Why are the top retail trends essential to know? Retail e-commerce sales are projected to reach $8.1 trillion by 2026, growing 56% since 2021. Businesses must remain ahead of competitors by keeping ahead of retail trends and changes in the retail industry, which are shaped by consumer behaviours. Technological advancements, social media influence, greater access to payment technologies and consequential changes in consumer demands and behaviours have fueled the growth of the retail industry. With an ageing and increasing population, the pool of consumers is wider than ever, and it was marked in January 2024 that 66.2% of the global population are now internet users. And of these, 62.3% are social media users. Evolvements in the retail industry have proven that customer loyalty and consumer engagement are paramount to benchmarking success and staying ahead of the rapid transformation in e-commerce. In recent years, businesses have leveraged trending technologies such as augmented reality and chatbots to boost customer engagement, maximise purchasing, and improve the customer journey for brand loyalty.
The growth of e-commerce is propelled by a confluence of factors that collectively reshape the retail industry. By the end of 2024, the global online retail revenue is expected to reach $8.1 trillion. Technological advancements, particularly in mobile devices and digital payment systems, have made online shopping more accessible. Consumers’ changing behaviour, driven by a preference for convenience and the ability to compare prices easily, has led to a significant shift towards digital transactions.
E-commerce’s ability to facilitate global reach and cross-border transactions has opened new avenues for businesses and increased market competition. Data analytics and artificial intelligence (AI) contribute to a personalised shopping experience backed by analysing consumer behaviour and preferences. With growing internet penetration globally, mobile commerce (M-commerce) has become a crucial driver, with consumers increasingly using mobile apps for shopping and engaging with brands. Social commerce integrates e-commerce with social media platforms, allowing users to purchase directly through social channels. Fast and convenient delivery options, innovative technologies such as AI, influencer marketing and multiple payment methods further contribute to the dynamic growth of e-commerce, reshaping the way businesses and consumers interact in the digital era.
With e-commerce growing and increasing numbers of cross-border transactions, businesses are in fast competition to meet customers where they are. In the past, retail stores stocked physical stores with products and then sought buyers for these items through sales strategies. Today, the challenge is different. Businesses must work rapidly to identify, engage, and retain customers with more innovative approaches to satisfy consumer demand. How? Appealing to audiences with a unique shopping experience across multiple channels, with personalised product offerings. To achieve this, businesses respond to consumer demands and shape e-commerce trends. Additionally, our experts recently attended the NRF event in New York to gain the latest insights into which retail trends will drive e-commerce in 2024.
The era of AI continues to storm the retail industry rapidly, and AI in the retail market is expected to reach $38.92 billion by 2029. It holds potential for vast application in retail, from personalised shopping and digital assistants to generative AI in developing bespoke loyalty programmes and services based on individual preferences, driving customer engagement.
The retail industry is shifting to improve the customer journey and offer brands a competitive edge by providing quicker, more personalised and unique omnichannel experiences. AI will satiate these desires, and through generative AI, customers can expect to be presented with their personalised store that offers customised products and services. Unlimit’s Juliana Quinteiro, Head of Commercial (Brazil), noted at NRF 2024 the prevalence of artificial intelligence as a theme throughout the event and discussions of driving influencers in e-commerce. The reasons behind this are the fast potential that AI solutions bring for consumers and brands. Businesses will continue racing to intelligent products to help reduce overhead costs, make smart predictions to attract new customers, predict emerging trends, support inventory management, collate customer data, detect fraudulent activity, and smartly engage with existing customers to build brand loyalty.
Omnichannel retail is essential to driving a consistent on-brand experience for online shopping customers. By offering multiple touchpoints, customers are reminded of products and can be enhanced with adaptive retail to personalise the touchpoints. However, omnichannel experiences will be improved further with adaptive retail, which has been coined as the ‘way forward’ for e-commerce. What is it? Exactly as it says! It gives organisations the tools to adapt their brand dynamically to consumers’ changing needs and behaviours through technology. Driven by insights, retail experiences are being shaped faster through adaptive retail as businesses can collect and evaluate customer data. Adaptive retail is shifting business focus from the products, goods and communication channels to focusing on customers. In effect, they will be able to better understand and adapt to their rapidly changing needs.
Retail media involves advertising in physical and online stores of third-party brands to drive sales. Leveraged with omnichannel marketing will be a crucial differentiator for brands globally. Retail media has been termed “the new TV” by experts at the NRF, positioning stores as the newest media channel to deliver cultural, high quality, and relevant content for consumers along their customer journey. Experts continued to delve into digital advertising in 2024, which is expected to be fed by off-site display, video and streaming TV, and in-store ads to engage with fast consumers.
To succeed in retail media, merchants will be seen engaging with technologies that connect them digitally with customers, even offline. How? Through data! Whether collated through AI or adaptive retail strategies – retail media will be a powerful platform for brand awareness and advertising to relevant consumers.
In tandem with thousands of closing stores and the number of online returns of goods, businesses have had to turn the bend to ensure a smoother and more successful customer experience. Online retailers have placed importance on perks such as same day delivery and historically mitigated the experience around returns. In 2023, it was estimated that more than $620 billion was accounted for in retail returns, despite improving e-commerce experiences. Whilst returns are inevitable, they can be minimised and even optimised to ensure that costs are strategically managed in a straightforward returns process. A hassle-free returns experience will always come with challenges. However, product returns are a linchpin of a winning retailer’s customer loyalty strategy and are on the list of retail trends to watch for 2024. Whilst a smooth returns experience is among the top retail trends, consumers have shown an appetite for free returns from brands. In a survey, 86% of online shoppers said they would return to online merchants who offer free returns, and 68% chose ‘free returns’ as what they find most valuable when buying online. E-commerce will continue to grow, and users will continue to purchase products and goods online, so the need for linear and intelligent returns processes is unparalleled to build brand loyalty through a positive customer experience.
Social media platform TikTok grew to 1.92 billion users in 2023, an increase of 16% from 2022 and has been at the forefront of conversation in the retail industry. With live streaming videos, TikTok shop and influencer content, the app has become a commercial favourite to boost brand awareness and social commerce. Videos typically range from 15 to 60 seconds, which are highly engaging to the modern user’s short attention span, making it an effective social media platform to showcase products and capture interest quickly. Additionally, the algorithm is designed to promote content based on user engagement. So, businesses focusing on creating engaging content have the opportunity to reach their target markets organically via TikTok.
TikTok’s success will continue soaring in success in 2024 because of its simplified shopping experience and intelligent algorithm, designed to create a unique feed for users. The app will prove helpful for brands seeking to attract customers globally as creators use live and recorded videos for product reviews to help consumers make informed decisions and drive sales.
Following its acknowledgement at NRF, Unlimit’s expert Juliana implores decision makers to embrace the power of viral video trends on apps like TikTok to boost influence sales and capitalise on trending content. She commented that brands should leverage TikTok’s young and diverse user base because of their technology-driven customer expectations, openness to new trends and willingness to engage with brands that align with their values. The power of branding and influencer marketing support drives transactions across the TikTok shop, seamlessly integrated into the application for users to complete a purchase without leaving the app.
As we delve into the retail landscape of 2024, insights on the biggest trends in the retail industry gleaned from NRF and Unlimit’s industry expert, Juliana Quinteiro, will help businesses navigate the year ahead. Epitomised by the rise of adaptive retail and omnichannel shopping experiences, the demands of consumers take centre stage for any successful retail business. Embracing cutting-edge technologies such as AI is not merely a choice but a necessity to stay competitive. The retail ecosystem is witnessing a profound evolution driven by consumer-centric personalisation, sustainable practices, and seamless online and offline channels integration.
Understanding the latest retail trends is crucial for business success globally. The right payment infrastructure should back it to support your brand online as it navigates multiple channels and markets. As consumers’ expectations grow rapidly and globally, innovative payment technologies can help your brand successfully navigate the retail sector easily and appeal to larger audiences through a single cost-efficient solution.Ready to enhance your strategic roadmap to navigate the future of retail with unwavering confidence? Get in touch to leverage our global payment infrastructure to improve your customers’ experience and enter new markets quickly and cost-effectively.
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