Raydiant’s new series, The Future of Shopping, interviews experts and thought leaders with a goal of better understanding what trends are shaping the ways consumers shop, the opportunities that are out there, and what organizations can do to be more competitive.
The following is an interview we recently had with Ayo Oshinaike, CEO and Co-Founder of Foodspace.
How has consumer shopping behavior evolved over the past 5 years?
Over the past 5 years, consumers have become increasingly powerful in shaping the retail landscape. As digital shoppers, we have endless product options at our fingertips and expect brands to be available where and when we want them. It is the job of the brands to make sure that their items are top of mind and personalized to their target audience.
The shift in power has also put greater accountability on the brands. Not only do today’s consumers expect great products, they expect brands/products to align with their beliefs and values. If a brand is not living up to its expectations, the rise of social media and customer reviews has made it very easy for consumers to spread the word and demand transparency.
These last 5 years have seen exponential increase in online shopping and there seems to be no sign of slowing down. In the US alone, we expect to have 300 million online shoppers in 2023. That’s over 90% of the country’s current population!
What are the top 3 trends shaping the ways consumers shop?
- Shift to online shopping: In 1994 (about 25 years), the first-ever online transaction was documented. Today, 75 percent of people shop online at least once a month, and projected e-commerce revenue is $6.5 trillion in 2023.
- Social media influence: In the past, peer recommendations have driven consumer decisions. With an increase in social media consumption, recommendations are expanding beyond direct peers to a more distributed network of influence.
- Increased transparency: Consumers are demanding more information about their products to ensure that they are making the best purchase decision.
What’s the future of shopping?
We are moving towards a unified commerce environment where consumers demand a seamless experience shopping online or in stores. Customers want the ability to check inventory across stores, “click and collect”, order an out-of-stock item in your stores, and have it delivered at home or return in-store an item purchased online. All of this requires unified systems and accurate data.
In the long term, we also think drone delivery VR shopping experiences will be very cool!
What are 3 actionable steps an organization can take to prepare for the future?
- Invest in a digital strategy: Get ahead of your competitors instead of playing catchup down the road.
- Get control of your product information: Companies need accurate, consistent, and complete information to run effectively.
- Leverage deep consumer insights: Companies are nothing without their customers, understand them and make them happy!