1.
The Future of Shopping
Has Come Early:
Perspectives From the Industry

2.
As shelter-in-place measures pushed
people across the globe to switch from
shopping in-store to online, 2020 has
shouldered a decade’s worth of behavior
change. This mass digital education of
the public has been a cross-generational
phenomenon that’s very quickly had
a cross-category impact: digitalizing
entire consumer journeys, from interest
to purchase to customer experience.
Nicola Mendelsohn,
V I C E P R E S I D E N T E M E A
at Facebook

3.
Introduction
The COVID-19 pandemic has caused a seismic
shift in shopping behavior across the globe.
Countrywide lockdowns, nonessential retail
restrictions and the risk of contracting the virus
have accelerated e-commerce adoption by up
to five years, according to IBM estimates.
At the same time, there’s been a tale of
two retail sectors between essential and
nonessential product categories. For essential
categories, like food and beverage, household
supplies and personal care, sales have seen
unprecedented growth since consumers
began bulk-buying in the early days of the
pandemic. In the US, total food and beverage
sales are projected to grow by 11.3% and
health, personal care and beauty sales are
projected to grow by 4.7% year-over-year
in 2020. On the other hand, nonessential
categories (e.g., apparel, furniture, electronics)
have been experiencing challenges, as
consumers delay or deprioritize these types
of purchases. Globally, it’s projected that
revenues for the fashion sector will contract
by 27–30% year-over-year in 2020.
As consumers adapt to this new shopping
reality, it’s imperative for brands and retailers
to understand their behaviors and expectations
in order to achieve success. In this report,
we’ll explore five shifts in consumer shopping
behavior across the globe. First, we’ll map out
consumers’ new decision-making processes
and definition of value. Next, we’ll unpack the
new friction points affecting consumers both
in-store and online as they navigate a new
Facebook IQ Source: 1
IBM US Retail Index, Aug 2020.
2
eMarketer US Sales Forecasts, Sep 2020.
3
McKinsey’s “The Business of Fashion 2020: Coronavirus Update,” Apr 2020.
shopping world of added risk. We’ll then highlight
the role reversal of in-store and online from
an experiential and transactional standpoint.
Following that, we’ll explore people’s geographic
shopping tendencies as consumers increasingly
try to support local businesses while embracing
cross-border commerce. Finally, we’ll outline the
new loyalty equation that can help encourage
repeat customers even in a time of mass
disruption and choice.
What is a Perspective Report?
This piece is part of our new Industry
Perspectives series, in which we tap well-
respected experts both internally and externally
to share their unique views on key shifts and
behaviors. By combining new Facebook IQ
research, innovative brand examples and
perspectives from industry experts, we’ll
uncover not only what’s shifting in shopping,
but what’s sticking to bridge today’s
uncertainties with tomorrow’s opportunities.
1
2
3

4.
Nicole is the founder of Retail Minded and
the co-founder of the Independent Retailer
Conference. She is recognized as a global
retail thought leader from companies that
include IBM, American Express, Vend and
more—including having been recognized as
#3 out of 100 worldwide retail influencers.
She regularly contributes to media
outlets—including Forbes, Entrepreneur
and NBC—and speaks at worldwide events.
I N D U S T R Y E X P E R T S
Clare is one of the most well-known
and respected retail experts in the UK.
She gives retail consulting to a variety
of clients, from global brands to small
businesses, including leading retailers such
as M&S, Dixons and Argos. She is a regular
media contributor, often seen on ITV's
Good Morning Britain, BBC Breakfast, Sky
News and Channel 5.
Meet the experts
Nicole Leinbach Reyhle,
F O U N D E R O F R E TA I L M I N D E D
Clare Bailey,
F O U N D E R O F T H E R E TA I L C H A M P I O N
Since 2013, Nicola has been the Vice
President for Europe, Middle East and
Africa at Facebook. She serves on the UK
Government’s Industrial Strategy Council,
the Mayor of London’s Business Advisory
Board, and in September 2014 she became
a nonexecutive director of Diageo. In
2015, she was awarded a Commander of
the British Empire (CBE) for services to
the creative industries in the UK. Prior
to joining Facebook, Nicola worked in
advertising for over 20 years, beginning her
career at Bartle Bogle Hegarty then moving
to be Deputy Chairman of Grey London.
Ikkyu leads advertising partnerships with
large retail, fashion and luxury companies
in South Korea. Prior to joining Facebook
in 2014, he spent 14 years at IBM, where he
worked on B2B partnership sales and held
managerial roles in the Systems Technology
Group and Strategy/Operations.
FA C E B O O K E X P E R T S
Omar leads a team that manages some of
the largest, most strategic e-commerce
marketing partnerships at Facebook. Omar
has been with Facebook for eight years,
having served as an Account Manager,
Client Partner, Industry Manager, and
now Head of Industry. Omar’s previous
experience includes two years in strategy
and sales at Yahoo and over four
years in a finance sector.
Ian oversees some of Facebook’s
largest advertising partnerships. Prior
to Facebook, Ian was a founding member
of Pinterest’s monetization team, which
involved launching the company’s ad
products, API ecosystem, and building
the sales pod across North America.
He also served in a number of leadership
roles at Google, including overseeing the
technology advertising business,
launching Google's first ad-serving
platform and participating in the
DoubleClick integration.
Gabriela manages a team that leads the
largest retailers in Brazil. Prior to joining
Facebook in 2017, she held leadership roles
at Twitter, Microsoft and Ambev.
Nicola Mendelsohn,
V I C E P R E S I D E N T, FA C E B O O K E M E A
Ikkyu Sohn,
H E A D O F I N D U S T R Y F O R R E TA I L
I N S O U T H K O R E A AT FA C E B O O K
Omar Zayat,
H E A D O F I N D U S T R Y F O R
E - C O M M E R C E AT FA C E B O O K
Ian Simons,
H E A D O F I N D U S T R Y F O R
E - C O M M E R C E AT FA C E B O O K
Gabriela Chaves Schwery Comazzetto,
H E A D O F I N D U S T R Y F O R R E TA I L
I N B R A Z I L AT FA C E B O O K

5.
Contents
01
Shopping
Redefined:
A reexamination of priorities
is leading to complex
purchasing decisions
02
Navigating
Shopping Risks:
Consumers are facing
new friction points in-store
and online
03
Reversing
Roles:
In-store is becoming
transactional as online is
becoming experiential
04
Across the Street and
Around the World:
Shopping carts are
going ‘glocal’
05
The New
Loyalty Equation:
How empathy, transparency
and value spell loyalty
06
Rapid
Reflections:
What’s top of mind for our
experts heading into 2021

6.
One of the things that consumers have
started to recognize during COVID-19 is that
their preference of where they shop means
more to them than it did in the past. And it
comes from a variety of reasons, not only
safety and security, but also on their payment
options, the inconveniences or conveniences
they experience during their path to purchase
and their purchase transaction. These are all
things that are going to persuade a customer
to be loyal—or not.”
—Nicole Leinback Reyhle,
“
Founder of Retail Minded
Shopping redefined:
A reexamination of priorities
is leading to complex
purchasing decisions
01

7.
It’s been close to 12 years since our last
major economic recession, and this episode
has been unique on so many levels. While
many consumers have made the transition
from brick-and-mortar to online buying
of staple goods due to the pandemic, the
question is what will happen to buying
power and disposable income going into
next year.”
—Omar Zayat,
“
Head of Industry for E-Commerce at Facebook
Facebook IQ Source: 4
“Industry Micro-Shifts Monthly Tracker” by Kantar Profiles (Facebook-commissioned online
survey of 96,938 adults across AU, BR, CA, DE, ES, FR, HK, ID, IN, IT, JP, KR, MX, TW, UK, US), May–Aug 2020. Unless
otherwise specified, data is a cross-country average across all 16 markets.
14
eMarketer Global Retail Sales Forecasts, May 2020.
01 Shopping redefined: A reexamination of priorities is leading to complex purchasing decisions
journey has empowered consumers with
more information and choice, it has also made
shopping decisions much more complex.
When evaluating where to shop, both online
and in-store, price remains the top factor
in the decision-making process. Due to
the economic impact of COVID-19, price
will likely continue to be a key priority for
shoppers. In fact, 74% of consumers say
they are focused on getting the best price for
everyday items, and 61% say they are actively
seeking out deals and coupons. However,
additional factors are rivaling price as people
re-prioritize their shopping expectations and
redefine what value means.
Decades ago, consumer buying decisions
were based largely on what was immediately
available in-store. Price and selection were
limited to local retailers, focusing decision-
making criteria to only a few factors. This
began to change over the past several
years as digital channels and mobile grew
in prominence. The COVID-19 pandemic
has since accelerated online shopping,
advancing years’ worth of e-commerce
penetration in a matter of months. Much of
this growth is attributed to smartphones.
Mobile e-commerce sales are projected to
grow by 19% worldwide in 2020, accounting
for 65% of total e-commerce revenue. While
digital’s growing influence in the shopping
14
4

8.
As a result of the pandemic, safety and
reliability have emerged as new standards
for in-store shopping. Some 71% of
consumers globally say it’s very important
that a retailer create a safe environment to
shop, and 68% say it’s crucial for retailers to
always have products they’re interested in
buying in stock.
With price, safety and reliability now being
table stakes, convenience and experience
are becoming key differentiators for brick-
and-mortar retailers. Over the course of the
pandemic, offering a seamless return policy
and providing superior customer service
have been among the fastest growing
criteria for influencing in-store shopping
decisions. In the UK and India, return
policy was the fastest growing criteria for
influencing where to shop in-store, growing
by four percentage points in both markets
from May to August 2020. In Italy and
Mexico, customer service increased by four
and three percentage points, respectively,
during the same timeframe.
Safety and reliability are the new
standards for in-store shopping
4
Facebook IQ Source:4
“Industry Micro-Shifts Monthly Tracker” by Kantar Profiles (Facebook-commissioned online
survey of 96,938 adults across AU, BR, CA, DE, ES, FR, HK, ID, IN, IT, JP, KR, MX, TW, UK, US), May–Aug 2020. Unless
otherwise specified, data is a cross-country average across all 16 markets.
01 Shopping redefined: A reexamination of priorities is leading to complex purchasing decisions

9.
There’s also a renewed focus on local products
as people increasingly take measures to support
small businesses in their local communities.
There are some notable differences in brick-and-
mortar shopping priorities across generations.
Younger generations are more likely to prioritize
customer service and selection than older
shoppers are. More than two-thirds (68%) of
Gen Z and Millennial shoppers globally say good
customer service is very important in influencing
where they shop in-store, compared with 53%
of Baby Boomers. With higher adoption of digital
technologies like messaging services and social
media, younger consumers expect to
have more of a direct relationship with brands
and retailers than older shoppers, who might
not be as comfortable or familiar with using
these resources. Additionally, 64% of Gen Z
shoppers and 66% of Millennial shoppers say
it’s important that physical retailers offer a
broad selection of products, compared with
51% of Baby Boomers.
4
4
4
Facebook IQ Source: 4
“Industry Micro-Shifts Monthly Tracker” by Kantar Profiles (Facebook-commissioned online
survey of 96,938 adults across AU, BR, CA, DE, ES, FR, HK, ID, IN, IT, JP, KR, MX, TW, UK, US), May–Aug 2020.
Unless otherwise specified, data is a cross-country average across all 16 markets.
Top criteria for determining where to shop in-store among
consumers globally.
Price 75%
Safety
Reliability
Proximity
Convenience
Customer service
71%
68%
65%
65%
63%
4
01 Shopping redefined: A reexamination of priorities is leading to complex purchasing decisions

10.
When assessing where to shop online, price
tops the list of criteria, but reliability is also
key due to ongoing challenges with out-
of-stock items and inventory shortages.
Convenience, delivery time and delivery
options are also influencing consumers’
decisions on where to shop digitally, with
more than two-thirds of consumers saying
all are very important.
Delivery time is particularly important for
younger shoppers. More than seven in 10
Gen Z and Millennial consumers globally say
delivery time is very important in determining
where to shop online, compared with 66% of
Gen Xers and 57% of Baby Boomers. Nearly
Online shopping decisions are driven
by convenience, customization and
delivery capabilities
4
01 Shopping redefined: A reexamination of priorities is leading to complex purchasing decisions
one-third (32%) of Gen Z shoppers say the
option of next-day delivery increases their
likelihood of making an online purchase.
Interestingly, shoppers are also placing higher
priority on factors like reputation, corporate
social responsibility and customer service,
suggesting opportunities for more branding
within the e-commerce space. In the US,
each of these online shopping factors
increased by six percentage points from
May to July 2020. In Italy and Mexico,
sustainability increased by four and three
percentage points, respectively, as a factor
influencing consumers where to shop online.
2020 forced the beginnings of digital transformation
within more traditional parts of the CPG/retail industries,
which is going to result in more competitive players in
the e-comm space moving forward. With online shopping
behavior changing, customization will only become more
important. This will require brands to think much harder
about diversity and inclusion and how to tell compelling,
personalized stories to a variety of audiences.”
—Ian Simons,
“
Head of Industry for E-Commerce at Facebook
4
5
Facebook IQ Source: 4
“Industry Micro-Shifts Monthly Tracker” by Kantar Profiles (Facebook-commissioned online
survey of 96,938 adults across AU, BR, CA, DE, ES, FR, HK, ID, IN, IT, JP, KR, MX, TW, UK, US), May–Aug 2020. Unless
otherwise specified, data is a cross-country average across all 16 markets.
5
Global Web Index, Global Data, Q2 2020.

11.
Facebook IQ Source: 4
“Industry Micro-Shifts Monthly Tracker” by Kantar Profiles (Facebook-commissioned online
survey of 96,938 adults across AU, BR, CA, DE, ES, FR, HK, ID, IN, IT, JP, KR, MX, TW, UK, US), May–Aug 2020. Unless
otherwise specified, data is a cross-country average across all 16 markets.
Top criteria for determining where to shop online among
consumers globally.
Price 76%
Reliability
Return Policy
Delivery Time
Convenience
Delivery options
70%
68%
68%
68%
67%
4
01 Shopping redefined: A reexamination of priorities is leading to complex purchasing decisions

12.
With reputation and corporate social
responsibility becoming increasingly
important, consumers are also taking into
account brand values for their purchase
decisions. Over the past few years, brand
values have become nearly equally as
important to consumers as the products
themselves. Over half (56%) of consumers
globally say it’s very important that the
brands they buy from support the same
values they believe in. This is even more
crucial for younger consumers, with 65%
of Millennials in the US and 81% in Brazil
preferring to buy brands with shared values.
Brand values and social responsibility
are influencing purchase decisions
4
Facebook IQ Source: 4
“Industry Micro-Shifts Monthly Tracker” by Kantar Profiles (Facebook-commissioned online survey of
96,938 adults across AU, BR, CA, DE, ES, FR, HK, ID, IN, IT, JP, KR, MX, TW, UK, US), May–Aug 2020. Unless otherwise specified,
data is a cross-country average across all 16 markets.
6
“Annual Consumer Journey Study” by Kantar Profiles (Facebook-commissioned online survey of 106,816 people ages 18–64
across, AU, BR, CA, DE, FR, ID, IN, JP, MX, SK, UK, US, 2019). Unless otherwise specified, data is a cross-country average across all
12 markets.
01 Shopping redefined: A reexamination of priorities is leading to complex purchasing decisions
How brands respond to social and political
issues is now directly impacting consumers’
decisions about whether to buy products. In
fact, more than a quarter (29%) of consumers
globally have bought a brand for the first time
because they were pleased with what they’d
learned about the company’s values.
Corporate social responsibility does come
into our decision making, and that’s why
we see so many more moving toward
secondhand or upcycled items, recycled
items and smarter packaging decisions.”
—Clare Bailey,
“
Founder of Retail Minded
4
6

13.
Environmental impact is another key
focus area in which consumers believe
brands and retailers have responsibility to
act. More than half of consumers globally
say sustainability is very important in
determining where to shop both online
and in-store. Additionally, 55% of global
shoppers say it’s important that the brands
they choose use environmentally friendly
manufacturing practices, and 49% say they
are more likely to buy from brands that take
action to reduce their carbon footprint.
Across categories, brands are
communicating more sustainable features
to help consumers know which products are
environmentally friendly. European retailer
Coop is testing a digital sustainability
labeling system that will allow shoppers
to easily scan and see a product’s impact
on the environment, climate and society.
Apparel brands Allbirds and Adidas are
pushing sustainability in the fashion market,
labeling the carbon footprint of their
products and creating shoes from singular
materials in order to be easily recycled.
With these shifts, the consumer value
equation has fundamentally changed. While
price and proximity used to be the primary
core criteria for shopping decisions, safety,
reliability and convenience are impacting
in-store expectations while logistical
capabilities and efficiencies now influence
e-commerce choices. And as activism plays
a bigger role in consumers’ lives, they expect
brands and retailers to take part in the
conversation to create a better tomorrow.
01 Shopping redefined: A reexamination of priorities is leading to complex purchasing decisions
4
4
Facebook IQ Source: 4
“Industry Micro-Shifts Monthly Tracker” by Kantar Profiles (Facebook-commissioned online survey of
96,938 adults across AU, BR, CA, DE, ES, FR, HK, ID, IN, IT, JP, KR, MX, TW, UK, US), May–Aug 2020. Unless otherwise specified,
data is a cross-country average across all 16 markets.

14.
What it means for marketers
Adapt shopping
platforms and channels
to address new consumer
expectations
01
When deciding whether to
purchase in-store or online,
new factors have come into
the equation. Create an in-store
shopping environment that’s a
safe haven for shoppers and an
online experience that is reliable
and trustworthy.
01 Shopping redefined: A reexamination of priorities is leading to complex purchasing decisions
Cater messaging to the
right audiences at the
right time and place
02
While price and reliability
remain overarching factors both
online and in-store, shopping
needs are increasingly based on
the individual. Consider offering
a range of promotions and let
the ad-delivery system optimize
to the audience most receptive.
Align brand
communications
with values that matter
most to consumers
03
Whether buying in-store
or online, consumers want
to understand what values
brands and retailers embrace.
Communicate how your brand
and business practices are
helping the environment, your
employees and society at large.

15.
I think there are three risk profiles amid
the COVID-19 pandemic. The people who
consider themselves high risk, people
who consider themselves in the middle
and those who consider themselves low
risk. And their behavior bears that out.”
—Clare Bailey,
“
Founder of Retail Minded
Navigating shopping risks:
Consumers are facing
new friction points
in-store and online
02

16.
As we previously explored, unnecessary steps,
delays or barriers can cause consumers to
quickly abandon their shopping journeys.
With more choices at their disposal, it’s
never been easier for shoppers to take their
business elsewhere if they experience any
friction. Research shows that friction can cost
businesses significantly, totaling an estimated
$213 billion in lost US e-commerce revenue in
2019. While obstacles such as poor customer
service and unnecessarily long checkouts
remain common friction points, we’ve seen
a shift in shopping friction as consumers
navigate the added risk of the COVID-19
pandemic. Previous academic research has
shown a negative relationship between risk
In consumer behavior, academics have identified
six different types of risk.
Functional:
Will the product or experience perform as I expect?
Facebook IQ Source: 7
“40 Cart Abandonment Rate Statistics,” Baymard Institute, Jun 2018 and “Retail Ecommerce Sales, US
2018–2022,” eMarketer, Oct 2018.
8
“Impact of risk perception on customer purchase behavior: a meta-analysis,” Journal of Business & Industrial Marketing, Jan 2020.
9
“Perceived Risk in Consumer Behavior” by Olga Vinogradova, 2013.
perception and consumer buying behavior,
meaning that shoppers are less likely to buy
as the decision becomes riskier.
The COVID-19 pandemic has heightened risk
in the minds of consumers, especially among
types that were less prominent before the
outbreak. While risks of time and finance
have always been considered, physical
and psychological risk are becoming more
common as people show concern of being
exposed to the coronavirus. This becomes
apparent in the new types of shopping
friction that people are experiencing both
online and in-store.
Physical:
Is the product or experience potentially harmful?
Social:
What will others’ perceptions of this product or experience be?
Psychological:
Will this product or experience cause any emotional distress?
Financial:
Will I be able to afford this product or service?
Time:
How much time and effort will be needed to make this purchase?
8
9
02 Navigating shopping risks: Consumers are facing new friction points in-store and online
7

17.
02 Navigating shopping risks: Consumers are facing new friction points in-store and online
I think a lot of people do expect businesses
to make them feel safe. That’s part of the
customer experience. A good retailer will go
out of their way to communicate to the
customer everything that they’re doing to
protect customers and their staff.”
“
Clare Bailey,
F O U N D E R
of The Retail Champion

18.
For in-store shopping, not feeling safe in
crowds and for prolonged periods in-store have
emerged as some of the top friction points.
The vast majority (89%) of consumers say they
are at least somewhat concerned to go into
a physical retail store to shop because of the
pandemic. Because of this fear-of-going-out
(“FOGO”) phenomenon, consumers are shifting
to safer shopping behaviors to help minimize
risk. More than eight in 10 (85%) grocery
shoppers globally have taken some measure
to reduce safety risk while shopping in-store
for food and beverage products, such as
practicing social distancing and wearing masks.
Additionally, more than one-third (36%) of
grocery shoppers have stocked up on products
to limit trips to stores (up to 51% in Mexico and
46% in Canada).
10
Facebook IQ Source: 10
“Global Retail Re-emerge Study” by Ipsos (Facebook-commissioned online survey of 43,474
people ages 18+ across AU, BR, CA, DE, FR, IN, JP, MX, SK, TH, UK, US), Jul–Aug 2020. Qualifying respondents
purchased food & beverage, beauty, personal care, furniture/appliance, electronics, apparel and/or household
supplies in the past 6 months at the time of the study. Unless otherwise specified, data is a cross-country average
across all 12 markets.
Physical risk in-store has led
to safer shopping practices
10
10
Types of risk experienced while shopping in-store among
global consumers.
Time risk
(e.g., long checkout lines, hard-to-find products)
38%
Functional risk
(e.g., out-of-stock items, inability to try product before buying)
37%
35%
25%
17%
9%
10
Financial risk
(e.g., higher prices, fewer sales)
Physical risk
(e.g., not feeling safe in crowds)
Social risk
(e.g., wanting privacy for discreet purchases)
Psychological risk
(e.g., feeling stressed or annoyed while shopping)
02 Navigating shopping risks: Consumers are facing new friction points in-store and online

19.
Not only are shoppers personally taking
safety precautions, they also want retailers to
do the same. To that end, safety has become
a new expectation when deciding where to
shop in-store, with 71% of shoppers saying
it’s very important. Even months after the
pandemic started, safety remains one of the
top criteria for in-store shopping, suggesting
that it’ll likely continue to be a key factor in
consumer decision making. Providing both
employees and customers with protective
equipment and enabling more contactless
shopping practices are ways consumers
want retailers to provide a reduced-risk
environment. And safety is a new marketing
message that consumers want to receive.
Some 41% of consumers say they are
interested in receiving messaging from
brands and retailers about the steps they are
taking to ensure consumer safety, and one-
third want to hear about the measures they
are taking to keep employees safe.
Brands and retailers are also experimenting
with new solutions to reduce time spent in
crowded stores and lines to minimize risk.
UK-based supermarket chain Sainsbury’s is
testing a virtual queuing system that lets
shoppers wait in a digital queue rather than
having to stand in line to enter a store. In
Germany, Deutsche Telekom is using a digital
sensor technology to monitor the number of
people entering and leaving its retail locations
to better enforce social distancing measures
for shoppers. In the US, Magnolia Bakery has
installed human-safe UVC light to provide
continuous in-store sanitation.
4
4
Facebook IQ Source: 4
“Industry Micro-Shifts Monthly Tracker” by Kantar Profiles (Facebook-commissioned online
survey of 96,938 adults across AU, BR, CA, DE, ES, FR, HK, ID, IN, IT, JP, KR, MX, TW, UK, US), May–Aug 2020. Unless
otherwise specified, data is a cross-country average across all 16 markets.
02 Navigating shopping risks: Consumers are facing new friction points in-store and online

20.
02 Navigating shopping risks: Consumers are facing new friction points in-store and online
First impressions matter, especially for
customers discovering products for the first
time online. Research shows that 21% of people
abandon their shopping cart because checkout
took too long. These people found items they
wanted to buy, added them to cart but talked
themselves out of the purchase because
they got frustrated along the way. One-click
checkout is the future of e-commerce.”
“
Ian Simons,
H E A D O F I N D U S T R Y F O R E - C O M M E R C E
at Facebook
21
Facebook IQ Source: 21
“41 Cart Abandonment Rate Statistics” by Baymard Institute, Sep 2019.

21.
Psychological and functional risk
are impacting new online shoppers
Facebook IQ Source: 4
“Industry Micro-Shifts Monthly Tracker” by Kantar Profiles (Facebook-commissioned online survey of 96,938
adults across AU, BR, CA, DE, ES, FR, HK, ID, IN, IT, JP, KR, MX, TW, UK, US), May–Aug 2020. Unless otherwise specified, data is a
cross-country average across all 16 markets.
10
“Global Retail Re-emerge Study” by Ipsos (Facebook-commissioned online survey of 43,474 people ages 18+ across AU, BR, CA, DE,
FR, IN, JP, MX, SK, TH, UK, US), Jul–Aug 2020. Qualifying respondents purchased food & beverage, beauty, personal care, furniture/
appliance, electronics, apparel and/or household supplies in the past 6 months at the time of the study. Unless otherwise specified,
data is a cross-country average across all 12 markets.
Online shopping friction is also becoming
more apparent as new digital buyers become
more acclimated to e-commerce. Globally,
37% of consumers say they’ve ordered
products online that they would have typically
purchased in a store, suggesting consumers
are shifting shopping behaviors digitally.
This behavior is likely to persist as more than
eight in 10 consumers globally consistently
report shopping online even after stores
re-opened in most markets.
4
4
02 Navigating shopping risks: Consumers are facing new friction points in-store and online
Types of risk experienced while shopping online among
global consumers.
Functional risk
(e.g., out-of-stock items, lack of information on products)
54%
Psychological risk
(e.g., not sure if product will meet expectations, hard to
get used to buying online)
44%
38%
32%
18%
10
Financial risk
(e.g., higher prices, fewer sales)
Time risk
(e.g. long shipping/delivery, hard-to-find products)
Social risk
(e.g., missing social interaction with sales people)

22.
People’s expectations around convenience have
changed—they expect immediacy. In many ways,
it’s never been easier to buy something. Anything
can be purchased, anytime, with a click of the
button and can arrive at your door—sometimes
within hours. And because people have come to
expect a quick and easy experience, they will leave
if they don’t get it. Cart abandonment accounts for
at least 50% of attrition from your purchase funnel,
costing e-marketers about $2–4 trillion a year.”
—Ian Simons,
“
Head of Industry for E-Commerce at Facebook
Facebook IQ Source: 4
“Industry Micro-Shifts Monthly Tracker” by Kantar Profiles (Facebook-commissioned online survey of 96,938
adults across AU, BR, CA, DE, ES, FR, HK, ID, IN, IT, JP, KR, MX, TW, UK, US), May–Aug 2020. Unless otherwise specified, data is a
cross-country average across all 16 markets.
11
“Discovery-Led Shopping Study” by GFK (Facebook-commissioned online survey of 12,063 people ages 18+ across AU, BR, CA,
DE, FR, ID, IN, JP, MX, SK, UK, US Jul–Aug 2020). Qualifying respondents made an online purchase of beauty, furniture, electronics
and/or apparel in the past three months at the time of the study and use at least one Facebook platform weekly. Unless otherwise
specified, data is a cross-country average across all 12 markets.
22
“4 trillion & counting: 2017 Shopping Cart Abandonment Statistics” by Readycloud, 2017.
Due to the pandemic, people are incentivized
more than ever before to shop online and
become more familiar with it. However
there’s still a big knowledge/comfort gap with
the technology as less than a third (27%) of
consumers—and only 13% of those over the
age of 55—say they consider themselves
experts when it comes to online shopping.
As more people shop online, they are faced
with psychological and functional risk factors,
such as missing the in-store experience and
not always having complete confidence in
their purchase decisions.
11
11
4
02 Navigating shopping risks: Consumers are facing new friction points in-store and online
To help mitigate this risk, shoppers are
prioritizing reliability (70%) and convenience
(68%) when deciding where to shop online.
Consumers are also trialing products at
home to inform their final purchase decision,
with 44% of online shoppers globally saying
they sometimes order several different
items online with the intention of trying and
returning the ones they don’t like.
22

23.
Facebook IQ Source: 6
“Annual Consumer Journey Study” by Kantar Profiles (Facebook-commissioned online survey of 106,816 people
ages 18–64 across, AU, BR, CA, DE, FR, ID, IN, JP, MX, SK, UK, US, 2019). Unless otherwise specified, data is a cross-country average
across all 12 markets.
10
“Global Retail Re-emerge Study” by Ipsos (Facebook-commissioned online survey of 43,474 people ages 18+ across AU, BR, CA, DE,
FR, IN, JP, MX, SK, TH, UK, US), Jul–Aug 2020. Qualifying respondents purchased food & beverage, beauty, personal care, furniture/
appliance, electronics, apparel and/or household supplies in the past 6 months at the time of the study. Unless otherwise specified,
data is a cross-country average across all 12 markets.
02 Navigating shopping risks: Consumers are facing new friction points in-store and online
Delivery/fulfilment services consumers globally have
used or are interested in using.10
Freehomedelivery
Homedeliverywithfees
Delayingdeliverytimeinexchangefora
discount
Deliverytohomewithshortdelivery
windowselection
Buyonline,pickupin-store
Buyonline,usingcurbside/contactlesspickup
Buyonlinewithtrunkdelivery
Buyonline,pickupat
adesignatedlocker
This creates a demand for added
convenience through flexible delivery
options and a seamless return policy. Some
39% of consumers globally have abandoned
a purchase due to slow or inflexible delivery
options, and nearly one-third (32%) have
chosen not to complete a transaction due
to a poor returns process, indicating there’s
a demand for brands and retailers to
optimize their offerings to prevent losing
customers. Beyond standard home delivery,
consumers are also open to other forms
of product fulfillment, such as buying
online and picking up in-store and having
the option to select a delayed delivery in
exchange for a discount. When it comes to
returns, the majority of consumers have
used or are interested in using free online
returns. However, there is interest in the
ability to buy online and return in-store or
via a return locker. Over half of consumers
(and up to 81% of consumers in Mexico and
74% in the UK) also want a longer window of
time for returns (e.g., more than two weeks).
6
10
NET
85%
71% 71% 71%
65%
59%
56%
52%
Haveused
45%
38%
23%
20%
24%
16% 16%
22%
Interestedinusing
40%
33%
48%
51%
41%
43%
40% 40%

24.
Offer and communicate
services to minimize
physical risk in-store
01
As communities continue
to combat the COVID-19
pandemic, FOGO will remain
a key friction point for in-store
shoppers. Communicate safety
precautions and contactless
shopping offerings like curbside
pickup, click and collect or self-
checkout to make consumers
feel more comfortable.
Create a seamless digital
shopping experience
02
Consumers are increasingly
turning to online platforms and
mobile for shopping, so be sure
to optimize your e-commerce
experience to reduce friction
and minimize perceived risk.
Optimize delivery and
returns processes
03
As new shoppers embrace
online shopping, there’s a
confidence curve that needs
to be overcome. Reduce
barriers to entry by
communicating efficient
product fulfillment and a
seamless return policy.
02 Navigating shopping risks: Consumers are facing new friction points in-store and online
What it means for marketers

25.
The path to purchase is stronger online, more
so than it has ever been. Pre-COVID-19, that
often meant browsing the physical store
environment on a day of leisure or because
they knew they needed something. The
thought processes will begin that path to
purchase but the destination was a brick-
and-mortar experience. Now, however, there
is a huge increase in consumer behavior
originating their purchase journey online, and
the conclusion of their purchase is not always
in stores like it’s historically been.”
—Nicole Leinback Reyhle,
“
Founder of Retail Minded
Reversing roles:
In-store is becoming
transactional as online
is becoming experiential
03

26.
People are going out shopping with a purpose.
They’ve probably done a lot of research, they know
exactly what they want, they go, they do it, they
leave. They’re spending more per visit, and their
visits are very much focused. That suggests there’s
an awful lot of research that goes on online in
advance of that store visit so that they know exactly
what they’re going for and they get it done.”
—Clare Bailey,
“
Founder of The Retail Champion
Facebook IQ Source: 14
eMarketer Global Retail Sales Forecasts, May 2020.
15
eMarketer Global Forecasts for Digital Buyers, May 2020.
16
Global Web Index Coronavirus Research, Apr 2020.
Despite retailer restrictions and closures,
it’s projected that 83% of global retail sales
will take place in-store in 2020. However
while brick-and-mortar remains dominant,
the COVID-19 pandemic has accelerated the
adoption of e-commerce, adding a projected
145 million new digital buyers globally in 2020.
This likely isn’t a temporary shift as nearly
one in three (32%) shoppers globally say they
plan to spend less time in-store even after the
pandemic is over.
14
03 Reversing roles: In-store is becoming transactional as online is becoming experiential
15
16

27.
Consumers’ needs are shifting when it comes
to in-store shopping. Driven by the demand
for an expedited brick-and-mortar experience,
consumers are now looking for more efficiency
while in-store. Some 44% of in-store shoppers
in the US and 46% in Canada say a fast/express
checkout would significantly improve their
shopping experience. Consumers are looking
to retailers to offer new services to streamline
the in-store experience and minimize exposure
to other shoppers. Some 40% of shoppers
globally say retailers should reduce the
maximum capacity at stores, 37% would like
more contactless payment options, 23% are
interested in appointments for store visits and
more than a fifth (22%) say retailers should
offer more curbside pickup services.
Not only are shoppers looking to retailers to
provide these conveniences, they are also
planning their store visits further in advance
with the help of online resources. About
two-thirds of shoppers say most of their
shopping decisions are planned as opposed to
spontaneous. This is especially apparent within
essential categories: Globally, 68% of food and
beverage consumers say they now plan their
purchases more often compared with 58% of
apparel shoppers. Older shoppers are also more
likely to decide on purchases in advance of a
shopping trip: Globally, 75% of Baby Boomers
say most of their purchases are planned,
compared with 55% of Gen Z shoppers.
Digital is now serving as the primary way that
shoppers discover and evaluate products,
even if the final transaction happens in a store.
In fact, 90% of consumers globally say they
discover new products or brands online.
Consumers are becoming more prepared
and efficient when shopping in-store
10
Facebook IQ Source: 10
“Global Retail Re-emerge Study” by Ipsos (Facebook-commissioned online survey of 43,474 people ages 18+
across AU, BR, CA, DE, FR, IN, JP, MX, SK, TH, UK, US), Jul–Aug 2020. Qualifying respondents purchased food & beverage, beauty,
personal care, furniture/appliance, electronics, apparel and/or household supplies in the past 6 months at the time of the study. Unless
otherwise specified, data is a cross-country average across all 12 markets.
11
“Discovery-Led Shopping Study” by GFK (Facebook-commissioned online survey of 12,063 people ages 18+ across AU, BR, CA, DE,
FR, ID, IN, JP, MX, SK, UK, US Jul–Aug 2020). Qualifying respondents made an online purchase of beauty, furniture, electronics and/or
apparel in the past three months at the time of the study and use at least one Facebook platform weekly. Unless otherwise specified,
data is a cross-country average across all 12 markets.
03 Reversing roles: In-store is becoming transactional as online is becoming experiential
10
10
10
10
11

28.
Facebook IQ Source: 4
“Industry Micro-Shifts Monthly Tracker” by Kantar Profiles (Facebook-commissioned online survey of 96,938
adults across AU, BR, CA, DE, ES, FR, HK, ID, IN, IT, JP, KR, MX, TW, UK, US), May–Aug 2020. Unless otherwise specified, data is a
cross-country average across all 16 markets.
10
“Global Retail Re-emerge Study” by Ipsos (Facebook-commissioned online survey of 43,474 people ages 18+ across AU, BR, CA, DE,
FR, IN, JP, MX, SK, TH, UK, US), Jul–Aug 2020. Qualifying respondents purchased food & beverage, beauty, personal care, furniture/
appliance, electronics, apparel and/or household supplies in the past 6 months at the time of the study. Unless otherwise specified,
data is a cross-country average across all 12 markets.
17
“Global Omnichannel Retail Study” by Ipsos (Facebook-commissioned online survey of 56,102 people ages 18+ across, AU, BR, CA,
DE, FR, ID, IN, JP, MX, SK, UK, US, Dec 2019 to Jan 2020). Qualifying respondents purchased food & beverage, beauty, personal care,
furniture/appliance, electronics, apparel and/or household supplies in the past six months at the time of the study. Unless otherwise
specified, data is a cross-country average across all 12 markets.
03 Reversing roles: In-store is becoming transactional as online is becoming experiential
Spontaneous vs. Considerate purchases across
categories globally over the past six months.10
Most of my
purchases are
spontaneous
Most of my
purchases
are planned
Total
35%
65%
Food &
Beverage
32%
68%
Household
supplies
32%
68%
Furniture/
Appliances
34%
66%
Electronics
33%
67%
Beauty
36%
64%
Personal
care
35%
65%
Apparel
42%
58%
Consumers are realizing the benefits digital
can bring to their shopping experiences
beyond simply efficiency. Nearly eight in 10
(79%) shoppers globally say the internet
makes it easier to compare products by
price, and 67% say the internet makes buying
products less risky. These advantages are
helping to drive long-term affinity for online
shopping: More than a quarter (29%) of
food and beverage shoppers, 44% of beauty
shoppers and 38% of apparel shoppers say
they’ve been shopping for these categories
either more often or for the first time digitally,
and they now actually prefer this shopping
method over in-store.
17
4

29.
Rather than focusing solely on the narrow
opportunity to capture existing intent, brands
must think about how they generate fresh
demand. This moves e-commerce from a
bottom funnel activity to a full funnel one,
with different roles to play across it.”
“
Nicola Mendelsohn,
V I C E P R E S I D E N T
Facebook EMEA
03 Reversing roles: In-store is becoming transactional as online is becoming experiential

30.
As people increasingly embrace online
shopping, consumers’ e-commerce
expectations are evolving. One area where
there remains room for improvement is the
trustworthiness of the experience, with nearly
one-third (30%) of consumers saying the
inability to touch/see a product in-person is a
barrier they experience while shopping online,
and a quarter saying they often aren’t sure if
the product will meet their expectations.
In order to build a more trusted and
personal experience, digital platforms will
need to fundamentally shift from being
transactional to experiential by infusing more
offline benefits into the online experience.
Consumers are seeking more immersive
ways to discover relevant products online.
New technologies, such as virtual reality,
augmented reality and live commerce,
can help serve as substitutes for in-store
experiences in the digital space to build trust.
Augmented and virtual reality are bridging the
gap between the online and offline world to
digitally represent products in physical spaces.
Some 63% of online shoppers agree, “I want
to virtually try on products from the comfort
of my own home.” This technology is showing
signs of growth. Among those who’ve tried
AR/VR to explore products or services, 46%
of consumers said they’ve done this for the
first time since the pandemic started.
E-Commerce is shifting into
experiential formats to build trust
Facebook IQ Source: 4
“Industry Micro-Shifts Monthly Tracker” by Kantar Profiles (Facebook-commissioned online survey of
96,938 adults across AU, BR, CA, DE, ES, FR, HK, ID, IN, IT, JP, KR, MX, TW, UK, US), May–Aug 2020. Unless otherwise specified,
data is a cross-country average across all 16 markets.
11
“Discovery-Led Shopping Study” by GFK (Facebook-commissioned online survey of 12,063 people ages 18+ across AU, BR, CA,
DE, FR, ID, IN, JP, MX, SK, UK, US Jul–Aug 2020). Qualifying respondents made an online purchase of beauty, furniture, electronics
and/or apparel in the past three months at the time of the study and use at least one Facebook platform weekly. Unless otherwise
specified, data is a cross-country average across all 12 markets.
4
03 Reversing roles: In-store is becoming transactional as online is becoming experiential
4
11

31.
Facebook IQ Source: 11
“Discovery-Led Shopping Study” by GFK (Facebook-commissioned online survey of 12,063 people ages 18+
across AU, BR, CA, DE, FR, ID, IN, JP, MX, SK, UK, US Jul–Aug 2020). Qualifying respondents made an online purchase of beauty,
furniture, electronics and/or apparel in the past three months at the time of the study and use at least one Facebook platform weekly.
Unless otherwise specified, data is a cross-country average across all 12 markets.
03 Reversing roles: In-store is becoming transactional as online is becoming experiential
Live commerce is also allowing people to
shop via livestreams to see tutorials and
demonstrations of products from their
favorite brands and influencers. Nearly half
(49%) of online shoppers agree, “I would
buy products directly from live videos where
brands, celebrities or influencers I follow are
launching new products.”
Brands tapping into immersive digital formats
are seeing success. Singaporean fashion
label MDS Collections pivoted their business
model from 80% offline to online and started
using Facebook Live to pre-launch their new
collections, leading to a 20% increase in total
sales. French luxury fashion brand Balmain
recently created an immersive 360° virtual
showroom with a 3D avatar where users
could browse their new collection and learn
the story behind it. Swedish home furnishing
retailer IKEA has a feature within its IKEA
Place app that allows users to visualize
realistically rendered 3D products in their
homes via augmented reality.
11

32.
The emergence of discovery commerce means
brands must provide consumers with new, more
connected ways of finding, experiencing and
purchasing the products that are right for them
across the marketing funnel.”
“
Nicola Mendelsohn,
V I C E P R E S I D E N T
Facebook EMEA
03 Reversing roles: In-store is becoming transactional as online is becoming experiential

33.
Consumers are also looking for more
convenience and relevancy in their digital
shopping experience, expecting to easily
discover products based on their needs and
lifestyle. Technology plays an important
role in this experience, with 66% of online
shoppers agreeing that tech’s role is to
recommend products that meet in-the-
moment shopping needs. As a result,
consumers are increasingly discovering
products and brands serendipitously.
Globally, 61% of consumers say they were
motivated to shop for apparel, electronics,
beauty and/or furniture online because they
happened to come across it unexpectedly
Discovery commerce:
The next generation of e-commerce
Facebook IQ Source: 11
“Discovery-Led Shopping Study” by GFK (Facebook-commissioned online survey of 12,063 people ages 18+
across AU, BR, CA, DE, FR, ID, IN, JP, MX, SK, UK, US Jul–Aug 2020). Qualifying respondents made an online purchase of beauty,
furniture, electronics and/or apparel in the past three months at the time of the study and use at least one Facebook platform
weekly. Unless otherwise specified, data is a cross-country average across all 12 markets.
03 Reversing roles: In-store is becoming transactional as online is becoming experiential
while browsing online (as opposed to 48%
who said they intentionally sought out the
product to complete a frequent purchase).
When looking at how consumers would like
to find new products, nearly four in 10 online
shoppers say they’d like to discover new
products categorized by lifestyle or current
trends. Brands can also surface relevant
products through trending categories
across people’s social circles. This has led
to a new generation of e-commerce known
as “discovery commerce”—a phenomenon
where instead of people searching out a
product, automation helps products find
the right people.
How global consumers would like to discover brands or
products online in the future.11
Products categorized by current trends
Products categorized by lifestyle
(e.g., athletic, new mom, etc.)
36%
35%
A short survey that customizes a product to your needs
(e.g., shampoo for your hair type)
Take an image and either buy the product captured or
search for similar items
Curated list of products that predicts a need based on past purchase
Trending products among your social circle
(e.g., people you interact with the most on social media)
Curated list of products that achieves a goal (e.g., decorate kid’s room)
A smart home device that tells you about products that might be
useful or desirable to you
Livestreaming with influencers using the product
Livestreaming with a brand representative who recommends the
right product for you
38%
37%
34%
33%
29%
29%
24%
23%
11
11

34.
Social media can add both experiential
elements and convenience to the online
shopping experience. Almost three-quarters
(74%) of consumers globally say they get
shopping ideas from Facebook, Instagram,
Messenger or WhatsApp, and 66% of
consumers agree that social media has become
as important as other information sources
when making product purchase decisions.
Messaging is another growing channel for
consumers to receive in-store-like consultation
as customer service plays a crucial role
Social media is driving more relevancy
and enjoyment in product discovery
Facebook IQ Source: 4
“Industry Micro-Shifts Monthly Tracker” by Kantar Profiles (Facebook-commissioned online survey of 96,938
adults across AU, BR, CA, DE, ES, FR, HK, ID, IN, IT, JP, KR, MX, TW, UK, US), May–Aug 2020. Unless otherwise specified, data is a
cross-country average across all 16 markets.
11
“Discovery-Led Shopping Study” by GFK (Facebook-commissioned online survey of 12,063 people ages 18+ across AU, BR, CA, DE,
FR, ID, IN, JP, MX, SK, UK, US Jul–Aug 2020). Qualifying respondents made an online purchase of beauty, furniture, electronics and/or
apparel in the past three months at the time of the study and use at least one Facebook platform weekly. Unless otherwise specified,
data is a cross-country average across all 12 markets.
20
“CPG Re-emerge Study” by Ipsos (Facebook-commissioned online survey of 3,655 people ages 18+ in the US, Aug–Sep 2020).
03 Reversing roles: In-store is becoming transactional as online is becoming experiential
20
Social media (Facebook and Instagram, specifically)
has created a completely new form of shopping we call
‘discovery commerce.’ Most consumers are familiar with
‘appointment commerce,’ where you specifically set time
aside to purchase the products you know you need. Social
media’s superpower is facilitating discovery—where machine
learning, creative and seamless conversion experiences help
products find people, not the other way around.”
—Omar Zayat,
“
Head of Industry for E-Commerce at Facebook
throughout the customer journey. In the US,
63% of consumers say quick responses and
solutions are important characteristics of
quality customer service, and 55% say it’s
important that retailers and brands offer
convenient ways to contact them. Some
45% of global consumers have messaged a
business, and nearly a quarter (24%) report
buying directly through a messaging service.11 4

35.
What it means for marketers
03 Reversing roles: In-store is becoming transactional as online is becoming experiential
Bring digital efficiencies to the
in-store experience
01
Out of concerns of exposure to COVID-19, many
consumers are interested in methods to fast-
track their time spent in-store. Promote more
transactional benefits within your stores, such as
easy navigation and expedited checkout measures.
Test immersive technologies to bring the
best of in-store online
02
Live shopping and AR/VR are serving as
effective substitutes for in-store benefits in the
e-commerce space. Test these new technologies
to keep shoppers engaged digitally long-term.
Turn on discovery commerce
03
Through rich data and sophisticated advertising
tools, understand what’s important to people
and how they interact with your business in order
to make it easier for them to discover and buy the
right products.
Leverage messaging to offer full-funnel
customer support
04
Consumers want to feel more comfortable
shopping online, and part of that is having
questions answered as they shop, having a direct
line to a product expert and overall customer
support. Consider using social media and
messaging services to build brand relationships
offline that would've come naturally in-store.

36.
Customers have, in recent years, always had
this opportunity to inform themselves and
become educated on their purchase decisions
based on the quality of inventory and the
retailer they might be purchasing from. Many
consumers look at the social impact of where
they buy from and how that impacts their local
community or the global community.”
—Nicole Leinback Reyhle,
“
Founder of Retail Minded
Across the street
and around the world:
Shopping carts are
going ‘glocal’
04

37.
What’s really interesting is that customers’
footfall has shifted away from city centers
back to local communities, which actually
is consistent with what we see in terms of
a larger number of people continuing to
work from home. A lot of people who
obviously were working from home in the
immediate period, or were furloughed,
were shopping much more locally, and they
were engaging much more with the local
community and the smaller shops.”
—Clare Bailey,
“
The COVID-19 pandemic has created a new
sense of dual identity for consumers as
they redefine what community means both
locally and globally. This has impacted how
and where people shop: They are seeking to
balance these two geographic extremes when
it comes to their purchasing decisions and are
becoming “glocal” consumers in the process.
Founder of The Retail Champion
04 Across the street and around the world: Shopping carts are going ‘glocal’

38.
As consumers have seen the economic
impact of the pandemic, many have shifted
focus to keeping small businesses in their
local communities afloat. As a result, two-
thirds of consumers say they’ve taken some
measure to support a small, local business,
such as making a special effort to purchase
from one of them or promoting them on
social media. On Facebook, from February
to May 2020, clicks on searches for local
businesses increased by 23%. Additionally,
less travel and more remote work—more than
one-third of consumers say they are working
from home—is causing people to spend more
time in their local communities.
Supporting local businesses and
communities is a key consumer focus
12
Facebook IQ Source: 4
“Industry Micro-Shifts Monthly Tracker” by Kantar Profiles (Facebook-commissioned online survey of
96,938 adults across AU, BR, CA, DE, ES, FR, HK, ID, IN, IT, JP, KR, MX, TW, UK, US), May–Aug 2020. Unless otherwise specified,
data is a cross-country average across all 16 markets.
12
Facebook Internal Data for AU, BR, CA, DE, ES, FR, GB, ID, IN, IT, JP, MX, NZ, SG, TW, US, Feb 22–May 1, 2020.
Actions taken by consumers globally to support
local businesses.
Made a special effort to purchase from local/
small business
33%
Recommended a local/small business to a friend/
family member
32%
30%
23%
20%
4
Followed or liked a local/small business page on
social media
Wrote a positive comment or review on a local/
small business page on social media
Recommended a local/small business to an
online community
20%Shared or reposted content/offers from a local/
small business on social media
4
4
04 Across the street and around the world: Shopping carts are going ‘glocal’

39.
Selling local products is becoming a key
differentiator for brick-and-mortar retailers.
Among those who say selling local products
is important in influencing their shopping
decisions, consumers are 1.3X more likely to say
it’s more important for in-store shopping than
online shopping.
Big companies and brands are stepping in to
help support local businesses and communities.
In Mexico, Coca-Cola, Mondelēz, Kellogg,
Grupo Herdez, PepsiCo and Colgate-Palmolive
created a new “Smaller apart, bigger together”
campaign to honor the work from families who
own small businesses. In Europe, retailers like
Lidl are working to incorporate more locally
sourced food and beverage products onto their
store shelves. With Facebook Fundraising tools,
business owners and their supporters can now
create a personal fundraiser on Facebook for
businesses and ask loyal customers for support
during the pandemic.
4
4
4
Facebook IQ Source: 4
“Industry Micro-Shifts Monthly Tracker” by Kantar Profiles (Facebook-commissioned online
survey of 96,938 adults across AU, BR, CA, DE, ES, FR, HK, ID, IN, IT, JP, KR, MX, TW, UK, US), May–Aug 2020. Unless
otherwise specified, data is a cross-country average across all 16 markets.
04 Across the street and around the world: Shopping carts are going ‘glocal’

40.
While the pandemic has made it important
for brands to show their support of local
communities, it has also led to more
opportunities for businesses abroad.
Heightened consumer price sensitivity,
prevalence of out-of-stock items and
increased e-commerce adoption has created
more openness for cross-border business
worldwide. In the first half of 2020, global
cross-border online sales increased by 21%
compared with the same timeframe in 2019.
Some 38% of online shoppers globally and
over half of online shoppers in Mexico (56%)
and Thailand (60%) report buying products
that were shipped from another country.
Opportunities continue to expand
for cross-border business
Facebook IQ Source: 10
“Global Retail Re-emerge Study” by Ipsos (Facebook-commissioned online survey of 43,474 people
ages 18+ across AU, BR, CA, DE, FR, IN, JP, MX, SK, TH, UK, US), Jul–Aug 2020. Qualifying respondents purchased food &
beverage, beauty, personal care, furniture/appliance, electronics, apparel and/or household supplies in the past 6 months at
the time of the study. Unless otherwise specified, data is a cross-country average across all 12 markets.
13
Global-e data from Jan 1 to Jun 14, 2020. Analysis is based on online retail sales of apparel, accessories, cosmetics and
footwear items worldwide from 300 of its retail customers selling to more than 185 countries.
13
In markets across the globe, the motivations
for buying products from foreign countries are
primarily driven by price and whether items are
available locally. The one exception is in India
where the majority (60%) of cross-border
buyers purchase goods procured elsewhere
because they believe the products are better
quality than the items produced locally.
One of the gains that we experienced through
COVID-19 is that the world has recognized we
are truly all connected. It’s not just a United
States pandemic, it’s a global pandemic. And
if we look at the depth of that, that also means
that we are all connected in every way possible
as well, including shopping.”
—Nicole Leinback Reyhle,
“
Founder of Retail Minded
10
10
10
04 Across the street and around the world: Shopping carts are going ‘glocal’

41.
Facebook IQ Source: 10
“Global Retail Re-emerge Study” by Ipsos (Facebook-commissioned online survey of 43,474 people ages 18+
across AU, BR, CA, DE, FR, IN, JP, MX, SK, TH, UK, US), Jul–Aug 2020. Qualifying respondents purchased food & beverage, beauty,
personal care, furniture/appliance, electronics, apparel and/or household supplies in the past 6 months at the time of the study.
Unless otherwise specified, data is a cross-country average across all 12 markets.
Top reasons for buying cross-border.10
Availability:
Some products are only available to buy from
foreign countries
43%
Price:
Products shipped from foreign countries are less
expensive than local products
41%
Discovery:
I often discover new and interesting products from
foreign countries compared to my own country
31%
Quality:
Products shipped from foreign countries have
better quality than local products
28%
While the motivations for shopping
internationally are similar across markets,
there are some notable differences in
consumer expectations for this type of
experience. When deciding to buy cross-
border, consumers tend to prioritize price
transparency, delivery tracking capabilities,
shipping time and return policies. In certain
markets, there’s a need for offerings that
enable greater confidence in the purchase
decision. For example, cross-border
buyers in South Korea and Mexico expect
an authenticity guarantee to ensure the
products they buy are not counterfeit, while
shoppers in the US, Brazil and Japan want
to ensure their personal information will be
protected. The reassurance provided by a
trusted brand name is also helpful, with 83%
of cross-border shoppers in India and Brazil
saying this is very important.
10
10
10
04 Across the street and around the world: Shopping carts are going ‘glocal’

42.
Facebook IQ Source: 10
“Global Retail Re-emerge Study” by Ipsos (Facebook-commissioned online survey of 43,474 people ages 18+
across AU, BR, CA, DE, FR, IN, JP, MX, SK, TH, UK, US), Jul–Aug 2020. Qualifying respondents purchased food & beverage, beauty,
personal care, furniture/appliance, electronics, apparel and/or household supplies in the past 6 months at the time of the study.
Unless otherwise specified, data is a cross-country average across all 12 markets.
Localizing marketing and communication is
also important in influencing cross-border
shopping. Nearly two-thirds (63%) of cross-
border shoppers globally say having native
language availability on websites or apps is
important in their purchase decision, and
55% want social media advertising to be
in their native language. This is particularly
important in emerging markets like Brazil
and India, where more than seven in 10
shoppers say native language advertising
and communication on websites and social
media is important.
Developing an impactful cross-border
strategy can help unlock more opportunity.
Innovative businesses are expanding and
creating resilience through deep relevance
and seamless experiences. For example,
Happy Socks, a Swedish business, grew
their brand to 90+ countries by using online
ads to target people globally who are most
likely to buy vibrant, upbeat socks across
the globe. Charlotte Tilbury, the skin care
and beauty company, grew its footprint to
75 markets by launching localized websites
in each country it serves.
10
10
04 Across the street and around the world: Shopping carts are going ‘glocal’

43.
Delivery tracking 78%
Reasonable shipping time
Easy return and refunds policy
Multiple payment methods
Transparent display of all costs
User information privacy
76%
76%
71%
71%
70%
Most important factors influencing cross-border
purchases globally.10
Multiple shipping methods 68%
Authenticity guarantee/quality
assurance program
68%
Facebook IQ Source: 10
“Global Retail Re-emerge Study” by Ipsos (Facebook-commissioned online survey of 43,474 people ages 18+
across AU, BR, CA, DE, FR, IN, JP, MX, SK, TH, UK, US), Jul–Aug 2020. Qualifying respondents purchased food & beverage, beauty,
personal care, furniture/appliance, electronics, apparel and/or household supplies in the past 6 months at the time of the study.
Unless otherwise specified, data is a cross-country average across all 12 markets.
04 Across the street and around the world: Shopping carts are going ‘glocal’

44.
What it means for marketers
Provide support to local communities
01
As consumers spend more time at home,
there’s a desire to show support for their local
communities. Find opportunities to get involved
in local initiatives and (where possible) source
products and services from the surrounding area.
Build a digital presence for your
local business
02
As some consumers remain wary of the in-store
shopping experience, it can be effective to build out
a digital presence with e-commerce capabilities.
Leveraging resources like Facebook Shops could be
an opportunity to reach and engage your customers
while still offering personal, local relationships.
Evaluate new potential markets and
entry strategies
03
One of the pitfalls in cross-border expansion
comes from trying to get results too fast and not
taking the time for critical groundwork. When
considering international opportunities, be sure
to conduct extensive research into the nuances of
potential markets and test launch strategies.
Instill confidence in cross-border buying
04
Brands have the opportunity to build more comfort
in cross-border buying through localized marketing
(e.g., tailoring advertising language and information
based on customers’ location or preferences) and
creating a seamless buying experience throughout
the journey (e.g., displaying transparent purchase
details, offering trustworthy payment platforms
and multiple shipping methods).
04 Across the street and around the world: Shopping carts are going ‘glocal’

45.
When traditional offline brick-and-
mortar closed and online shopping
logistics were disrupted, consumers
suddenly became less brand-
monogamous… They wanted what they
needed, regardless of who provided it.
Even as things have begun to normalize,
this period created a more permanent
elasticity for exploring new brands,
retailers and marketplaces. Loyalty is not
what it was a year ago.”
—Omar Zayat
“
Head of Industry for E-Commerce at Facebook
The new loyalty equation:
How empathy, transparency
and value spell loyalty
05

46.
The pandemic has caused mass disruption in
consumers’ shopping routines, causing many
to experiment with new brands. Over 60%
of global consumers have changed shopping
behavior since the onset of the pandemic by
trying a new brand or retailer. Additionally, 58%
of consumers have shopped on at least one new
digital shopping platform since the start of the
pandemic. Many people are planning to stick
with these new brands and retailers, with 44% of
those who’ve tried a new brand in the US saying
it’s now become their new go-to.
This shake-up has in turn impacted consumers’
shopping loyalty. Comparing pre-pandemic to
current attitudes, there have been significant
decreases in self-reported consumer loyalty
toward physical stores across the globe. This
decrease has been most dramatic in the US, the
UK, Germany and India, reaching double digit
declines. A similar but less dramatic trend in
decreasing loyalty is also true for online shopping
platforms. With the exception of Japan, markets
around the globe show declining loyalty toward
e-commerce sites/apps, most prominently in
Germany and South Korea.
While loyalty has decreased overall, it’s
important to note some interesting differences
between essential (e.g., food and beverage,
household supplies) and nonessential (e.g.,
apparel, electronics) categories. Globally,
essential category buyers are 1.2X more likely
to report being loyal to physical stores than
nonessential category buyers while shoppers
for nonessential goods are 1.3X more likely to
be loyal to online retailers.
19
Facebook IQ Source: 4
“Industry Micro-Shifts Monthly Tracker” by Kantar Profiles (Facebook-commissioned online survey of 96,938
adults across AU, BR, CA, DE, ES, FR, HK, ID, IN, IT, JP, KR, MX, TW, UK, US), May–Aug 2020. Unless otherwise specified, data is a
cross-country average across all 16 markets.
10
“Global Retail Re-emerge Study” by Ipsos (Facebook-commissioned online survey of 43,474 people ages 18+ across AU, BR, CA, DE,
FR, IN, JP, MX, SK, TH, UK, US), Jul–Aug 2020. Qualifying respondents purchased food & beverage, beauty, personal care, furniture/ap-
pliance, electronics, apparel and/or household supplies in the past 6 months at the time of the study. Unless otherwise specified, data
is a cross-country average across all 12 markets.
18
McKinsey & Company, COVID-19 Consumer Pulse Survey, conducted globally between Jun 15–Jun 21 2020)
19
Data change is based on the difference between two studies: 1) “Global Omnichannel Retail Study” by Ipsos (Facebook-commis-
sioned online survey of 56,102 people ages 18+ across, AU, BR, CA, DE, FR, ID, IN, JP, MX, SK, UK, US, Dec 2019 to Jan 2020) and 2)
“Global Retail Re-emerge Study” by Ipsos (Facebook-commissioned online survey of 43,474 people ages 18+ across AU, BR, CA, DE,
FR, IN, JP, MX, SK, TH, UK, US), Jul–Aug 2020.
20
“CPG Re-emerge Study” by Ipsos (Facebook-commissioned online survey of 3,655 people ages 18+ in the US, Aug–Sep 2020).
05 The new loyalty equation: How empathy, transparency and value spell loyalty
18
4
20
19
10

47.
Facebook IQ Source: 19
Data change is based on the difference between two studies: 1) “Global Omnichannel Retail Study” by
Ipsos (Facebook-commissioned online survey of 56,102 people ages 18+ across, AU, BR, CA, DE, FR, ID, IN, JP, MX, SK, UK,
US, Dec 2019 to Jan 2020) and 2) “Global Retail Re-emerge Study” by Ipsos (Facebook-commissioned online survey of 43,474
people ages 18+ across AU, BR, CA, DE, FR, IN, JP, MX, SK, TH, UK, US), Jul–Aug 2020.
05 The new loyalty equation: How empathy, transparency and value spell loyalty
Change in loyalty attitudes pre-pandemic (Dec 2019–Jan
2020) vs. Jul–Aug 2020.19
US CA UK FR DE AU JP IN SK BR MX
Physical store
loyalty
Online site/
retailer loyalty
-10%
-5%
-7%
-2%
-6%
-16%
-9%
-8%
-5%
-1%
+3%
-10%
-6%
-7%
-8%
-10%
-5% -5%
-6%
-7%
-6%
-5%

48.
While pricing comes first to drive loyalty
for online and offline shopping, broader
considerations around customer experience
(delivery and return, proactive customer service,
consumer safety actions, etc.) have been
highlighted in light of the COVID-19 pandemic.”
“
Ikkyu Sohn,
H E A D O F I N D U S T R Y F O R R E TA I L
I N S O U T H K O R E A
at Facebook
05 The new loyalty equation: How empathy, transparency and value spell loyalty

49.
Just as consumer shopping decisions have
gotten increasingly complex, attracting
loyal customers has also become more
challenging. While price and promotions
remain top factors in driving repeat purchases
both online and in-store, brands and retailers
have several other avenues to develop more
personal relationships with customers, such
as quality products and convenient shopping
experiences. Retailers that help simplify
product discovery and recommend the
right items can also reap the benefits of
repeat purchasers.
Repeat purchases are driven
by price, quality and reliability
10
Facebook IQ Source: 10
“Global Retail Re-emerge Study” by Ipsos (Facebook-commissioned online survey of 43,474 people ages 18+
across AU, BR, CA, DE, FR, IN, JP, MX, SK, TH, UK, US), Jul–Aug 2020. Qualifying respondents purchased food & beverage, beauty,
personal care, furniture/appliance, electronics, apparel and/or household supplies in the past 6 months at the time of the study.
Unless otherwise specified, data is a cross-country average across all 12 markets.
05 The new loyalty equation: How empathy, transparency and value spell loyalty
Top reasons for making repeat purchases on an online
shopping website among consumers globally.
Pricing 49%
Good quality products
Easy to find what I am shopping for
Reliable website
Wide selection of products
Shipping policy/delivery options
39%
37%
37%
34%
30%
10
Trustworthy payment platform 29%

50.
05 The new loyalty equation: How empathy, transparency and value spell loyalty
Top reasons for making repeat purchases at a physical
store among consumers globally.
Pricing 50%
Good quality products
Easy to find what I am shopping for
Proximity
Wide selection of products
Sales & promotions
38%
38%
36%
34%
23%
10
Good customer service 22%
Facebook IQ Source: 10
“Global Retail Re-emerge Study” by Ipsos (Facebook-commissioned online survey of 43,474 people ages 18+
across AU, BR, CA, DE, FR, IN, JP, MX, SK, TH, UK, US), Jul–Aug 2020. Qualifying respondents purchased food & beverage, beauty,
personal care, furniture/appliance, electronics, apparel and/or household supplies in the past 6 months at the time of the study.
Unless otherwise specified, data is a cross-country average across all 12 markets.

51.
Customers have higher expectations from
retailers to deliver on strong customer care in
order for them to stay loyal with that brand.
And because customers have more opportunity
for price comparison, and retailer comparison,
retailers need to consider how this will impact
their business.”
“
Nicole Leinback Reyhle,
F O U N D E R
of Retail Minded
05 The new loyalty equation: How empathy, transparency and value spell loyalty

52.
Brands can also build more personal
connections with consumers by clearly
conveying important information and
encouraging a dialogue. In addition to sales
and promotions, shoppers want to hear
from brands about everything from how
they’re addressing the COVID-19 pandemic
to the ways they’re undertaking sustainable
business practices. In fact, consumers are
eager to hear from businesses, with 87%
saying they’re interested in receiving some
type of communication from brands or
retailers. However, people don’t want all
interactions to be one way: Globally, 77% of
consumers say they feel more connected to
a brand if they are able to contact it directly
to ask questions or provide feedback.
Encouraging a two-way dialogue
helps build personal connections
Facebook IQ Source: 4
“Industry Micro-Shifts Monthly Tracker” by Kantar Profiles (Facebook-commissioned online survey of
96,938 adults across AU, BR, CA, DE, ES, FR, HK, ID, IN, IT, JP, KR, MX, TW, UK, US), May–Aug 2020. Unless otherwise specified,
data is a cross-country average across all 16 markets.
11
“Discovery-Led Shopping Study” by GFK (Facebook-commissioned online survey of 12,063 people ages 18+ across AU, BR, CA,
DE, FR, ID, IN, JP, MX, SK, UK, US Jul–Aug 2020). Qualifying respondents made an online purchase of beauty, furniture, electronics
and/or apparel in the past three months at the time of the study and use at least one Facebook platform weekly. Unless otherwise
specified, data is a cross-country average across all 12 markets.
4
05 The new loyalty equation: How empathy, transparency and value spell loyalty
11
Type of communication global consumers want to hear
from brands or retailers.
Sales or promotions
Steps taken to ensure consumer
health/safety
Proactive customer service
Actions to support the community
to address the impact of COVID-19
Transparency about supply chain
Steps taken to keep employees
healthy/safe:
41%
40%
38%
33%
33%
4
58%

53.
Loyalty programs must evolve
beyond just discounts
05 The new loyalty equation: How empathy, transparency and value spell loyalty
As consumer preferences shift, loyalty
programs will have to evolve as well by
providing exceptional service and valued
rewards. Almost two-thirds (65%) of
consumers globally have experienced at
least one issue with a loyalty program they
are a part of, such as points expiring, having
difficulty redeeming points and being
unaware of special rewards. Across all
surveyed markets, the main benefits people
want from their loyalty programs are free
services (e.g., returns, delivery) and faster
access to new products. In North
America, there’s also a heightened desire
for points that can be redeemed for
experiences or accessories.
10
10
Desired loyalty program perks among consumers globally.
Free delivery 55%
Special price promotions
Free returns
Points that can be redeemed for
travel, accessories, etc.
Increased access to products
(more reliability)
Faster access to new products
54%
42%
26%
25%
25%
10
More convenient shopping
experience (e.g., lounge, apps)
18%
Facebook IQ Source: 10
“Global Retail Re-emerge Study” by Ipsos (Facebook-commissioned online survey of 43,474 people ages 18+
across AU, BR, CA, DE, FR, IN, JP, MX, SK, TH, UK, US), Jul–Aug 2020. Qualifying respondents purchased food & beverage, beauty,
personal care, furniture/appliance, electronics, apparel and/or household supplies in the past 6 months at the time of the study.
Unless otherwise specified, data is a cross-country average across all 12 markets.

54.
Some brands are revamping their loyalty
program strategy to address these needs.
European DIY retailer Brico recently
launched a new loyalty initiative featuring
exclusive benefits such as 90 days’ return
time. UK-based retailer Marks & Spencer
revamped its loyalty program as well,
offering instant rewards and donating
money to chosen charities based on every
member’s purchases. Walmart also recently
released their new loyalty program, which
offers same-day shipping services and a
“scan & go” feature that allows shoppers
to pay for items on their phones to avoid
checkout lines.
05 The new loyalty equation: How empathy, transparency and value spell loyalty

55.
Brands or retailers who have given
great service, who have preempted
the needs and done everything in their
power to consider those needs, are the
ones that will have secured customers
for the long term.”
—Clare Bailey,
“
Founder of The Retail Champion
05 The new loyalty equation: How empathy, transparency and value spell loyalty
The new loyalty equation is multifaceted
Ultimately, today’s modern loyalty equation
consists of seven elements that brands
and retailers need to consider: availability,
affordability, accessibility, attributes,
action, altruism and assurance. Successful
businesses will find ways of offering
services to address each of these factors
for today’s shoppers.

56.
05 The new loyalty equation: How empathy, transparency and value spell loyalty
Building loyalty is now multifaceted
AVAILABILITY
7 in 10 consumers globally say it's very
important that retailers always have
stocked up inventory.
ATTRIBUTES
55% of shoppers globally say it’s very important
that the brands they buy use environmentally-
friendly manufacturing practices.
ACTION
Half of consumers globally say offering a
good omnichannel shopping experience is
very important when deciding where to shop.
ALTRUISM
Globally, 2 in 3 people say the way
a business responds to the crisis will
seriously impact their future spending.
AFFORDABILITY
Half of consumers globally say good
pricing drives them to make repeat
purchases from retailers.
ACCESSIBILITY
77% of online shoppers say they feel more
connected to a brand if they are able to
contact it directly to ask questions or
provide feedback. ASSURANCE
Globally, 77% of people surveyed want brands
to tell them how they’re responding to
(or helping customers) the pandemic.
Facebook IQ Source: 4
“Industry Micro-Shifts Monthly Tracker” by Kantar Profiles (Facebook-commissioned online survey of 96,938
adults across AU, BR, CA, DE, ES, FR, HK, ID, IN, IT, JP, KR, MX, TW, UK, US), May–Aug 2020. Unless otherwise specified, data is a
cross-country average across all 16 markets.
10
“Global Retail Re-emerge Study” by Ipsos (Facebook-commissioned online survey of 43,474 people ages 18+ across AU, BR,
CA, DE, FR, IN, JP, MX, SK, TH, UK, US), Jul–Aug 2020. Qualifying respondents purchased food & beverage, beauty, personal care,
furniture/appliance, electronics, apparel and/or household supplies in the past 6 months at the time of the study. Unless otherwise
specified, data is a cross-country average across all 12 markets.
11
“Discovery-Led Shopping Study” by GFK (Facebook-commissioned online survey of 12,063 people ages 18+ across AU, BR, CA,
DE, FR, ID, IN, JP, MX, SK, UK, US Jul–Aug 2020). Qualifying respondents made an online purchase of beauty, furniture, electronics
and/or apparel in the past three months at the time of the study and use at least one Facebook platform weekly. Unless otherwise
specified, data is a cross-country average across all 12 markets.
23
“Tracking the Coronavirus” by Ipsos (survey of people ages 18–75 in CN, VN, IN, IT, RU, US, AU, JP, GB, CA, FR, DE, UK, BR, MX, ES),
Apr 2–4. 2020.
24
“Coronavirus Research” by GlobalWebIndex (online survey of 15,271 people ages 16–64 in AU, BE, BR, CN, FR, DE, ES, GB, IN, IT, JP,
NZ, PH, PL, RO, SG, US, ZA), Jun 29–Jul 2, 2020.
4
10
11
4
4
23
24

57.
Take a broader view of
your retention strategy
01
With so much choice, offering
competitive prices can only go
so far in keeping loyal buyers.
Evaluate how you’re delivering
on each element of the new
loyalty equation.
Encourage a two-way
dialogue to create more
meaningful connections
02
Consumers gravitate toward
brands that make them feel
like they are being listened
to and understood. Create
opportunities via social media
and messaging services for
consumers to provide candid
feedback, and implement their
suggestions when possible into
products and marketing.
Assess your
loyalty program
03
While sales and promotions are
still important, consumers are
interested in being rewarded
with services, faster/exclusive
access to products and
experiences. Consider adding
perks that provide these
benefits to loyal shoppers.
05 The new loyalty equation: How empathy, transparency and value spell loyalty
What it means for marketers

58.
As outlined in this report, consumer behavior and expectations
are rapidly evolving. From safer shopping practices to
accelerated e-commerce adoption, the ways consumers
discover and buy products have fundamentally changed. Many
of these changes will likely persist as consumers become more
acclimated to their new shopping routines. In order for brands
and retailers to succeed, they will need to create a seamless
and relevant shopping experience for their customers across
channels, moments and mindsets.
Rapid reflections:
What’s top of mind for our
experts heading into 2021
05

59.
Looking to the future, our experts give
their thoughts on where they think the
retail, CPG/FMCG and e-commerce
industries are heading in the year to come:
Rapid reflections: What’s top of mind for our experts heading into 2021
The biggest question today is: To what extent will
the behavioral shifts toward digital experiences stick
organically, or will businesses need to work harder to
retain these behaviors? My guess is there will remain
a large shift in consumer behavior toward online, but
retail isn’t going anywhere. Depending on evolving
consumer comfort levels, there may be more appetite
for merged online and offline experiences like BOPIS
(buy online and pick up in store) like driving to a fast
food location and ordering your meal on your phone
to speed things up.”
“
Ian Simons,
H E A D O F I N D U S T R Y F O R E - C O M M E R C E
at Facebook

60.
“In response to COVID-19, consumers’ buying behavior has
forever changed. They’ve become more familiar with ways
to engage with brands and businesses. So, what they’ve
learned during COVID-19 is going to apply to their future
spending patterns and their future shopping behavior. That
does include more digital engagement for purchases, both
on the web and via mobile.”
Nicole Leinbach Reyhle,
F O U N D E R O F R E TA I L M I N D E D
“The consumer in the center—that is the mantra no matter
which channel of sales, where it begins and where it ends.
We must be prepared to support them on the sales channel
that makes more sense for each customer at the specific
time. The consumer is constantly looking for an easier path
to purchase, and the pandemic reinforced it a lot.”
Gabriela Chaves Schwery Comazzetto,
H E A D O F I N D U S T R Y F O R R E TA I L I N B R A Z I L AT FA C E B O O K
Rapid reflections: What’s top of mind for our experts heading into 2021

61.
Historical periods of economic disruptions
tend to create moments of innovation, and the
consumer shopping space will be no exception.
And with platforms like Shopify, AWS and
Facebook, an inspired individual can create a
new consumer company easier than ever before.
I expect a surge of new D2C brands to emerge
in the next year and challenge incumbent brands
across all consumer categories.”
“
Omar Zayat,
H E A D O F I N D U S T R Y F O R E - C O M M E R C E
at Facebook
Rapid reflections: What’s top of mind for our experts heading into 2021

62.
“I’d say, in a large part, that these behaviors are going to stay. From
a consumer psychology point of view, it only takes about six weeks
to create a new habit, and they’ve had a lot longer than that. I think
there might be a novelty factor when hopefully things normalize and
people look forward to going back to a shop where they can browse,
touch things, try things on. But actually, businesses that have made
shopping online convenient and accessible and have remained in
communication with customers through social channels will remain
connected through digital channels and may drive footfall as a result
of that back to their shops in the future. But people will have learned
to favor digital from a convenience point of view, and I do not expect
things to drop back to January 2020 levels ever again.”
Rapid reflections: What’s top of mind for our experts heading into 2021
Clare Bailey,
F O U N D E R O F T H E R E TA I L C H A M P I O N
“Multiple commerce businesses have started to provide
‘live video shopping’ on mobile on top of TV home shopping.
For sure, we will see this happening in multiple countries for
some time. It’s possible that live video shopping volume on
mobile can surpass that of TV home shopping by the end
of 2021.”
Ikkyu Sohn,
H E A D O F I N D U S T RY FO R R E TA I L I N S O U T H KO R E A AT FAC E B O O K

63.
Sourcing/footnotes
1
IBM US Retail Index, Aug 2020.
2
eMarketer US Sales Forecasts, Sep 2020.
3
McKinsey’s “The Business of Fashion 2020: Coronavirus Update,” Apr 2020.
4
“Industry Micro-Shifts Monthly Tracker” by Kantar Profiles (Facebook-commissioned online survey of 96,938
adults across AU, BR, CA, DE, ES, FR, HK, ID, IN, IT, JP, KR, MX, TW, UK, US), May–Aug 2020. Unless otherwise
specified, data is a cross-country average across all 16 markets.
5
Global Web Index, Global Data, Q2 2020.
6
“Annual Consumer Journey Study” by Kantar Profiles (Facebook-commissioned online survey of 106,816 people
ages 18–64 across, AU, BR, CA, DE, FR, ID, IN, JP, MX, SK, UK, US, 2019). Unless otherwise specified, data is a
cross-country average across all 12 markets.
7
“40 Cart Abandonment Rate Statistics,” Baymard Institute, Jun 2018 and “Retail Ecommerce Sales, US 2018–
2022,” eMarketer, Oct 2018.
8
“Impact of risk perception on customer purchase behavior: a meta-analysis,” Journal of Business & Industrial
Marketing, Jan 2020.
9
“Perceived Risk in Consumer Behavior” by Olga Vinogradova, 2013.
10
“Global Retail Re-emerge Study” by Ipsos (Facebook-commissioned online survey of 43,474 people ages 18+
across AU, BR, CA, DE, FR, IN, JP, MX, SK, TH, UK, US), Jul–Aug 2020. Qualifying respondents purchased food &
beverage, beauty, personal care, furniture/appliance, electronics, apparel and/or household supplies in the past 6
months at the time of the study. Unless otherwise specified, data is a cross-country average across all 12 markets.
11
“Discovery-Led Shopping Study” by GFK (Facebook-commissioned online survey of 12,063 people ages 18+
across AU, BR, CA, DE, FR, ID, IN, JP, MX, SK, UK, US Jul–Aug 2020). Qualifying respondents made an online
purchase of beauty, furniture, electronics and/or apparel in the past three months at the time of the study and
use at least one Facebook platform weekly. Unless otherwise specified, data is a cross-country average across
all 12 markets.
12
Facebook Internal Data for AU, BR, CA, DE, ES, FR, GB, ID, IN, IT, JP, MX, NZ, SG, TW, US, Feb 22–May 1, 2020.
13
Global-e data from Jan 1 to Jun 14, 2020. Analysis is based on online retail sales of apparel, accessories,
cosmetics and footwear items worldwide from 300 of its retail customers selling to more than 185 countries.
14
eMarketer Global Retail Sales Forecasts, May 2020.
15
eMarketer Global Forecasts for Digital Buyers, May 2020.
16
Global Web Index Coronavirus Research, Apr 2020.
17
“Global Omnichannel Retail Study” by Ipsos (Facebook-commissioned online survey of 56,102 people ages
18+ across, AU, BR, CA, DE, FR, ID, IN, JP, MX, SK, UK, US, Dec 2019 to Jan 2020). Qualifying respondents
purchased food & beverage, beauty, personal care, furniture/appliance, electronics, apparel and/or household
supplies in the past six months at the time of the study. Unless otherwise specified, data is a cross-country
average across all 12 markets.
18
McKinsey & Company, COVID-19 Consumer Pulse Survey, conducted globally between Jun 15–Jun 21 2020).
19
Data change is based on the difference between two studies: 1) “Global Omnichannel Retail Study” by Ipsos
(Facebook-commissioned online survey of 56,102 people ages 18+ across, AU, BR, CA, DE, FR, ID, IN, JP, MX, SK,
UK, US, Dec 2019 to Jan 2020) and 2) “Global Retail Re-emerge Study” by Ipsos (Facebook-commissioned online
survey of 43,474 people ages 18+ across AU, BR, CA, DE, FR, IN, JP, MX, SK, TH, UK, US), Jul–Aug 2020.
20
“CPG Re-emerge Study” by Ipsos (Facebook-commissioned online survey of 3,655 people ages 18+ in the US,
Aug–Sep 2020).
21
“41 Cart Abandonment Rate Statistics” by Baymard Institute, Sep 2019.
22
“4 trillion & counting: 2017 Shopping Cart Abandonment Statistics” by Readycloud, 2017.
23
“Coronavirus Research” by GlobalWebIndex (online survey of 15,271 people ages 16–64 in AU, BE, BR, CN, FR,
DE, ES, GB, IN, IT, JP, NZ, PH, PL, RO, SG, US, ZA), Jun 29–Jul 2, 2020.
24
“Tracking the Coronavirus” by Ipsos (survey of people ages 18–75 in CN, VN, IN, IT, RU, US, AU, JP, GB, CA, FR,
DE, UK, BR, MX, ES), Apr 2–4. 2020.