There are five key consumer trends that will impact industries and shape commerce in 2020 and beyond, according to a newly released report from global market data and analysis service provider Euromonitor International.
The report, “Top Five Consumer Trends in 2020,” predicts the rise of “passive commerce” and increased competition in last-mile delivery, among others.
It said passive commerce will be the result of the eventual shift toward “machine-aided commerce,” transforming consumption from being active to more passive.
“In the future, more commerce choices will be aided by machines,” the report said.
As an example, it noted the launch by HP of a subscription service for its cartridge supply that connects HP directly with consumers as the company adopts a more service-oriented model.
“Besides a consistent revenue stream, the service also gives HP more accurate forecasts,” the report said.
The last-mile delivery race will also intensify, foresees the report.
Companies will increasingly compete not just on price and product, but also on delivery and other fulfillment options.
This is leading to new last-mile options and delivery and pickup innovations. For instance, there are now stores that feature no merchandise but serve as pickup point for online orders and returns management. Such arrangements offer convenient collection of purchases, as well as boost loyalty and revenues.
Concerns about data collection is also another development, prompting companies to consider privacy as part of their value proposition and to be more forthright about their data collection methods.
Trust issues will likewise remain an important factor for consumers and the way they make purchases, the report said.
Fifty-one percent (51%) of connected consumers globally say they only buy from companies and brands they trust completely, and 67% say friends and family are very or extremely influential.
As digital marketing gains ground, the report forecasts the emergence of innovative tools to support trust-based marketing and the rise of new types of influencers amid growing fatigue for mega influencers.
Finally, Euromonitor sees the ascendance of 5G over the next five years. “This greater mobile broadband is needed to support the advancement of other technological initiatives, including more advanced video streaming, real-time smart transportation systems and a more comprehensive IoT ecosystem,” the report said.
It says the most important uses of 5G will be in these areas: more personalized mobility experiences, enhancement of AR/VR-based applications, more sophisticated in-outlet experiences, stronger smart home use, more efficient and personalized m-commerce (mobile commerce), and greater bandwidth in densely populated areas.