Top Retail Trends of 2024: A New Era of Shopping
Apr 25, 2024
In the digital age, trends are not just changing, they are charging ahead with velocity. Talking about the retail space, “how we buy” has completely revolutionised. Let’s dig in for a nuanced understanding of the top retail trends of 2024 and decode how consumer behaviour is being reshaped through technology, convenience, and trust.
The Rising Trend of Voice Commerce
Convenience reigns supreme in today’s fast-paced world, and voice commerce is quickly becoming the new frontier in shopping. Imagine comfortably lounging on your sofa and simply saying, 'Hey Google, suggest me some cosy winter blankets.' Yes, that’s the simple command it takes.
With over 8.4 billion voice assistant devices globally, the convenience of shopping via smart speakers and smartphones has never been more accessible. This trend is driven by a staggering 400% increase in voice-driven e-commerce revenue, jumping from $4.6 billion in 2021 to an estimated $19.4 billion, and it is projected to capture 30% of the e-commerce market by the end of the year.
Leading brands have quickly adapted to this trend. Amazon and Google are at the forefront, enhancing their voice-activated devices to facilitate smoother transactions, from groceries at @Whole Foods to essentials from @Target…without lifting a finger. For instance, Amazon reported that voice-based orders through Alexa have increased by 50% in the past year. Even Google has responded by integrating more comprehensive product catalogues into Google Assistant to enrich the shopping experience.
Consumers can shop hands-free, which is particularly beneficial for multitaskers or those with disabilities. Voice shopping is revolutionising e-commerce by providing a personalized, accessible experience, streamlining purchases, and offering customized recommendations, thereby becoming a pivotal innovation today.
Influencer Marketing going places
Influencer marketing: is where shoppers' buying decisions are increasingly influenced by the creators they trust. The global influencer market is projected to grow to approximately $24 billion by the end of 2024. This sector is particularly influential among Gen Z, who see social media as their primary shopping muse. The trend towards using nano and micro-influencers over more expensive macro-influencers or celebrities is increasing, with platforms like TikTok leading in popularity for influencer marketing, used by 69% of brands.
According to recent studies, a significant portion of social media users, including 21% across all age groups and 32% among Gen Z, have made a purchase based on an influencer's recommendation within the past three months. This trend underscores the growing importance of influencers in shaping consumer preferences and purchasing decisions and brands are increasingly investing in this lucrative marketing strategy. @ BMW has also successfully used influencer marketing to reach younger demographics. They launched a TikTok campaign, #THE1challenge, which involved famous TikTokers and participants were encouraged to create dance videos featuring the BMW 1 series cars. This campaign resulted in over one million likes and 7 million views, demonstrating the effectiveness of creative and platform-specific content in engaging with a younger audience.
This commerce not only includes influencers in marketing campaigns but integrates them into the product development process. For instance, Sephora often collaborates with beauty influencers to co-create makeup lines, which not only ensures authenticity but also magnifies reach and engagement.
Also, Instagram continues to dominate as the influencer platform of choice, anticipated to maintain its lead into 2025. Here, beauty, fashion, and lifestyle sectors thrive, with nearly 60% of companies in these industries employing influencer marketing to drive sales. The success stories are compelling, with top agencies reporting an ROI of up to $18 for every dollar spent.
The dependency of shoppers on influencers is more pronounced than ever. In the era of creator commerce, brands are urged to integrate influencers as core members of their community, providing authentic product endorsements that resonate deeply with consumers. The result? A seamless journey from discovery to purchase, all within the familiar confines of users' favourite social networks. This personalized approach ensures that every swipe-up is not just a transaction, but a step into a lifestyle that each follower aspires to attain.
Contactless Payment Solutions
We have all been experiencing the ease of contactless payments. This year, major brands like Apple, Google, and Samsung are at the forefront, transforming how consumers interact with point-of-sale systems through advanced mobile wallets and contactless cards. Apple Pay and Google Wallet now offer enhanced security features, making them not only the quickest but also the safest methods for transactions. Meanwhile, Samsung Pay’s latest upgrade allows even offline payments, ensuring you’re never stranded without payment options.
Meanwhile, in India, platforms like Paytm and PhonePe are pushing the envelope further by integrating contactless payments even with street vendors and local shops, ensuring that the days of fumbling for cash are long gone.
Globally, retail giants like Walmart and Target are also capitalizing on this trend by integrating NFC (Near Field Communication) technology at their checkouts, dramatically reducing queue times, and improving customer satisfaction, indicating a shift towards digital-first consumer behaviour, making every transaction swift and secure.
Moreover, the adoption of multiple payment methods is on the rise. Approximately 64% of consumers use up to 2.4 methods annually, with 18% using as many as seven. This diversity in payment options is being driven by digital wallets, which are expected to surpass credit cards in ecommerce transaction value this year.
The Rise of Sustainable Choices
In 2024, the call for sustainability isn’t just a niche interest; it's a consumer mandate for purchase decisions. According to the Brand Xcel 2024 Conclave, 39% of millennials lead a lifestyle that is good for the environment. Similarly, the McKinsey & Co. survey revealed that two-thirds of shoppers, particularly millennials, prioritize sustainability when making purchases. This shift is reflected in the choices prominent brands are making, with giants like H&M, Patagonia, Adidas, and Ikea investing heavily in reuse-focused products, despite logistical challenges.
Ethical concerns continue to weigh heavily on the minds of shoppers. Reports of unfair labour practices or environmental neglect can break a brand’s reputation overnight.
However, as the Ernst & Young Future Consumer Index indicates, there's growing scepticism among consumers. About 31% of respondents stated they would shun brands not adhering to ethical or environmental standards, and another 24% would advise friends and family to do the same. This trend of "green fatigue" is palpable, with consumers increasingly wary of greenwashing, where claims of eco-friendliness are more about marketing than actual practice.
This vigilance is forcing companies to prove their commitment to sustainability. Investment in circular-economy products is projected to surge into billions, as noted by @Forrester Research. Know about Sanjeev Handa’s take on the 4Rs (Reselling, Repairing, Recommerce, and Renting) as emerging sustainable platforms.
The message is clear: authenticity is non-negotiable, and green is the new black. This trend not only reshapes brand strategies but also emphasizes the importance of concrete actions over mere promotional rhetoric.
The Need for Speed with Quick Commerce
This scenario of quick deliveries is no longer futuristic but the reality of today. Quick commerce, especially in dense urban areas, is spearheaded by companies like Blinkit, Zepto in India, Gorillas in Germany, and Getir in Turkey, ensuring that consumers can receive products almost as soon as they hit the 'order' button, highlighting a global shift towards immediate gratification in shopping experiences, making them instant, effortless and ubiquitous. This ultra-fast delivery is powered by sophisticated algorithms and local warehousing, reducing delivery times dramatically.
E-commerce giants like Amazon and Flipkart are also capitalising on this trend by expanding their services same-day deliveries, investing heavily in AI and machine learning to predict buying patterns and optimize delivery routes.
As mentioned in the Brand Xcel 2024 Report, quick commerce is essential for managing large volumes of products and transactions during peak periods. It has been quick to identify India’s love for festivals and diverse food and is tweaking offerings daily to meet the needs of every regional celebration. Several marketers are serving hyperlocal festive ads but have not yet figured out ways of monetising this interest.
The cornerstone of this retail evolution is the emphasis on last-mile delivery convenience. Innovative solutions such as drone deliveries and autonomous vehicles are on the rise, with Amazon testing drones in several markets, aiming to make delivery even faster and more efficient. In India, startups like Dunzo are experimenting with drones for deliveries in select zones, pushing the boundaries of what's possible in last-mile logistics.
As we move through 2024, these trends highlight a significant shift in consumer behaviour—patience for delivery has diminished, and the expectation for speed and convenience has skyrocketed.
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