What's Happening?
A recent survey conducted by the Geocartography Knowledge Group, commissioned by Kanyon Hazahav, has revealed that a significant portion of Israeli consumers prefer shopping in malls over online platforms. The survey, which included around 500 respondents,
found that 45% of Israelis do most of their shopping in malls, compared to 18% who shop primarily on foreign e-commerce sites. The preference for malls is attributed to the ability to physically see, touch, and try products before purchasing, as well as the convenience of having a variety of brands in one location. The survey also highlighted that kiosks play a significant role in enhancing the mall shopping experience, with 71% of respondents acknowledging their contribution. Monthly spending in malls remains substantial, with an average expenditure of approximately NIS 544.
Why It's Important?
The survey's findings underscore the enduring appeal of physical retail spaces in Israel, despite the global trend towards online shopping. This preference for malls suggests that Israeli consumers value the tactile and immediate aspects of shopping that online platforms cannot provide. The data indicates potential challenges for e-commerce businesses looking to expand in the Israeli market, as they must address consumer concerns such as the inability to try products, difficulties with returns, and long shipping times. For mall operators and retailers, these insights offer opportunities to enhance in-person shopping experiences and capitalize on consumer preferences for physical retail environments.
What's Next?
As Kanyon Hazahav continues its expansion with the new Platinum Floor, the mall aims to strengthen its position in the Israeli shopping-center market. This development includes new stores, restaurants, and kiosks, which are expected to attract more consumers seeking experiential retail. E-commerce platforms may need to innovate and improve their services to compete with the advantages offered by physical retail spaces. This could involve enhancing virtual try-on technologies, streamlining return processes, and reducing shipping times to better meet consumer expectations.
Beyond the Headlines
The survey highlights a cultural dimension in Israeli shopping habits, where the social and experiential aspects of mall visits play a crucial role. This preference for in-person shopping experiences may reflect broader societal values that prioritize community interaction and tangible experiences. Additionally, the findings suggest that while digital transformation is reshaping retail globally, local market nuances and consumer behaviors can significantly influence the adoption and success of online shopping platforms.
