Retail trends 2022
The New Year holidays are over and it is high time to see what the retail is going to expect in the coming year. Since retail is an integral part of the modern world, retail trends will keep pace with the global mainstream. And we will tell you about the most significant trends that will influence retail in 2022 in this article.
1. Growing environmental awareness of the buyer
According to a 2021 survey by research firm Forrester, nearly half of online consumers in the United States pay attention to energy-efficient labels when shopping. Nearly 60% of adult online shoppers in France, 49% in the UK, and 41% in the US choose to buy environmentally friendly products.
According to the survey results, consumers regularly buy products made from environmentally friendly or natural materials. For example, reusable products made from environmentally friendly or recycled materials, non-toxic or chemical-free, certified organic, non-GMO, locally sourced, and more are becoming increasingly popular.
Many survey participants said they are concerned about climate change, it influences their purchasing decisions, and they are willing to pay more for organic products.
At the same time, 47% of respondents regularly make purchases from brands that correspond to their values.
Forrester predicts that these averages will increase by 15% in 2022, pushing brands to take further action. And we can say with confidence that this trend of environmental initiatives will continue in the future.
2. An emphasis on a circular economy or second-hand items are back in vogue
European retail is on track to actively support a circular economy. For example, IKEA is actively using renewable and recyclable materials in its production, planning that by 2030 their total figure will be 100%.
The Galeries Lafayette Group has opened LE (RE) STORE GALERIES LAFAYETTE, a space dedicated entirely to second-hand goods and apparel, at its flagship Haussmann store.
According to experts, many consumers enjoy buying used products because they are unique and less expensive than new ones. In addition, such purchases are in line with the concept of responsible consumption that is popular today, and this trend will continue to develop in 2022 and the coming years.
3. The return with comfort or "Return could not be left!"
The return process is one of the factors limiting the growth of online sales. And a retailer who plans to increase online sales should think not only about the convenience of the purchase itself but also about the process of returning the goods.
According to Forrester, the availability and convenience of a return service directly influence consumer choices. Many of the online shoppers surveyed said they prefer sellers that offer free return shipping, as well as those that return money using the original form of payment. And the fear of the return process directly discourages consumers from shopping online.
For retailers and brands interested in buyers, already in 2022, it is necessary to seriously work on improving the return service: to increase the number and think over the location of return points, optimize processes and simplify registration, as well as internal processing of return, flows in logistics.
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4. The growing role of artificial intelligence
Artificial intelligence (AI) is becoming more and more popular with the increasing amount of information that becomes available to the consumer, as well as with the desire of retailers to provide personalized experiences to their customers.
In the next few years, AI will be used to shape assortment, personalized offers, manage mass promotions, and improve the accuracy of sales forecasting.
5. Personalization
Digitalization, solutions for collecting and processing data, open up great opportunities for retailers to implement a personalized approach when planning advertising campaigns and promotions. Personalization helps the client feel valued and increases loyalty, which becomes especially important in a highly competitive environment.
In 2022, there will be an increased focus on personalized offerings based on past purchases, customer preferences, and expectations.
Along with this, advertising will no longer be so intrusive. And the use of AI-based solutions will allow the retailer to competently approach the organization of personalized promo, save time and effectively allocate the budget.
The emphasis on improving the quality of customer service will remain equally significant.
6. The focus on long-term partnerships
The last few years have seen a steady increase in the share of promotional sales in the total retail turnover. This trend will continue next year, but along with the growth of promotions, it will be necessary to move towards increasing their effectiveness. One of the ways to do this is to transform from a mono-brand to a multi-brand promo.
Forward-looking retailers and brands will establish long-term partnerships to not only keep their businesses flexible and attract new customers but also make effective promotions for existing customers.
7. Strengthening e-commerce
Pandemic restrictions are pushing shoppers online. According to statistics, both in the world and in Ukraine, the number of Internet users is rapidly increasing, and, accordingly, users of social networks who are ready to make purchases on the Internet.
According to EVO research, sales in the e-commerce market have grown by more than 40% since the start of the pandemic. The upward trend will continue in 2022.
Therefore, retailers planning to develop online sales channels should pay attention to:
- website design: according to statistics, 38% of buyers leave the site if it looks unattractive or inconvenient to use;
- website optimization for mobile devices: the number of consumers making purchases from a smartphone is steadily increasing. Already, more than 59% of shoppers surveyed by Google said that the ability to make purchases from smartphones is a determining factor when choosing a brand and a seller;
- website loading speed and application performance are critical success factors. A recent study found that sites that take more than 4 seconds to load on a page can lose up to 25% of their online sales;
- using video to showcase a product: According to Wyzowl's research, 69% of people surveyed would like to watch a short video to learn about a product or service. And only 18% would select in favor of text information;
- use of chatbots: their popularity is growing and, according to research by Global Market Insights, the global chatbot market will reach $1.34 billion by 2024.
Uninterrupted access to the resource, the most convenient design, and functionality will make the user stay on your site or application and increase the chances of making purchases.
For more information about services for the safe and stable operation of resources, protecting sites from hacker and DDoS attacks, as well as about a new direction in the work of C4R, follow the link and ask our consultants: write to [email protected] or fill out the form.
8. Contactless shopping technology
Contactless technologies continue to evolve, allowing you to shop with a minimum of touch. They became especially popular during a pandemic when many buyers seek to minimize their social contacts.
Metro Cash & Carry has become a pioneer in the implementation of a contactless scanning, weighing, and payment system in Ukraine, having launched a corresponding pilot project in one of its stores in the city of Kyiv.
These kinds of solutions save the customer from having to put the goods on the tape, stand in line at the checkout, thereby speeding up and facilitating the shopping process and increasing his level of satisfaction.
9. Development of private brands
In recent years, there has been a tendency for the growth of private brands (Private Labels). At the same time, private label growth in Ukraine is faster than in European countries. Everything is explained by the fact that Ukrainian chains have one of the lowest shares of private label sales. According to Nielsen, in 2017 the share of private label sales in Ukraine was 11.7%. In 2021, the share reached 15.4%, and by 2025 it is expected to reach 22-25%.
This is due to the transition of consumers to the format of large purchases to create stocks, as well as the need to optimize the family budget and expenses. Already, 8 out of 10 buyers prefer private label products because of their good value for money.
Whatever the global trends, C4R solutions help retailers keep up with the times and implement retail trends in their business.
The C4R portfolio includes solutions for managing loyalty programs for developing personalized promotions, customer analytics systems for working with large amounts of data, warehouse logistics automation systems for processing goods flows, including return ones, and other solutions. For all questions about C4R services and the implementation of business automation projects, write to [email protected] or fill out the form below.
