Digital marketing agency iMarketings.eu, in collaboration with the University of Latvia and with the support of the Latvian Chamber of Commerce and Industry, has undertaken a study of “Online Shopping Habits.” The study was conducted in January to February this year, and a total of 2,513 respondents who had made at least one internet purchase in the past six months took part.
Over the course of the study, it was concluded that Millennials (age 17-35), Generation X (age 36-53) and Generation Z (born after 2001) use the internet differently. For example, Millennials spend more time on social media. Meanwhile, Generation X reads the news and checks their emails more often, and Generation Z more actively consumes video content. It was concluded that all generations use the Google search engine. It was found that women use the internet more actively than men both for private and work purposes. The only form of internet use where men are more active is watching videos.
pic.1. Millenials more actively use Social Networks
pic.2. Generation X and Baby Boomers more actively visit New Portals
pic.3. Millenials more actively watch video on the Internet
24.9% of 2,513 respondents indicated that, in the future, they plan on increasing spending on online purchases, while 41.5% of those surveyed plan on maintaining their current frequency and amount of spending.
In Latvian online stores, people most often buy tickets (34%), electronics (31.6%) and household appliances (27.5%.) Meanwhile, in overseas online stores, the most popular product groups are clothing (37.8%), footwear (20.7%), electronics (20.3%) and cosmetics (16.5%). “Interestingly, buying books online is not so popular among our residents. For example, in Western Europe and the US, people read significantly more – book purchases are in the top 3 product groups,” shares S. Volvenkins.
pic.4. Most popular product groups people buy in local online stores
pic.5. Most popular product groups people buy in foreign online stores
Bearing in mind that brand recognition is one of the criteria for selecting an online store, respondents were asked which, in their opinion, were the five most popular online stores in Latvia. It was concluded that the most popular were online store 220.lv (39.9%) and 1a.lv (30.4%). The other three online stores fall significantly behind both leaders. Xnet.lv was mentioned in 14% of cases, rdveikals.lv in 13%, and euronics.lv in only 2.6% of cases. “It was interesting that despite the fact that Latvia has almost 1000 online stores, there were some respondents who struggled to name even five online stores.”
Respondents also named what could prevent them from buying goods from a store. 33.1% may not buy a product if a longer delivery time was promised; just as popular was an unsatisfactory price (33%). The third most popular reason is more emotional than rational: “30.5% of respondents might not buy a product if the store is unfamiliar,” shares S. Volvenkins. “This conclusion confirms the pressing question among business owners – is it important to develop a store’s brand?
pic.6. Most popular reasons why visitor might NOT to buy product in particular online shop
“In interpreting the results of the survey, we can draw several practical conclusions. First of all, for the business to be successful, business owners must take care of the popularity of their brand. The survey confirmed that the more popular a store/brand is, the greater the possibility that a person will buy from that specific store. Secondly, online stores should definitely be concerned with an efficient delivery time – the longer the promised delivery time, the lower the possibility of selling the product,” remarks S. Volvenkins.
The iMarketings.eu representative concludes that it is just as important to look after the reputation of the online store/business. “It is crucial to remember that you must constantly work towards developing your website and improving its user experience. It is important not only to make the buying process convenient and understandable; product browsing should be just as convenient and easy,” S. Volvenkins concludes. As the final, but by no means least important conclusion, S. Volvenkins highlights the need for business owners to use different channels of communication, addressing multiple generations.
Data shows that only 8.1% of respondents make purchases valued between 201 and 500 Euro in overseas stores. Meanwhile, 13% of residents buy goods or services at this price in Latvian stores. Sums of over 501 Euro are spent online by 5.6% of respondents in Latvian online stores, with only 3.5% spending this in overseas stores. “One of the reasons why residents spend more in Latvian stores is that there is more trust in Latvian online stores,” explains Sergejs Volvenkins, Head of Digital at iMarketings.lv. It was concluded that men between the ages of 25-44 most often make purchases of over 501 Euro.
iMarketings.eu is a full-service digital marketing agency which promote its client products/services in over 40 countries worldwide. The business was founded in Latvia in 2013 and is lead by Dr. Sergejs Volvenkins – the only certified AdWords/Analytics expert in Latvia with a PhD. During its operations the business has received multiple awards from Google for excellent results in managing Google Ads. The total online turnover of iMarketings.lv clients in 2017 amounted to 92 million Euro (Google Analytics data). The agency experts’ practical work experience in marketing, and the results of their regular academic studies, are respected at many international academic conferences. Over the course of four years, the business’ team have trained over one thousand specialists from various fields and positions in digital marketing. More about the agency: www.imarketings.eu