The Retail Predictions That Marketers Can Plan Around in 2023
Digital Marketing
Jul 12 2023
Over the last three years, most retailers have dealt with changes in the market caused by the pandemic. From issues with the supply chain to changes in the way people work, there are many reasons why retailers have had to swivel if they wanted to survive.
In 2023, retailers and their marketing teams will still need to keep up with evolving challenges and trends so they can adjust quickly to improve the shopping experience for their customers. Staying nimble, doing the research, and anticipating what’s next will prime retailers to create sustainable business practices and give marketing teams a message they can work with.
The Big Challenges for Retailers in 2023
The first challenge retailers should anticipate during this year — and potentially the most threatening to business — is the threat of an economic recession.
Consumers don’t spend as much when they’re worried about work (and the potential of being laid off) or find that they are spending more on basic necessities. They are more cautious with their money (24% of consumers spend more conscientiously in the face of a recession) and that caution can lead to lower sales figures and, understandably, some frustration for retailers.
This means that retailers in some sectors, like those selling products in the home improvement or home goods sector, could find that demand for their products lessens as people return to working in corporate offices or cut back on discretionary spending.
Marketing teams also have their competition to keep in mind. Ecommerce sales are growing; they reached over $1 trillion last year. That growth demonstrates that there’s more competition for online sales than ever before, and it can be harder to get in front of your preferred audience and beat out the competition.
Fortunately, there are trends that you can watch for and take advantage of to position your business on solid ground.
Retail Predictions for 2023
There are several continuing trends that you may notice in 2023, including the heavy use of social commerce through social media platforms like TikTok, for example. Though major social media player Instagram is shifting more of its attention to advertising, social commerce will still thrive on platforms that rely heavily on short, snackable videos and other types of engaging media.
For customers who want the in-store shopping experience without actually going into a store, AR shopping might be this year’s biggest nod to the future. AR shopping uses a filter to simulate a product and overlay it onto a real-world image — like if you uploaded a headshot on a makeup brand’s website, selected a shade of eyeshadow, and the shade appeared so you could “experience” the product before purchase. Interestingly, around 91% of people shopping via mobile in the U.S. already have access to at least some AR programs. Investing in a program like this might seem costly, but the potential to create a better customer experience and drive more online sales could eventually outweigh the initial cost.
Another interesting trend: more single-day savings events. Big events like these draw in a lot of customers who will spend to get a deal, letting businesses get a cut of that revenue. In July 2022, U.S. online spending reached $11.9 billion, which was 8.5% greater than the year before despite the high cost of inflation. Events like Prime Day, Target Deal Days, Walmart Rollbacks, and others aim to take advantage of customers looking to spend on “must-buy” savings days.
What about businesses that don’t sell first-hand products? The good news is that resale may become more prevalent in 2023. The secondhand goods market is growing thanks to customers looking for green alternatives to help the planet (and save some cash). Businesses such as Poshmark and threadUP are already placed in the market for secondhand apparel, but even luxury brand Gucci launched its own luxury consignment shop, and Levi’s created Levi’s Secondhand.
Other brands can take advantage of the market, too. Both Goodwill and Shein are looking into developing online marketplaces for resale — something your business may be interested in as well.
How To Prepare for the Most Common Trends in 2023
Brands need to closely examine their digital strategies for 2023 to make sure they’re spending time and money where it’s most effective. Creating a better customer experience begins with meeting customers where they’re at. If your target audience is shifting to more online than in-store purchases, investing in AR may help you complete more sales, reduce returns, and get the same positive results. Similarly, noting the importance of one-off savings days may help you drive sales during times of the year when revenue is typically down.
The threat of a recession will continue to lead to people being more cautious with their money, but that doesn’t mean your business can’t take advantage of more careful spending. Developing an online marketplace for your brand’s secondhand or discounted products could be one way to get ahead. You could also look into investing time into social commerce on TikTok or other growing social media platforms.
Each of these options could help you prepare to weather the storm during a recession and put you in a good position to continue growing your online business.
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