1. Consumer Spending Surge and Inflation Challenges
A notable 2024 trend, beyond the digital shelf, is the substantial increase in consumer spending on Fast-Moving Consumer Goods (FMCG), a remarkable 18% surge compared to 2021.
However, this growth is juxtaposed against the compounding effects of inflation, posing challenges for businesses to maintain profitability.
But how can businesses adapt to this delicate balance?
2. Strategies for Adjusting and Thriving
Businesses are re-evaluating their approach to channels, focusing on executional excellence in new platforms. Whether it’s embracing emerging social media or optimizing e-commerce platforms, the key lies in staying agile and adapting swiftly.
Wellness and sustainability is another important focal point for FMCG businesses in 2024. Committing financial resources towards wellness and sustainability initiatives is not just a corporate responsibility; it’s a strategic move for the future.
Download the event recap for a full exploration of how businesses can align with consumer values and contribute to a more sustainable and healthier world.
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3. Social Commerce in 2024
The rise of TikTok as a formidable player in the social commerce space cannot be overstated. With TikTok consumers allocating a substantial 16% of their budget to the platform, businesses need to understand the driving forces behind this phenomenon.
An understanding TikTok’s importance—its market share, its influence on core industries, and its expanding presence in new categories like fragrance—will be the baseline to remain competitive with this rising competitor.
4. The Future Digital Shelf Strategy
For brand manufacturers, success in the digital realm requires a nuanced approach. Evaluating core Key Performance Indicators (KPIs), capturing true Return on Investment (ROI), and leveraging automation to manage eRetail media spend efficiently are important foundational steps to succeeding in this space.
Upscaling internal capabilities to navigate the evolving digital shelf landscape will be crucial in the year to come.
5. Unveiling the Dynamics of Quick Commerce
Quick Commerce, or Q-Commerce, is rapidly becoming a dominant force in the retail sector—keeping tabs on their rise will be essential for digital shelf strategy in 2024.
Giants in this space are adapting strategies to reduce churn by homing in on strategic audience targeting, leveraging product analytics, and embracing new formats of social commerce, particularly through channels like TikTok.
What’s next for digital shelf strategy in 2024
As we stand at the crossroads of technological advancements, shifting consumer behaviors, and economic challenges, businesses that strategically adapt to the changing landscape will emerge as leaders in 2024.
By understanding the dynamics of consumer spending, embracing new channels, investing in sustainability, navigating social commerce, and preparing for the digital future, businesses can not only survive but thrive in the years to come.