The Economy
Women's Land and Property Rights
Women's Land and Property Rights
Women's Land and Property Rights
Women's Land and Property Rights
Women's Land and Property Rights
Women's Land and Property Rights
Women's Land and Property Rights
Women's Land and Property Rights
Women's Land and Property Rights
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The new era of consumer markets: digital trends unveiled
The use of technology has enhanced interactions, which are at the forefront of consumer engagement.
17th November 2024, Warwick
Akshat Jakotiah
The Full Story
In the last 20 years, consumer markets have evolved remarkably. The primary catalyst for this advancement is the rise of digitalisation. Shopping is no longer confined to physical stores - rather, it has evolved into a seamless blend of online and offline experiences, defined by personalisation, convenience, and instant gratification. This shift has introduced a new era where the use of technology has enhanced interactions, which are at the forefront of consumer engagement.
An appropriate starting point in exploring the digitalisation of consumer markets would be to consider the impressive rise of Amazon. Since its founding in 1994, the company has grown meteorically and has tried its hand at a wide range of markets, starting as an online bookstore. Amazon started gaining attention in the late 1990s, with it soon being declared the world’s largest online sales platform in 1999. As Amazon’s prominence grew, it initiated a shift in consumer habits toward digital shopping. Since then, the shift towards the digital marketplace has been irreversible. The introduction of Amazon Prime in 2005 steeply raised the expectations for convenience and speed by customers. A new, streamlined experience like this was the key in making consumers prefer online shopping to traditional retail.
More recently, many developing countries have also seen significant shifts towards online shopping. Examples of this are seen in countries like China, where Alibaba, an e-commerce platform, has over 900 million active customers. This trend is driven by technological advancements - ranging from increased access to mobile devices, and increased usage of digital payment methods like Alipay and WeChat Pay. Enhanced internet infrastructure, supported by government initiatives, has enabled easier access to a wider variety of products to those who are part of rural communities. Together, these developments have meant that consumers are much more willing and able to make more use of online markets, which highlights the benefits they hold: speed, flexibility and wider choice.
Over the past couple of years, there has been a surge in social media platforms integrating their e-commerce platforms into their applications. A renowned example of this is TikTok Shop, which offers heavily discounted products on the app. The app generated $11.09 billion in GMV (Gross Merchandise Value), highlighting the potential it has to serve as a replacement for traditional shops. There have been other examples of this idea being implemented - with Instagram also having its shop section. Combined with the use of influencers to market their e-commerce platforms, social media giants like Instagram and TikTok have an outstanding opportunity to promote their platforms and establish themselves as leaders in the e-commerce market.
Digital marketing efforts have been pivotal in increasing the reach of emerging e-commerce platforms internationally. The use of social media has been vital for platforms such as Shein to gain traction with potential customers. By leveraging celebrity endorsements and placing ads on a range of social media channels, companies like Shein have successfully built a large customer base and are flourishing amongst them. The use of targeted content and data-driven ad strategies have helped tailor the online shopping experience to individual user preferences, driving conversion rates higher. Furthermore, the adoption of interactive features, such as live shopping events and user-generated content, has boosted customer engagement, allowing these platforms to create more personalized and immersive shopping experiences.
Another crucial but often overlooked factor is the effect of COVID-19. With countries all around the world being repeatedly locked down for multiple months in a row, it was inevitable that there would be a substantial shift towards online shopping and an increase in the use of online services. Since then, it may be argued that the world has struggled to see a return to the pre-pandemic norm of most shopping being done offline, as many people continue to order groceries, essential household items and food online. Going back to Amazon, they have recorded their highest sales during and after the pandemic, which may indicate a permanent shift in consumer habits toward e-commerce platforms. This growth is likely not just a temporary surge but a long-lasting change in shopping behaviors, suggesting that even as in-person shopping rebounds, online retail will remain a dominant force, reshaping the global retail landscape as we know it.
In summary, the digitalisation of consumer markets has transformed the global shopping landscape, bridging geographic and economic gaps, and making products more accessible than ever before. From giants like Amazon to Alibaba, online shopping has reshaped consumer expectations, driven by advances in technology. This shift has not only redefined convenience but has also allowed consumers in even the most remote areas to access a diverse range of goods. The future of retail is undeniably digital, and with ongoing innovations, the possibilities for both consumers and businesses are limitless.