Retail is undergoing a big change riding on evolving customer needs. Moreover, since the pandemic, the industry has evolved keeping pace with the growing customer demands. But at this juncture it is important to identify the critical trends of shopping and therefore understand how the retailers can navigate uncertainty and build their base in the next three to five years.
The concept of shopping is no more divided by platforms, rather it is connected and Google in one of its recent reports mentioned that omnichannel shopping behaviour will continue to evolve as it shifts from a discrete task, in which people look for a specific item on a particular channel in a defined period, to an ambient experience. People will discover new products and services while scrolling through social feeds, watching streaming videos, and playing video games.
The shopping revolution is now led by the youth, and they are 2X to 3X as likely to shop using emerging media. As per the Google trend report experiences powered by augmented reality and virtual reality, along with shoppable videos, will become more prominent as consumers’ appetite for tech-enabled shopping experiences grows.
Now is the time for marketers to rely more on AI to stay agile and adapt quickly so that they can activate the customer with ease. Aside of brand loyalty and collaboration programs now is the time to tweak all marketing campaigns with personal insights. Today, more than 70% shoppers expect brands to understand their unique needs and expectations.
As per Allied Market Research, the global autonomous last-mile delivery market is projected to reach $90 billion by 2030. At the same time, online marketplaces will account for 45% to 50% of online spend by 2025. These numbers emphasise the need for retailers to find the right partner so that they can provide customers with better shopping experiences.
Shoppers today have become more intentional about value. Consequently, they are placing more importance on a retailer’s overall brand value proposition than on spending less money. In fact, recent Google research has shown communicating the benefits of buying from a particular retailer, such as fast delivery and free returns, can have roughly the same power as a product discount.
Alongside all these trends, the idea of privacy and data security will also emerge as a big trend. According to Kantar’s Global Monitor, 79% of global consumers say they are concerned about data protection and privacy on the internet, and 72% believe they are very or somewhat at risk from people or companies misusing their personal data. So, right now it is a big task for brands and retailers to understand the importance and therefore plan their approaches to keep it consumer centric.