Knowing trends in consumption and commerce helps companies adjust their products and services to situations that may alter their operations and sales in the short, medium, and long term. Demographic changes, as well as technological advances, among other elements, change the way people buy, but also the amounts they spend and what they do it on, which is why businesses must be prepared to prevent risks or take advantage of opportunities in product handling.
Although it is still difficult to predict consumer behavior, each year consulting firms and other companies release documents with trends (outlooks, forecasts, and even predictions) that can help businesses understand customers.
Deloitte, the well-known professional services firm, suggests acting when a trend has a high impact and will materialize soon or is already occurring; prepare, when something will have a significant impact in the medium term; and keeping an eye on when a trend will have little impact or is not expected to establish itself soon.
However, each region, country, and sector faces different economic and commercial circumstances, but there are elements that are repeated among the trends for the year 2024 that businesses must consider to adjust their investments, operations, and offers.
The quality of products and services, and actions against inflation
According to Statista’s Must Watch Consumer Trends for 2024, up to 41% of global consumers have noticed an increase in their cost of living. Meanwhile, data from Ipsos – cited in other analyses – indicate that inflation and the cost of living worry more than half of the so-called “Generation Z”, that is, those born between the mid-90s and early 2000s.
Faced with this, different companies suggested actions to move forward in this scenario, for example: investing in the development of products that emphasize quality and durability; reformulating items to use cheaper or less scarce materials; or introducing “white” brands, free or own, among others.
The objective is not only to offer stable prices, but to maintain and increase sales, maintain loyalty and increase the number of customers, and have a satisfactory profit margin.
Business digitalization, data analysis, and AI
Virtually all analysis of trends for 2024 highlights the importance of data and generative Artificial Intelligence (AI). In fact, Deloitte suggests acting now, as it considers that both elements will have a very high impact, although their full adoption or standardization will still take around 4 years. Data collection and analysis will be important for a better understanding of the customer and their needs, as well as for having successful strategies for supply chains and automation. Meanwhile, it is planned to apply generative AI in different tasks in business, from generating texts, images, and videos, to data analysis itself.
Although today physical and online stores complement each other in what is considered a hybrid model, the digital transformation of businesses is projected to accelerate, taking into account the growing importance of the sale of products and services via social media and digital payments.
Hyper personalization
Along with data analysis and the application of generative AI in business, hyper-personalization is projected that includes the generation of content, messages, and recommendations to specific consumers, at the right time and place, in order to respond to their needs and particular preferences.
This ensures that people appreciate and connect with tailored messages and leave behind the annoyance caused by intrusive ads, pop-ups, and irrelevant promotions. According to Statista, the annoyance generated by Internet advertising decreased from 47% in 2019 to around 36% in 2023. Other sources suggest that up to 80% of consumers would be more willing to buy from a business that offers personalized experiences, in addition consumers spend up to 48% more when this is the case.
Ethical and sustainable consumption
The quality and sustainability of products and services have regained importance among consumers. For this reason, ethical and sustainable consumption challenges companies to reduce their carbon emissions, treat their employees with respect, reduce pollution and waste, and promote recycling.
An EY Parthenon analysis of the most important purchasing criteria for consumers in North America, in the next 3 years (from 2022), found that after price (49%) are: healthy for me (48%), quality in service (30%), sustainable packaging (29%), good for the environment (24%) and sustainably sourced (21%).
Furthermore, Statista detected that up to 52% of Americans consider themselves ethical/sustainable consumers, compared to 28% who do not know and 20% who do not perceive themselves that way. Businesses must be careful to work seriously in this area or they risk losing customers who discover a false position.
Small and medium-sized businesses (SMEs) that need resources to invest and advance in accordance with the trends projected for 2024 can apply online, without paperwork or mortgage guarantees. This is certainly an opportunity for business opportunities to be more easily exploited.
