Mood Retail, Visual Search, Zero Consumers & More Retail Tech News
Technology is changing our world at breakneck speed, and smartphones, which we use on average for about five hours a day, are a major part of this ongoing revolution. These hand-held devices have become indispensable in our daily lives. We use them to connect with loved ones, stay updated on global events, entertain ourselves, pay bills, and – of course – shop.
It's no wonder mobile retail is a hot topic for companies aiming to stay competitive. Statista projects m-commerce sales will soar to an impressive $856 billion by 2027, underscoring a major shift in consumer behavior.
With this in mind, market tycoons closely monitor emerging tech and bring it to life. They constantly seek new ways to enhance CX, boost sales, and dazzle consumers with digital solutions that are so useful and functional that they leave a lasting impression, turning one-time shoppers into loyal, repeat customers.
So, how do you win over today’s buyers, known as zero-consumers, who are impatient, fickle, and intolerant of mediocrity? Spoiler alert – leveraging mobile retail trends can certainly help. Let’s dive into what’s trending in mobile retail, shall we?
Tomasz Wozniak , CEO at Future Mind and Anders Hedfalk , Industry Expert and Retail Domain Lead at Solita
Contents
In today's edition, among other things:
Need to know
Why mobile retail is on the rise
Fifteen years ago, smartphones revolutionized the way we interact with the web. Their large screens and touch-based interfaces transformed mobile web browsing from a frustrating experience into a convenient alternative to laptops. Within less than a decade, mobile devices outpaced computers in popularity.
Between 2009 and 2016, the number of smartphones sold worldwide experienced its most dynamic growth. During this time, mobile devices transformed from a niche technology into an essential tool for everyday life. In 2009, mobile web browsing accounted for just 1.28% of internet usage. By the second half of 2016, mobile and desktop market shares converged, marking the rise of mobile as an indispensable channel for businesses.
In early 2024, the number of unique mobile phone users reached 5.61 billion. As of June 2024, about 60% of people worldwide rely on mobile devices to access the internet. In dynamic markets like Asia, this figure climbs to 70%, and in Africa, it exceeds 75%. The convenience, intuitiveness, and efficiency of mobile apps and websites make them indispensable for 88% of today’s online shoppers.
In the Nordic region, about 70% of e-commerce consumers shop online using mobile devices. The industry's value surpassed $40 billion in 2023 and is projected to reach nearly $56 billion by 2027.
By 2025, 72.6% of internet users are expected to exclusively access websites through mobile devices. In this ever-evolving landscape, mobile apps are a key way to improve results and boost customer lifetime value, provided organizations follow the right strategies and trends. With that in mind, let's move on to our next section.
One to rule them all: By 2027, it’s predicted that half of the world's population will be using super apps daily. These all-in-one solutions are reshaping consumer expectations by seamlessly integrating various services within a single app. For retailers, super apps offer a prime opportunity to deepen customer engagement and cultivate loyalty on an unprecedented scale.
In the know
What’s mood retail and why does it matter
The Customer Experience Index 2024 highlights that stores with captivating customer experiences see a 30% higher returning customer rate. Creating truly immersive experiences, however, requires tailoring them to the user's immediate context.
This is where mood retail comes in – it transforms shopping by crafting environments that evoke specific emotions. It’s about influencing consumer decisions by designing atmospheres, layouts, and experiences that spark excitement, calmness, nostalgia, or urgency, prompting more purchases.
This trend emphasizes engagement throughout the customer journey, especially at touchpoints where buyers seek deeper brand interaction:
“Merely having a mobile app isn’t enough anymore. Even if we manage to convince customers to install the app, the average retention rates for app users in the e-commerce and retail sector drop to 37% after 30 days, and a mere 18% after 90 days. This means that already during the initial stages of developing a mobile app strategy, it's crucial to plan and design features and mechanisms that will keep users engaged in the long run, thereby fostering their loyalty to the brand.” - Izabela Franke Head of Advisory, Future Mind
Why post-purchase experiences are just as important as pre-purchase ones
Did you know that in the global e-commerce app landscape, shopping apps dominate installations at 63.5%? Despite this, they capture only 34% of user sessions.
With 80% of customers emphasizing the importance of the experience a company provides, it's clear that post-purchase engagement is as crucial in retaining buyers as the pre-purchase one.
Leading the way, Dyson enriches its app with tips and instructions, deepening user engagement beyond transactions. The app also suggests additional items tailored to users' devices, enhancing the overall experience.
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Similarly, Blinkit, an Indian food delivery app, excels with its AI-powered Recipe Rover feature. It offers personalized recipe recommendations and lets users add ingredients to their cart, making the app a hub for culinary discovery and convenience.
Prioritizing post-purchase experiences helps brands build stronger customer relationships, encourage repeat business, and foster long-term loyalty by keeping users engaged.
How market tycoons leverage AI and visual search to win more buyers
It comes as no surprise that market leaders are already harnessing cutting-edge technologies like AI and visual search to enhance personalization, streamline shopping experiences, and cater to evolving consumer preferences.
Transforming product discovery with visual search: As many as 84% of China's online population uses visual search monthly. Considering that recommending visually similar products can boost sales conversions by 6%, visual search has the potential to revolutionize online shopping.
Elevating fashion experiences with AI: AI and VR are transforming fashion retail by providing highly personalized styling recommendations. Retailers use these technologies to enhance customer engagement and satisfaction, making shopping experiences more interactive and tailored to individual preferences.
How to attract buyers in the 8-second attention span era
2024 data reveals that the average attention span has plummeted to just 8 seconds. In an era where information is abundant and attention is fleeting, capturing the interest of potential buyers requires a strategic blend of brevity and visual appeal.
With 41% of consumers, including a staggering 64% of Gen Zs, using platforms like TikTok as their go-to search engines, it's clear that social media is not just for socializing – it's a crucial tool for discovery and decision-making. So, how are market tycoons responding to this shift?
Revolut sets itself apart by using Instagram-like visuals to streamline user onboarding. By incorporating elements familiar from popular social media platforms, the brand makes app navigation intuitive and enjoyable for users.
On the other hand, IKEA effectively merges visual storytelling with the shopping experience through its hot spot feature. This tool allows users to transition seamlessly from immersive visual narratives to real-life shopping interactions, making the overall experience both engaging and efficient. Implementing features like these is crucial in a world where 25% of users struggle to maintain interest in a 1-minute video.
What’s the zero consumer revolution all about
via: McKinsey
As shopping behaviors and spending habits evolve, retailers must adapt to meet today's consumer needs. McKinsey identified the ongoing shift in buyer behavior as the zero consumer concept, highlighting several key characteristics that distinguish modern shoppers.
Zero consumers expect seamless and consistent experiences across both physical and digital retail channels. They favor occasional indulgences over mid-range products, prioritize value, quality, and purpose over brand loyalty, and readily explore new products and brands. They demand quick communication and prefer sustainable yet affordable products. This shift, amplified by the COVID-19 pandemic when stock shortages led many to abandon favorite brands for available ones, has persisted.
Traditional business models have shifted significantly, leading brands to embrace a 'one-with-one' marketing approach. The Share of Life concept introduces a fresh set of imperatives for navigating this transformative moment. To stay competitive, brands should integrate their products into consumers' daily lives by expanding functionalities and channels. The goal is to become an indispensable part of buyers' everyday routines, fostering lasting, positive relationships rather than short-lived interactions.
More insights & trends