6 consumer trends 2023

6 consumer trends 2023Although inflation and economic unpredictability may have been the year’s main themes, the New Year has brought with it a glimmer of hope for the retail sector thanks to a number of encouraging trading announcements.

The top trends that industry insiders predict will influence retail in 2023 are examined by Retail Gazette. Here they are:

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Trading up while downsizing

Trading down will be a popular trend in 2023 even though some consumers may be looking to spend a little more. This is because many consumers will be struggling more than ever to make ends meet.

According to GlobalData, almost 38% of customers already purchase their basic goods from their regular stores at lower prices, while 13.8% switch to less expensive chains.

According to Kim Nicholson, marketing manager at Kantar Worldpanel, customers are also attempting to simplify their meals by buying fewer ingredients. This is in addition to their search for less expensive substitutes.

According to Moorut, this is a fantastic chance for value grocery stores and discount merchants to promote the quality of their items at lower prices.

While consumers may be trading down, they are also trading up by bringing luxuries and social gatherings inside the home, including upscale meals, which is bad news for the hospitality sector.

Customers were opting to pamper themselves at home, according to a November study from Sainsbury’s, which saw a 14% increase in sales of its Taste the Difference products compared to pre-pandemic levels.

Supermarkets would be advised to update their premium lines in 2023 in addition to investing in value.

Affordability of sustainability

“Consumers are looking for ways to save money, and anything that seems wasteful, useless, or harmful to the environment, such as disposable products, offers customers the justification they need to leave it on the shelf and keep their money.

 

“Retailers are no longer wearing sustainability as a badge of honor; rather, it is becoming a vital hygienic concern for the goods they sell. Sustainability will shift in 2023 from being about being able to charge more to being about being able to charge at all.

Retailers will therefore need to find a method to make their selection more reasonably priced as they no longer have the option of charging more for environmentally friendly alternatives.


Also Read:The three biggest retail trends for 2023 – circular retail, the high Street resurrection, and frugal consumption, as per the discovery of Johnson Controls


Lead for European retail strategy at Accenture According to Kelly Askew, businesses have the chance to make this way of living as simple as possible for customers by teaching them how to shop wisely and providing bundles and discounts on eco-friendly goods.

Good deeds are beneficial to business

We should anticipate more shops aiming to have a greater social impact as the focus shifts to sustainability.

According to Rebecca Hobbs, senior trends editor at Stylus, “This goes far beyond the CSR endeavors of the past.”

Instead, at a time when much political leadership appears to be lacking, it’s about companies stepping up and assuming a leadership role as pandemic-weary customers try to negotiate a truly difficult socioeconomic situation.

Hobbs uses Iceland’s decision to offer interest-free loans to clients as an illustration of how businesses may assist consumers cope with growing living expenses. The initiative was undoubtedly well-liked because it received 4,000 applications in just 24 hours.

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As the cost of living continues to rise and consumer loyalty is put to the test, retailers will have to work harder in 2023 to draw in and keep customers.

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In fact, 56% of consumers surveyed by Gartner said they would abandon their preferred brands in favor of a better deal.

Retailers will need to increase their incentives in this environment, and Nicholson of Kantar Worldpanel predicts that more companies will raise the cost for special loyalty cards.

Tesco announced that in its most recent half, sales penetration climbed by 9.8 percentage points year over year. Tesco’s Clubcard prices have led the way and continue to be unmatched.

Other merchants have done the same. My Nectar Prices, a data-driven service offering customers discounts on items they frequently buy, was introduced by Sainsbury’s in 2022.

When Boots introduced its Price Advantage programme in January of last year, it joined the loyalty card exclusive discounts bandwagon as well.

Natural and unprocessed

Experts predict that in 2023, the campaign against perfectionism and altered images will gain momentum.

Consumers are rejecting polished minimalism and filtered perfection in favor of personal style and preferences, whatever they may entail, according to Pepper of Foresight Factory.

According to Pepper, “Retailers may resonate by recognising originality, redefining what was once seen as a weakness as a strength, and enabling customers to utilize things in any stylistic combination they like.”

In order to promote Pink’s gender-neutral line, Victoria’s Secret last April recruited actor Darren Barnet from the Netflix series “Never Have I Ever” as its first-ever male ambassador.

Retailers must make the purchasing experience accessible for everyone as part of the quest for inclusivity, according to Hobbs.

According to Hobbs, merchants are progressively implementing service design and UX enhancements online.

Since 65% of persons with disabilities have backed out of a purchase because it was inaccessible, there is both a moral and financial incentive to make things more accessible.

Introducing the metaverse into reality

Although many retailers may be skeptical of the metaverse, experts predict that 2023 will be the year when the retail sector fully adopts it.

With brands like Burberry, Gucci, and Balenciaga all starting projects, the luxury industry was the first to enter the metaverse. However, we could see it start to trickle down to mid-market businesses and make a physical appearance.

A metaverse version of H&M’s recycling initiative called Looptopia was just released last week on the gaming platform Roblox. It allows users to tour a futuristic metropolis full of H&M stores and participate in interactive activities.

This year, the metaverse and the physical world will become more intertwined, according to Stylus’ Hobbs.

“This physicality is a major component of the metaverse, which digital leaders like Mark Zuckerberg refer to as the embodied internet, making its incorporation in brand settings significant,”

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