The shopping streets are slowly being decorated for Christmas with fairy lights and so are the shop window displays. This means that 2023 is coming to an end and a new year lies ahead. So it’s time to look ahead. Here are the key consumer trends of 2024 predicted by market research firm Euromonitor International.
AI-powered chatbots and digital assistants
It probably won’t surprise you that AI (artificial intelligence) is on the list of consumer trends. After its launch, ChatGPT reached 100 million users within two months, becoming one of the fastest-growing apps in history. According to Euromonitor, ChatGPT is easily accessible and allows consumers with little technical knowledge to quickly find their way around.
But it’s not just consumers who are experimenting with this technology, companies are also adopting it. For example, you are experimenting with implementing AI in chatbots and voice assistants. This is also known as the “Ask AI trend” and, according to Euromonitor, can provide a competitive advantage if the tools are used effectively. For example, go-to-market strategies, content and idea creation, and user data collection can be accelerated to drive new product development. In addition, they can create experiences for users, for example by implementing virtual assistants that answer customers’ individual questions.
It seems to be the case that consumers have been waiting for this: more than 40 percent of them would like to receive personalized recommendations via voice assistant, the report shows. Less than a fifth think the same way about using bots to answer complex questions in customer service. The Wear brand for sustainable sports shoes, for example, is already experimenting with a digital assistant. The sneaker cleaning chatbot provides personalized advice on sneaker care and cleaning based on photos.
In search of happiness
The events of the last few years have not left consumers indifferent. The corona crisis was quickly replaced by economic uncertainty, political unrest, climate catastrophes and wars. Consumers had enough and went looking for happiness. And as we all know, happiness lies in the little things.
According to Euromonitor, a small (unexpected) surprise or small actions can satisfy this consumer demand. In addition, they look for products that generate satisfaction. The fashion trend “dopamine dressing” is an example of this.
How should you as a company deal with this trend? Take a close look at your communication with consumers and, for example, design order confirmation emails in a relaxed manner. Additionally, emotional marketing will play a big role in this trend. “Brands should focus on connecting their products to this cultural desire for optimism,” writes Euromonitor. As a result, customers will associate the positive feeling with your brand. Interactive brand experiences also play a role in the desire for escapism. If you organize events, make sure you combine technology, brand storytelling and entertainment. “This will captivate and entertain your audience,” says the market research firm.
Stop greenwashing
In a world where the climate crisis is becoming increasingly important, consumers are trying to do something about it. But that is not so easy. You find yourself in a maze of sustainable options that often come with a catch. Is this all as sustainable as it seems? One thing is certain — consumers have had enough of greenwashing.
Those afflicted with Green Fatigue will no longer accept empty promises or false stories from brands and companies. For now, environmental concerns remain high on the agenda and sustainable decisions continue to be made. But there is also a group that feels discouraged and will try less.
You can probably guess, but the report says full transparency is essential in this consumer trend. Share concrete evidence of responsible business practices and validate progress, is the message. “At the same time, you should demonstrate the lasting impacts with specific data. For example, if your product is made from recyclable materials, indicate on the packaging how much waste was saved during production.” This way, consumers immediately know how their purchasing decisions or behavior can make a difference. In addition to transparency, affordability is also a sticking point; Consumers often find sustainable products too expensive. Euromonitor therefore believes that prices for sustainable products should be made more attractive.
Political statements? Probably not, stay true to the brand ethos
Consumers value brands that align with their values. After all, purchases reflect the goals that are important to them or how they want to look. Social responsibility, political commitment or sustainability initiatives can therefore have a positive impact on consumers and motivate them to buy. However, given the political unrest in many countries, this is not always the case.
Brands that speak out on political issues sometimes cut themselves into the ground. For example, consumers sometimes avoid brands that promote a partisan political agenda. Additionally, companies that run marketing campaigns on controversial topics are sometimes criticized or shunned. This can damage the brand’s reputation.
But companies that do it right can also strengthen their customer loyalty. So how should you approach it? Support topics that are important to your customers and that fit your brand identity. Immerse yourself in the minds of your target audience by reaching out to focus groups and gathering their perspectives. In addition to focus groups, social listening tools also offer insights into the views of your target group. In addition to presenting political views in a nuanced manner, it is important to maintain the authenticity of the brand.
So this consumer trend brings with it difficulties here and there. Euromonitor therefore argues that you cannot please everyone. “Brands that want to make their voices heard must accept both the potential risks and benefits associated with tackling a controversial topic.”
“Value Hackers”
Another issue that we cannot avoid is inflation. Rising costs are causing consumers to rethink their spending. They opt for cheaper options. Euromonitor finds that consumer savings behavior continues even as inflation eases. In fact, they seem to be looking for ways to save further and become “value hackers.”
As a company or brand, you can take advantage of this, for example by bundling offers. These allow buyers to purchase multiple products at a discount. According to Euromonitor, subscriptions and savings plans also work in the same way. Not only can you respond to the price of a product, but you can also respond to consumers with loyalty programs.
It is also important that consumers understand your value proposition. You guessed it: Communication is key. “Convey the right information that will influence their decisions. If consumers don’t understand your value proposition, they will switch to competitors or look for alternatives,” says Euromonitor. Sharing tips and tricks for saving money is also appreciated by consumers.
Mental and emotional health
Consumers want to dress well and feel good. It’s been that way for years, but the way they do it is changing. While they used to opt for a quick solution, today they take their time.
Consumers preferred simple, effective solutions that adapt to their lifestyle and require little time and effort without making major commitments. Now they say that they are from Quick fix Say goodbye and take a realistic approach. They no longer expect radical changes, but they want visible improvements, the report says.
In terms of purchasing behavior, this means that customers will choose user-friendly or more practical solutions. Here, proven effectiveness is a key component. You need to make sure you can demonstrate the effectiveness of your product, for example through before and after photos. In addition, data is also important. For example, real-time monitoring and intelligent tools help track progress.
This article originally appeared on FashionUnited.nl. Translated and edited by Simone Preuss.