with their moves to low/no alcohol, while home-based luxuries and premium experiences remain paramount. And more than half of consumers say they intend to continue to shop more sustainably once through this pandemic – a reason to look not just at supply chains, but also for any ecommerce operation to consider greening IT alongside the use of immersive technologies that quickly cut down on travel.

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The legacies left by the impacts of the pandemic are vast. But if we watch and embrace the trends, not only can this year’s “digital Christmas” be one to celebrate safely but memorably at home; it can also be the start of many new ventures in the New Year.

Michelle Hawkins is the managing director of Accenture in Scotland

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