Shopping through voice activated devices like Amazon Echo and Google Home is expected to rise by 48%, with sales worth £3.5bn by 2022, as per new research.
Voice shopping or Voice commerce will be the next big thing driving online shopping. It is set to revolutionise the UK retail industry similar to how mobile commerce has been a disruptive force these past few years.
According to a new research by OC&C strategy consultants, around 10% of UK households already own a smart speaker (of which 8% own a Amazon Echo and 2% own Google Home), forecast to increase to 50% by 2022.
In the past year, nearly half of the owners (44%) used their smart speaker to make a purchase, and as consumers start becoming more aware of the technology, the spend is expected to reach £3.5bn.
Consumers are currently using the devices to buy low value consumer goods such as groceries. Around 70% of purchases are made on a specific ‘known’ product, usually a repeated order. Amazon is dominating this smart speaker market, outselling Google Home 4 to 1.
OC&C believes that for brands to excel in this space, achieving Amazon’s ‘choice’ status is key. Amazon recommends ‘choice’ products when the customers send in a generic name or no brand name such as ‘shampoo’. Amazon’s ‘choice’ products are usually previously purchased items or popular and well-priced items with good reviews and ratings. 85% of users are likely to accept Amazon’s recommended product.
Will Hayllar, Partner and Global Head of Consumer Goods at OC&C, said: “The advent of voice commerce is taking frictionless shopping one step further by reducing the need for customers to ‘research’ product themselves, simplifying the route to purchase.”
“It’s clear that shopping with voice is going to account for a substantial and growing share of the retail market, presenting both a challenge and an opportunity for businesses that can get ahead of the curve.” says Will Haylar.
“There are different paths to success in the voice category. A key consideration for retailers is understanding what business objectives they want to serve, then tailoring their voice proposition accordingly. For consumer goods companies, the focus should be on prioritising the products most likely to be shopped through this channel.” added Haylar.