Consumer trends: How consumer behavior is changing
People’s consumer behavior is changing rapidly – driven by the rising cost of living, growing sustainability awareness and new digital trends. Current consumer behavior trends: More and more consumers are making more conscious decisions and are more price-conscious, while social media and influencer marketing have become indispensable. But what does this mean for the retail sector, especially for retailers with showrooms? What opportunities arise from changing consumer behavior and what challenges do retailers have to overcome? In this article, we shed light on the most important trends and the future of consumption.
Contents:
- Consumer trends 2024 at a glance
- Consumer Behavior Trends 2024: How has consumer behavior changed?
- Consumer trends: opportunities and challenges for retailers
- Conclusion: consumer trends and their significance for retailers
Consumer trends 2024 at a glance
Below we present the most important consumer behavior trends for 2024. The economic crisis has reached consumers and is making itself felt in the trends. At the same time, well-known consumer behavior trends will continue to be driven forward this year.
Offers, discounts and vouchers are becoming a trend among consumers
In view of the rising cost of living, consumers will be more conscious and price-oriented in 2024. 52% expect costs to rise further, while 47% already have financial worries. This means that more and more people are looking for offers, discounts and cheaper alternatives.
Sustainability and regionality remain a trend among consumers
Sustainability will remain a key trend in 2024. Two thirds of consumers prefer regional and local products as they want to shop in a more environmentally conscious way. Consumers attach great importance to the origin of goods, short supply chains and sustainable packaging. They want to reduce their ecological footprint and value the transparent origin of goods and ethical production conditions.
Social commerce and influencer marketing
The importance of social media for consumer behavior is constantly growing. Platforms such as TikTok and Instagram are crucial for product research and purchasing decisions, especially among younger target groups. 71% of Gen Z use TikTok to search for products. Social commerce, i.e. direct purchasing via social media, is also on the rise. Influencers are playing an increasingly important role when it comes to product recommendations.
Personalization – an increasingly important consumer trend
Personalization is increasingly valued. Consumers want customized recommendations and offers that are tailored to their individual needs. 43% prefer personalized experiences enabled by data usage and advanced technologies. This makes their shopping experience more precise. Examples of personalization measures:
- Recommendations based on previous purchases.
- Customized discount promotions on preferred products.
- Individual newsletters that are tailored to the customer.
Omnichannel as one of the consumer behavior trends
The seamless linking of online and offline channels, also known as omnichannel, remains a key trend. In 2024, consumers will expect a consistent shopping experience across different channels. One example of this is the use of showrooms: customers research online, try out the products in the showroom and can buy them directly on site or order them and pick them up later. Showme stores offer such an experience, combining the digital and physical worlds and thus creating a clear competitive advantage.
Consumer Behavior Trends 2024: How has consumer behavior changed?
Consumer behavior has changed significantly in recent years. The developments are characterized by a greater awareness of sustainability, a preference for digital solutions and a growing awareness of their own purchasing power. The most important changes in consumer behavior in 2024 are presented below:
Desire for humanity
Consumers are increasingly digitally active, but are increasingly looking for a balance between technological innovation and human connections. While the use of digital platforms and social media is on the rise, consumers are demanding more authenticity and meaningfulness in their interactions. They expect empathetic, human experiences, be it in communication with brands or in brick-and-mortar retail.
Focus on ethical behavior as a consumer trend
The trend towards sustainability will continue to grow in 2024, with two thirds of consumers preferring suppliers that act ethically, in solidarity and sustainably. Aspects such as transparent supply chains, environmentally friendly packaging and socially responsible production conditions play a decisive role here. Authentic, meaningful brands are gaining in importance as consumers are increasingly looking for companies that share their values and offer long-term, sustainable solutions.
Stockpiling and more planning
Another consumer behavior trend is the increase in stockpiling. 80% of consumers are stockpiling, especially their favorite foods, in order to avoid shortages. In addition, 54% plan their purchases in advance in order to consume more consciously and selectively. This trend shows that consumers are buying less impulsively and are increasingly focusing on efficiency and sustainability.
Less brand loyalty than consumers Trend 2024
While strong brand loyalty used to be a dominant factor, brand loyalty is now declining noticeably. 74% of consumers are increasingly turning to no-name brands or private labels in order to save costs. According to a McKinsey study, 75% of consumers have tried out new brands, shopping locations and shopping methods during the coronavirus crisis, which shows that consumers are more open to change and alternatives.
Purchasing from stationary retailers
Despite increasing digitalization, bricks-and-mortar retail remains attractive. 37% of consumers visit a store at least once a week to experience and buy products on site. The ROPO (Research Online, Purchase Offline) phenomenon is particularly important here: customers research online and find out about products. However, they ultimately make the purchase in-store. Brick-and-mortar retailers that seamlessly link online and offline channels benefit from this consumer behavior trend.
Shift in spending priorities
Consumers’ priorities have shifted significantly. While more money is being spent on food and travel, spending on furniture and luxury goods is falling. This shows that consumers are focusing on essential goods and experiences, while placing less value on expensive purchases.
Flexible payment methods
Another growing consumer behavior trend is the use of BNPL (Buy Now, Pay Later). 40% of Germans prefer this payment method, as it offers flexible payment options and allows purchases to be made without immediately impacting the budget. Digital payment methods and deferred payment are becoming increasingly important and will shape consumer behavior in the future.
Consumer trends: opportunities and challenges for retailers
The consumer trends of 2024 challenge retailers in many ways, but also open up numerous opportunities to better address their customers and build long-term relationships.
Challenges of consumer behavior trends
Rising inflation is not only a burden for consumers, but also for retailers themselves. Higher purchase prices are forcing them to adjust their calculations. At the same time, customers expect favorable offers and are increasingly focusing on value for money (24%) and absolute prices (20%), which further increases price pressure.
Retailers also face enormous challenges due to supply bottlenecks. Products often do not reach the store on time or in sufficient quantities, resulting in empty shelves. Customers who cannot find the goods they want often switch to other suppliers.
Recognizing and exploiting opportunities: Trends in retail 2024
Every consumer trend offers opportunities if retailers react correctly. Knowing the trends is crucial for success. Retailers can adapt by focusing on the following strategies:
- Special offers and discounts to retain price-conscious customers.
- Showrooms for an omnichannel experience that combines online and offline shopping.
- Influencer marketing and social commerce to address the digital target group.
- Promote private labels to appeal to price-sensitive consumers.
- Personalized offers based on data analysis to strengthen customer loyalty.
- Communicate sustainability clearly to gain the trust of environmentally conscious buyers.
Retailers who implement these trends can ensure long-term success.
Conclusion: consumer trends and their significance for retailers
The Consumer Trends 2024 clearly show how purchasing behavior is changing. Sustainability, price awareness and digital interactions play a central role. Retailers who understand these trends and respond to them in a targeted manner have the opportunity to remain successful in the long term. By combining omnichannel experiences, sustainable offers and a personalized customer approach, retailers can strengthen their market position and successfully meet the growing demands of consumers.
