Solving Europe’s Retail Challenges
Even though global inflation has been easing, price pressures still weigh on wallets and European shoppers continue to worry about the overall economy. Here are five consumer trends retail brands need to keep top of mind:
- The Value of Customers’ Values
Europe’s retailers have been responding over the past year with private-label options, pack sizes, product variations across price points and revamped products. Just as important, brands need to also support consumers’ values.
- Loyalty Programs: What’s Old Is New Again
The UK Trend Index finds that 62% of consumers are still willing to pay more to buy from their preferred brands, with 75% of Gen Z shoppers being the most loyal.
- The Omnipotent Omnichannel
As European shoppers browse and buy, they are moving across physical and digital channels, including virtual and social platforms.
- Putting the Commerce into Social Media
Social commerce has taken hold in the West; transaction volumes in the U.S. are expected to grow 25% and 33% in Europe between 2021 and 2025. Globally, social commerce could reach 16% of e-commerce sales by 2025. Now’s the time to capitalize.
- Retail Media Networks
Driven by the rise in e-commerce and the challenges surrounding accessible targeting data for publishers and brands, retail media is thriving — according to a recent report by IPG’s market intelligence agency MAGNA. Retailers are expanding their retail media networks (RMNs), digital platforms, or various channels, websites or apps that sell ad space.