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Stay Ahead of the Game - 7 Must-Know Retail Trends for 2023
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Retail is constantly evolving, and the trends shaping the industry in 2023 are no exception. With the growth of omnichannel shopping, the end of third-party cookies, and the integration of AI technology, the retail landscape is set to undergo significant change. By staying ahead of these retail trends in 2023, retailers can position themselves for success and take advantage of new opportunities to grow their businesses.
In this blog, we'll take a closer look at the top 7 retail trends shaping the industry in 2023 and beyond. We'll examine the trend itself, the impact it is likely to have, and how retailers can prepare. Whether you're a small business owner or part of a larger retail organisation, this blog will provide valuable insights and help you stay ahead of the curve in a rapidly changing industry. So let's dive in and discover the retail trends of 2023 that are shaping the industry's future.
7 Retail Trends Shaping the Industry in 2023 and Beyond
The retail industry is constantly evolving, and it's essential for businesses to stay ahead of the curve in order to remain competitive. As we look ahead to 2023 and beyond, there are several key trends that are shaping the industry. In this blog post, we'll explore the top 10 retail trends that you need to be aware of.
1. Amazon-Style Convenience: The Future of Frictionless Shopping
Did you know that Amazon revolutionised online retail by putting customers at the heart of everything they do?
The company's success is not only due to its massive selection of products, supply chain efficiency and low prices but also because of its convenience and customer-first approach.
Amazon has made it possible for people to buy anything, anywhere and anytime through their revolutionary use of data and machine learning.
Here are some quick wins:
Maximise engagement with a recommendation system
Amazon's recommendation engine, which uses machine learning algorithms, drives 35% of the platform's sales.
Streamline your checkout process with 1-click and 3-click options
Improve the checkout process and decrease the likelihood of cart abandonment by implementing a three-click checkout process for anonymous visitors and offering a one-click checkout option for logged-in visitors.
Offer flexibility with multiple payment options
1 out of 5 customers will abandon their carts if their preferred payment method is not available.Whether it's credit cards, mobile wallets, or other alternative payment methods, making it easy for customers to pay is crucial to increasing sales and reducing cart abandonment
2. Sustainability Takes the Lead: A Greener Future for Retail
Sustainability is becoming a top priority for consumers and retailers are responding by making environmentally-friendly choices. This includes reducing waste, using sustainable packaging, and implementing green energy initiatives.
Here are some tips to make your eCommerce store more sustainable in 2023:
Reduce Packaging Waste
Consider using biodegradable or recyclable packaging materials and minimise the use of excess packaging. 69% of customers expect retailers to provide sustainable packaging.
Implement Green Shipping Practices
Offering alternatives to direct-to-home deliveries, such as local drop-off centres and package hotels. This saves on fuel because items are dropped at one location in one batch as opposed to multiple drops in the area. Individual purchasers then collect from there (saving on fuel).
Support Charitable Causes
Partner with organisations that work to protect the environment and support sustainable initiatives. But be genuine, as greenwashing will have the opposite intended outcome.
3. Online Margin Paradox: Balancing Convenience and Profit
The online margin paradox is a phenomenon that occurs in the eCommerce industry where the cost of acquiring a customer online is increasing while the margin per sale is decreasing. This paradox is driven by a number of factors, including the growing competition in the eCommerce space, the rising cost of customer acquisition, and the pressure on retailers to offer low prices to remain competitive. In 2023, this paradox is expected to persist and may even become more pronounced as the eCommerce industry continues to grow and evolve. Companies that are able to find creative and effective ways to acquire customers at a lower cost and increase their margins will be better positioned to succeed in the long run.
Here are some tips to stay ahead of consumer trends in retail and keep your store profitable:
Maximise your lead generation with cost-effective content marketing
Investing in content marketing can be a game-changer for your business. This approach generates three times as many leads as other marketing methods while costing 62% less.
Acquire new customers through strategic business partnerships
Partnering with other companies can help you reach new customers and drive growth. In fact, 57% of companies say that they use partnerships to acquire new customers.
Offer loyalty programs and rewards
Encouraging customer loyalty by offering rewards and incentives can reduce customer acquisition costs and increase the lifetime value of each customer. This can lead to increased sales and higher margins over time.
4. Omnichannel Overload: Meeting Customers Where They Are
Consumers are expecting a seamless shopping experience across all channels, including in-store, online, and mobile. Retailers need to invest in technology and infrastructure to ensure that their customers have a consistent experience regardless of how they shop.
According to a report by Forrester Research, 80% of consumers expect a consistent and seamless experience across all channels, and the majority of retailers are investing in omnichannel strategies to meet this demand.
Here’s how you can merge online and offline shopping experiences:
Digital Try-Ons and Demonstrations
The use of AR/VR technology in retail allows customers to virtually try on products or see how they would look in their homes before making a purchase. This has shown to increase customer willingness to spend more on a product by 40%.
QR Codes and NFC Tags
By incorporating QR codes and NFC tags in the store, customers can access product information, reviews, and even make purchases directly from their phones. This makes the shopping experience easier and more convenient for consumers, with 70% of them agreeing that QR codes make their lives easier.
Virtual shopping assistants
By incorporating true AI technology, as distinct from ‘artificial’ AI, retailers can align with present and future retail trends, and offer a similar in-store level of service through online channels. This technology allows for real-time curation of relevant products for individual shoppers, providing a hyper-personalised shopping experience that can increase conversions and order values.
A helpdesk built for retailers
Nowhere is a seamless and fast experience required more than when you’re helping your customers. A helpdesk such as eDesk will bring all your support queries, order data and customer data together in one place—and allow your customers to communicate with you via live chat on your website, phone, and social messaging such as WhatsApp and Facebook.
5. The Death of Third-Party Cookies: Navigating a Privacy-First Landscape
Third-party cookies have been a double-edged sword for retailers. On the one hand, retargeting can be an effective way to bring customers back to your website. On the other hand, who hasn't felt creeped out by ads that follow us around the internet? A recent study showed that only 59% of audience targeting was accurate with third-party cookies and most retargeting platforms only show partial, skewed data.
So what's the solution?
- Personalise the online shopping experience just as you would in a physical store. Listen to your customers' wants and needs and respond quickly.
- Focus on enhancing the shopping experience, not just email gathering. Don't force customers to log in or create an account just to save a product. Almost 40% of consumers have abandoned their carts because of this inconvenience.
- Embrace emerging technologies to connect with customers on a personal level while they shop in your online store.
Don't get left behind in the rapidly changing retail landscape. Stay ahead of the curve and be on the lookout for these future retail trends!
6. Subscription Success: The Rise of Repeat Business
Subscription-based models are a retail trend to watch in 2023, with retailers that offer these services seeing a significant boost in growth. One of the main reasons for this popularity is the increased loyalty that consumers exhibit towards retailers who provide them with a recurring product or delivery subscription. Replenishment sectors such as beauty, food and wine retailers, in particular, seem to be capitalising on this trend.
Here are some retailers tapping into the subscription trend:
Bitsy Box: Bitsy Box offers a delightful monthly subscription service that features a collection of products handpicked by mothers, specifically curated for the baby’s age and geared towards a fun-filled experience.
Blue Apron: Blue Apron is a meal kit subscription service that delivers all the ingredients and recipes needed to make delicious meals at home.
Wine Spark: Wine Spark is a monthly subscription service that delivers premium wines at cost price and without any delivery charges to subscribers
7. AI-Powered Shopping: The Rise of the Virtual Personal Shopper
Artificial intelligence is rapidly transforming the way we shop. From chatbots to virtual shop assistants, AI is becoming an integral part of the shopping experience for both retailers and customers. Retailers can harness the power of AI to deliver better customer service, offer hyper-personalised recommendations, and streamline their operations.
Here's why the future of retail trends lies in the integration of AI:
Seamless Shopping Experience
AI can provide customers with an effortless shopping experience, helping them find what they're looking for quickly and easily.
Retailers can reduce their manual workload and enjoy automatic stock updates with the help of AI.
Higher Conversion Rates and Order Values
By delivering hyper-personalised recommendations and offering a seamless shopping experience, AI helps increase conversion rates and order values.
Improved Customer Retention
A better shopping experience leads to a higher customer retention rate, which is crucial for any retail business.
The retail industry is always in flux, and it's crucial for businesses to stay ahead of the curve in order to succeed. Retailers need to be agile, embrace technology, and provide a top-notch shopping experience for their customers. That's why it's important to stay informed on the latest trends in retail and be prepared to make changes when necessary.
Download our free retail trends playbook to stay ahead of the game. With a focus on customer experience and innovative technologies, you'll be well-positioned to navigate the retail trends of 2023 and beyond. Don't miss out on the opportunity to take your business to the next level!