This generation of kids are constantly connected and super informed. Not only are their attitudes, behaviours, and consumption patterns different from their predecessors, but they are constantly evolving.
As a result, retail is changing.
With current coronavirus accelerating this existing trend, shopping has transformed from a physical experience, to an increasingly online, digitalised world. Our data from the UK shows online shopping has grown by 51% for all kids. Prior to Coronavirus, the main reason for visiting town high streets (19%) and city centres (13%) were because children go with the friends. While kids have been restricted from seeing their friends and shopping offline, we can see how they are adapting.
We can also see that more kids are spending their money online, globally. The question for retailers is how they keep kids attention with e-commerce brands such as Amazon and Ebay thriving. Among tweens 10-12s in the UK, online spend has increased by 25% comparing January to June 2020, In India there was also a 78% increase among the same group in the same period. In Europe, similar increases in online spend have been shown in Italy (37% +49%), France (30% +31%) and Germany (28% +24%). Although in Spain online spend is at 18% with a 12% decrease.
With recent announcements of Argos (13th favourite high street shop of 10-12s in the UK) discontinuing its physical browsing catalogue, and kids increasingly using social media as influencing their purchasing decisions (keeping up to date with favourite shops via Instagram has increased by 64% from January to June for 10-12s), Kids Insights tracks the next crucial phase of the shopping lifecycle.
Although nearly 16 years old, the unboxing trend has rocketed in recent years as influencers became invaluable to a product’s marketing- Ryan’s World remains most popular new YouTuber kids watch in 2020. This move placed value in more transparent reviewing and shifted the importance of packaging as attention-grabbing to cementing products as more exciting-to-open and a memorable experience.
Now the role of influencers is shifting yet again as e-commerce platforms develop and utilise a Live Shopping format, already popular in parts of Asia. The shift goes one step further than unboxing, to view-as-content the purchasing path of another, and to have shopping functionality and monetisation built-in from the start.
Kids would be able to browse alongside their favourite influencer or friend group, see what considerations are being made along the way, and purchase alongside- tapping into a lost social experience by today’s climates. This frames the shopping experience as more exciting than catalogue browsing or even conventional e-commerce touchpoints.
Although popularised by AliBaba originally (AliExpress appearing within our top 50 favourite online shops for kids in India), a host of brands are keen to further develop this next phase. In August, Tencent announced a move to integrate video and e-commerce platforms as well as combining TikTok-like video formats with purchasing capabilities along with investing in other top games and apps such as a 40% stake in Fortnite and the entire League of Legends studio. In April WeChat (ranked 12th most popular chat platform for 10-15s in India) offered discounts to users who shop with friends.
This craze is gaining attention globally as Amazon (favourite online shop for all kids with a 5-fold lead among 10-12s across the world) allowed live streamers to earn commission based on the products showcased in streams in July through its existing Amazon Influencer Program.
With the power of influencers already established, and the increasing hunger for more social, experiential shopping, the scope of Live Shopping is huge. From cooking to electronics, and from influencers down to friends – expansive monetisation capability and frictionless purchasing models tip this as the next phase in a kid’s shopping experience.
SO, WHAT DOES THIS MEAN?
Brands that incorporate capability for users to tap into more socially-based shopping experiences will win. The hunger for targeted recommendations from friends or trusted influencers is growing, and ability to shop alongside friends combined with the scope e-commerce will be increasingly demanded.
To download the complimentary report on the effect of COVID-19 & get access the demo version of our real-time data portal visit , please click below: