The New Consumer (January-February 2022)
Editor’s Note: In each issue of Path to Purchase IQ, we’ll showcase a curated roundup of consumer research studies and other insights that paint a picture of emerging trends in shopper behavior in this new department, called The New Consumer.
This month’s installment offers a glimpse at growth in social commerce and the trends on the horizon for commerce in 2022.
Growth in Social Commerce
Gen Z and Millennials are leading the social commerce charge as the primary users of social media. The growth, which was projected in a January study from Accenture, attributed 62% of social commerce spend —which is expected to reach $1.2 trillion by 2025 — to the two generations.
Nearly 2 billion social media users, or 64% of those surveyed by Accenture, said they made a social commerce purchase in the last year. That’s notable to the retail industry, which initially suffered during the early days of the COVID-19 pandemic.
Currently, around 3.5 billion, or 44% of the world’s population uses social media, representing big opportunities for brands and retailers to capture not just Millennials and Gen Z users, but all consumers.
Social commerce is also likely to help small businesses and brands, which often rely on social media to connect directly with consumers with authenticity, according to the study.
With huge growth projected over the next few years, some retail categories are set to explode. Clothing is expected to increase the most among social commerce purchases by 2025, followed by consumer electronics and home decor. Fresh foods and snack items represent a large product category of total purchases, although those sales are almost exclusively within China. Another up-and-coming area is beauty and personal care products.
Trends in Commerce for 2022
The Mars Agency London highlighted seven key trends for 2022 in a special “Trends in Commerce” report. Among them were:
• Quick commerce. One of the fastest-growing purchase channels in 2021 was the number of companies accelerating order-to-delivery promises. Demand for efficient commerce fulfillment will continue in 2022 as shoppers increasingly expect fast delivery from retailers and brands, while “fast and free” will surely be the winning combination.
• Return of relevant retail. Despite the boom of digital commerce, post-lockdown consumers around the world are eager to get back into “real retail” and the full sensory experience of physical shopping. Retailers and brands must deliver on three distinct needs: provide safe shopping, more immersive browsing experiences and connected commerce opportunities.
• QR Codes. These codes give brands and retailers a relatively easy way to have more relevant, evolving and connected communication with increasingly comfortable shoppers.
Other trends highlighted in the report include consumers reassessing their work practices (and shifting to a self-made work week), brand purpose and mindful eating, as well as what The Mars Agency dubbed “selective frugality,” the re-evaluation of what’s important to consumers, particularly, how they spend disposable income.