Key Trends in Omnichannel Shopping
With $1.5T of omni opportunity in the U.S. alone, brands and retailers need to stay on top of shifting omnishopper trends if they want to keep up.1 But, with so many shifts happening at such a rapid pace, it can be difficult to know what trends are worth following and which ones are just flashes in the pan.
With that in mind, here are 5 key trends in omnichannel shopping:
1. Rise of Retail Media Networks
Retail media networks have experienced remarkable growth in recent years, transforming the advertising landscape. These networks, operated by retailers who leverage their own digital assets and first-party shopper data, have become a powerful tool for brands to reach consumers directly. According to eMarketer, US digital retail media ad spending is projected to reach $61.15 billion by 2024.2 As a result, retail media networks are now a key component of many brands’ marketing strategies, providing a direct link to consumers and enhancing the overall shopping experience.
The future of retail media networks looks even more promising, with projections indicating continued robust growth. Indeed, McKinsey estimates that by 2026, retail media will add $1.3 trillion to enterprise values in the U.S. alone, with profit margins between 50% and 70%.1 Additionally, the expansion of retail media networks into new markets and the development of innovative advertising formats are set to further boost their adoption. As retailers continue to refine their digital presences and leverage their vast amounts of shopper data, retail media networks will play an increasingly vital role in the advertising ecosystem, offering brands unparalleled opportunities to connect with their target audiences.
2. Social Media Influence
Social media platforms have become a significant force in shaping omnichannel shopping behavior, influencing how consumers discover, engage with, and purchase products. Platforms like Instagram, Facebook, and TikTok are not just social networking sites but powerful marketing tools that drive consumer decisions. Brands are leveraging these platforms to create engaging content, run targeted ad campaigns, and collaborate with influencers to reach a broader audience. This has led to the rise of social commerce, where the entire shopping experience, from discovery to purchase, can happen within the social media platform itself.
Another phenomenon that cannot be overlooked is social selling and social commerce. In 2024, 75% of TikTok dollar sales came from health and beauty.3 What’s more, Gen Z spending in this category (both online and in-store) is rapidly increasing year over year. This opens ample opportunity for brands to leverage these platforms and increase sales and market penetration among a burgeoning consumer demographic.
Mid-Year Consumer Outlook: Guide to 2025
Future-focused insights into consumer spending and growth opportunities.
3. Personalization and Customization
Personalization and customization have become cornerstones of the modern shopping experience, significantly influencing omnichannel shopping behavior. Consumers today expect brands to understand their preferences and deliver tailored experiences that cater to their individual needs. And, with programmatic advertising accounting for more than 78% of the U.S. advertising market, brands are on board.4 By leveraging data and advanced technologies like artificial intelligence and machine learning, retailers can analyze consumer behavior and preferences to offer highly relevant product suggestions, personalized marketing messages, and customized promotions.
The power of personalization is further amplified by the ability to customize products and services. Consumers are increasingly seeking unique and personalized products that reflect their personal style and preferences. Retailers are responding to this trend by offering customization options, such as personalized packaging, bespoke product designs, and tailored service offerings. For example, many fashion brands now allow customers to customize their clothing and accessories, while beauty brands offer personalized skincare and makeup products based on individual skin types and preferences. As technology continues to evolve, the possibilities for personalization and customization in omnichannel retail will only expand, further transforming the shopping experience.
4. Impact of Spearfishing
U.S. households are making more frequent shopping trips to maintain their pantries. However, the nature of those trips is evolving, continuing an omnichannel shift that was underway even before the disruption caused by the Covid pandemic. Consumers predominantly use online shopping for “spearfishing” trips, where they purchase 1-3 items per trip. However, there has been a 2% increase in both “fill-in” trips (4-11 items per trip) and “stock-up” trips (12+ items per trip) compared to last year.5 While spearfishing still accounts for 57% of online trips in the U.S., this share has decreased by nearly 2%, as fill-in and stock-up trips continue to grow.5
This shift is opening new opportunities for brands to increase online basket size and convert more through e-commerce than ever before. As online shopping trips continue to grow in size, a truly omnichannel approach becomes more important, and brands need to be ready to meet consumers’ needs across every channel. By understanding this dynamic shift, brands and retailers can adapt to new consumer demands and continue to grow.
5. The Power of Availability
U.S. consumers base their purchase decisions on three primary factors: availability, quality, and price. Of these three, availability is the top U.S. purchase driver online. In fact, 90% of women and 87% of men listed availability as a top factor before making online purchases.6 Unfortunately, the most common mistake CPGs make when it comes to availability is miscalculating demand. Demand naturally fluctuates based on channel and location, with higher demand typically seen in cities and densely populated areas. Various factors can influence this demand, including seasonal trends, new product launches, events, localized promotions, emerging channels, and social media.
Additionally, the supply network often encounters constraints that affect availability and deliverability. This complexity makes it challenging for CPGs to accurately track supply and demand, often resulting in stockouts and missed sales opportunities. Mastering the factors that affect demand and avoiding out-of-stock issues is key to making the most of omnichannel sales and taking market share.
Unleash the Power of Omnichannel with NIQ
To reach online and omnichannel shoppers, you need to know where they’re choosing to shop, how, and why. But that’s only possible if you have access to reliable, up-to-date data.
With Byzzer powered by NIQ’s reporting solutions, you can have all the data you need at your fingertips. Byzzer provides breakdowns of a wide range of attributes and markets in easy-to-digest reports. Best of all, we’ll show you how to leverage this information for your action plan.
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