Consumers are changing their purchasing tactics to match their self-care needs, prioritizing affordable products and purchasing must-have products by doing more price comparisons, being more cautious about impulse purchases, and intentionally postponing purchases. struggles with economic choices.
As economic uncertainty continues to be evident this year, brands need to connect beyond just offering discounts. According to Salsify's recently released Mindful Spending Trends report, companies also need to provide shoppers with a superior product experience and promote environmentally friendly practices.
Despite solid spending in 2023, the report reveals the uphill battle brand manufacturers, distributors and retailers face to win on the digital shelf this year.
According to Dom Scarlett, Salsify Research Director, consumer beliefs center around mindful shopping and emphasize the importance of every brand interaction being engaging and always being great.
“Authenticity is a key focus, recognizing that relevant connections are just as important as pricing and discounts, along with quality product images and content, to influence shoppers’ purchases.” ” she told E-Commerce Times.
Significant findings in the Salsify report
As Salsify reported in its 2024 Consumer Research report, 39% of shoppers prioritize budget-friendly options, 35% focus on essentials, 31% increase price comparison, and 26% are cautious of people engage in impulse purchases, and 22% intentionally postpone purchases. . These new purchasing trends are very different from consumers' previous shopping habits.
“Shoppers continue to be driven by convenience and financial responsibility. This makes e-commerce even more essential to the purchasing journey, from product discovery to consideration to decision-making.” Scarlett said. “65% of respondents prefer to buy online rather than in-store, considering both convenience and better pricing.”
The brand's sweet spot lies in the 'Goldilocks Zone', with almost half (49%) of shoppers sharing the Goldilocks desire for the perfect combination of online and in-store shopping. Consumers are now navigating the middle ground between opposites by embracing omnichannel shopping. A significant portion use their smartphones for in-store research, and nearly a quarter complete their online purchase while in the store aisle.
Researchers say the Goldilocks Zone combines online convenience with in-store immersion, essentially creating a seamless experience that brands can use to capture engaged shoppers wherever they go. It emphasizes the need for While 49% prefer this balance, 29% lean toward online shopping, compared to 22% who prefer brick-and-mortar stores.
Shoppers crave dynamic product pages
Another important purchasing change is shoppers' expectations for product details. Seventy-eight percent of respondents to his survey of 2,700 online shoppers in the US and UK said they wanted action-packed product pages that included images and descriptions.
Research shows that shoppers want a holistic view of a product before making a purchase, focusing on make-or-break factors such as high-quality visuals, video product demonstrations, and 360-degree views. Masu.
All of this combines to give you an experience that's almost as good as holding the product in your hands, with the convenience of shopping anytime, anywhere. When these content expectations are not met, 45% of shoppers return items due to incorrect details.
“Even when shoppers are on the go, a significant 57% of people enjoy discovering new products in physical stores, while 54% have used their smartphones to search for more information while in a physical store. Additionally, 48% of shoppers are 'showrooming' – visiting a physical store to check out products before purchasing online.
Shoppers can't always check out products in-store. But they love seeing the products on their digital shelves “in action,” she added.
Consumers say it is “very important” that product detail pages (PDPs) clearly display pricing and discounts (79%), product images (78%), product descriptions (78%), and customer ratings or consider it “very important.” According to the report, reviews (72%).
Green initiatives are in full swing
Shoppers are becoming fixated on going 'green'. When researchers asked respondents what brand ethics and sustainability practices resonated with them, the most common response was environmentally friendly packaging (34%), followed by fair labor practices (27%) , ethically sourced (23%).
“Given these reactions, most shoppers' concerns about greening arise once the product is already in their hands. Perhaps shoppers have positive feelings toward eco-friendly packaging. Yes, because it emphasizes the shared responsibility between brands and consumers,” Scarlett suggested.
She likened the new attitude of consumers to, “Sure, we'll buy your product, but how can we reduce the impact of what we throw away?''
Product source and ownership are also key concerns for shoppers. According to Scarlett, they pay attention to how their products are produced, by whom and with what materials, and are concerned about protecting potentially delicate ecosystems, as well as complex human relationships. It is said to emphasize the relationship between humans and the earth.
“Getting the product is no longer the only concern. The question, 'How much does it cost?' has become even bigger. ” she added.
The key here for retailers is how to adjust their marketing to address greening concerns. It's also worth noting that when asked how brand ethics and sustainability practices resonated with them, 28% said “nothing.”
Scarlett warned that this thinking could highlight the responsibility of brands to diversify their efforts in ways that capture the attention of more consumers and, of course, have a positive impact on the planet.
New AI Shopping Preferences
As more e-commerce tools begin incorporating AI technology, shoppers may become accustomed to these features in the future. Here are the top five AI-powered shopping features that have generated the most interest among shoppers this year.
- virtual shopping assistant (24%);
- personalized brand or product recommendations (23%);
- smart sizing recommendations for fashion products (23%);
- virtual try-on tools (21%), and
- Virtual Showroom Tour (20%).
Enthusiasm about AI in e-commerce varies widely by age group, with older generations being the most skeptical. Baby boomers are particularly reluctant to do so, with 60% saying they are not interested in AI shopping features. This sentiment highlights a widespread hesitancy to adopt AI technology on the digital shelf.
In contrast, younger demographics such as Gen Z and Millennials are increasingly interested in leveraging AI for their shopping needs. They are especially keen to explore advanced features such as virtual shopping assistants, personalized product recommendations, and smart sizing tools. This discrepancy highlights a clear generational gap in attitudes towards the role of AI in improving the shopping experience.
“The opposition and slow adoption are related to misunderstandings about AI's capabilities and limitations, and how much it can help bridge the gap between online and in-store shopping, as in the case of virtual try-ons. There could be,” she said. observed.
Marketing methods need to mature
Marketers and retailers are focusing on: Shoppers are less interested in the artificial intelligence hired to sell them products. But according to researchers, transforming brands with greener and ethically sound practices is more than a strategic move in an uncertain economy — it's what attracts shoppers. .
What really resonates with shoppers is eco-friendly packaging followed by fair labor practices and ethical sourcing. Moving away from what was once important to him, 88% of shoppers now reject public positions on social or political causes or social responsibility programs.
Just as shopper preferences are strong around convenience, pricing, sustainability, and AI, brands have a huge opportunity, albeit a responsibility, to help shoppers find what they need and want. Still exists, Scarlett suggested.
“Expanding your social commerce efforts, rolling out a new loyalty program or recycling initiative, or offering new AI shopping capabilities will not only capture the attention of a whole new market, but also move the needle no matter what the trend is.” We can change even more,” she concluded.
A new strategy for retailers
Scarlett says that as e-commerce continues to grow, shoppers are more firmly in the driver's seat and they love it. But brands aren't completely powerless.
By working on the quality and optimization of product content, as well as making thoughtful experiments with new or existing channels, brands can better reach their current customers and expand their audience.
“Brands need to not only be discovered, they need to provide a high-quality experience, whether that's on social media platforms, in-store, or anywhere in between,” she said. .
