1、The future of commerce:How retailers can adaptEmbracing innovation and agility in a transforming marketplaceWhats inside 2024 BAZAARVOICE,INC.2THE FUTURE OF COMMERCE:HOW RETAILERS CAN ADAPT3 Introduction4 Charting new horizons in retail7 History and evolution of retail8 Current trends in commerce10

2、The role of technology in future commerce13 The consumer of the future14 Challenges and opportunities16 An experts perspective18 Key takeaways 2024 BAZAARVOICE,INC.3THE FUTURE OF COMMERCE:HOW RETAILERS CAN ADAPTAs an e-commerce leader,youre no stranger to the fast-changing retail world.Recent years

3、have underscored the need for flexibility and innovation as the industry adjusts to changing circumstances.However,keeping up with evolving consumer preferences and new technologies requires strategic foresight.We created this guide to help you:Understand the key forces reshaping the retail industry

4、 Explore current and emerging trends in retail Learn how artificial intelligence(AI),augmented reality(AR),and virtual reality(VR)are revolutionizing retail Understand the evolving preferences and behaviors of consumers Balance technology with human interaction and privacy concerns Gain expert insig

5、hts on future developments in retail Act on insights for innovation and adaptabilityThis e-book offers practical insights and strategies to help retailers achieve growth and success.Introduction 2024 BAZAARVOICE,INC.4THE FUTURE OF COMMERCE:HOW RETAILERS CAN ADAPTCharting new horizons in retailRetail

6、 is changing rapidly due to shifts in consumer behavior and tech advancements.To keep pace with these changes,retailers need to innovate,experiment with new business models,and cultivate stronger connections with their customers.Lets look at 8 key trends driving change:Accelerated pace of digital tr

7、ansformation The digital wave has been supercharged by recent global events like the COVID-19 crisis,which caused digital services to leapfrog years of progress in a matter of months.1 This fast and ongoing digital shift is reshaping customer interactions and pushing retailers to keep innovating.The

8、 new omnichannel The new omnichannel goes beyond sales channels.AI tailors experiences across touchpoints while click-and-collect,voice,and AR shopping feel increasingly individual.Forget seamless.Its about building communities and curating personalized experiences.Conscious consumerism continues it

9、s rise Conscious consumerism isnt just a trend.Its a generational mandate.Gen Z,which currently accounts for 40%of buyers,is willing to pay more for purpose-led brands.2 At the same time,sustainable products are driving a disproportionate amount of growth in consumer packaged goods.Personalized expe

10、riencesPersonalized experiences arent a luxury,theyre a must.Salesforces State of the Connected Customer report highlights that 66%of customers expect companies to understand their needs.Retailers need to use data analytics and AI to meet these expectations.3 2024 BAZAARVOICE,INC.5THE FUTURE OF COMM

11、ERCE:HOW RETAILERS CAN ADAPT Emerging technologiesAI,AR,and VR are transforming retail,creating immersive shopping experiences.The global AR and VR market is projected to hit$32.1 billion by 2023,highlighting the growing importance of these technologies in retail.Think virtual try-ons,product visual

12、ization,virtual fitting rooms,virtual store tours,and in-store navigation.4 The evolving economic landscapeEconomic shifts require retailers to maintain flexible business models and adapt to changing consumer spending.The Bazaarvoice Shopper Experience Index shows 73%of consumers globally have alter

13、ed their spending due to economic factors.5 Regulatory and privacy concernsAs retail becomes more digital,data security and privacy are crucial.Laws like GDPR are changing how retailers manage consumer data.Retailers need to protect customer information and rethink their data strategies to keep cust

14、omer trust and ensure a secure shopping experience.6Comment.412134728 2024 BAZAARVOICE,INC.6THE FUTURE OF COMMERCE:HOW RETAILERS CAN ADAPTThe future of retail isnt just about change its about seizing opportunities,fostering innovation,and having the courage to redefine the shopping experience.Changi

15、ng demographics and consumer behaviorsThe demographic shift,particularly the rise of Gen Z as a consumer force,is altering the retail landscape.And Gen Zs preferences for digital-first engagements and social media influence are reshaping retail marketing strategies.7Comment.412134728 2024 BAZAARVOIC

16、E,INC.7THE FUTURE OF COMMERCE:HOW RETAILERS CAN ADAPTHistory and evolution of retailTechnology has consistently transformed retail,from bustling marketplaces to todays digital domains,reflecting its ongoing adaptation to changing consumer needs.Post-WWII sees the rise of suburban malls and self-serv

17、ice supermarkets Local marketplaces with bartering give way to fixed-price shopsEarly beginnings(Pre-20th century)Mid-20th century advancesE-commerce platforms like Amazon and eBay take retail onlineDot-com boom(1990s-2000s)Barcodes and EDI systems streamline inventory and salesLate 20th centuryTech

18、 infusionEvolving expectations drive retailers toward more customer-centric modelsConsumer behaviorOnline and ofine channels integrate for a seamless shopping experience21st centuryOmnichannel retailingFrom marketplaces to digital spaces:A journey through time 2024 BAZAARVOICE,INC.8THE FUTURE OF COM

19、MERCE:HOW RETAILERS CAN ADAPTOMNICHANNEL 2.0 The traditional omnichannel focused on seamlessly integrating online stores,physical shops,mobile apps,and social media.The next level of omnichannel is all about personalized,immersive experiences that connect with customers on a deeper level.Beyond conv

20、enience,its about:Spontaneous engagement:Try on clothes virtually,discover hidden gems in-store the future omnichannel weaves shoppable moments into the fabric of everyday life.Brands as partners:No longer just retailers,brands become community builders,fostering connections,and offering tailored ex

21、periences across touchpoints.Immersive experiences:Forget sterile aisles and checkout lines.Omnichannel stores are vibrant,interactive spaces that engage all senses and inspire exploration,not just transactions.Take Sephoras Virtual Artist app,which leverages AR to bring makeup try-ons directly to c

22、ustomers smartphones.With a few taps,they can virtually experiment with lipsticks,eyeshadows,and more,seeing the results in real-time on their own faces.This personalized,interactive experience is revolutionizing how customers discover and purchase beauty products.Current trends in commerce 2024 BAZ

23、AARVOICE,INC.9THE FUTURE OF COMMERCE:HOW RETAILERS CAN ADAPTAUTHENTIC SOCIAL PROOF(UGC)User-generated content(UGC),which includes customer reviews,photos and videos,testimonials,and social media posts,has become a pivotal factor in retail.UGC is more than just content.In retail,its a powerful tool t

24、hat:Enhances authenticity:UGC provides genuine insights from real users,influencing purchasing decisions and building trust in the brand and its offerings.Cultivates community:UGC creates a sense of community for consumers in online retail,where physical interactions are scarce.Embodies credibility:

25、UGC adds a layer of authenticity and social proof,validating the brands reputation and its products or services.Instills confidence:UGC builds customer trust and confidence,encouraging repeat purchases and brand loyalty.Guides the consumer journey:UGC serves as a beacon of trustworthiness in a crowd

26、ed market,guiding consumers from discovery to purchase.UGC is transforming the retail landscape,turning everyday consumers into trusted influencers,and shaping how products are discovered,evaluated,and purchased.A perfect example is Petco,which uses UGC to build a community of pet parents.By encoura

27、ging pet owners to share experiences and reviews,Petco fosters sincere relationships with pet parents,helping them provide the best care for their animals.2024 BAZAARVOICE,INC.10THE FUTURE OF COMMERCE:HOW RETAILERS CAN ADAPTAI,AR,VR,and evolving payment systems are redefining the shopping experience

28、,offering retailers opportunities to enhance customer engagement,optimize operations,and gain a competitive edge.AI FOR PERSONALIZED EXPERIENCES AND DATA-DRIVEN INSIGHTS AI is poised to revolutionize retail by enabling retailers to personalize shopping experiences and gain valuable insights from cus

29、tomer data.Actionable steps:Implement AI-powered product recommendations:Analyze customer purchase history,browsing behavior,and demographic data to recommend products that align with individual preferences.Use AI chatbots for 24/7 customer support:Provide prompt,personalized assistance to customers

30、 through AI-powered chatbots that can answer questions,resolve issues,and guide customers through the shopping journey.Employ AI for predictive analytics:Leverage AI to forecast customer demand,optimize inventory management,and prevent stockouts or overstocks.The role of technology in future commerc

31、eAI Recommended 2024 BAZAARVOICE,INC.11THE FUTURE OF COMMERCE:HOW RETAILERS CAN ADAPTAR AND VR FOR IMMERSIVE SHOPPING EXPERIENCESAR and VR are transforming how customers interact with products,providing an immersive and engaging shopping experience.Actionable steps:Develop AR apps for virtual try-on

32、s:Allow customers to use AR for virtual fittings of clothes,accessories,or makeup,reducing return rates.Implement AR apps for product visualization in real-world settings:Enable customers to see how furniture,dcor,or other products would look in their own homes using AR technology.Create VR-enabled

33、virtual stores:Offer customers an immersive shopping experience by replicating your physical store in a virtual environment.2024 BAZAARVOICE,INC.11THE FUTURE OF COMMERCE:HOW RETAILERS CAN ADAPT 2024 BAZAARVOICE,INC.12THE FUTURE OF COMMERCE:HOW RETAILERS CAN ADAPTEVOLVING PAYMENT SYSTEMS FOR FRICTION

34、LESS AND SECURE TRANSACTIONSThe future of retail payments is moving towards enhanced convenience and security,driven by consumer demand for seamless transactions.Actionable steps:Integrate digital wallets and contactless payment options:Offer customers a variety of digital payment options for a quic

35、k and hassle-free checkout experience.Explore the potential of blockchain technology:Investigate the potential of blockchain technology to enhance security and transparency in payment systems.The future of commerce is being shaped by evolving technology.Retailers that adapt to these changes can offe

36、r better shopping experiences,drive sales,and build customer loyalty.2024 BAZAARVOICE,INC.13THE FUTURE OF COMMERCE:HOW RETAILERS CAN ADAPTTop concerns of future consumersUnderstanding tomorrows shoppers:3 dominant consumer mindsets:The future of retail isnt one-size-fits-all.To thrive,brands must un

37、derstand the diverse motivations and priorities of tomorrows shoppers.The tech-savvy shopperThe values-driven consumerThe data-empowered customerAlways connected,seeking seamless online experiences and personalized recommendations.Driven by purpose and ethics,chooses brands that align with their bel

38、iefs and support sustainable practices.Trusts technology,willing to share data for relevant benefits but expects strong privacy and security measures.2024 BAZAARVOICE,INC.14THE FUTURE OF COMMERCE:HOW RETAILERS CAN ADAPTChallenges and opportunities3 key challenges and opportunities retailers must nav

39、igate to thrive in the future:DATA PRIVACY AND PERSONALIZATIONChallengeRetailers face competing priorities.They must provide the personalized experiences that consumers increasingly demand,while adhering to stricter data regulations and addressing growing privacy concerns.OpportunityRetailers can pe

40、rsonalize shopper journeys without personally identifiable information(PII)through contextualization,which helps predict a customers next move using past clues and future possibilities.Alternative solutions like Contextual Commerce,for example,use non-intrusive techniques so retailers can offer pers

41、onalized experiences,respect data privacy,and build consumer trust without relying on sensitive customer data.2024 BAZAARVOICE,INC.15THE FUTURE OF COMMERCE:HOW RETAILERS CAN ADAPTChallengeAs consumer demographics change and preferences evolve,retailers need to reach and appeal to new market segments

42、.OpportunityUnderstand and adapt to cultural differences,varying consumer behaviors,and emerging trends.Retailers that navigate these complexities can expand their reach,diversify their customer base,and tap into new market opportunities.REACHING NEW MARKETS AND DEMOGRAPHICSADAPTING TO REGULATORY CH

43、ANGESRetailers that see these challenges as opportunities to improve their operations,strengthen customer relationships,and expand their reach will be successful in the changing retail landscape.ChallengeRetailers need to stay updated and comply with changing regulations,especially in data privacy a

44、nd consumer protection.OpportunityAdapt practices and policies to meet these standards,while keeping a focus on the customer.This involves monitoring regulatory developments,adapting business practices proactively,and communicating openly with regulatory bodies.2024 BAZAARVOICE,INC.16THE FUTURE OF C

45、OMMERCE:HOW RETAILERS CAN ADAPTTREND:FUTURE-PROOFING OMNICHANNEL EXPERIENCESA recent report by S&P Global Market Intelligence/451 Research,2024 Trends in Customer Experience&Commerce8,identifies over$250 billion in potential revenue opportunities for retailers by tackling issues in the customer jour

46、ney.The report provides a detailed analysis of specific areas of friction,offering valuable insights and practical recommendations for improvement.“By meticulously quantifying detailed customer feedback and behavioral data,retailers can pinpoint the exact location of pain points within their custome

47、r journey,”advises Sheryl Kingstone,S&P Global Market Intelligence/451 Research.“These insights are far more powerful than broad metrics like satisfaction scores and expose specific issues hindering customer conversion and loyalty.”Kingstone emphasizes the substantial opportunity hidden within these

48、 pain points:“A$49 billion opportunity lies solely in addressing checkout abandonment issues.By understanding the specific reasons behind customer drop-off,retailers can take targeted action,such as streamlining checkout processes or offering alternative payment methods.”With new customer data tools

49、 and AI-enabled quantification capabilities,retailers that are proactive and use data to optimize the customer journey can take advantage of a$250 billion opportunity and unlock a future of sustained growth and customer satisfaction.An experts perspective 2024 BAZAARVOICE,INC.17THE FUTURE OF COMMERC

50、E:HOW RETAILERS CAN ADAPTThe retail landscape is shifting,driven by evolving consumer habits and disruptive technologies.To thrive,retailers must embrace agility,prioritize customer experience,and leverage data-driven insights.With visionary leadership,creativity,and tech-savviness,retailers can nav

51、igate these challenges and unlock new avenues for growth and profitability.While the future of retail may be ambiguous,adaptability is the key to staying relevant.The Bottom Line 2024 BAZAARVOICE,INC.THE FUTURE OF COMMERCE:HOW RETAILERS CAN ADAPT 2024 BAZAARVOICE,INC.18THE FUTURE OF COMMERCE:HOW RET

52、AILERS CAN ADAPTKey takeawaysDiscover how user-generated content can drive retail growth.Get Started 2024 BAZAARVOICE,INC.Embrace digital transformation:Retailers must innovate to enhance the customer experience,adapting to the digital-first preferences of Gen Z.New Omnichannel strategy:A seamless b

53、lend of online and offline experiences is key to meeting customer expectations and increasing sales.Sustainability and compliance:Retailers need to integrate sustainable and ethical practices into their operations while also complying with data security and privacy regulations.Contextual commerce:Em

54、brace the use of AI and data analytics to deliver personalized experiences,respecting privacy and building trust,without relying on sensitive customer data.Navigating economic fluctuations:Adaptability and flexible business models are essential to respond to changing consumer spending habits and eco

55、nomic uncertainties.18THE FUTURE OF COMMERCE:HOW RETAILERS CAN ADAPTReferences1.McKinsey&Company.“The new digital edge:Rethinking strategy for the post-pandemic era.”https:/ Consumer Goods Forum.“Conscious Consumerism Is Transforming Industries”https:/ 3.“Salesforce Report:Nearly 90%Of Buyers Say Ex

56、perience a Company Provides Matters as Much as Products or Services.”https:/ Future of Retail:How AR and VR are changing the Way We Shop.”https:/ 2023 SEI https:/ is GDPR,the EUs new data protection law?https:/gdpr.eu/what-is-gdpr/7.B.“Marketing to Gen Z:What the new consumers want https:/ Global Ma

57、rket Intelligence/451 Research.2024 Trends in Customer Experience&Commerce.2024 BAZAARVOICE,INC.19THE FUTURE OF COMMERCE:HOW RETAILERS CAN ADAPTSupercharge your commerce engine 2024 BAZAARVOICE,INCThousands of the worlds leading brands and retailers trust Bazaarvoice technology,services,and expertis

58、e to drive revenue,extend reach,gain actionable insights,and create loyal advocates.Bazaarvoices extensive global retail,social,and search syndication network,product-passionate community,and enterprise-level technology provide the tools brands and retailers need to create smarter shopper experiences across the entire customer