The new year is just around the corner, and along with it comes a series of tech-oriented, AI-powered retail trends that are going to disrupt the retail market. Brands will now need to tailor their marketing and pricing strategies for every generation. According to a study, Gen-Z comprises of 70% of the Global Population. Their total spending power is $360 billion, while millennials are at a whopping $2.5 trillion.
Consumers today have become hyper-aware, environment conscious and accustomed to receiving social e-commerce prompts based on their buying behavior. They heavily rely on technology for their purchasing needs and engage in Omni-channel purchasing that offer competitive pricing. Shoppers expect brands to predict their shopping necessities before they can, and this can only be done with the help of AI-powered automated pricing solutions.
As per Forbes, brands need to be more authentic, relevant, bold and human. Buyers are pushing the bar for their shopping needs, and they are vocal about their purchasing requirements. Since the retail landscape is changing swiftly, brands need to plug in the latest retail movements into their new years’ strategy.
So let’s dive deep into understanding the top 10 retail trends for 2023!
1. Immersive Shopping Experience with AR & VR.
The metaverse massively influences the shopping habits of consumers. More and more brands are introducing the immersive retail experience to their customers with the goal of building customer loyalty and aiming for revenue maximization. As per a report by Morgan Stanley, the Augmented Reality and Virtual Reality market are projected to grow to $72.8 billion by the year 2024.
Gucci, Timberland, ASOS & Lacoste are just some of the brands that are seamlessly merging a customer’s shopping experience with virtual reality. Burberry partnered with Google to create an in-store shopping experience where customers were able to see the 3D versions of their products. Gucci took it a step ahead by partnering with snapchat and allowing their customers to try on shoes through the social media app. ASOS’ See My Fit campaign provided an AR tool to customers that enabled them to see how outfits looked on 16 models ranging from the size of four to 18.
2. AI-powered Chatbots
AI-powered intelligent chatbots enhance a customer’s experience by providing accurate options for their shopping needs. They build customer loyalty and provide a seamless shopping experience, thus improving customer service.
Reports suggest that by 2025, the AI-powered chatbot market will have a total valuation of $102 billion, making it one of the most sought-after technological tools in the retail sector. These bots are designed to help customers find what they want, upgrade the quality of customer service and assist with speedy checkouts. Customers can also find nearby stores and track their orders. The best example is Staples, which allowed customers to place an order through their Facebook Messenger, which was plugged in with IBM Watson’s chatbots.
3. Automated AI-Powered Retail Optimization tools
Automated AI-powered optimization tools are engineered to extract retail consumer insights that will enable brands to optimize their digital shelves for profit maximization. They also offer competitor intelligence and prompt, near-accurate price optimization strategies that tell retailers when they should increase or decrease their prices.
BRIO – an AI-powered automation tool for retail brands, has been powering price optimizations for $8.12 million across the retail sector. It scans thousands and thousands of SKUs from retailers and their competitors’ websites. It pulls out historical data that can be analyzed and used to plan revenue-generating sales strategies. These tools have simple, user-friendly features that allow retailers to save time by automating the pricing process. AI-powered automation tools are changing the face of online retail and enabling retailers to scale their business with a press of a few buttons.
4. Mobile Shopping
By 2024, around 187.5 million people would’ve made a minimum of one purchase from mobile devices. When it comes to online shopping, consumers prefer convenience and speed. According to Shopify, by 2023, 8% of retail purchases will be done through mobile shopping.
It is not only a boon for the shopper but an effective way for retailers to capture the market. With the help of m-commerce, brands can target a larger audience in one go, enhance user experience and offer a wide variety of payment options.
The number of mobile users grew to a whopping 49.89% between 2017-2022 and is expected to grow even more. This is why brands need to focus on optimizing their retail m-commerce strategies that improve sales and enrich a customer’s shopping experience. With 6.648 billion smartphone users worldwide, the m-commerce market is projected to grow at an exponential rate. Automated AI solutions are a great way to acquire accurate customer insight regarding their shoppers’ mobile purchase behavior.
5. Omni Channel Buying
Customers today possess hyper-vigilant shopping tendencies, due to which they compare prices of all the products on multiple channels. Such a type of shopping behavior is called Omnichannel buying. And the main reason why consumers take the trouble of browsing through different channels is competitive pricing. They are looking for the best price and will go for the e-commerce store that gives them the lowest price. Sometimes the cost difference between competitive brands can be just $1. This is why it is important for retailers to place their products on multiple digital shelves and provide the right price.
Competitive pricing is vital when it comes to driving sales in the e-commerce world. The ideal way to tackle these obstacles is by using an automated AI-pricing tool designed specifically for the retail industry.
6. Social E-commerce
Unlike millennials, who still use Google for online shopping, Gen-Z prefers social media platforms. Data suggests that the social commerce market will grow to $7.07 trillion by 2030, which means more and more shoppers will be choosing social media as their main medium for online shopping.
77% of shoppers will likely choose a brand that offers a great social media shopping experience. Consumers today prefer shopping through social media platforms that allow them to complete their entire buying journey, from product discovery to checkout. The algorithms of social media platforms understand a customer’s buying behavior and prompt the right products tailored to their needs. 97% consider social media to be their number one source of retail inspiration. This means retailers should focus their resources and efforts towards building their social e-commerce.
7. Multiple Payment Options
Shoppers prefer to buy from websites that offer a plethora of payment options. This tactic will help improve sales and sweeten the customer’s buying experience. Retailers can also target a larger demographic. Gen X prefers the banking method, while millennials and Gen Z prefer pay pal or other online payment methods. By adding a variety of payment options, retailers can decrease the percentage of cart abandonment and improve conversion rates.
Payment options smoothen the checkout process and ensure a pleasant shopping experience. This is why retailers need to plug in as many payment options as possible and give shoppers the option to choose one that suits them best.
Technology, Artificial Intelligence and Retail are being fused to create an immersive shopping experience for customers! Some are orchestrating virtual shopping experiences, while others are incorporating intelligent chatbots that simplify the buying process. If you are looking to improve your digital sales with the help of AI-powered automated retail optimization tools, then book a free demo with us or email our pricing consultants at email@example.com.