Published: Jun 04, 2022
top 6 trends influencing the retail market today
In 2022, the ecommerce and retail industry are reimagining the shopping experience for its customer. Giving retail organisations an opportunity to not only redefine the customer experience, but to identify and utilise new technology in the market to wow potential customers at every stage of their journey.
We have identified 6 key trends influencing the retail market to ensure retailers are up to date and can lead their businesses to thrive.
Trend 1: Retailers are investing in AR/VR technology for retail showcasing
Worldwide spending on augmented reality and virtual reality (AR/VR) is forecasted to accelerate, growing from $12+ billion in 2022 to $72.8 billion in 2024 (1). AR/VR retail showcasing allows the potential customer to “try” the product prior to purchase. By integrating AR or VR into your strategy, you can help customers further ensure that a product is right for them.
Trend 2: Retailers set to further increase omnichannel engagement in competitive landscape
Retailers in recent years have begun to heavily invest in technology such as QR codes, VR/AR, geofencing and AI chatbots. 59% of shoppers expect QR codes to be part of their regular shopping experience (2). Three in four consumers say they will pay more for a product if the retailer provides total transparency via AR (3). Brands are now doubling down on “phygital” (physical+digital) channels, to improve engagement with consumers rather than isolating them on just digital.
Trend 3: Is your in-store experience worth posting about?
Enhancing your in-store experience using digital screens, smart fitting rooms, and AR/VR technology can fundamentally improve your customer experience. 78% of retailers have rolled out interactive digital screens and kiosks in the last 5 years (4). These can not only can be utilised to provide customers with product information and store navigation but can empower staff to provide better service. 31% of retailers are likely to roll out smart fitting rooms by 2025 (4) – late adopters will miss out behind competitors.
Trend 4: Consumers using voice assistants to make purchases
According to CMO Australia, one in four Australians own a smart speaker. Smart speakers have to date been used less for interacting with brands and purchasing products making voice commerce an emerging channel. Retailers could retarget via voice commerce to increase the Lifetime Value by enabling a quick voice command to make repeat orders. 53% of Australians ask smart speakers questions, providing an opportunity for retailers to focus on product education material and FAQs (frequently asked questions) (5).
Trend 5: Be where your customers are via social media
Social platforms now allow advertising to convert sales in one place. Social commerce sales are estimated to reach $958 billion in 2022 and are expected to contribute to 17% of all ecommerce spending by 2025(6). Market maturity for social commerce is stabilising, as Millennials monthly spend is nearly equalling Gen Z on social commerce, even though they were the early adopters. Further supporting that social commerce is no longer a high-risk developing market, allowing retailers to invest confidently into their social media strategy.
Trend 6: New norm of experts are “normal people”
Influencer marketing is aimed to bring new products to the attention of consumers. Traditional forms of brand awareness via celebrity endorsements are less influential with the power of social media. 9% of purchasers are direct results of social media influencers, 5% by celebrity influencers and 4% by local influencers (7). Influencers can have large followings and their voices can impact brand value quickly. Impact is based on Trust vs Following ratio - consumers have more trust in local experts that are “like them” vs out of touch celebrities.
Do you want to know our recommendations on how retailers can use these trends? Download our free Industry Report here.
References.
(2). The Future of Retail Report: Trends for 2022 (shopify.com)
(3). ITONICS_Tech Report_Retail.pdf (hubspotusercontent30.net)
(4). 5 digital kiosk display ideas for retailers to boost sales | AirDroid Blog
(5). Report: Smart speaker, voice assistant proliferation and use revealed - CMO Australia
(6).The State of Influencer Marketing 2022: Benchmark Report (influencermarketinghub.com)
(7). https://retaildoctor.com.au/rdg-white-paper/consumer-and-retailer-sentiment-q3-2021/