A new year has begun, signaling a time for re-evaluation and strategic planning in the retail sector. This period is crucial for understanding evolving consumer preferences and integrating this knowledge into effective business strategies.
The following 40 statistics to win online consumers is a curated guide that provides essential insights into current consumer trends and behaviors. Drawn from Intelligence Node’s 2024 consumer survey, these statistics provide a clear perspective on what drives consumer choices and preferences, making it a must-read for anyone aiming to optimize their retail strategies for profitability, efficiency, and digital shelf success in the new year.
For an in-depth analysis of consumer behavior in 2024, download the full report today- an analysis of 1000 US shopper’s online buying habits, preferences, and trends for the year ahead.
Cost-Conscious Consumers in 2024
- Amidst escalating costs, half of the consumers surveyed place a high priority on finding competitively priced products.
- Overall, 2 out of 3 shoppers actively hunt for discounts, special offers, or more competitively priced items (including opting for private label products) in response to growing financial pressures.
- One in four shoppers (24%) engage in product research to discover attractive deals and ensure product quality.
- Opting for ‘private label’ products as a strategy to manage increasing costs is preferred by 17.5% of participants, a trend that is most prevalent among younger demographics.
Adapting to Changing Trends in Luxury Consumption
- A notable 42% of respondents have declared their intention to halt luxury product purchases due to the economic downturn.
- Fashion and apparel emerge as the most resilient luxury retail sector, as 28% of customers intend to maintain their spending in this category.
- The demographic of 18 to 44 years old shows a particular inclination to continue investing in fashion and apparel.
- Further, among those shoppers who plan to increase their overall spending in 2024, the fashion and apparel segment is anticipated to see sustained growth.
- Luxury categories such as watches, handbags, accessories, and jewelry are seeing a more cautious approach, with only 14% of consumers inclined towards spending in these areas.
- In contrast, the Cosmetics and perfumes sector remains relatively strong, capturing the interest of 15.3% of shoppers.
How Product Page Accuracy Can Impact Return Rates
- Damaged items and sizing or fit issues are the primary reasons for returns, affecting two-thirds of online shoppers.
- Particularly among female shoppers, size and fit concerns led to almost 3 out of 4 shoppers returning their products.
- 1 out of 2 shoppers abandon product pages that lack accurate information and visuals.
- Inadequate product descriptions and missing images deter over 57% of shoppers from making a purchase.
- Quick, free delivery appeals to 60% of consumers, especially younger ones who prioritize speedy deliveries.
- Hidden costs and delivery charges are major deterrents leading to cart abandonment.
- Younger shoppers are more likely to return products that don’t match their displayed images.
- Generally, older age groups encounter a broader range of issues while shopping online, compared to younger consumers.
- Lack of free returns and rigid exchange policies are significant concerns for older shoppers.
Modern Shoppers’ Online Search Patterns
- 3 out of 4 shoppers compare products online while shopping in-store.
- A notable 19% of shoppers tend to choose products listed in the top five search results, showing a preference for readily visible options.
- Nearly half of the shoppers limit their product search to just the first page of search results.
- Google Search, closely followed by Amazon, is the leading choice for initiating product searches. Compared to 2023, Google has surpassed Amazon in popularity for beginning online product searches.
- A massive 70% of consumers use either Google Search or Amazon as their starting point for online product exploration.
- Online marketplaces are the most preferred shopping channel among US shoppers.
- Tracking search trends helps retailers anticipate sales rushes, adjust assortments, and manage inventory. For example, in late 2023, searches for “Wide Leg Pants” surged, with keywords including brand terms like “H&M wide leg twill pants” growing 1150%.
Search Results: Where Do Shoppers Click?
- Over half of the shoppers (52%) show a clear inclination towards organic search results.
- Within this demographic, 31.4% favor organic results more, while 20.7% exclusively interact with organic results, steering clear of paid ones.
- A notable 41% of shoppers display neutrality, clicking on both organic and paid search results without a specific preference.
- Only a small fraction, 6.5%, express a preference for paid search results, suggesting that most shoppers tend to trust or value organic search results more.
PRODUCT RESEARCH GRAPH
Market Trends Surrounding Sustainable Shopping
- Half of the individuals aged 25-44 exhibit a willingness to invest more in eco-friendly and sustainable brands.
- Among the 35-44 age group, 30% of consumers show readiness to allocate a significantly larger budget for sustainable brands and products.
- Over 44% of consumers are purchasing more second-hand items than they were a year ago.
- Experts anticipates a “resale boom” in 2024 as retailers increasingly delve into recommerce. According to a recent study by Barclaycard Payments, recommerce makes a substantial contribution of nearly £7 billion to the UK economy.
- 66% of Gen Alphas prefer purchasing from companies that contribute positively to the world
- 18% of Gen Alphas express a preference for purchasing products made with sustainable materials.
Social Media’s Influence on Consumer Shopping Behaviors
- Social media shopping has gained popularity, with 44% of survey participants using it occasionally and an additional 10% relying on it regularly.
- Over half of individuals aged 25 to 44 frequently engage in shopping via social media platforms, a trend that sharply declines in the 44+ age group.
- Insider Intelligence reports that more than 42% of US Gen Z social media users view livestream videos. With TikTok intensifying efforts to promote TikTok Shop, livestream shopping is poised to grow, particularly among Gen Z consumers.
- According to Forbes, An impressive 70% of Gen Z and Millennials claim to favor brands committed to diversity and inclusion.
- Similarly, multicultural advertising and authentic engagement boasts a 60% higher retention rate among shoppers.
- 25% of Gen Alphas look towards influencers as their primary source of shopping inspiration.
- Further, 55% of Gen Alphas are inclined to purchase products if they observe their favorite YouTube or Instagram personalities using them.
Personalization & Data
- Younger age groups are most likely to be comfortable sharing personal data in exchange for personalized shopping experiences
- AI in retail, (machine learning, chatbots, swarm intelligence, natural-language processing, and image analytics) is expected to reach $24.1 billion by 2028. In 2024, experts predict it will significantly enhance personalization and streamline customer journeys, boosting the overall brand experience.
As the retail landscape evolves in 2024, understanding consumer trends becomes paramount for success. Harnessing the power of data-driven decision-making and modern tools is crucial for retailers aiming to optimize pricing, discoverability, and even inventory or assortment planning. In this dynamic environment, Intelligence Node stands as a strategic ally, offering innovative solutions to elevate your retail strategies. Reclaim your competitive edge- book a demo today and discover how Intelligence Node’s advanced capabilities can propel your business forward.