2021 Retail Trends & Consumer Expectations in a Post-Pandemic Economy

With the unprecedented events of 2020 disrupting businesses, economies, and lives in general, people across the world are anticipating that 2021 will bring some good news. The pandemic, which started in early 2020 and continued throughout the year, changed the face of retail as we know it today. eCommerce adoption reached record highs with tremendous growth in a matter of months. To put this change in perspective, eCommerce sales grew all of 8% over 9 years from 2010 to 2019 and then accelerated to 5% growth in just months during 2020, as per the US Department of Commerce. We welcome 2021 but what will the future of retail look like? As retailers are recovering from shutdowns, recession, and pandemic waves that will continue, how can businesses bounce back? What are today’s consumers expecting and how can retailers prepare for the same? Intelligence Node conducted a consumer survey, polling over 1000 US shoppers, to analyze the future trends, long term changes, and consumer expectations in the year 2021. This survey analysis will help retailers and brands gear up for the new year by providing insights to the shopping patterns, consumer expectations, and key retail strategies as shared in this ebook. Let us look at 10 consumer shopping trends for 2021:

Let us look at 10 consumer shopping trends for 2021:

72% of shoppers will continue shopping online as much or more, in 2021

A majority of shoppers plan to continue shopping online in 2021 as much as they did during the pandemic. This trend shows that the dependence on eCommerce, which increased during the pandemic in order to maintain social distancing and follow curfew restrictions, will continue to grow with 14% planning to shop online more in the next year.

How can retailers prepare: With almost 3 in 4 shoppers planning to shop online as much or more in 2021, retailers need to pivot to a digital first strategy and can no longer rely on a brick and mortar presence to survive. They need to employ AI-based retail technology to expand their eCommerce business and to unify their in-store and online experiences. With competition getting fiercer, retailers need to seek data analytics to adjust their:

• Assortment strategy to reflect bestsellers and avoid stock outs
• Pricing strategy amid increased price sensitivity
• Promotion strategy to boost conversion rates

Mandatory masks will play an important role in making shoppers comfortable with shopping in-store

3 out of 4 shoppers consider mandatory masks an important factor in in-store shopping experience followed by hand sanitizers and temperature checkpoints at 43% and contactless payment options at 41%.

These numbers indicate that consumers are likely to have reservations about shopping in-store even in 2021 and it will take a while for in-store shopping to return to normal.

How can retailers prepare: Providing a safe, hassle free shopping experience will go a long way in 2021 in ensuring your consumers keep coming back. Along with following all safety measures and deploying contactless payment and curb-side pickup options, retailers need to work on delivering a unified, omni-channel shopping experience so they do not lose customers that are uncomfortable with shopping in-store.

Millennials and Generation Z will lead the trend of shopping through social channels in 2021

Results indicate that shopping via social media platforms may not have caught on in the US yet: with 59% not planning to purchase products on social media platforms. However, it’s more popular among younger consumers. 32% of consumers in the 18–24 age group and 39% in the 25–34 age group said they plan to shop via social media next year.

How can retailers prepare: Although in its nascent stage, social media is an up and coming platform for online shopping. Considering the rapid changes in how consumers shop, retailers should not turn a blind eye to this platform of shopping and be ahead of the curve in exploring selling opportunities on social media, especially if their target audience is the younger demographic.

Consumers will continue to spend as they have in 2020

45% of shoppers said their spending habits will remain the same in 2021, as it currently is amidst recession. 37% others said they will spend less in 2021, which tells us that a considerable percentage of shoppers will be sensitive to prices and will be on a look out for discounts and low prices while making purchases.

How can retailers prepare: Although many shoppers plan to spend the same amount in 2021 as they are currently, there is a considerable portion of the respondents who plan to spend less, and are likely to be hyper-sensitive to prices. Retailers and brands need to invest in smart price optimization solutions to be able to review and adjust their prices against competitor products and offer the best deals to ensure conversions.

Full Report : https://info.intelligencenode.com/online-retail-shopping-trends-2021