Omnichannel shopping to dominate FMCG sales
According to Nielsen IQ, 86% of shoppers purchase goods both in physical stores and online, while 14% shop exclusively in physical stores. Less than 1% of consumers shop exclusively online. Omnichannel is a permanent – and substantial – fixture of consumer behavior. Globally, 30% of consumers indicated that they now have a completely different set of priorities that impact their purchase behavior, and 59% are re-evaluating their priorities.
Social commerce
Social commerce is forecasted to reach $30.73 billion in sales in 2023, accounting for 20% of global retail e-commerce sales. 75% of retailers already sell on social media, with social storefronts and shoppable posts. Furthermore, influencer marketing has become a strategic targeting of the right online audiences, and positive advertising through rapid returns. The effectiveness of UGC videos is 22% higher than that of brand videos.
Personalized experiences will go a long way in improving conversion rates
60% of shoppers say they are more likely to be repeat customers when offered personalized shopping experiences. Retailers understand the need for such experiences to maintain a competitive edge in the highly saturated retail space. In 2022, 74% of e-commerce companies had a website personalization program, investing in curating highly personalized experiences across critical touch points.
Reviews and ratings will influence more purchases than discounts
In a LinkedIn poll carried out by Intelligence Node, 41% of respondents said that they found consumer reviews and ratings the most important factor while making a purchase online. In comparison, low prices were deemed most important by only 20% of respondents. The modern shopper needs features such as zoom, 360 views, AR try-on capabilities, detailed descriptions, and robust review sections. According to research, 3D views of products generate 50% more engagement than static images. another study found that 80% of Gen Z customers changed their minds after reading negative reviews.
The metaverse to shape the future of retail marketing
Since the launch of the metaverse in 2022, retailers have invested in virtual real estate, experimented with new marketing strategies, and created new areas for engaging with young, tech-savvy Gen Z consumers. Already, 74% of adults in the USA are willing to spend up to $1000 on VR gear to join the metaverse. Similarly, global spending on AR/VR is set to rise to $72.8 billion in 2024.
Today, however, 51% of all metaverse users are 13 years old if not younger, indicating a unique window of opportunity to begin identifying and shaping future audiences for brands. The metaverse market is predicted to hit over $800 billion in 2024, growing at a compound annual growth rate (CAGR) of more than 13%. And with 400 million monthly active users in 2022, it has already been predicted that by 2026, 25% of people will spend an hour or more on the metaverse every day.
Demand for private-label brands will continue to grow
Due to the increasing demand from customers, the number of private-label brands has increased substantially in recent years. Private-label products used to be seen as lower-quality or cheaper alternatives, but that is no longer the case. Today, private-label brands can be on-trend, affordable, and competitive without the marketing costs that are normally associated with branded counterparts.
A global survey finds that while 45% of respondents believed that price was the main reason for switching to private labels, 58% now believe they offer similar or even better quality than national brands.
Retail will become increasingly data- and AI-driven
Today’s customers are spoiled for choice. This has heightened their expectations from retailers and offering a good product alone is no longer enough to convert or retain today’s evolved shoppers. From seamless checkouts, price matching, and highly engaging content to timely delivery and returns, and personalized experiences, customers expect seamless, hassle-free, and customized experiences across every channel.
Providing these elevated experiences requires a deep understanding of consumer behavior. A continued commitment to leveraging data and AI technology will be crucial in meeting the demands and expectations of evolving customers. Retailers need to monitor customer data, analyze market and shopper trends, optimize prices based on competitor price movements, rank high on digital shelves, streamline delivery and fulfillment, and manage a host of other factors to reel in customers and retain them – and this is where AI and automation will be paramount for success.
Source : www.netscribes.com
