The past few years have caused decades’ worth of disruption to consumer spending in a remarkably short space of time. The pandemic forced temporary upheaval – but also lasting changes to consumer habits – and the cost of living crisis is rewriting the rules yet again.
In this article, we look at insights from Google and consumer research groups to assess the future of shopping in the UK. We discuss the trends behind the latest data and how marketers can keep up in a world full of uncertainty.
Trend #1: Online window shopping & brand discovery
Increasingly consumers in the UK are overseas data spending more time window shopping online and discovering new brands. Rather than searching for specific products by specific brands, shoppers are looking further afield for inspiration. In this sense, the search experience is moving towards discovery.
According to Google data, generic queries like “dewy foundation” and “best couch” are growing faster than branded queries. At the same time, Google has seen a 40% increase in searches for clothes in specific colours (Jan 2019-Aug 2022).
The rise in online window shopping and more generic queries raises opportunities and risks for UK retailers.
On the one hand, consumers are more likely to discover new brands and products, which increases opportunities for retailers to win new customers. However, the consequence of this is that your existing customers are also more likely to shop elsewhere.
As a result, retailers will need to work harder to retain customers and build loyal relationships.
Trend #2: More choice, more fickle shoppers
Exploring the trend of brand discovery how 5 stories will change the way you approach list of phone number in more detail, Google data suggests consumers are exposed to more choice than ever. As a result, retailers are also dealing with more competitors and shoppers who are more fickle than in previous years.
In a joint study with Trinity McQueen, Google finds that 51% of fashion shoppers tried a new brand in 2022. This is up from 24% in 2020 and 34% in 2021.
The same study also finds consumers are now more likely to try new brands and retailers online than they are in physical stores. This emphasises the opportunities for retailers to win new customers through online channels.
Crucially, it also reveals a potential retention strategy for retailers that can encourage existing customers to hit the shops
In a recent Google report, entitled The usa lists future of U.K. shopping, Seth Godin weighs in with some advice for retailers as consumer habits change.
Godin believes retailers will approach new challenges in one of two ways. Some will try to be everything to everyone while others will double down on being unique and relevant to their target audiences. He says it’s the companies doing the latter that are seeing customer loyalty increase even as consumers are becoming more fickle across the board.
“We’re trying to be everything to everyone. But there’s a whole other group of marketers that are paying attention to idiosyncrasy: to being unique, to being worth seeking out. Their brand loyalty isn’t going down, their brand loyalty is going up.” – Seth Godin
With consumers having more choice than ever but also being more fickle, retailers need to double down on audience targeting. As Godin puts it, don’t try to be everything to everyone. Know your target audience and make your campaigns even more relevant to their specific needs.