The year 2022 has brought numerous new developments in the world of e-commerce, retail and fashion. The rapid growth of digital commerce and a slew of global issues are undoubtedly having a profound impact on consumers’ lives. As 2023 draws ever closer, American consumption data platform GWI has outlined some trends that will emerge from the behavior changes in its new report “Connecting the Dots”.
The company believes that consumers have reached the peak of internet saturation and average online usage numbers will continue to stagnate. However, the reasons that were once considered “typical” Internet usage points have changed noticeably as new developments bring new ways of using the online world.
While business networking and research have declined the most, the report says, general browsing, product research, and watching videos have also declined. A shift towards social media platforms such as TikTok, a growing commitment to Web3 development and a reversal of attitudes towards the Internet can be observed. Distrust of the internet has decreased slightly, since companies are increasingly dealing with the topic.
All of these factors factored into the market research firm’s consumption trends for 2023. Above all, it is about offering users new incentives on a daily basis, so that they regularly have new experiences and refresh their commitment and goals.
Social media define shopping
GWI pointed out that according to a recent study by Google, young people are more likely to use TikTok or Instagram than real search engines to find answers to their questions. Searching for information remains the most important use of the Internet, and searching for products before purchasing has dropped one place in the rankings. She was overtaken by the search for new ideas and inspiration.
These results point to a growing trend towards open-ended browsing, fueled by Gen Z and Millennial-favorite social media apps that offer highly personalized algorithms and eye-catching visualizations. It was also found that Generation Z less sees buying items as one of the main benefits of the internet, and instead values the sense of community. As these websites are largely driven by trends, brands must always keep in mind what is culturally relevant and what consumers are actively searching for. Self-generated content has also boosted people’s trust, a factor likely driven by the younger generations.
Community in the Metaverse
As was already clearly visible in 2022, the cultural influence of immersive 3D spaces and online worlds will continue to increase in the coming year. While there is an underlying trend of increased interest in coding, experimentation with online identity and self-expression is likely to be a more profound consequence of these changes, according to GWI. Platforms like Roblox and Fortnite have fueled the popularity of user-generated content and are largely responsible for people’s desire to take on diverse personalities online.
Many have turned to this element to differentiate themselves or have more control over how others perceive them. The platforms have also fueled the development of like-minded communities, such as the LGBTQ+ community, who often see the platforms as a safe space in which to reflect on their identity. GWI therefore suggests that brands should take these factors more into account in order to create welcoming experiences and an inclusive environment that appeals not only to Gen Z but also to Gen Alpha for the future Metaverse.
Fashion and beauty are at the top of the list
Failing financial confidence was something that couldn’t be missed when discussing the trends of 2022 as the cost of living soared. In many markets, prices for everyday items reached an all-time high. However, according to GWI, two-thirds of consumers outside of China said their current financial situation was “secure,” an assessment that may be supported by accumulated savings from the pandemic or a benign labor market. This is also reflected in what consumers see as a “reward” within their budget, according to the market research firm, which found clothing was the only category to appear in the top three most popular rewards across all generations and genders.
According to the company, global apparel sales have not changed significantly, but the industry has been largely led by offerings offering “luxury for less” which showed the fastest growth in the US GWI study. The beauty industry has continued to prove lucrative in 2022, with its resilience likely due to a number of factors including affordability and the emotional bond keeping consumers – particularly young women – who are following the results tend to prefer beauty products.
Sustainability is still not a priority
Contrasting with other studies, GWI found that fewer people say they care about protecting the environment than before the pandemic. The number of people who say they expect brands to be eco-friendly has also fallen in recent years, on a global scale. The report says much of this shift could be due to increasingly criticized ESG criteria, failings in the market research industry, and the controversial idea that consumer demands set the benchmark for sustainability. The GWI said that consumer choices should not be seen as one of the key drivers of change, nor should a slowing economy.
In one of its studies, the company found that the number of people who reported sacrificing other expenses to buy a product earlier has increased over the past two years, while at the same time people’s willingness to pay more for environmentally friendly products pay, declined. This behavior was particularly evident in Asian countries, where the link between spending and attitudes towards sustainability is stronger, according to GWI.
This article was similarly published on FashionUnited.uk. Translation and editing: Barbara Russ