Retail Trends for 2024

In the ever-changing dance of commerce, retail remains the grand stage where trends pirouette into traditions. As we usher in a new year, the retail landscape stands on the cusp of transformative changes driven by technological advancements, shifting consumer behaviors, and evolving market dynamics. Even as we look forward to these changes, one has to make sure what's the core of retail, so that the trends are wisely capitalised. To paraphrase the wise words of retail pioneer Sam Walton, 'There is only one boss—the customer. Embrace the trends that captivate, for they hold the secret to unlocking success.'

As we navigate through the challenges and opportunities that lie ahead, it becomes imperative to explore and understand the emerging trends that are set to shape the retail industry in the coming year. In this article, we delve into the key retail trends that are set to define and redefine the shopping experience in the 2024.

1. GenAI becoming mainstream - In retail, the value of generative AI has already begun to show. Organizations are leveraging generative AI to enable and enhance use cases in various domains — and, in doing so, reshaping experiences.

People want to feel seen and understood by brands and GenAI can be leveraged by retailers to create customized, seamless shopping experiences that boost customer loyalty. From creating engaging content to optimize inventory management, pricing, and promotions; by leveraging customer data, feedback, and preferences to generate personalized rewards, offers, and experiences - the possibilities are only limited by the imagination of its users. Hyper-personalisation, Conversational AI, Image generation and Image searches are going to be the rules of the game.

We’re only at the start of the generative AI revolution. And we’ve only had a very early taste of the impact on retail, so far. But the pace at which the technology is advancing, retailers need to keep an eye on this space, to make the best utilisation of tech.

2. Aggregation of Reviews - There's no denying that Reviews and Ratings and customer feedback is important. A large number of bad reviews or the lack of consumer reviews can negatively impact your digital shelf rankings and can hinder your chances of appearing on the first page of search results.

Now with customers being on social platforms all the time and posting feedback across different platform - the requirement of agreegation of feedback is also becoming importance.

Today, there are so many places where people leave product / service reviews ranging from google to quora to Facebook and yelp etc. Can there be a powerful aggregator which can combine these and give a recommendation score.

I am waiting and keenly looking forward to a reliable aggregator service like that.

3. Sustainability - More than a Buzzword : Customers are becoming more and more conscientious about their ecological footprint and the conscious consumerism is going to be the way forward. Brands are starting to show some commitment through sustainable packing, responsibly sourced materials or promoting reuse of products.

At the same time, are the consumer ready to share a part of the additional costs of retailers. Well, people have good intentions but as prices rise, sustainability is also becoming more of a luxury and consumers are willing to only make eco-friendly choices if they can afford to.

Caught in this dichotomy, the least that the brands should do is to stay clear of 'greenwashing' and start adopting Re-commerce strategies. The basics of recommerce are - Renewable Energy usage, Reduce waste and promote Reuse (exchange, re-wear).

4. Retail is all about Experience now - While all the Retail sale courses / trainings talk and train on FABbing as the basics of sales, a funny reality about the retailing is that the costlier the product, the more the selling shifts from F(eatures), A(ttributes), B(enefits) and rather move to the 'experience' of buying and using the product. For retailers to be successful in 2024 and going forward, one has to invest on creating a memorable experience, going beyond the transaction. It can range from hosting exclusive events, providing VIP access to limited edition pieces / first view of new collections or to integrate gamification in the retail store, leveraging digital technologies viz. AR (Augmented reality), VR (Virtual reality), AI (Artificial Intelligence) enabled personalisation, Virtual showrooms etc., irrespective of being in physical or online retail space.

What is also important is that this memorable experience needs to be ubiquitous across the touchpoints and should be equally fun, while returning / exchanging.

5. Personalised Customer Experience - There is no better sense of elation for a customer when a brand is able to customise their products and offer Made to Order / Bespoke products / Make customised offer, crafted only for a specific customer. The true connoisseurs still believe in the bespoke, custom made products.

With advent of AI and ML, personalisation can take new heights starting from custom offers to creating dedicated virtual stores, based on the customer's data analysed.

6. Blockchain Authentication - Arguably one of the fastest growing trends in digital innovation since the internet, blockchains are essentially databases. For retailers, especially the ones which are having a global presence, across national boundries, blockchain presents a superior way of securing, organizing and sharing data. Blockchain can provide a “proof of origin”.? Using blockchain an item’s life cycle can be tracked along the entire supply chain and protect customers and retailer from fakes.?

A blockchain based loyalty program provides transparency and security, with points stored and tracked on a decentralized database.?Additionally, because of the secure system, retail partners can create a loyalty program that extends across multiple brands—where points can circulate freely between options and retailers can create bundled options that appeal to specific demographics.?

7. Seamless, Integrated omni channel retail - Various GenZ surveys have clearly indicated that while shopping in store, they want to be left alone and would rather want to interact with the products themselves (and therefore the need for interactive displays, information, stories). Checkouts, whether online or physical, has to be super smooth and fast. Amazon's physical stores are already making it Walk-out, instead of Check-out.and most importantly, the returns / exchange process need to be pain-free. Can that be made fun, as well - I, for one, would definitely be looking out for that piece. Free shipping, loyalty points, same day delivery are the hygiene expectations by consumers now.

More and more D2C brands are setting up Physical retail stores, for the touch and feel experience of products. The trend is likely to continue with pop up stores. Not only does in-person shopping give customers a chance to touch, feel, and try on your products; it also creates a sense of community.

The seamlessness of Omni-channel retail is experienced through features like BOPIS (buy online, pickup in store), BISSTH (Buy in store, ship to home), BORIS (Buy Online, Return in Store). In addition, the retail store associates are also learning to become virtual sellers. Appointment selling is another emerging trend in high value goods. Showrooming (visit showroom, before buying online) phenomenon requires the brands to make sure to deliver a great in-store experience.

In 2024, Companies must become truly omnichannel in their communication strategies and integrate consumer and shopper marketing efforts effectively.

8. Story led selling via Live-streaming - No-one out there doing surfing on social media is looking for something to buy- they are out there to discover something new, some inspiration, some experience to boast about. Can you provide that inspiration is the question. This is where social commerce or influencer economy comes into play. Brands need to make it feel natural and with easy few steps check out. Brands are also now using target customer group based culturally relevant content. Brands are also making customers be part of the brand's community. In USA, Purpose Jewelry’s #SparkofHope email campaign included direct quotes from its artisans, displaying the community behind the brand. This leveraged an understanding that Omnichannel technology can also be a medium to overcome / antidote to isolation and customer disconnect.

The next level coming up in influencer campaigns is livestream shopping, which is when a host (retailer / influencer) demonstrates a product in a live online video either through a social media platform, direct video call with a customer, or another avenue. Followers can watch, comment, interact and make purchases then and there. For consumer brands, this creates opportunities for a much more interactive, entertaining, and experiential journey. Gone are the days of brands leading customers from social pages to website and then expect them to choose a product online and then wait. Its an instant gratification or impulse buying world and the live-streaming creates a personal touch to the brand. as per market data, A two-hour live shopping event on TikTok can bring in more than a week’s worth of sales at a flagship store. By 2025, the social commerce sales in US alone, is expected to swell to nearly $80 billion, or 5 percent of total US e-commerce even as globally it is stipulated to grow to more than $2 trillion by 2025.

Key takeaways

Looking at these top retail trends, the future of shopping points in one direction: Frictionless retail, across channels of physical and digital, with help of technology. Ultimately, it’s about listening to what consumers want and offering that to them - with simplicity, speed, and flexibility.

The trends forecasted for the coming year reflect an industry embracing innovation, adaptability, and a heightened focus on customer experience. From the integration of cutting-edge technologies to the resurgence of sustainable practices, retailers are gearing up to meet the evolving needs and expectations of consumers. It's clear that the future of retail lies in the hands of those who can seamlessly blend the best of tradition with the innovations of tomorrow. The stage is set for an exciting year ahead, where creativity, resilience, and a customer-centric approach will be the guiding principles shaping the retail landscape in 2024.