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Retail Business Review | Thursday, November 03, 2022
The more time customers spend on social media, the more essential it becomes that retailers embrace a social commerce strategy.
FREMONT, CA: Here are top retail trends to look at, from novel technologies to varying consumer attitudes.
1. Social commerce
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Social commerce — selling products over social media channels — will be an obvious retail trend. After a three-year plateau, the average everyday social media usage of internet users globally rose again in 2022, rising from 145 to 147 minutes per day.
The more time customers spend on social media, the more essential it becomes that retailers embrace a social commerce strategy. Brands that don't have one are expected to struggle with their competitors — fast.
The benefits of social commerce are clear. Initially, it shortens customer journeys, as consumers can finish purchases directly on the platform without being commanded to an online store. Next, the rise of micro-influencers means that consumers can readily find products relevant to their style and interests.
To get the most success with social commerce, brands should avoid "sales" ads. Rather, they should include user-generated content in their campaigns and generate ads that closely resemble organic content. Thus, promotions actively improve the social media experience other than posing an annoying distraction.
2. AI/ML focus
It has been a trend for years; readers are likely bored seeing AI/ML entered as a top retail trend.
Building successful AI applications takes time, and companies only realize small pockets of potential value.
Retailers need to implement an enterprise AI program to maximize potential revenue from ML-driven personalization campaigns.
3. Augmented reality (AR)
Since the global pandemic, retailers have started for new ways to substitute in-store shopping with captivating online experiences. Cue the climb of AR: with 3D visualizations, product demonstrations, and virtual try-one, consumers can try items without leaving home.
However, AR is more than a quick-fix solution to make up for lost foot traffic. Consumers are also less likely to profit from items, as AR gives shoppers a better concept of the product and how it is appropriate/suits them.
The more ordinary AR becomes, the more digital quality will perform a decisive role in the brands customers choose.
4. Direct-to-Consumer (DTC)
With a DTC channel, companies can market their products or services straight to consumers, eradicating the need for intermediaries like third-party distributors.
In its early days, DTC became a democratic form of commerce. Other than compelling wholesalers to incorporate their products into their assortment, small brands and startups could market to consumers through their ecommerce websites. The clear benefits were higher speed to market, more advantageous prices, and higher margins.
Thanks to the increasing consumer switch toward digital, DTC channels are just as useful for major global brands as smaller players, as DTC has turned less toward direct sales and more toward marketing. Brand messaging becomes harder to maintain as a company grows, as brands consistently command over the customer experience of third-party distributors' product descriptions, delivery deadlines, etc., of third-party distr brand's single spot of truth.
5. Visual search
Instead of typewriting searches into a search engine, customers can take photos alternatively. Previously, image search functionality was very basic, and its use cases were minimal. For example, if a consumer had observed an item online or elsewhere but couldn't seek or remember what it was called, a visual search gave them a way to find it.
Today, technology is more sophisticated. For example, due to advancements in AI, retailers can examine images taken for visual search queries and recommend similar or complementary items. Users can also utilize images to search for results that are difficult to capture in words, like outfits that mirror a specific style or pattern.
6. Voice commerce
Buying through voice commerce is the quickest way to shop. If a voice associate already has a consumer's details, the consumer needs only make the command and confirm it and the voice assistant deals with the rest. Most items bought are small items that consumers can buy without seeing them physically. More use cases will likely appear as voice heads towards mass adoption.
7. Sustainability
A key retail trend is sustainability. Especially for youthful consumers, "luxury" is less regarding premium materials and more regarding materials that have been created responsibly. As a result, more than one-third of global consumers are already prepared to spend more money on sustainable items.
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