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Industry Opinion
by Yvonne Heinen-Foudeh, Senior International Correspondent
At the brink of that new year when looking into the future with a focus on the very end of the supply chain, no one wants to read any more about omni channel, personalization, and convenience yet again. I guess we agree on those facts as a given in retail for the next 12 months – just as they were the last year and the one before that. Interestingly enough Hyve Group Ltd, London, in their predictions, dive deeper than buzzword concepts that may yield inspiring inputs on what should be on the radar for all of us acting in fashion-driven businesses.
The British event organizer for their two trade shows – Source Fashion and Source Home & Gifts – in collaboration with retail trends consultancy Insider Trends, have developed their top 10 retail predictions for 2024. The outcome: a comprehensive report focusing on various facets of the retail industry, ranging from consumer behavior and artificial intelligence (AI) to physical retail trends, sustainability, and operational strategies. Here is a summary:
1. Calculated spendingShoppers are expected to prioritize value for money, with discounts and deals remaining significant. Brands may need to emphasize product longevity and durability, while the growing trend of re-commerce indicates an increasing number of consumers buying and selling second-hand items.
2. Unconscious shopping
Consumers discover and purchase products while engaged in other activities, whether on social media, gaming, or streaming content. This trend calls for retailers to prioritize creating immersive experiences in-store.
3. AI as a co-creator
Artificial Intelligence is expected to play a growing role in product development, serving as a co-creator rather than replacing human designers.
4. AI and consumer data
Additionally, AI is leveraged to enhance customer experiences through shopping assistants providing personalized recommendations, sparking concerns about consumer data privacy.
5. Retail media comes to the store
Retail media networks, previously digital-focused, are expanding into physical stores.
6. Increase in medium-term pop-upsThe report predicts an increase in medium-term pop-ups, offering brands the benefits of physical retail without the long-term commitment. These pop-ups, lasting 2-3 months or even a year, provide valuable insights into consumer behavior.
7. Radical transparencyBrands will prioritize radical transparency, openly sharing details of sustainability efforts and calling out other brands and government policies.
8. Brand-led positive change
Brands are expected to focus on helping customers address challenges through sustainable products without significant price increases.
9. Supply chain resilienceThe volatile global situation emphasizes the importance of resilient supply chains. Retailers invest in automation and explore local and non-traditional sources to reduce reliance on overseas suppliers.
10. Inventory management
Shifts in consumer behavior lead to longer buying seasons, prompting retailers to invest in technology for real-time stock data and dynamic pricing. Businesses adopt a little and often buying behavior to manage inventory and cash flow effectively.
Wanted: Your Opinion
Inevitably, the comprehensive overview by the British trade fair organizer and the market research company of the same provenance strongly reflects the European retail landscape, guiding brands on key trends to navigate and capitalize on in the upcoming year.
The Needle’s Eye editorial team would be very interested to understand predictions and assumptions as our readers in the Americas see them.
Would you say major commercial success factors to gain the consumer for a fashion product are pretty much identical? Or do you see major differences, would miss any essential aspect in those ten, identified by the tradeshow organizer and their market research partner?
Please send us an e-mail at gardnergroup@needleseye.net and share your opinion and findings with us and the Needle’s Eye community.
The next Source Fashion takes place February 18 to 20, 2024 at the Olympia London.
The unanimous opinion also among the tech providers themselves: Generative AI will rather not replace human designers but serve as a co-creator in product development. Images: Shutterstock
