Evolving Consumer Trends: 2024 in Review

Can you believe we’re already halfway through 2024? It feels like the year just began. From Super Bowl LVIII to EURO 2024, the first six months have been jam-packed with events. In between, there’s been plenty to take in. Over one-third of customers in the US purchased gifts on Valentine’s Day, London Fashion Week marked its 40th anniversary in style, Easter drove retail sales, the glamorous Met Gala 2024 dazzled, Taylor Swift’s ‘The Eras Tour’ resumed, and the list goes on.

All these events continue to influence consumer buying behaviours, ultimately shaping the retail landscape. As we step into the latter half of 2024, the changes are sure to continue.

At the beginning of the year, we explored the top consumer trends for 2024. In this blog, we examine how these trends have progressed in the last six months and offer insights into what to anticipate for the remainder of the year.

1. Human-Factor Remains Valuable

Earlier this year, Apple Vision Pro gained popularity, prompting retailers to seek innovative applications of the technology to enrich customer interactions. While retailers are actively incorporating virtual environments and AI chatbots to enhance the customer experience, consumers still seek the human touch in their shopping interactions, an element that technology cannot substitute. According to an Answer Connect report, 78% of consumers prefer to speak with a real person when they contact a company instead of a chatbot.

There is no denying that technology is critical in today’s retail environment. However, retailers must not overlook the value of humans in their business. After all, it’s not business-to-business but human-to-human. Nothing beats a conversation with a human with whom customers can quickly feel connected.

2. Consumer Resilience Continues

Over the past six months, consumers have been resilient despite the challenges brought by the current state of the economy. While inflation has impacted everyone, supposedly tightening the belts of shoppers, there are signs that the American consumer is still spending. Credit card companies such as American Express, Visa and MasterCard have described spending trends as “relatively strong,” “relatively stable,” and even “healthy.”

Although consumers are prepared to spend, higher-than-expected inflation in Q1 2024 may still compel them to be mindful of costs. In order to thrive, retailers need to be highly competitive with their pricing strategies. However, this alone isn’t enough as shoppers also seek value in various other aspects, such as flexibility, experience, convenience, and fulfilment. Retailers must adopt a holistic approach by considering all of these factors in their operations. This will help to ensure they can drive sales and foster consumer loyalty.

3. Price Sensitivity & Promotions

With shoppers seeking more bang for their buck, exciting promotions, deals, and discounts have become even more important. According to CNBC, a number of retail companies have observed behavioural shifts in consumers seeking out value and deals. “Customers are shopping but remain cautious, trading down on price when they can, and seeking out deals,” explains Amazon. Etsy echoes this sentiment, noting, “Consumers feel really pressured and so they are seeking value and deep discounts and promotions.”

Besides promotions on huge sales days such as Black Friday deals and Boxing Day, it’s crucial for retailers to weave enticing deals and promotions into their ongoing strategies. Deploying an advanced and secure customer relationship management (CRM) system can enable retailers to blend exceptional customer experiences with personalized offers. As a result, they can create meaningful interactions with customers and build long-term relationships, strengthening loyalty.

4. Environmental Impact is Important

The rise of conscious consumerism has been evident for some time now, and it shows no signs of slowing down. According to a 2024 report, 80% of consumers are very or somewhat concerned about the environmental impact of their purchases, up from 68% in 2023. In fact, US consumers are willing to pay more for sustainable products at an increased volume. A new report by Radial revealed that 51% of consumers surveyed would be willing to pay more for products shipped through sustainable methods. This is a large increase from just 15% of consumers who said the same in December 2023.

Similarly, a recent research report found that over half of 3,000 surveyed respondents are willing to make lifestyle changes to support sustainability. This underscores the growing importance of sustainability for consumers and their willingness to prioritise green initiatives. What implications does this hold for retailers? Retail brands that are able to deploy sustainable practices can remain appealing to consumers, driving long-term success.

5. Anticipated Dip in Social Commerce

With the potential TikTok ban looming over the US, eMarketer predicts a dip in the push we’ve seen with social commerce. Although it’s not clear whether the TikTok ban will actually happen or not, if it does, it is likely to impact social commerce. What retail brands can do now is prepare themselves for the worst by strengthening their presence over other social media platforms such as Instagram, Pinterest and Facebook without relying too heavily on their TikTok sales.

According to Statista, social commerce sales are forecasted to soar to approximately $8.5 trillion by 2030. Retailers must continue to engage with consumers via social media to build and maintain a strong presence. One way retailers can do this is by posting content that is relevant to their consumers. According to the latest findings of Hootsuite, three favoured types of content that consumers want from brands on social media are something new, something funny, and something inspiring. While a potential TikTok ban in the US may slow the growth of social commerce, it is here to stay in the long-term.

Looking ahead

Over the next six months, some trends will persist while others might evolve. Consumer shopping behaviour continues to develop, and retailers who can embrace the change and adapt to it can thrive in the industry. Whether it’s becoming more sustainable, or creating seamless shopping experiences, retailers need to be able to meet consumer needs holistically.