What brands should know to conquer the consumer in 2023.
24 January 2023 12:50
The economic crises, the inflation record lows and supply shortages continue to drive up the cost of living. At the same time, the Generation Z is coming of age, forcing retailers and brands to rethink marketing strategies. marketing. In addition, Technological advances continue to influence purchasing habits.
In NRF 2023: Retail’s Big Show This week, I talked about the consumer trends that will have the biggest impact on retailers and brands. Let’s break down three big ones you should watch in 2023.
Shoppers gravitate toward quick and convenient options to save time and money. money. Companies are turning to automation to replace certain manual tasks. look at the autonomous robotsfor example, which are used for last-mile delivery and in restaurants, among other prominent uses.
The challenge is finding the right balance between humans and machines. The comfort level with technology-driven experiences is closely related to the perceived level of intrusion. Consumers are nearly twice as comfortable with bots assisting them in the discovery phase, as highlighted above, than those executing purchases on their behalf, according to Euromonitor’s 2022 Voice of the Consumer: Digital Survey.
clockwork He sought this balance with the first manicure robot that paints nails in ten minutes. An assistant is always on hand to help make clients’ nails perfect. The company reached an agreement with Target to include its robots in six locations of USA. Clockwork isn’t likely to replace the full beauty salon experience, but automates quick color touch-ups that a buyer might not otherwise have time to complete.
Business leaders are investing in these technologies to reduce costs and maximize efficiency. About 40% of professionals surveyed in November 2022 plan to invest in robotics in the coming year, according to Voice of the Industry: Euromonitor’s Digital Survey. Planned investment dipped slightly from its peak in 2020 when the digital transformation it sped up.
To prepare for this trend, you need to assess all touchpoints in the customer journey. to distinguish between moments that could be automated and those that require human interaction. Relying too much on technology can jeopardize brand engagement.
the budget rules
inflation and high prices undermine purchasing power. In the economy In today’s world, people often have to decide between paying more for everyday staples, opting for lower-cost alternatives, or forgoing shopping altogether. Euromonitor projects a significant slowdown in the global economy this year, with real GDP slowing to 2.6% and inflation reaching 6.4%.
When consumers become more thrifty, they typically opt for affordability over brand loyalty. Because consumers want to get the most for their money, you must implement or develop solutions that help them overcome economic uncertainty. to gain their long-term loyalty.
UK-based babywear subscription service Bundlee has partnered with Stella McCartney to make luxury items more accessible for parents on a budget. Bundlee offers children’s clothing on a rental subscription basis with prices starting at $24 per month for select essential items and $39 per month for 15 pieces of premium clothing brands. Another example: IKEA. The retailer expanded the benefits of its family loyalty program, providing 5% savings on eligible in-store purchases and exclusive pricing on select delivery options.
Launching a rewards program, expanding benefits for loyal customers, or exploring new product bundles could also help build customer loyalty in a tough economy.
young and disruptive
All eyes are on the Generation Z. These consumers stand up for their beliefs, put themselves out there, and expect brands to do the same. In fact, 30% of Gen Z consumers made purchasing decisions based on brands’ social and political beliefs in 2022, up 5% from 2020, according to Euromonitor’s Voice of the Consumer: Lifestyles Survey. .
As your increase Financial Freedom, brands need a crash course in these up-and-coming professionals and trendsetters to stay in tune with their expectations and capture their expanding buying power. Not only is Generation Z becoming more and more decision makers, rather, the way they arrive at decisions is different from past generations.
Chinese beauty brand Florasis created a virtual influencer who embodies the brand and embodies traditional Chinese culture to appeal to these consumers. The influencers virtual machines are becoming quite common all over the world; however, most operate independently. Gen Z is already inspiring locals to reinvent their social presence. Walmart added TikTok to its Connect ad network, and Misfits Market switched to more short-form video content.
How can you win over Generation Z? For starters, the social media. Gen Z shoppers look to their feeds for inspiration, education, and reviews. TikTok is their platform of choice, with 60% of Gen Z using the short-form video platform worldwide, according to Euromonitor. Real, raw and relevant content grabs their attention. Instead of typical ads, use recommendations to let your product speak for itself. Loyal customers are your best advocates.
The power of a genuine connection
Authenticity is a common thread across all three of these 2023 consumer trends. For Gen Z, is the most important quality of any brand message. This is the main reason why retailers and brands should want to help consumers weather the cost of living crisis. And authenticity is also needed as the Business they balance the role of humans versus bots. All consumers want to feel that genuine connection to a brand.
*With information from Forbes US.