Between the arrival of Temu, the counter-attack by Google SGE and the imminent disappearance of third-party cookies, the retail industry is now at a crossroads where digital innovation and customer experience are converging to redefine the way businesses interact with their customers. If you operate in the retail sector, it’s more important than ever to stay on top of the trends that are shaping the future of e-commerce on a global scale to ensure your success.
In this article, we’ll explore four key trends that will help you future-proof your business in the years ahead and turn the challenges you face into opportunities.
What is the future of retail? A constantly evolving sector
According to the latest statistics from Fevad, the retail sector in France grew by 8.3% in the second quarter of 2023, generating total sales of €39.3 billion over the period.
As you will have gathered, online sales are playing an increasingly important role in our society’s consumer habits, and the global e-commerce market is growing all the time. Nevertheless, retail remains a constantly evolving field, characterised by changing trends, requiring constant monitoring to maintain your competitiveness.
Consumer trends shaping the future of retail
Trend #1 – The rise of virtual reality and augmented reality
In 2024, the retail sector will continue to evolve dramatically thanks to the integration of virtual reality (VR) and augmented reality (AR). Consumers are now looking for completely new shopping experiences that are both immersive and personalised. Skilfully integrating AR and VR into your marketing strategy will give you a clear competitive edge.
The virtual reality experience
The advent of AR and VR at the heart of the retail sector in 2024 will take the customer experience to new heights. Virtual reality offers customers the opportunity to immerse themselves in virtual worlds that transcend the boundaries of physical space. They can explore virtual shops, travel to faraway destinations, or try out products in a hyper-realistic way, all from the comfort of their own homes.
Augmented reality for deeper interaction
Augmented reality not only enriches the virtual world, it adds an extraordinary dimension to physical reality. Consumers can now superimpose digital information, such as product information or interactive elements, onto their real environment. This allows them to view products in their own space, virtually test clothing or accessories, or even receive personalised recommendations in real time. This is the case, for example, with the new Google Maps update, which offers an immersive view of users’ itineraries.
Trend #2 – The impact of AI on research
The way consumers search online will also change in 2024, and this will have a considerable impact on digital marketing. Artificial intelligence (AI) is playing a central role in this change, altering not only the way search results are presented but also the way users interact with those results.
The emergence of the SGE (Search Generative Experience)
One of the most striking developments is the emergence of the “Google Search Generative Experience” (Google SGE), a trend that should see the light of day here by the end of 2023/early 2024.
The Google Search Generative Experience (SGE) is a set of search and interface features that integrates AI-generated results into responses to Google search engine queries.
SGE therefore offers AI-generated experiences directly from search engine results pages (SERPs). These experiences include contextual information, direct answers to questions, images, audio extracts and even videos, directly in the SERP, without the need to click on a website.
It is therefore essential for your company to keep abreast of the latest developments in EMS, because ranking in the top three search results will no longer necessarily guarantee optimum visibility for your website. Flexibility and responsiveness in the face of these developments will become crucial skills if you are to maintain a competitive position in this constantly changing environment. It should be stressed, however, that this new practice, which is currently available in beta version in the United States, brings with it its share of uncertainties and adjustments. Consequently, rather than adopting a radical approach to overhauling SEO strategies, it would be wiser to test progressively and adapt to the new parameters.
Trend #3 – Data management
Data management is more than ever at the heart of retail’s concerns for 2024. The warning signs are clear: the end of third-party cookies is on the horizon, the authorities are stepping up their controls and imposing severe penalties for non-compliant data processing, and users are becoming increasingly wary.
The end of third-party cookies: An inevitable transformation
The year 2024 will mark a major turning point with the almost certain decline of third-party cookies. These indefatigable trackers, which keep track of your Internet users, are already gradually disappearing and will be non-existent by the end of 2024. This development will have a considerable impact, mainly on advertising targeting practices, fundamentally transforming the way your brand interacts with its target audience.
The sharp eye of the authorities
The increased attention of data protection regulators is an undeniable fact. The monitoring of data management practices has become a priority, and companies that fail to comply with data protection regulations are exposed to considerable fines and reputational damage.
In particular, the emergence of the AI Act in the European Union is a major development to keep a close eye on. Through this Act, the European Parliament aims to ensure that AI systems used in the EU comply with strict standards. These standards include safety, transparency, traceability, non-discrimination and respect for the environment.
This combination of tightened controls and AI laws suggests that data regulation will only intensify. Not only do businesses need to maintain rigorous data management practices to ensure compliance with current regulations, but they also need to prepare for potential future AI and data regulation. This reinforces the importance of transparency, accountability and integrity in data management to maintain public trust and avoid serious consequences.
Users more reticent
Consumers are increasingly reluctant to share their personal data. Concerns about data confidentiality and security are at an all-time high. This reluctance is forcing companies to rethink their approach to data collection and to strive to gain the trust of their customers, for example by informing them about how your company will use their data.
Consequences for informed decision-making
All these developments will have an impact on the way businesses make informed decisions. Retailers and brands will need to rethink their data collection and ad targeting strategies. As third-party cookie-based approaches are gradually phased out, companies will need to explore and invest in new solutions to reach their audiences in a relevant way. Diversification of data collection solutions will become the norm, requiring agile management to adapt to rapid changes in the sector.
The First-Party data collection strategy: An imperative
Faced with these challenges, it is imperative for companies to develop a robust first-party data collection strategy. First-party data collection involves gathering information directly from customers, by obtaining their explicit consent. This strategy enables companies to build trusting relationships with their audiences, understand them better and obtain high-quality data to personalise customer experiences. First-party data is a valuable resource that will enable more meaningful connections to be made with consumers.
What’s more, first-party data complies with data protection regulations, reducing legal risks. Finally, this approach strengthens customer confidence, as it is based on transparency and consent.
Trend #4 – The move towards eco-responsibility
Eco-responsibility is no longer just a trend; it has become a movement that cannot be ignored, affecting all sectors. This trend is mainly fuelled by the need to fundamentally transform our society to meet pressing environmental challenges.
Consumers are paying increasing attention to their consumption habits, to the point of putting the price of products and services in second place. They scrutinise manufacturing processes, question the origin of products, and assess the impact of their purchases. This growing awareness is stimulating the search for innovative ideas and innovations in the field of eco-responsibility.
The expansion of second-hand sales in Europe
While the sale of second-hand products has long been common practice in France and Belgium, it has taken longer to develop in our other European neighbours. However, there has been a significant acceleration since the start of inflation. The penetration rate of second-hand goods is increasing in all countries, whether in the high-tech products market or in the fashion industry.
Disinfluence, the new phenomenon
The phenomenon of disinfluencing, also known by the hashtag #deinfluencing, represents a significant change in influencer marketing and advertising. It is emerging as a reaction to the dominance of social media influence and traditional influencer culture. This trend is raising profound questions among consumers, calling into question both the legitimacy of influencers’ power and the authenticity of their recommendations.
Disinfluence, which is rapidly gaining in popularity, aims to promote more sustainable and responsible consumption. It manifests itself mainly on platforms such as TikTok, where users share their experiences of disinfluence and discuss the impact of this new approach on their purchasing choices. In this way, they are encouraging a more thoughtful way of consuming, highlighting ethical business practices, the search for sustainable products, and promoting brands that are committed to environmental and social responsibility.
This trend is prompting companies to review their influencer marketing strategy, commit to sustainable initiatives and communicate transparently about their actions in favour of responsibility.
How can we prepare for the future of retail?
In conclusion, the future of retail is both exciting and demanding. To thrive, you need to be ready to adapt, innovate and anticipate the trends that are shaping the retail sector. The four key trends we’ve explored in this article offer a glimpse of the opportunities and challenges facing your business in 2024 and beyond.
The integration of virtual reality and augmented reality is opening up new possibilities for creating new and captivating customer experiences. The impact of AI on search is redefining the way your business reaches its audience, requiring agility and flexibility in digital marketing strategies. Data management, particularly with the imminent end of third-party cookies, requires careful consideration of first-party data collection, regulatory compliance and consumer trust. Finally, eco-responsibility has become an imperative, with a growing demand for sustainable products and practices.
To prepare for the future of retail, it is therefore imperative for your business to stay informed, invest in innovation, implement appropriate data strategies and embrace eco-responsibility. It’s essential to bear in mind that the retail sector will continue to evolve, and the ability to adapt quickly will be a major asset to success. Ultimately, the future of retail is in the hands of those who can anticipate, innovate and respond to the changing needs of their customers.
Your digital partner since 1999
