Adapting to new consumers with market disruptions

In the global marketplace, staying ahead of consumer trends and market shifts is crucial for businesses across all sectors. Today, we're diving deep into four key areas that are reshaping the consumer landscape in 2024: the mobile commerce revolution, the outlook for consumer goods sales, the impact of inflation on financial services, and the critical importance of supply chain risk management.

The Pocket-Sized Retail Revolution: Mobile Commerce Takes Center Stage

The way consumers shop has undergone a seismic shift, with mobile devices now at the epicentre of the retail experience. In 2024, global mobile commerce sales are projected to reach a staggering $4.5 trillion, accounting for nearly 73% of all e-commerce transactions. This isn't just a trend; it's a fundamental change in consumer behaviour that's reshaping the entire retail landscape.

Leading the charge in this mobile-first world are social media platforms that have successfully bridged the gap between content and commerce. TikTok, for instance, has reported a 553% year-over-year increase in products sold through its platform. This surge in social commerce is not just about convenience; it's about creating immersive, engaging shopping experiences that blend entertainment with retail therapy.

But the mobile commerce revolution goes beyond just making purchases on smartphones. Augmented Reality (AR) is emerging as a game-changer, allowing consumers to virtually "try before they buy." Snapchat's latest AR shopping lenses have led to a 94% higher conversion rate compared to standard ads, highlighting the power of immersive technologies in driving sales.

For businesses, the message is clear: a mobile-first strategy is no longer optional. From developing user-friendly apps to integrating with social commerce platforms and investing in AR capabilities, companies that prioritize the mobile experience will be best positioned to capture the attention – and wallets – of today's consumers.

The Great Consumer Awakening: 2024 Sales Outlook

As we look at the broader consumer goods and retail sector, we're witnessing what can only be described as a great consumer awakening. Despite ongoing economic challenges, the National Retail Federation forecasts retail sales to grow between 3.5% and 4.5% in 2024, potentially exceeding $5.2 trillion. But it's not just about spending more – it's about spending smarter.

Emerging markets, particularly in Southeast Asia, present exciting growth opportunities. The World Economic Forum (2024) projects that the middle-class consumer base in this region will grow by 10% in 2024. For global brands, tapping into these expanding markets could be key to driving sales growth in the coming years.

The Inflation Time Machine: Financial Services Adapt

Inflation continues to be a significant concern for consumers and financial institutions alike in 2024. While the U.S. Federal Reserve projects inflation to stabilize around 2.4% by year-end (down from 3.2% in 2023), its impact on consumer behaviour and financial decision-making remains profound.

For the financial services sector, the key to success in this inflationary environment lies in education and innovation. Institutions that can effectively communicate inflation-resistant strategies and offer products that help consumers maintain their financial health in the face of rising prices will likely see increased customer loyalty and engagement.

The Global Domino Effect: Supply Chain Risk Management

Recent global events have thrown into sharp relief the critical importance of robust supply chain risk management. The ongoing Red Sea shipping crisis, which has led to 90% of container ships avoiding the Suez Canal, serves as a stark reminder of how quickly geopolitical events can disrupt global trade.

These disruptions have real consequences for consumers, with 51% reporting product shortages or delays in the past six months due to supply chain issues. As a result, companies are being forced to rethink their supply chain strategies, with a focus on resilience and flexibility.

Nearshoring and reshoring are gaining traction as risk mitigation strategies, with 67% of companies planning to increase these efforts in 2024. Investment in supply chain visibility technologies is expected to grow by 25% this year, as businesses seek to gain better control over their supply networks.

Innovation is playing a crucial role in addressing these challenges. As we navigate through 2024, it's clear that the consumer landscape is being shaped by a complex interplay of technological innovation, changing consumer values, economic pressures, and global trade dynamics. From the mobile commerce revolution to the challenges of inflation and supply chain disruptions, businesses that can adapt to these shifting realities will be best positioned to thrive in the years to come.