Which trends matter? Our team of industry experts is emphasizing the transformations that are crucial for every retailer to be well-informed about.
The race towards seamless, superpersonal shopping will speed up in 2024. But tough economic headwinds will keep shrinking consumer spending. This will happen across sectors in the first half of the year. Low savings, high debt, and high interest rates are the main factors stopping consumers from spending.
How should retailers and brands prepare for the year ahead? Investing in AI, seamless customer experiences, and digital business transformation is vital. Using tools like Mason slots login to engage consumers better is critical. It’s needed to maintain a competitive advantage in e-commerce.
In this article, we will examine the top eight transformative trends reshaping e-commerce. These insights are derived from extensive global consumer research and the expertise of our retail industry specialists, Sudip Mazumder and Guy Elliott.
Embracing Personalized Ads
The moment has arrived for retail media networks to rank personalization, and consumers are on board with this idea. Luma Partners says that retail media has reached $30 billion in revenue. It got there faster than search and social. It’s keeping filling a need for goods and branded manufacturers.
Reuters projects that 2028 RMN revenue will be 15.4% of all ad revenue. This will eclipse TV revenue.
Statista’s consumer data shows that targeted ads are less annoying now. Consumers prefer and expect e-commerce ads to be tailored to their unique wants and needs.
For example, RMN advertising usually targets loyalty program segments. It’s only different based on recent spending and points. Businesses offer all customers the same offerings and promotions. They provide services to a diverse client base. This strategy could be labeled as “spray and pray.”
Loyalty members’ contact information is valuable. Those RMNs offer more targeted promotions. They’re in their loyalty programs. They see more engagement and repeat business.
Rise of Secondhand Marketplaces
The cost of living is rising, and sustainable purchasing habits are too. Because of this, secondhand markets, rental platforms, and it’s resale will speed up.
A recent survey of UK consumers found that 44% had bought second-hand items. This is up from last year. So, 57% stated that their re-commerce shopping habits have remained unchanged.
ThredUp, eBay, and even Facebook have dominated the secondhand market. They do this as third-party C2C marketplaces. Yet, new B2C and B2B marketplaces are on the rise.
Walmart has B2B auctions and a B2C marketplace, and Lululemon has a “Like New” resale website. Retailers must try to set the correct prices and fix their logistics and value chains to make money. This helps them build relationships with their target customers.
AI Imagery Revolutionizes Marketing
Generative AI is advancing. It creates realistic videos and personalized product images. This makes online ads more effective. This technology can place products in lifestyle contexts, boosting e-commerce conversion rates.
Many fear job loss and misinformation. But, 27% of consumers are excited about AI product recommendations. E-commerce leaders must refine AI image generation to attract consumers.
In 2024, AI ads will have higher conversion rates and more engagement. If retailers have good digital skills and quality control, they’ll be worth the risks.
User Reviews and Influencers Drive Online Shopping
Authenticity is key for online shoppers. This holds particularly true when it comes to younger generations. Social media is crowded with ads and influencers. So, consumers seek genuine reviews and word-of-mouth tips.
A Publicis Sapient survey found that 30% of consumers recommend their favorite brands to friends. Half of them use online searches (45%) and product reviews (41%) to make buying decisions.
To attract younger consumers, retailers should add user-generated content. This means written and video reviews. They should add this content to their e-commerce channels.
Final Thoughts
Future e-commerce leaders will excel by adopting new technology and recognizing trends early. Prioritizing business strategy is critical. It would help if you focused on customer needs. This is key for keeping a competitive edge. Look at what customers need now and what you can do now.
Find value pools to measure the market size. Define the critical user journeys. Then, research to see if it’s possible and worth it. Forward-thinking brands that grasp the most promising opportunities will shape the future.
