Navigating Retail in 2024

In an uncertain economic and geopolitical climate, the international retail scene faces a mixed outlook. Rapid inflation and rising living costs prompt consumers to prioritize essential purchases, leading to a shift towards grocery shopping and discount stores while cutting back on luxury goods and travel. Affordability and convenience reign supreme as businesses adapt to the ongoing transition from physical stores to e-commerce.

Amid this uncertainty, there's some optimism among consumers in certain regions, notably in China, the United States, and the Middle East, while Europeans remain somewhat pessimistic. What does this mean for brands and retailers in 2024?

According to our "Decoding Consumer Behavior" study, conducted with Potloc in November 2023, value for money remains paramount, followed closely by quality and durability. The trend towards health, wellbeing, and conscious consumption continues to gain traction. Supermarkets and malls will maintain their appeal, but e-commerce is poised to further expand its market share. For luxury items, consumers prioritize quality and brand reputation, often favoring multi-brand stores.

To navigate this rapidly changing landscape, adaptability and a tailored regional approach are essential. Businesses should focus on enhancing their operating models and value propositions, emphasizing quality and leveraging digital technologies for personalized offerings. Promotions and exclusive member benefits can attract more customers, particularly as over a third of respondents expect a moderate increase in spending, with younger shoppers showing particular optimism.

While 2024 may not bring seismic shifts in consumer behavior, this report provides valuable insights for brands and retailers seeking to enhance their appeal and capture opportunities in an increasingly competitive, dynamic, and uncertain retail environment.