New York, Sept. 18, 2024 (GLOBE NEWSWIRE) -- Advances in technology have ushered in unparalleled digital brand offerings in recent years, but new findings suggest the future of retail is being shaped by a multitude of trends including a growing desire for seamless omnichannel experience.
In its eighth edition, VML's anticipated 'Future Shopper Report 2024' captures a global snapshot of the modern shopper. The report surveys 31,500 consumers across 20 countries and reveals a dynamic retail landscape challenging established trends and ushering in new opportunities for brands.
This year's report highlights new trends taking shape-consumers are becoming more open to physical shopping experiences again; marketplaces' grip on their dominant position in the customer journey is weakening; and the impact of new technologies like AI changing what we sell, how we sell it, and who we sell it to.
Beth Ann Kaminkow, Global Chief Commerce Officer, VML said: "The new era of consumers is upon us. Demanding to be at the center of their own immersive omnichannel universe, brands and retailers are still playing catch-up on the new rules of commerce. Through this report, VML continuously seeks to better understand our future shopper-uncovering what drives them to discover, engage and ultimately, purchase-to help marketers redefine how they drive brands and businesses."
Neil Dawson, Global Chief Strategy Officer, VML said: "Shopping today is multi-faceted, multi-platform and more integrated than ever before. Matched to savvy consumers, the need for advanced and connected customer journeys is critical to success. Brands must understand and adapt to evolving shopper habits and that's precisely what the Future Shopper report explores-ensuring that we stay ahead of key trends that drive business."
Report highlights include:
- As physical retail undergoes a resurgence, brands must embrace innovation and immersive experiences to compete in an omnichannel world.
Globally, online spending saw a 5% decline from 58% in 2023, suggesting shifts towards more balanced shopper activity across online and offline environments and a growing demand for real life experiences. While online shopping remains dominant, physical retail is experiencing a sharp resurgence among global consumers - more than half of whom prefer brands with both physical and online stores. - Mobile shopping dominates, but brands and retailers have been slow to adapt and excel, leading to frustrating user experiences.
Mobile devices are now the dominant force in online shopping, accounting for 36% of all online spending, up from 32% in 2023. Despite consumer preference for mobile, 40% of global consumers find shopping on mobile phones "difficult," and 66% believe brands and retailers should work harder at making their mobile experiences better. - Marketplaces maintain dominance in product discovery, but face increasing competition as consumers explore alternative purchase channels
Marketplaces, such as Amazon, Mercado Libre, and Alibaba, remain the leading destinations for product discovery, accounting for 35% of consumer inspiration and 32% of product searches. Although they are the number one destination, their grip on purchasing may be weakening, as marketplace spending dropped from 35% in 2023 to 29% in 2024. Consumers are increasingly willing to explore alternative channels for purchasing. Marketplaces, however, are demonstrating their own capacity to innovate and grow; 48% of consumers say that they are open to using a dating app provided by the likes of Amazon, Tmall and Mercado Libre. - Consumers crave speed and convenience in all aspects of their shopping journeys. Delivery speed expectations reach new heights as consumers demand near-instant gratification.
Customer expectations are not only high, they're growing at an exponential rate. 31% of global consumers expect delivery of online orders within 2 hours-this is up from 23% in 2023 and 4%in 2021. Research also indicates that across industries, consumer expected average wait time was just under 2 days.
But speed isn't only about delivery. 63% of consumers report that they want inspiration through search to purchase as quickly as possible. - AI's potential to improve efficiency and free time is an alluring prospect.
AI's potential to improve efficiency and free up time offers consumer optimism. A majority of consumers are open to AI helping them and shopping for them, with 41% saying they would let an AI organize their life, including what things to buy and even what to do at the weekend. Consumers are more likely to embrace AI when they understand its benefits and have control over its use. Brands need to prioritize transparency, explain AI's role clearly, and offer consumers choices in how they interact with AI-powered systems. Nevertheless, human interaction still holds value, with consumers expressing frustration with the lack of human interaction in customer service in particular. - Social commerce continues to gain global traction.
Social commerce has shortened the gap between inspiration and conversion like never before - allowing consumers to buy as soon as they discover inspiring content in the places where they spend their time. 62% of global shoppers say that they intend to shop more through social media in the future, and 53% of shoppers indicate they have purchased via social live shopping events. The reach of social commerce alongside the immediacy of purchase are just two of the reasons why it should be right at the top of the agenda for consumer brands. - The very definition of "consumer" is evolving, as digital avatars gain importance, and emerging technology and channels allow for interactions beyond the physical realm.
The blurring of the lines between the physical and digital consumer is evidenced by the rise of gaming commerce, with a staggering 89% of global consumers identifying as "gamers" and 60% of those spending money in-game. More than half of gamers believe that looking good in-game is as important as looking good in real life. Blended realities extend to the afterlife, with 47% of global consumers expressing interest in "post-death consumerism." The desire to connect with loved ones, even after they are gone, is reflected in the 46% of consumers who are interested in using AI to bring deceased loved ones "back to life" for virtual conversations.
The Future Shopper 2024 report is the industry's most comprehensive survey of global shoppers, reaching consumer respondents in 20 countries including Argentina, Australia, Brazil, China, Colombia, France, Germany, India, Indonesia, Italy, Mexico, Netherlands, New Zealand, Peru, Saudi Arabia, South Africa, Thailand, UAE, UK, and US.
Download and view the full report here.
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For more information, contact:
Jinie.Kwak@vml.com
About VML
VML is a leading creative company that combines brand experience, customer experience, and commerce, to create connected brands that drive growth. The agency is a leading global marketing and systems integration partner, specializing in creating innovative solutions for business transformation. VML is celebrated for its award-winning work with blue chip client partners including AstraZeneca, Colgate-Palmolive, Ford, Microsoft, Nestlé, The Coca-Cola Company, and Wendy's. The agency is recognized by the Forrester Wave Reports, which name WPP a "Leader" in Commerce Services, Global Digital Experience Services, Global Marketing Services and, most recently, Marketing Measurement & Optimization. VML's global network is powered by 28,000 talented people across 60-plus markets, with principal offices in Kansas City, New York, Detroit, London, São Paulo, Shanghai, Singapore, and Sydney.
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Methodology
In The Future Shopper 2024 report, 31,500 shoppers across 20 countries were surveyed. In order to qualify respondents had to have shopped at least once online in the preceding month. The surveys took place in: Argentina, Australia, Brazil, China, Colombia, France, Germany, India, Indonesia, Italy, Mexico, Netherlands, New Zealand, Peru, Saudi Arabia, South Africa, Thailand, UAE, UK, and US, between the 22.05.2024 - 05.06.2024. Research was conducted on behalf of VML by Censuswide, who abide by and employ members of the Market Research Society which is based on the ESOMAR principles and are members of The British Polling Council.
