The eCommerce world is constantly growing and shifting. According to research from NetElixir’s retail intelligence lab, there has been an 8.2% growth rate across categories from 2021 to 2022.
But what should brands prepare for in 2023? How do you compete effectively in the aggressive retail market?
One of the best ways is to plan in advance. Although no one can foresee precisely what will happen in retail in 2023, some predicted key trends could help you jumpstart success in the new year.
Research undertaken by the McKinsey Global Institute shows that 71% of shoppers expect personalized interactions with retail companies. But how do you cultivate personalization throughout the brand experience?
It starts with data. Leveraging big data like psychological traits, digital records, consumer outcomes, and psychological states can help you get to the root of a customer’s behavior and tailor the shopping experience to serve their needs.
Moreover, hyper-personalization can help your brand deduce where to spend advertising dollars. Using AI capabilities, you can decipher who your high-value customers are and target them directly rather than targeting the average customer.
Retail media is a marketing technique that targets consumers in their decision-making phase when they’re near the point of purchase or are choosing between competing brands. Retail media is the third big wave of digital marketing, and it’s transforming the entire advertising value chain.
The team at NetElixir predicts that retail media networks will expand into stores. Founder and CEO Udayan Bose explains, "I think we have to stop talking about online and offline separately and just talk about one shopping experience and the shopping journey." Integrating the online and offline experience allows you to "engage the shopper in a more responsible, creative, and precise manner — a personalized manner across their entire journey, whether it be in-store or online. And that's what I'm really excited about...it's definitely going to be big," adds Udayan.
With the rise of social apps and platforms, social commerce will likely see a significant spike in 2023. Currently, TikTok is leading the charge; however, it’s expected that other video-centered platforms like Instagram and YouTube will also influence the retail space. In line with the social commerce boom is the rise of mobile-friendly eCommerce experiences. NetElixir’s research found that mobile has become the primary shopping method for consumers by a wide margin, so it’s crucial that your brand elevates the mobile experience.
The metaverse is another prominent topic for 2023. This next iteration of the internet is slowly but steadily gaining loyalists and is expected to grow due to continuous innovation. By getting involved early in this space, your company could make considerable progress this year. Udayan reiterates that “this is going to be an important playground for any business [or] any marketer” in 2023.