Talkin’ bout a retail technology revolution: Klarna research flags shopper interest in AI, AR and robots
New data from buy now pay later big hitter Klarna reveals how retailers will need to adapt their offering to win shoppers in the future.
The company spoke to more than 5,000 consumers in five countries and teamed up with Kate Hardcastle, aka the Customer Whisperer, to explore how the future of shopping could evolve.
Its report also includes predictions from some of the world’s leading retailers and ChatGPT, which recently teamed up with Klarna.
The study examined shopping habits 18 years from now, when Gen Z’ers will turn 40 and together with Millennials be the dominant consumers. Results revealed their predictions on how emerging technologies will influence future shopping experiences.
70% want the shopping experience to become more personalised in the future, and 42% are sure it will be, both in-store and online.
Less than half of Gen Z’ers believe they will try clothes in the same way as today (44%). Instead, 40% want to use virtual dressing rooms, 18% augmented reality (AR), and 23% will rely on artificial intelligence (AI) to advise which clothes best fit their body and fashion style.
Half of Gen Z’ers are open to the idea of a robot approaching them in-store to take their measurements and recommend styles, with an additional 21% considering it depending on how the robot looks and behaves.
In addition, 34% want access to virtual ‘personal shoppers’ which can provide recommendations based on their fashion style and taste when they shop online.
The vast majority of Gen Z’ers (81%) and Millennials (75%) expect AR to enhance their in-store shopping experience and one-third think that this technology will eventually become standard across retail stores.
Less than half of Gen Z'ers (41%) and Millennials (38%) believe that shopping in virtual reality will come to surpass the real-life shopping experience within the next two decades.
Consumers of all ages (57%) agree with the prediction that the majority of physical stores will be completely cash free in 18 years time, and 33% of Gen Z’ers believe that shift will take place already in five years time.
In addition to technological advancements, the future of the planet and the growth in the circular economy are also at the forefront of consumers' minds.
All four generations agree that the circular economy should take a larger share of the total shopping industry and that fashion needs to become more sustainability oriented in the future.
52% want more sustainable fashion in the future. 51% would like the circular economy to take a larger share of the total shopping industry, and one in three believe they will sell (28%) and buy (31%) pre-owned items more often.
David Sandström, Chief Marketing Officer at Klarna, comments: “In the western world, approximately 80% of all online purchases are made through search, while the remaining 20% are based on personalised recommendations. In contrast, in China, 80% of online purchases are driven by personalised recommendations.”
“This study confirms that shoppers in the western world desire a comparable shopping experience, which is now available on the Klarna app feed, powered by AI and purchase history data. The next generation of consumers will expect a highly personalised shopping experience where products find them instead of the other way around.”
Hardcastle says: "Retail and shopping trends have evolved signficantly over the last decade and it's clear there are more changes to come. Technologies like augmented reality have the potential to transform rundown physical shops and revamp the in-store experience for shoppers.”
“Klarna's latest research shows that consumers want greater convenience and a more personalised shopping experience - and seamless technology must be at the heart of this."
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