Unlocking Business Possibilities from 2023 Consumer Trends
The first step in keeping ahead of the market is looking into trends — becoming aware of what’s new, what’s obsolete and what’s coming. As business owners, knowing what’s happening in our industries allows us to pull fresh ideas, unlock new opportunities and improve the way we serve our people.
The business world has witnessed what a 2-year pandemic can do. As we are transitioning back to normal, new trends have emerged. Let’s look into 2023 consumer trends that can potentially change the way we handle our businesses.
1. Online Shopping Is Ever Growing
In Australia, the online shopping trend began to boom in 2020. It’s an ever-growing industry with an estimated worth of $56.2bn (IBSWorld,2023) and a rapid growth of 6.6% at the beginning of 2023. Over the past five years, we have not seen any decline but instead, a staggering growth of 18.1% since 2018.
This is for obvious reasons. Online shopping is more convenient, accessible and flexible. Most consumers have adapted online shopping as a part of daily life during the pandemic. With shocking petrol price hikes since 2022, it also makes sense that people prefer to shop online than drive to stores.
Having a platform where your customers can buy online is fundamental to meeting customers’ demands and for better profitability.
2. People Want a Personalised Experience
Gone are the days of mass-market messaging. For marketers and advertisers, personalisation has become a powerful tool for better conversation. Now more than ever, people want products, services and experiences that are tailored specifically for them.
As cited in the 2023 Salesforce report “State of the Connected Customer”, 73% of customers insist that companies should understand their expectations and needs. The post-Covid-19 era contributes to this shift in consumer behaviours. More and more consumers are wanting to buy from brands that resonate with their personality, lifestyle and belief system.
3. Sustainability and Accountability 2023 Consumer Trends
Thanks to the endless awareness campaigns, there has been an increase in sustainability legislation and regulatory requirements all over the world. It is no surprise how modern consumers are becoming more aware that their purchasing decision may have an environmental impact.
The fashion industry has been facing criticism as it accounts for 10% of humanity’s carbon emissions. Consumers are realising this problem which ultimately slowly changes their purchasing behaviour.
Brands are keeping up with consumers’ demand to change processes to reduce environmental impact. This pressure forces companies to shift their methods into more sustainable and ethical practices. More brands are using recycled, renewable or reclaimed materials. Overall, the world is stepping up on sustainability and accountability. So is the business industry.
4. Digital Payment Evolution
Before the pandemic, digital payment had already made its way to the world. As online shopping was among the major retail consumer trends during lockdowns, contactless payment via digital payment methods has significantly grown. Fast-forward to 2023, several new digital payment trends make their way to the market:
- Cross-board instant payment makes it easy to send and receive money in real time wherever you are in the world. No wonder it tops as one of the most recognised consumer trends in 2023.
- Virtual cards and wallets are among the favourites of millennial customers. These digital payment methods let them store their money in a virtual card or wallet that they can use for online or in-store payments.
- Buy Now, Pay Later is basically an instalment loan where a financial institution allows customers to buy a product and repay them in several staggered payments without interest.
- Peer-to-peer (P2P) payment is a type of online transaction where money is transferred from one individual to another using a digital platform or service, without the need for intermediaries such as banks or financial institutions.
5. Data Security and Privacy
Welcome to 2023 where consumers are more aware of the importance of their privacy. With this 2023 consumer trend, more companies are investing in data privacy-related compliance expenses. From privacy-enhancing technology to revising data handling terms, companies are keeping up with legislation to avoid penalties and setbacks.
6. Major Tech Shift — Artificial Intelligence
A recent report in McKinsey & Company surveying participants across industries concluded that businesses’ adoption of Artificial Intelligence (AI) has doubled in the last year. The use of robotic process automation, computer vision and natural language generation are the key areas that are using Artificial Intelligence.
But, technologies like these also drive economic uncertainty in some job sectors. For example, the generative tool chatGPT poses threats to writers and programmers. This AI can generate intuitive writing and codes with simple command prompts. Business-wise, technologies like ChatGPT can help automate certain aspects of the business, from creative work to tech tasks.
7. Experiential Shopping
Do people still shop in stores? Of course! Consumers still love in-store shopping but they’re keener towards experiential shopping. Meaning, they shop for the experience.
Shoppers are looking for an immersive experience with a provider. In-store masterclasses, community events, pop-up shops and free welcome drinks are examples of experiential shopping strategies. The business provides more than just the product but also an experience that sticks to people’s memory. If you’re running a retail business, make sure to look deeper into this 2023 consumer trend.
8. Increasing niche markets
You may be familiar with the old figure of speech that goes, “Jack of all Trades. Master of None.” Someone who runs their business in a niche-focused model is the exact opposite of a Jack of All Trade. With a niche, a business is narrowing down its strategic approach to target a specific subset of clientele. This allows professionals to provide client-centric services that are hyper-focused, more personalised and more valuable.
For example, a photographer may serve all types of clients. From shooting products to headshots — he may do it all. But a personal brand photographer has a niche where he specifically serves other professionals who are looking to improve their business by having professionally branded pictures of themselves.
In the service-based landscape, businesses are becoming more segmented. The growth of niche markets is to be expected.
Trends show the future of industries
These 2023 consumer trends offer so many possibilities and opportunities when you know how to unpack their value for your business.
Not sure how these trends affect your business’s direction? Book a power session with me. Let’s go over the trends that affect your business and I’ll help you unlock your potential for this year. Contact me – email@example.com or 0477 999 796.