Italians enjoy shopping online, but they do not want to give up the satisfaction of shopping in-store. Provided that… Changes in consumer attitudes and behaviour, together with the spread of new digital technologies, are bringing about a gradual yet radical transformation in the production system: not only in industry, but also in the service sector. The phenomenon is well known. For a country like Italy, which is teeming with micro-enterprises (over 90 per cent have fewer than 10 employees) and where small shops have represented not only the commercial backbone but also a social anchor for local communities and town centres, the advent of large retail platforms and online sales is rapidly changing the landscape. The reach and use of the internet are steadily increasing. And there, it is now possible to buy virtually any type of product at more affordable prices than in a physical shop. From online banking to train and plane tickets, not to mention a meal at a restaurant, a holiday or even a road trip, everything is done online. It’s easy, convenient and cost-effective.
Households’ reduced spending power – as evidenced by a trend in consumption that has remained largely flat for a long time – has coincided with the new opportunities offered by digital technologies. According to the latest data from Istat, in 2017 the proportion of internet users who shop online rose from 50.5 per cent to 53.0 per cent in the space of a year. However, amongst those who had not made any purchases in the last three months, 43.2 per cent had nevertheless searched for information on goods and services, or had sold goods online. We are still a long way from the levels seen in Europe, where online spending involves 81 per cent of Britons, 79 per cent of Danes and 73 per cent of Germans (Eurostat). We rank fourth from the bottom out of the 28 EU countries, ahead of only Cyprus, Bulgaria and Romania.
Nevertheless, it is a phenomenon that is constantly growing, the impact of which is clearly demonstrated by the rapid turnover of shops in our historic town centres: shops are constantly closing down – particularly traditional ones – and being replaced by franchise outlets. Which, in turn, change more or less rapidly. Not to mention the crisis that is gradually affecting retail chains in large shopping centres as well. Looking solely at retail businesses over the course of a decade (2008–2017) in Italy, more than 20,000 outlets were lost (-2.5 per cent), bringing the total to 795,887 by the end of last year. Is the future of high-street shops therefore doomed? Is competition from online sales destined to see them succumb? The latest survey by Community Media Research, in collaboration with Intesa Sanpaolo for *La Stampa*, attempts to answer these questions by examining Italians’ spending habits.
Firstly, a large proportion of the population has experience of shopping via digital platforms. Four-fifths (79.7%) of those surveyed have bought something online in the last three years. This is particularly common amongst men, the younger generations, but also amongst those in their 50s. To these figures we must also add those who do not shop online themselves but ask someone else for help (12.7 per cent), either because they are not familiar with the process or because they do not have a computer or an internet connection. In this case, it is mainly women and older people who have to rely on others. Finally, a small proportion have never had such an experience or made such a request (7.6 per cent), with this being more common amongst those aged over 65, the unemployed, and those living in Southern Italy.
These findings now reflect a widespread trend amongst Italians – intuitively, amongst younger people who are more accustomed to new technologies. However, according to data from Istat and other studies, these behaviours are spreading rapidly and showing steady growth. Does this, therefore, point to a bleak outlook for high-street shops? Given the attitudes of Italians, this is not quite the case. Overall, only a marginal proportion (5.7 per cent) of the population would favour their closure in favour of online retail platforms alone. The reasons are mainly linked to potential savings and the speed of the transaction. However, it is important to emphasise that such an outcome is not even desired by those who shop online. In fact, the majority of respondents would like both shopping methods (online and physical shops) to coexist (57.2 per cent). Provided, however, that retailers are able to offer a different product or service – preferably a personalised one. Paradoxically, this view is supported precisely by those who shop on digital platforms more than anyone else.
This leads to a polarisation in purchasing behaviour: people mainly search online for standard products or services that do not require any particular sophistication. However, for a more personalised experience or a dedicated service, people turn to a high-street shop. This explains why as many as 37.2 per cent of Italians want high-street shops to survive in the future: because of their trust in the staff, because they can experience the quality of the product for themselves, or because they prefer to be looked after and advised by someone. It goes without saying that this perspective is expressed in particular by those who do not shop online and by older people. But it is also shared by women, who prefer a personalised relationship, by those with higher educational qualifications, and by those living in larger cities. In this sense, the high-street shop continues to represent a key fixture in the social landscape. This is due to the unique role they have played in our society, serving as a focal point not only for shopping but also for the relationships that develop within and around them in our towns and cities. However, the findings suggest that the key to surviving in the face of digital competition does not lie so much (or solely) in the costs that shops must bear compared to online platforms. Rather, it is linked to offering qualitatively different (and higher-quality) products and services that are increasingly personalised and advisory in nature: with the customer at the centre.
Methodological note
Community Media Research, in collaboration with Intesa Sanpaolo for La Stampa, has carried out the LaST (Laboratory on Society and the Territory) Survey, which took place nationwide from 11 to 15 April 2018 amongst a representative sample of the resident population in Italy aged over 18. The methodological aspects and data collection were managed by Questlab. The total number of respondents was 1,657 (out of 14,426 contacts). The data analysis was reweighted according to gender, region, age group, employment status and educational qualification. The margin of error is +/-2.4%. The survey was conducted via a visual survey on the main social media platforms and using a random sample reached via CAWI and CATI systems. The full report is available at www.agcom.it and www.communitymediaresearch.it
