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How the consumer landscape is changing in 2023

These 6 consumer landscape trends for 2023 will reshape how marketers operate in the coming years

Understanding the changing consumer and market landscape is essential to brand and business strategy. As more pre-pandemic activities resume and more consumers feel comfortable going out, businesses must understand what the “new normal” will look like.

With the rise of digital tools and an endless supply of data, marketing departments have more power than ever to understand consumers. However, with so many trends emerging, it is important to focus on the ones worth time and investment.

These 6 consumer landscape trends for 2023 will reshape how marketers operate in the coming years.

1. Making Virtual a Reality

While more people spent more time on the screen during Covid 19, the daily average time online is evolving to pre-pandemic figures. However, with the rise of Web3 and Metaverse, we are witnessing a “new stage” of the internet.

consumer time on screen 2022 mktmag

Source: GWI Global Trends Report 2023

Brands will use virtual reality as a central component for everything from content creation, products and services launches, and marketing campaigns. This results in more immersive experiences for consumers and higher engagement with brands.

Technologies like this enable companies to bring products to life in innovative ways making it easy for customers to see how products work and they can be used in their daily lives if they were really there.

Virtual reality doesn’t just help on showcasing products and services, but it can also be used to raise brand awareness as relationships with customers becomes even more personal. This has the potential to increase sales and gain a competitive advantage over other companies. From virtual events to online communities, people will be engaging with brands as if it is a one-to-one relationship.

2. Captivating Online Experience

The pandemic forced consumers to experiment with new ways of living and interacting on the internet. As we see a regression to old pre-pandemic habits, internet experiences should not be forgotten, on the contrary, they should be emphasized by brands. Companies have to ensure every touchpoint of contact with customers leaves them satisfied and wanting to come back soon.

As internet users are becoming more demanding and involved with emergent technologies, brands must explore this new online world to create new and disruptive experiences.

 

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3. Social Media as E-commerce Platforms

“Gen Z use Instagram almost as often as they do Google.”

In the study released by GWI, it is shown that around 2 in 5 young consumers make regular impulse purchases. Discovery-led e-commerce brings more spontaneous purchases than ever before, and on the same level as physical stores. 48% of online impulse purchases come from TikTok users, where users “turn to get honest reviews from real people”.

Convenience is one of the main reasons underlying impulse purchases, however easy online checkout processes and social media buy buttons are also common reasons that explain this behavior.

Buying through social media platforms or being motivated by influencer posts has been an emerging trend in the past years and it is gaining more and more expression. Besides accessing honest feedback from real people, social media accounts are filled with tips, product descriptions, reviews, and real usage photos – mostly user-generated content – all great features for someone looking to buy a certain product online. 

4. Budget Treats Categories

Even though the recession is still on the rise and we have just come out of a pandemic crisis, outside of China, two-thirds of consumers say their current financial situation is secure, which can be appointed to pandemic savings or a favorable job market. While consumers will still signal caution with the current economic landscape, spending will increase! 

So what categories will make it into consumer treats in 2023? According to the study released by GWI, Clothing will be the main treat category in 2023. Retailer’s first half sales and profits have hit a historic high in 2022 – that will possibly be bit again in 2023.

budget treat categories mktmag

Source: GWI Global Trends Report 2023

5. Revenge Travel

Coming out of a no-travel period for almost two years, consumers want to be back exploring new places. The number of travel tickets sold since mid-2021 increased by 19%. Millennials in particular are making up for the lost time by splurging more in this industry.

Although consumers want to travel more, domestic flights are gaining more expression among travelers. 94% of internet users in Spain, India, or China say they intend to take a domestic vacation in the next 12 months. 

6. Price is not competing alone anymore

As consumers lose confidence, brands that build trust with customers become a much safer bet.

During rough economic times brands tend to compete on price, however not all brands can afford to do this as costs tend to increase. As price increases are getting noticed by consumers, how can spending habits keep getting higher?

Purchases are being derived from trust more than ever. This factor ranks third out of a list of 14 purchase drivers, ahead of discounts, and customer service.

Businesses can build trust by showing price transparency to their customers and focusing on building close relationships with them. This will increase customer loyalty even with price raises.

Key Takeaways

To succeed in this ever-changing consumer landscape, marketers must have a clear understanding of emerging trends and how to take the most advantage of them.

These market trends will reshape how companies should interact with their customers and increase trust levels, in a rough economic landscape. Innovative and creative strategies are the way for companies to face current challenges and will for sure see great results.

 

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2 Comments

  • Nan
    Posted December 24, 2022 at 3:24 am

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    • Post Author
      mktmag
      Posted February 1, 2023 at 6:33 pm

      Hi Nan, thank you so much for your feedback and support. It’s great to have you here!

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