The Future Shopper 2024 report

E-commerce is constantly evolving, and trends that not long ago seemed to us a distant future are starting to become standard. Social commerce, i.e. shopping via social media, or solutions based on artificial intelligence, are redefining the way consumers make choices and finalize transactions. According to data from “The Future Shopper 2024” report, as many as 73% of consumers have made a purchase on social media, and 55% have used AI-based solutions.

“The Future Shopper 2024” is the 8th edition of the report prepared by VML. It is based on research conducted from May 22 to June 5, 2024, among 31,500 respondents from 20 countries (not including Poland) who made at least one online purchase in the preceding month.

Omnichannel is still the key to success in a changing world of retailing

Consumers are increasingly combining digital and physical channels, valuing companies that employ an omnichannel strategy – 64% of consumers say they prefer to shop with a retailer or manufacturer that has both a traditional and online store (compared to 60% in 2023).

Traditional stores are still doing well, but they need to offer engaging and innovative experiences to retain customers. 60% of consumers say they want their in-store shopping experience to be engaging, innovative and creative. As for online shopping, while its share of total commerce has fallen from 58% in 2023 to 53% in 2024, it is forecast to rise to 60% in the next five years. However, even in their case, the success of a retailer or brand will be determined by the customer’s shopping experience – 59% of consumers say that if a brand is digitally innovative, they are more likely to buy from it.

The authors of the report also point out that 66% of consumers are paying more and more attention to their health, which translates into what they buy and from whom they buy. And more than half (57%) of respondents admit that because of negative global events over the past few years (pandemic, armed conflicts, inflation, etc.) they are more likely to spend money on experiences on their wish list.

Retailers and brands, therefore, need to work on their consumers’ shopping experiences, and pay particular attention to mobile devices. 36% of online shopping expenditures are made via mobile. On the other hand, as many as 40% of consumers say they find shopping via mobile difficult.

Despite the very positive attitude toward omni-channel commerce, consumers also value the ability to quickly complete a transaction through just one channel or device. So-called compressed commerce, or going from inspiration to purchase as quickly as possible, is important to 63% of consumers. What’s more, 71% of consumers said they usually use only one device when buying products or services online.

Price and values, or what drives consumer shopping decisions

68% of consumers believe that retailers and brands are overpricing – they are increasingly sensitive to this and are more willing to look for the best deals. 56% say a better price would encourage them to buy directly from a brand, up 3% from 2023. On the other hand, 50% of respondents say they would abandon the marketplace in favor of cheaper alternatives.

And while we’re on the subject of marketplaces – they will still dominate the market, but they will also face competition, and their influence on purchasing will begin to diminish. 29% of consumers shop on them, down 6% from 2023, but more than a third (35%) of consumers look to the leading marketplace in their region for inspiration, and nearly a third (32%) visit it to search for products.

Brands that sell their products directly to the customer (D2C, direct to consumer) have even more difficulty converting in the inspiration and search phase. 9% of purchases are made from them, despite the fact that 21% of consumers look to them for inspiration and 20% search for products. Customers’ expectations regarding the speed of delivery of goods purchased online are also growing – as many as nearly a third (31%) expect that they will be delivered in less than 2 hours.

A large influence on the buying decision comes from the opinion of others – 19% of respondents point to friends in this regard. And for 37% of consumers, ratings and reviews are the most important content they look at when shopping online.

As one might guess, sustainability and the larger purpose behind a company’s operations are increasingly important to consumers. As many as 63% say they like shopping with retailers and brands that have a purpose beyond just selling products or services. 56% say they have changed their shopping habits due to concerns about global warming and the environment, and 49% have used sustainable delivery options (up 3% y/y).

Social media, VR, games and AI

Social commerce is gaining popularity. According to “The Future Shopper 2024” report, 73% of consumers have made at least one purchase through platforms such as Instagram, Facebook or TikTok, and 62% intend to make more purchases via social media in the future. This trend is driven by younger generations, who prefer quick and intuitive transactions directly through apps. It’s also worth noting that 53% of consumers admitted to making a purchase via an online live shopping event.

49% of consumers have a smart assistant and the same percentage don’t believe VR headsets will take off because they don’t like the idea of “wearing a computer on their face.” 30% of consumers say they buy or have bought via the metaverse (up from 23% in 2023).

Video games are not just entertainment, but also a huge business. Nearly 90% of people worldwide play games, and 60% of them are willing to spend money there. Companies are beginning to recognize this potential and are using games to promote their products. No wonder – for 55% of gamers, looking good in a game is as important as it is in real life, and 52% would be just as excited to go to a virtual concert as to go to a traditional one.

55% of respondents admit to having used artificial intelligence – AI causes them both excitement and concern. However, interestingly, as many as 41% of consumers would let artificial intelligence organize their lives.

Summary

To meet rising consumer expectations and dynamic market changes, retailers should therefore, first and foremost:

• implement an omnichannel strategy – provide a consistent shopping experience across all sales channels, which will increase customer satisfaction and engagement;
• invest in new technologies – implement cutting-edge solutions, such as AI and analytical tools, which enables them to better understand customers’ needs and provide them with valuable experiences;
• be present on social media – an active and authentic presence on social media enables not only the promotion of products, but also direct interaction with customers and building loyalty;
• care about sustainability – transparency in environmental and ethical activities is becoming a key factor influencing consumer purchasing decisions.

Companies that are flexible and open to change have a chance not only to meet the expectations of today’s consumers, but also to stay ahead of the competition and succeed in the rapidly growing field of e-commerce.