As consumer behaviors continue to shift toward ecommerce, retailers will need to change strategies to focus on how to meet consumer needs digitally.
“As of 2022, we expect that 60% of the population will be connected. That equates to 4.7 billion internet users. Now while that connectivity has been a necessity for many consumers for years, it’s the ongoing pandemic that has really underscored its role in society,” Michelle Evans, global lead, retail and digital consumer, Euromonitor International explained.
During Top 5 digital consumer trends in 2022, Evans, alongside Maxim Hofer and Bob Hoyler, consultants at Euromonitor International, shared the top five tech-driven trends most likely to redefine commerce in 2022.
1. Predictive personalization
The concept of brand loyalty is now in flux. In the early days of the COVID-19 pandemic, supply shortages forced consumers to buy what was available, rather than a preferred brand or even cut of poultry.
Savvy shoppers now seek greater value out of what they buy and they’re willing to look at options online to find what they need.
“Fortunately, there is now more data and types of data that ever that retailers, brands and hospitality operators can use to not only get more personal, but also more predictive,” said Evans.
“The object is now to bring the consumer into the fold to get them interested in subscription services, membership or just simply one-stop ecosystems to build loyalty with the consumer.”
In 2022, expect that savvy consumers will want more from their interactions with brands. As a result, companies must shift from reactive to predictive customer strategies to make brand loyalty an important tool to gather customer data and to further customer retention efforts.
2. Delivery in minutes
As consumers become more comfortable with ecommerce, expectations around online shopping and delivery are changing rapidly. This particularly applies to food and beverage, which saw significant ecommerce growth during the pandemic.
“Going forward, reducing delivery times for certain product categories, especially food and beverage, will be key to continued ecommerce growth,” Hoyler said, noting that 42% of global digital consumers said that longer than expected waits are a delivery challenge in a recent Euromonitor survey.
An ultra-fast grocery delivery model is now disrupting traditional delivery approaches. These models operate their own distribution centers or dark stores, promising that consumers can receive the foods, beverages and goods they ordered as quickly as ten minutes after ordering.
In 2022, Hoyler predicts that legacy retailers will look to create ultrafast delivery infrastructures of their own, opening dark stores of their own.
3. Green ecommerce
In addition, consumers now have greater expectations about the environmental impact of the goods and services they purchase online. Not only are consumers concerned about the sustainability of packaging waste, but they also worry about the carbon impacts of delivery services and product returns.
“To benefit from the rise in ecommerce, companies will need to embrace more sustainable business models,” Hofer explained. “In this context, 2022 will be critical because the early movers are likely to have a comparative advantage.”
To combat these consumer concerns, expect to see greater investments in electric vehicles and other green delivery options, as well as new developments in sustainable product packaging.
4. Pickup perks
Although home delivery offers convenience, consumers are increasingly turning to click-and-collect, curbside pickup and contactless pickup lockers as their preferred omnichannel method.
“Click-and-collect offers the convenience of online ordering with the immediacy and the instant gratification of picking up an item from a physical outlet, a benefit that even the best delivery services can’t really replicate,” Hoyler said.
Click-and-collect also helps legacy retailers. It requires a low operating cost compared to delivery and be easily developed in house without the services of a third-party service provider.
These cost savings can be used to incentivize more consumers to use click-and-collect. For example, offering a discount only for online orders picked up in store.
5. Into the metaverse shop
Advancements in virtual technology could take online shopping to the next level, recreating activities and interactions most often associated with the physical world.
Typically, artificial and virtual reality is associated with previewing a holiday destination or visualizing how clothes fit. But what if virtual technology could allow consumers to interact with a virtual butcher who could recommend poultry or meat cuts for consumers?
“Given that the metaverse combines several emerging technologies such as social media and gaming, consumer interest in the metaverse will likely overlap with existing use in these two areas,” Evans said.
