Retail Consumer Insights

Trend - Retailers across various industries, such as home and garden, crafts, and even electronics are launching with an emphases on DIY projects. By focusing on DIY, these retailers mainly provide base components rather than prebuilt items, often leading to significantly lower prices than competitors.

Insight - Many consumers prioritize saving money over saving time. When shopping for furniture, for example, consumers opt to buy more affordable DIY furniture rather than more expensive pre-built options. These priorities are now extending to other industries, with consumers in adjacent spaces opting for more engaging DIY solutions in search of both a hobby and a method of saving money. In order to appeal to these consumers in a broader sense, specialized retailers with a focus on DIY are opening.

Trend - Retailers and grocers are testing fully automated locations to lower costs. By saving on the many complications associated with labor, these retailers are able to offer reduced prices for the benefit of the consumer. These often begin as solo test locations before expanding based on demand.

Insight - Lower-income consumers are the most affected by the continued rise in grocery prices year-over-year. However, even middle class consumers are feeling a notable impact to their finances caused by rising prices. In turn, retailers are facing leftover stock, particularly in the produce and perishables sections, leading to brands investing in ways to bring costs down for consumers. One such way is through the use of AI-based employee-free store locations.

Trend - Food & beverage brands are creating drinks designed to alleviate stress. This is achieved by swapping out stressing ingredients, such as processed sugars and caffeine, with stress-relieving alternatives, such as magnesium and lion's mane, generating healthier energy for consumers.

Insight - It is clear that many adults in the western world live high-stress lives. Between balancing work with personal lives while trying to maintain personal health, time is stretched thin. However, many adults are unaware of how impactful a diet is on both their mental and physical health, with sugars and processed goods raising heartrates and causing increased average stress levels. In order to help regulate the stresses and sleep schedules of these adults, brands are offering de-stressing beverages.

Trend - Cookbook stores now operate as community-centric “third spaces” to help consumers bond over the culinary arts through events like cooking classes and book signings. This speaks to a deepening interest in food as more than sustenance; it is now a means of social engagement and personal expression.

Insight - Many consumers face challenges finding spaces to build friendships and meaningful connections outside their professional and digital networks. Transforming cookbook stores into collaborative hubs creates a welcoming, offline environment where food enthusiasts can connect and share their love of the culinary arts in an intimate space. Businesses that tap into the demand for community can foster lasting loyalty by creating spaces where consumers feel free to express their authentic selves.

Trend - Luxury fashion labels across Europe and Asia are opening dedicated restaurants and cafes. These are designed to transform the boutiques from simple shopping ventures, to full-blown experiences. The experiential retail helps build consumer connections to one another and the brand.

Insight - In major cities across East Asia, in-person retail is once again thriving. Consumers in these regions have a wealth of options when going shopping, leading to them becoming more preferential in their destinations, seeking out unique retailers rather than simply shopping for necessities. This is a way of prioritizing feelings and experiences rather than simple errands. In order to appeal to this type of consumer, fashion labels are making their boutiques more appealing with dedicated cafes.

Trend - Retailers in various industries, such as department stores, luxury brands, and more, are launching in-store lounges and experiential events. These events are designed to enhance the comfort of shoppers while deepening the connection between the shoppers and the brand.

Insight - While many consumers made a strong shift toward online shopping over the past decade, in large part accelerated by the pandemic, there are still cases to be made for in-store shopping. Some consumers prefer to be able to touch a product before purchasing it, while others value the inherit socialization of in-store shopping, and prefer to interact with others and immerse themselves in the retail environment. Capitalizing off of this feeling, retailers are opening experiential lounges in-stores.

Trend - Software companies in the gaming space are launching marketplaces designed for game developers. These marketplaces offer assets, such as 3D character models, audio tracks, or maps, to be purchased and licensed for use by other developers, aiming to streamline and decentralize game development.

Insight - Novice game developers could encounter any number of issues when entering the space based on their prior expertise. For example, those with an artistic background may have no trouble drawing their character models and maps, but may struggle with music or 3D animations, while the inverse may be true for another developer. In order to appeal to these developers and alleviate stress where it may arise, gaming software brands are launching marketplaces with licensable assets.

Trend - Restaurants are offering Halloween-themed meals and items with unique appeal. These items often come at discounted prices to help parents and children, while they feature items with spooky-themed designs to enhance Halloween celebrations. These meals are designed to be positive experiences for fans.

Insight - In North America, Halloween is one of children's favorite holidays due to fun decorations, costumes, and free candy. However, Halloween has evolved to be more than simply a day-of trick-or-treating celebration, with many businesses offering celebratory items as early as a month before the day itself. Consumers who enjoy Halloween celebrations gravitate toward businesses that offer such items to engage with the holiday, build excitement, and save money for their families.

Trend - Brands in the CPG space are turning to chia seeds to create better-for-you alternatives to on-the-go breakfast offerings. Coming in the form of bars, bowls, and snackables, these packaged products offer healthy breakfast options for consumers with busy lives and limited time.

Insight - As individuals age, they typically take on more and more responsibilities ranging from advanced schooling to full-time employment and personal obligations, such as families and friends. This often leads to periods with very limited free time, leading to these consumers turning to time-saving options when possible, preferably without compromising on their lifestyle preferences. In order to appeal to such consumers, CPG brands are creating healthy on-the-go breakfast options with chia proteins.

Trend - While personal finance management apps have existed for over a decade, the introduction of artificial intelligence (AI) and data collection algorithms have made recent apps far more effective than before. These modern budgeting apps are used to prevent unnecessary spending while saving toward goals.

Insight - The extensive convenience of modern e-commerce platforms, such as Aliexpress, Temu, or Amazon, has led to consumers from Gen Z to older Millennials constantly facing targeted product advertising. This has led to an impulse spending problem in many consumers who purchase frequent low-cost products, unaware of how quickly these purchases add up. More tech-savvy Gen Z and Millennial consumers, in an effort to curb this aspect of e-commerce culture, are turning to budgeting apps powered by AI.