In a constantly changing world, the retail sector must demonstrate unprecedented resilience. The way of producing and selling requires adaptation to new consumption habits, while responding to the constantly evolving needs and expectations of consumers.
But by leveraging changes in consumer habits, 4 major emerging trends emerge as sources of profitable growth for companies. And now is the time for the retail sector to embrace them for the coming years.
Table des matières
Emerging Trend #1: Omnichannel at the Heart of the Shopping Experience
Today, internet users (who are first and foremost consumers) navigate with ease (and great speed) between different platforms (digital, physical, virtual, social), moving from one experience to another (browsing, seeking reviews, comparing, purchasing). This omnichannel purchasing behavior is expanding rapidly and tends to eliminate siloed
behaviors, meaning a precise search on a single channel at a specific time.
Consumers discover new products and services by scrolling through their social media feeds and stories from their favorite influencers, by doing an internet search on an encountered issue, or by watching streaming videos (vlogs on YouTube, before/after, tutorials, etc.).
And the numbers don’t lie: new generations of consumers are two to three times more likely to make purchases via emerging media. Retailers must therefore rethink their marketing strategy and capitalize on this new trend to invest in digital media.
The goal? To be visible to target consumers in a context where the boundary between commerce and content is blurring.
According to a study conducted by Analytic Partners between 2019 and 2020, the solution would be to allocate the marketing budget between digital and traditional media. Specifically: 50 to 70% of the budget for digital media, and between 30 and 50% for traditional media.
“80% of purchases made by Generation Z are influenced by social media” (Source Retaildive)
And for this investment to be truly impactful, it is necessary, once again, to know how to adapt to the usage of target internet users in the sector and offer expected, viral, and “shoppable” content. A constantly evolving challenge to be continually tested.
Emerging Trend #2: When Personalization Takes Precedence Over Brand Loyalty
Today, offer personalization is no longer an option: while companies could still count on consumer loyalty to their brand a few years ago, it is now the tailor-made nature of products and services that appears essential.
In 2022, 73% of customers expect companies to take into account their needs and expectations in a personalized way, compared to 66% in 2020 (Inside Intelligence study)
This rise is manifested both in recommendations for purchases made to consumers, and in the optimization of the customer journey. How?
- Recommendations via email or SMS campaigns based on profile data (age, gender, place of residence) or behavioral data (cart abandonment, viewed product pages, search history…)
- In-store personalization (digitalization of points of sale and augmented salespeople)
- Facilitated payment methods (Klarna, PayPal, etc.)
- Multiple options for receiving purchased products (click and collect, pickup point, home delivery, etc.)
And to target the right people in the right way, nothing beats effective customer segmentation. Using a community-type CRM, companies can sort and map all contact points according to specific criteria (top brand ambassadors, champion customers, new customers, engaged influencers, etc.). Brands thus ensure maximizing the relevance of their campaigns and customer experience.
Emerging Trend #3: Generation Z at the Center of Commerce
Generation Z (the generation of people born between the mid-to-late 1990s and early 2010s) now represents nearly 30% of the world’s population! By 2025, it is expected to make up nearly 30% of the global workforce. Unlike previous
generations, these internet users, who were born and grew up with digital technology, have not only developed new consumption habits but also display a significantly increasing purchasing power.
This new equation compels retailers to understand, analyze, and adapt to the specific behaviors of Generation Z. How do they search for information? What communication channels do they prefer? What sources do they find reliable? Are they prone to impulse buying? In fact, all studies confirm it: trust in traditional advertising is no longer viable for Generation Z. Gone are the days when brands could rely on billboard advertising to inspire young consumers. Generation Z buys more, but differently: they consult consumer reviews from people like them and content shared by influencers who inspire them.
However, the act of purchasing itself is not solely done online: just like millennials (or Generation Y, people born between the early 1980s and late 1990s), Generation Z makes about 40% of its purchases in physical stores (source Google/Bain, 2022).
Retailers will therefore need to learn from these habits and create facilitated omnichannel shopping experiences, both online and in-store. The challenge is to develop digital technology in stores to make the customer experience similar to what they experience online.
Emerging Trend #4: When Value Proposition Takes Precedence Over Price
While today’s consumers are evolving in a world where virtual interactions and speed have taken a prominent place, they remain attentive to the real added value that a company can offer them. And price is no longer the only lever that facilitates the purchase decision.
What matters to consumers of today and tomorrow:
- A proven and sincere proximity between the brand and its customers
- A smooth purchasing journey, from product selection to final delivery
- Authentic reassurance elements, from real consumers
- Concrete evidence of the effectiveness of the products or services offered
- Reliable personal data protection
79% of consumers worldwide are concerned about data protection and privacy on the Internet, and 72% believe they are exposed to risks in this regard
(Kantar Global Monitor)
Companies must therefore have a solid base of consented first-party data. It is now essential for retailers to collect data that does not come from third-party applications. All shared social media posts, information provided by willing consumers (ambassadors), and opt-ins fall under zero-party data, which only companies own.
