Zero consumer behaviour, eCommerce growth, social media impact and tech advancements will dominate 2024 retail trends, according to bew predictions from Deposco Europe.
Will Lovatt, General Manager and Vice President at Deposco Europe, has recently detailed his predictions for the eCommerce and retail industry for the year 2024. Lovatt outlines critical factors, including a shift in consumer behaviour, growth in ecommerce, the impact of social media, and crucial advancements in technology. These elements are anticipated to shape the retail and ecommerce domains in the year ahead.
Increasingly, consumers are demonstrating a behaviour of consistent budgeting and splurging on higher-priced items, a trend Lovatt refers to as the rise of the 'zero consumer'. He believes these consumers show virtually no loyalty to brands and usually opt for companies providing the best value, quality, diversity, and purpose. According to Lovatt, "to compete for business on either end of the scale, cost containment will be a top priority" in 2024. Algorithm-aided systems will enable businesses to understand consumer preferences and offer tailored experiences and flexible purchasing options efficiently.
Lovatt expects ecommerce growth to surpass its previous high during the COVID-19 pandemic. "Forecasts show that ecommerce sales will make up close to a quarter of total global retail sales by 2027," Lovatt states. Modern businesses will require agility to adapt to this growth, and those unable to plan or settle on a flexible approach could struggle amid the explosive expansion of ecommerce. Lovatt suggests using real-time reporting and exception management to handle ongoing supply chain challenges and rapidly changing consumer preferences.
The relevance of social media in the retail and ecommerce sector is another point Lovatt brings attention to. After a 43% surge in social media shopping during the pandemic, businesses' strategies must acknowledge their consumers' location change. 2024 poses the challenge of brand loyalty in sustaining 'social shopping', combining online culture and ecommerce, requiring innovative marketing and delivery strategies. "Businesses need to adapt and experiment with fresh approaches to connect with their audience" Lovatt asserts. He advises businesses to present authentically tailored innovations that cater to their customers' needs and preferences.
Furthermore, Lovatt emphasises that technology will play a vital role in navigating 2024's multifaceted challenges. Strategic investments in flexible, cloud-based fulfilment systems are crucial to facilitate dynamic decision-making and enhance customer engagement levels. Businesses that embrace this transformative approach, leveraging technology, and prioritising consumer needs will thrive in the evolving retail and ecommerce landscape of 2024, Lovatt predicts.