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Three Major Consumer Trends to Watch Out For in the Years 2024–2027
The evolution of consumer tastes is a never-ending process, constantly shaped by technological advancements and changing buying patterns. Companies, both large and small, must stay vigilant and adaptable to cater to the ever-changing needs of their customers. The following trends are expected to dominate the consumer landscape in the next two to three years.
1. Empowerment in Data Privacy
In recent years, there has been a significant increase in the search term “data privacy,” indicating a growing concern among consumers about the protection of their personal information. People are demanding more autonomy over their data, with a survey by KPMG revealing that 56% of respondents expressed a desire for greater control over their personal information.
Consumers are increasingly conscious of privacy issues, with over 87% of North Americans stating that they would avoid doing business with companies that have questionable data practices. A majority of customers also prefer businesses that do not require unnecessary personal details unrelated to the product they are purchasing. This shift in consumer behavior underscores the importance of privacy over convenience for many buyers.
The implementation of strict data protection laws, such as the EU’s General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA), reflects the growing emphasis on data privacy. Major corporations like Apple are also taking steps to enhance data security, with features that allow users to access applications without sharing their personal information with third parties. As consumers continue to prioritize data privacy, companies and governments are facing increasing pressure to safeguard personal data effectively.
2. Augmented Reality Enhances Online Shopping Experience
The trend towards digital-first purchasing has driven consumers to seek ways to improve their online shopping experience. Virtual “try-before-you-buy” features, such as augmented reality (AR), have emerged as a solution to address the limitations of online shopping. Studies suggest that consumers are more likely to shop online if they can digitally try on products before making a purchase.
Major retailers are leveraging AR technology to provide virtual in-store experiences on their websites. For instance, Ulta’s GLAMlab virtual try-on tool has seen a sevenfold increase in user engagement since the onset of the pandemic. Similarly, L’Oréal’s virtual cosmetics experience has led to a 100% increase in website engagement and conversion rates. The integration of AR technology into online platforms has proven to be effective in driving customer engagement and conversion rates.
To capitalize on the growing demand for AR experiences, businesses are partnering with popular platforms like Snapchat to offer virtual shopping experiences. Users can now access a Virtual Closet feature on Kohl’s website using the Snapchat app, targeting a younger audience that is heavily engaged with the platform. Research indicates that interactive AR content leads to a 94% higher conversion rate compared to traditional methods, highlighting the potential of AR technology in driving online sales.
3. The Rise of Voice Commerce as a Convenient Shopping Channel
Convenience has become a top priority for consumers, with studies showing that 83% of shoppers value convenience more than they did five years ago. This shift in consumer behavior has fueled the growth of voice commerce, where online purchases are initiated through voice-activated digital assistants like Google Assistant and Amazon Echo.
The voice commerce industry was valued at $40 billion in 2022, with tech giants like Google and Amazon constantly innovating to simplify the purchasing process through voice commands. Research indicates that 62% of frequent users of voice-activated speakers are likely to make a purchase within the next 30 days, highlighting the convenience and efficiency of voice commerce.
The adoption of digital assistants is expected to continue growing, with a significant percentage of Americans predicted to use voice-activated devices regularly. Smart speaker owners have embraced voice commerce, with 43% using their devices for shopping in 2020. Businesses like Walmart have partnered with tech companies to enable voice shopping through digital assistants like Siri, offering customers a convenient and efficient shopping experience.
In conclusion, the consumer trends of empowerment in data privacy, augmented reality-enhanced online shopping experiences, and the rise of voice commerce are expected to shape the consumer landscape in the years 2024–2027. Companies that embrace these trends and prioritize customer preferences will be better equipped to meet the evolving needs of their target audience and drive growth in an increasingly competitive marketplace.
