Over the past two years, industries across the globe saw massive disruptions due to the sudden outbreak of the COVID pandemic. Even the retail industry was taken aback but thanks to the digital adoption in their ecosystem that sustained them. If you are a start-up, an SMB, or an entrepreneur in the retail sector, you’d now acknowledge the massive capabilities of an AI-ML-enabled digital intervention that can fetch you the best returns in your retail business. Post Pandemic era has a lot to offer as e-commerce, and online retailing are surging ahead creating innovative retail industry trends for the year 2022. While 2021 was a year of adjustments that allowed economic recovery albeit, at a slow pace,2022 looks more promising with major retail trends. Let’s discuss the top 5 key retail industry trends in 2022:
Trend#1 Rise in Digital Channels & E-Commerce
Consumer behavior has drastically changed over the last few years because of the convenience and easy method of shopping via smartphone upon clicks, and digitally-enabled payments like a digital wallet, online banking, etc. Varied digital channels have become the preferred mode of seamlessly connecting with target customers.B2B, B2C, and C2C retail businesses are reaping benefits out of digital channels in some way or other. As per recent stats, in Latin America, the most relevant and popular media tools & techniques for marketers in the retail sector are digital marketing(it tops their list with 83% hold), social networking channels account for 73% while e-commerce rules with 63% in their preference-list. Besides, the omnichannel retail trend has also picked momentum and online & offline channels are increasingly becoming a part of marketing strategies. Providing a personalized customer experience requires constant interaction with customers, so, digital channels are one of the growing retail trends worldwide.
Trend#2 Personalized Customer Experience
Identifying the right channel and right time for every customer is a major challenge that the retail industry facing today. The solution is to provide each customer with unique and personalized offers and experiences. It means, that what suits A may not suit B, and also C is different. As per the Hot Retail Trends 2022 study, a massive 44% of marketing personnel consider user experience as a major strategy constituent. It means personalized customer experience, providing a frictionless, seamless shopping experience to consumers will be one of the key retail trends in 2022. ROPO(Research Online Purchasing Offline), a multi-touch shopping model is an example of this trend.
Trend#3 Social Shopping
Today, almost 64% of the global population uses social media for online shopping, the major shopping activity. This is driving marketers to spend massively on their advertising and paid media campaigning to boost social shopping activity. As per the Tiendeo Study, 58% of retail executives will increase spending on advertising on social media for the purpose just mentioned!! Indeed a hot retail industry trend in 2022 and beyond, too.
Trend#4 Cashierless Self-Checkout Stores
Magic Mirrors, virtual trial rooms, digital mannequins, smart shelves, AI-ML-enabled robots to guide customers inside stores and check inventory levels for regular replenishment, there are many ways digital technology is helping the retail sector to provide a seamless customer experience. Cashierless Self-Checkout retail shopping stores and other innovative features are surely becoming a happening retail trend in the years to come. Some retail giants like Walmart and Carrefour have already adopted many of these retail features and giving tough competition to their e-commerce counterparts!
Trend#5 Sustainable Circular Economy
Customers are increasingly becoming environment-conscious, and the need for sustainable practices that protect natural resources is growing parallelly. This is leading retailers to reassess their marketing strategies in line with the environment-friendly dynamics and making a fine balance between sustainability and economic growth. This is a circular economy that leverages natural resources at the maximum level and digital becomes the medium to accelerate this phenomenon. In the previous year,2021, many retailers across the globe implemented sustainable marketing activities that advocated for huge industrial waste reduction. This model helps 80% waste reduction in the process involved. Indeed an immense retail trend in 2022 and further, too!
Bottomline
The message is simple and clear. Businesses across the retail industry will increase their budget allocations favoring more investments in digital marketing, digital advertising, and campaigning, garnering growth and fetching the best returns. As per a study conducted by EMEA & LATAM, it is expected that in 2022, 86% of the total budget allocations will go to digital channels while 14% to offline media channels. This is a shoutout to all the retailers who want to stay competitive in the retail world.
Are you a Start-Up, SMB, or an Enterprise in the retail industry, wishing to leverage the power of digital in your retail business? Contact our experts!
