- Prioritizing both digital and in-store shopping experiences will be critical in 2024, as both online and in-store consumer demand grow, often hand-in-hand.
- Retail stands to be the industry that will see the biggest gains from AI next year, as North American retailers who use AI are predicted to see a 14% boost.
- AI upgrades entire retail experiences, from enhancing product discoverability, to augmenting trend-based demand forecasting, to encouraging repeat visits that drive revenue.
In 2024, shopping must be personalized and seamless, weaving together both online and offline experiences. Data clues brands into trends and consumers’ preferences. Then AI addresses their wants and needs across the entire retail journey, both on-and-offline.
This embrace of AI will only ramp up as time goes on. In fact, AI in retail is expected to reach $24.1 billion by 2028, growing at 24.4% annually.
Keeping this momentum in mind, what’s happening in retail right now?
- 86% of people say personalized experiences boost their brand loyalty.
- Revenue increases by 90% for brands that invest in digital engagement.
- 60% of consumers prefer in-store shopping,
- And yet, e-commerce is projected to reach $1.5 trillion by 2025.
Today, tomorrow, and beyond, it’s absolutely critical that retailers embrace data to understand consumer desires, habits, and trends, then inject the essence of each throughout their omnichannel shopping experiences.
You can explore how to do this in our 2024 Retail Roadmap and by reading below. Here, we explore three of today’s biggest trends in retail and how brands can harness the power of AI to address them and strengthen their 2024 strategy.
Sustainable Shopping Trends: In With the Old
Eco-conscious shopping is on the rise. This is especially true for trendy Millennials and those in Gen Z. Climate change and high costs of living are key factors in their desire for price-sensitive, value-driven offerings.
The Resale Market Outlook:
- Resale market sales rose to $177 billion, increasing 28% since 2021.
- 73% of CXOs have increased investments in sustainability.
- 51% of pre-owned purchases are clothing and fashion.
The Lily AI Opportunity: Connect with shrewd shoppers by using the language of exactly what they’re looking for. Today’s TikTok-inspired thrifting trends may have slightly different names than yesterday’s. AI helps brands stay current and relevant within their product descriptions by injecting customer language throughout their entire retail ecosystems.
Learn more about how to connect with potential customers via language in our Retailer’s Guide: 7 Ways to Elevate the Customer Experience with AI-Powered Product Attribution.
Digital Demand Trends: Growth Online
Recent data reveals an unprecedented rise in e-commerce. More Americans are shopping online than ever before, prompting retailers to intensify focus on their digital strategy.
The Digital Retail Outlook:
- U.S. e-commerce sales are projected to reach $1.1 trillion in 2023.
- In 2022, 81% of the U.S. population shopped online.
- M-commerce is very popular too, with 46% of digital shoppers preferring to make purchases on their mobile devices.
- Over 278.33 million U.S. residents are predicted to make purchases this year. This means that virtually every American over the age of 18 will make at least one online purchase this year.
The Lily AI Opportunity: Brands can leverage deep learning to predict consumer demand and keep potential customers engaged. Data-driven demand forecasting attracts consumers to your site . . . and keeps them coming back. With this type of AI-based assistance, you can anticipate exactly what your shoppers will be ordering this season (and next!).
Brick-and-Click Trends: Master Omnichannel
Strikingly, 38% of offline sales are influenced by digital content and experiences. Brands must therefore bridge the gap between their brick-and-mortar and online shopping experiences, in order to both attract and retain customers in 2024.
The Omnichannel Retail Outlook:
- 81% of people shop online at least once a month.
- 40% of shoppers make an in-store purchase once a week.
- 48% of people conduct online research before making a purchase.
- 60% of shoppers prefer buying in-store for instant gratification.
The Lily AI Opportunity: Connect with people throughout their entire journey with your brand, from their initial on-site searches, to from product recommendations, to their final order delivery. AI makes thinking like your customer easier than ever, leading to long-term satisfaction.
Meet Consumer Expectations With AI’s Assistance
The future of AI looks even stronger in 2024 and beyond, with this technology poised to revolutionize shopping, commerce, and content. The retail industry is the sector expected to see the biggest gains from this technology, as it’s a vertical with one of the highest spends on AI.
In order to meet the demand of retailers, Lily AI is continuing to grow as well. In her interview on Bloomberg’s The Close, CEO and Co-Founder Purva Gupta said it best, “We’re getting ready for that hockey stick scale-up that’s coming up for us next year.”
With the landscape of retail and AI becoming more interconnected in 2024, it’s imperative for retailers to use it to scale up as well.