Today, customers seek omnichannel experiences, combining physical and digital shopping into a phygital seamless whole.
Ikea, the world’s largest furniture retailer, recently announced its plans to spend €3 billion on its retail stores to adapt them for e-commerce. A few years ago, this move would have seemed radically futuristic.
Today, it seems obvious because the pandemic has dramatically changed the face of commerce. The initial days naturally saw a steep rise in e-commerce, resulting from lockdowns and restrictions. But we know now that shopping online isn’t the same as having a multisensory in-store experience with family and friends.
Social media investments are on the rise.
To address this, brands are spending millions of dollars on digital channels — social media, especially. Social media ad spend is expected to reach $177 billion this year, growing to $225 billion by 2024, accounting for 26.5% of all advertising!
Video is the world’s favorite format, short and straight, winning all the way.
Reels, Instagram’s vertical short video format, is the fastest growing feature on the platform. TikTok, another video-first social media platform, has 1 billion users spending an average of 52 minutes on the platform, with GenZ spending as much as 90 minutes. Snapchat, Facebook Watch, WeChat, etc., are catching up. Even traditionally text-based platforms like Twitter and LinkedIn are prioritizing video.
Live experiences trump static video.
Gartner finds that China’s live-commerce market grew more than 280% between 2017 and 2020, reaching $170 billion; it is expected to reach $423 billion this year. The rest of the world is slowly catching up too. German beauty retailer Douglas, lifestyle brand Tommy Hilfiger, and multi-brand retailer Walmart are all investing in live commerce and seeing impeccable results.
In this ebook, you will learn about: