From left: Jacob King, SVP, global merchant marketing, American Express, speaks with Priya Buening, VP of U.S. ecommerce, Levi Strauss & Company, and Katherine Cullen, VP, industry and consumer insights, NRF, at NRF Nexus 2024.
Simply more of the same? Hardly. Retail trends shared at NRF Nexus 2024 explored ongoing expansion of marketplaces, social discovery — and even auto-replenishment. Here’s a sampling.
Trust will continue to be important
As technology continues to change, consumers will increasingly look to build trusted relationships with the brands they shop, said Priya Buening, vice president of U.S. ecommerce with Levi Strauss & Co. That often comes down to consistency.
“As a brand retailer, we really think about how we show up as a single brand,” Buening said, “erasing to the best of our ability the differences between our app and our site and our store to build that trust.”
Personalization will continue to evolve
Jacob King, senior vice president of global merchant marketing, American Express, highlighted an American Express study that found a majority (68%) of U.S. consumers who use credit cards expect brands to send them personalized offers based on what they like. Over half (53%) said if they received multiple typical retail offers (such as promo codes or store-wide sales) that seemed impersonal, they’d be less likely to shop at that retailer.
In some cases, personalization can come from likes, comments and shares. Brian Beitler, founder/general manager, Sune (a QVC affiliate), notes personalization is tricky, as people often shop for others. It’s not necessarily about finding the “one thing” to show a consumer every time they show up. Eventually, he believes, it will move to “showing you what we think is really interesting to you at this point in time, based on what is happening in the world at large.”
Jeremy Lowenstein, chief marketing officer, Milani Cosmetics, noted that in the world of the “endless shelf,” brands must understand their reason for being, and who their core consumer is.
“Make that choice, which is essentially personalization en masse, and say, ‘This is what we offer to you,’ and then create that experience for the consumer through the brand lens, whether it’s in-store or online.”
Younger consumers will continue to redefine luxury, loyalty
Generation Z is entering the workforce, taking out credit cards, gaining purchasing power and having a more direct influence on retail. Millennials are in prime earning years, perhaps thinking about retirement. Consumers are “willing to pay the premium for quality and trusted brands,” King said.
Buening sees younger consumers as more discerning and mindful. Loyalty offerings such as early access to brands, free shipping and free returns are about the long-term: Levi’s has seen loyalty members shop more often and spend more. King sees loyalty rewards as experiences that “fit into the lifestyle that they are after” from that trusted brand. It’s not enough to just have a loyalty program; it needs to keep evolving with the customer base.
Marketplaces will continue to proliferate
By 2028, U.S. online marketplace sales are expected to be $689.29 billion, said Jason “Retailgeek” Goldberg, chief commerce strategy officer, Publicis Groupe. That’s 40% of all ecommerce sales and more than double their 2021 levels.
New players like Temu and TikTok Shop have contributed to online marketplace sales spikes; they join Amazon and Shein as the top four. Temu is the fastest-growing retailer in history, and TikTok Creator Marketplace might surpass Walmart Marketplace this year. Amazon is 70% marketplace sales. At the same time, Goldberg says, many marketplaces launched by wholesalers fail.
Physical and digital will continue to merge
Consumers in-store have the benefit of access to one-on-one attention. And associates increasingly have the benefit of handhelds — and perhaps AI — to help them better serve those consumers.
Expectations for in-store have only increased, Goldberg said: Where, for example, are the ratings and reviews? He spoke of advanced Chinese retailers such as Alibaba’s Hema/Freshippo and JD’s 7Fresh as digital-first stores, making the most of the shopper’s phone to provide an immersive experience. With Hema, in-store fulfillment also allows delivery in as little as 30 minutes.
Auto-replenishment will continue to grow
Goldberg quipped that the only time consumers remember to change their water filter is when they walk by a pallet of them at Costco. Auto-replenishment increasingly provides opportunities, especially in the products that don’t bring “joy,” he said.
Live shopping will continue taking hold
Poshmark launched live shopping in April 2023. Chief Marketing Officer Steven Tristan Young said it was the “next wave” of helping its sellers to sell. He anticipates people will be buying more through live shopping, including through creators doing live selling.
“Ultimately video is going to drive the largest level of growth and engagement over the next decade."
At Qurate Retail Group, meanwhile, “We say v-commerce is the future of ecommerce,” Beitler said. “Ultimately video is going to drive the largest level of growth and engagement over the next decade, and primarily because video is the way consumers discover and experience everything today.”
There’s a slower curve to live shopping in the United States than in China. Even so, Beitler believes it will become “a significant share of all shopping in the future.” Video can help viewers better understand products and see how they work. Video also helps makers tell a story, and has helped those who already have followers feel more comfortable “sharing” in front of the camera, as there’s instant interaction, response and sales.
Finally, viewers will often trust makers — and consumers who are “micro-creators” of content about things they enjoy — more than influencers.
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