Five years on from what proved to be a fundamental transformation of the e-commerce landscape, consumer habits continue to evolve. This year, consumers increasingly embraced new technologies in their purchasing path, while at the same time trying to save because of the political and economic uncertainty they were facing. This also impacted businesses, which were working on improving their omnichannel strategy, aiming to offer affordable and appealing eco-friendly solutions, and prioritizing cyber security above all.
1. Immersive Virtual Shopping Experiences
The dramatic increase in public interest over the past few years in augmented reality (AR) and virtual reality (VR) led to the widespread adoption of these technologies in businesses in 2023. Brands such as BMW Group, Maison Valentino, and IKEA partnered with technological giants like Meta, Google, and Qualcomm to improve shopping experiences and pre-sales solutions. Virtual and augmented reality allowed sellers to provide an even higher level of personalization. For example, by enabling consumers to see how a potential purchase would fit in their space, brands minimized perceived risk and also reduced operational costs associated with potential returns.
2. Non-gaming Brands Enter Streaming
The boom in omnichannel began to fade in 2023. It was replaced by a more targeted approach aimed at meeting Generation Z representatives online. Hoping to evoke emotions and inspire customers to make new discoveries and experiences, brands like H&M and Shopify partnered with online game producers and streaming platforms. The objective was to directly involve shoppers in the brand experience, and to reinforce a sense of joy, thereby stimulating purchasing actions.
3. Affordable Ecology
Although sustainable development continues to significantly affect consumer behavior, we are increasingly seeing a decline in sustainable consumption. Therefore, brands have been trying to bridge this gap, promoting being eco-friendly and offering ecological alternatives at accessible prices. For instance, the boutique hotel chain The Hoxton introduced rewards for guests choosing sustainable travel. Meanwhile, the company FutureCard offered a partial cashback to those who used their cards to purchase low-emission goods and services. Furthermore, Carrefour became the first French retail chain to be awarded the national title of a “brand committed to minimizing food waste” for its actions promoting sustainable development, including the sale of perishable products at significantly reduced prices.
4. Repair Instead of Replacement
Belt-tightening consumers drove a worldwide trend of repair and reuse. Brands like Nokia, Nike, and Zara joined this movement by creating tools and services that help extend the life of their products. These solutions included the use of innovative technologies, such as 3D scanning, but most often they fed into the increasingly popular DIY (“do it yourself”) movement, where customers can repair products themselves. From a company’s point of view, such actions help build customer loyalty to the brand.
5. Security First
In 2023 alone, losses in global e-commerce due to online payment fraud were estimated at $48 billion. As a result, companies have been constantly looking for innovative ways to ensure security and boost customer trust during the shopping process. The continuous development of digital tools and big data makes sellers more vulnerable to potential attacks. For this reason, they increasingly turned to trusted financial service providers, like PayPal, to implement smart solutions that help protect customers’ financial data, payments, and purchases. Security tools like biometric logins, access keys, encryption, as well as machine learning and smart devices have become more common, thus enhancing the security of shopping.
In summary, in 2023, consumers have not only become more eco-conscious but have also been paying more attention to prices and security while shopping. Retailers that met these expectations, while designing the shopping path and putting the customer and their needs first, could outpace the competition and increase loyalty towards their own brand.
[1] Source: Business Without Borders: Navigating Modern Payment Trends and Consumer Behaviors.
