With a new year unfolding, and with all indications that this year may be an uphill climb, everyone is trying to get a handle on what the retail landscape may look like.
I recently read a white paper from Akeneo, a product experience company that says it enables organizations to build and deliver world-class product experiences across every customer touchpoint through a comprehensive PX Strategy.
The title of their report is called “A Glimpse Into the Retail Industry in 2024,“ and since my crystal ball stopped working years ago, I thought it might be helpful if I shared the key findings from this report.
According to Akeneo, the major drivers that will impact retail this year include: Data-Driven, Hyper-Personalized Shopping Journeys; Transparent Supply Chains & Business Practices; Incorporation of Artificial Intelligence to Enhance Customer & Employee Experience; Seamless Experiences Across Digital, Social and Physical Channels; and a Growth in Demand for a Circular Economy.
In terms of data-driven, hyper-personalized shopping journeys, it says in 2023, it saw growing consumer demand for highly personalized product recommendation and experiences based on deeper insights into customer shopping behavior.
The report concludes that this consumer demand will only get larger as additional advanced technologies and artificial-intelligence-driven systems harvest and extrapolate more and more customer data.
Additionally, with consumers being increasingly aware of where and how the products they buy are sourced, transparent supply chains and business practices will become increasingly key to consumers.
Regarding the impact that AI will have on retail, the report pinpoints several key areas where AI will impact retail.
Specifically, the paper suggests that with the help of AI, retailers can generate and enrich product content, collect and cleanse product data, intelligently route specific questions or requests, personalize content to new and existing markets, remove lengthy manual tasks and increase operational efficiency.
Commenting on the growing consumer demand for seamless experiences across digital, social and physical channels, the paper predicts that demand will be higher than ever before for comparable shopping experiences across all shopping channels available to them.
As for the growing importance of a Circular Economy, the Akeno study defines the Circular Economy as “an economic model that aims to minimize waste, make the most of resources, and reduce the environmental impact of products and services.”
The study goes on to recommend that retailers invest in upcycling or recycling programs to reduce carbon footprints, open the door to new associated revenue streams and be able to communicate a shared commitment to like-minded consumers, and by extension, foster growing customer loyalty.
For the sake of time and simplicity, I shared the key findings. For more information, visit https://www.akeneo.com.