Today's e-commerce businesses’ primary focus is customer satisfaction. A happy and satisfied customer can bump up the company's revenue generation by 100x within a short period. It is their key to stay competitive and relevant.
To ensure customer satisfaction, e-commerce businesses rely heavily on technology and social commerce. To determine what works best for them, businesses must experiment with various marketing techniques and methods and choose what fits their bill.
According to a recent Accenture estimate, social media shopping will reach $1.2trn globally by 2025, expanding 3x faster than traditional e-commerce.
What Are These New Concepts?
The trends in technology and social commerce mentioned below will rule the market by 2025:
Social Commerce: According to a survey by PwC, the pandemic has prompted many responders to become more digital, more localised, and more health and safety-sensitive.
On Instagram and Facebook, sellers can create their shop pages, add products, and modify them with different styles that appeal to the customer. Since these pages can be accessed globally, sellers can reach the masses without investing much time, money and knowledge.
Further, sellers can promote their pages to reach out to more customers according to their niche categories.
Digitalization: Digitalization is changing how sales are made. Traditional techniques are being merged with new technology to reach out to customers.
Despite this, many FMCG firms are still in the early phases of digitalization. Even well-known businesses are deciding which tech to adopt for better user interface management.
Mobile devices, voice search, smart speakers, face recognition, are now part of modern-day life and are being used to personalize product offers by FMCG retailers.
AR and VR: Augmented reality (AR), machine learning, and artificial intelligence (AI) are three revolutionary retail trends that are here to stay.
Shopify introduced Shopify AR to showcase its products to customers. IKEA already has its AR experience model.
To bridge customers' digital and physical presence, retailers are leveraging AR technology as a medium.
Metaverse: Brands shifting to metaverse space is the next big thing. With the help of AR and VR headsets, you can enter a mall, roam around and choose your clothes, and then pay the amount and get it delivered to your doorstep.
Influencer Marketing: As of now, influencer marketing is all about raw, honest and unfiltered marketing of products by influencers, which earlier used to be only a money-making process. Because of this, brands also try to manufacture quality goods so that the influencers can promote them in the best way possible.
Chatbots: Since COVID-19, face-to-face customer support has reduced drastically, and chatbots are backing it. Chatbots offer companies and users some significant advantages, like shorter wait times and 24/7 availability.
Super Apps: A super app is an upcoming trend that consists of everything from phone recharge to the facility of ordering clothes, food delivery, cab booking and many more from a single place. Companies like Reliance and Tata have begun the race.
Who Will Benefit The Most?
FMCG And Retail sector
Ecommerce grocery platforms are on a growth trend right now and are likely to expand more. All the prominent businessmen like Ratan Tata and Mukesh Ambani are entering into the online food and grocery delivery space . Examples: Zepto, BigBasket, Grofers.
COVID being a significant factor, the FMCG sector will see a tremendous rise in its online sales because of greater awareness and safe purchasing from the ease of your home. Start-ups with superfast deliveries will be the talk of the town for these years.
The retail sector is already being captured by giants Amazon and Flipkart; more start-ups are entering to provide end-to-end consumer service to gain customers' trust.
Moreover, there has been a trend in the market of focusing on niche items only instead of focusing on retail as a whole. Case in point Nykaa, which gained a stronghold by initially focusing only on beauty products.
Shift From Unorganised To Organised Sector
When the whole of India was locked down due to the pandemic, nearly 40% of sales were made using WhatsApp, says a report by Money control. As per a Bain & Company poll, digitally active Indians spend an average of three hours each day online, with over two hours spent on messaging, social media networking, and video watching.
According to economists, India's informal or unorganised sector accounts for over half of the country's GDP and generates more than 80% of the country's total employment.
Due to some moves by the government (read demonetization, GST, E-way bills etc) the unorganised sector has been forced to move to the organised sector to be present in the market and compete with the upcoming trends.
Any Boost Required To Gear Up The Tech Domination?
In five years, social commerce in India, which is currently worth $1.5-$2bn in Gross Merchandise Value (GMV), can rise to $16-$20bn and reach $60-$70bn in revenue by 2030.
The most urgent need in the retail sector is the development of 5G. All the technologies such as AR, VR, and Metaverse would not be possible with a slow internet connection. During the Jio revolution in India, everyone experienced a surge in online demand for everything and a shift from offline to online within a short span. Now, to let the retail and FMCG sector grow further, more network advancements are required to experience new tech.
Foley Retail Consulting