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Bringing Your DTC Brand to Life: The Emotional Journey Into Physical Retail

Bringing Your DTC Brand to Life: The Emotional Journey Into Physical Retail 1400 428 ASG
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There’s something deeply magical about stepping into a physical store. The moment you walk through the door, you’re immersed in a brand’s world—the textures, the atmosphere, the energy. It’s an experience that goes beyond the transaction. It’s about connection. And for DTC brands, expanding from the digital space into physical retail is a journey that taps into something more than just business strategy. It’s an emotional step towards deeper engagement and connection with your customers.

As a DTC brand, you’ve already established trust and loyalty online. Your customers know you, they follow you, and they believe in what you stand for. But when you move from pixels and screens to brick and mortar, it’s not just about replicating the digital experience in a store—it’s about enhancing it. It’s about creating a space where your story can come alive and resonate in a way that feels personal and unforgettable.

The Power of In-Person Connection

Think about the first time a customer holds your product in their hands, feels its weight, and experiences its design up close. It’s no longer just a photo on a screen or a review online. It’s real. It’s tangible. It’s the beginning of a deeper relationship. As retail expert Rachel Williamson says, “The best retail experiences aren’t about just selling products—they’re about creating emotional connections that turn first-time visitors into loyal customers.”

When you open your doors to a physical store, you’re offering more than just products—you’re offering an experience that touches your customers’ hearts. There’s something undeniably powerful about seeing someone light up when they find something they love, hearing their excitement as they tell their friends, or simply watching them linger in your store because they feel at home there. This is what sets physical retail apart—it creates moments that stay with your customers long after they’ve left.

The CEO's Guide to Launching Physical Retail From DTC Roots

Entering physical retail is complex. Learn how the smartest DTC brands get it done, and get a step-by-step execution plan.

Crafting a Space That Tells Your Story

Every brick-and-mortar store is an extension of your brand’s identity. It’s where your story unfolds in the real world, where your values and your mission come to life. But this doesn’t happen by chance. It requires intention, thoughtfulness, and a deep understanding of what your brand means to your customers.

Rachel Williamson shares, “A store is an extension of the brand—it’s where your customers experience the heart of what you do. It’s the chance to show them that what they’ve connected with online is just as authentic, real, and powerful in person.”

When you think about your store design, think about the emotion you want to evoke. Every detail should be a reflection of your brand’s essence. The layout, the colors, the displays—each element must tell your story and invite customers to immerse themselves fully in your world. This is your chance to create an environment that doesn’t just look beautiful—it feels like home.

Finding the Right Place to Build Connections

Location isn’t just about foot traffic—it’s about finding a space where your brand can thrive and connect with the right audience. Think about the neighborhoods, the communities, the people who align with your values. Your location should reflect the essence of your brand and attract those who will appreciate the experience you’re offering.

Rachel wisely says, “A great location isn’t just one with high foot traffic—it’s one that aligns with your brand’s values and connects with your customer base. It’s where your story can truly resonate and grow.”

The Heartbeat of Operations

Behind every unforgettable retail experience is an operation that runs like a well-oiled machine. From inventory management to customer service, the operational side of retail might not seem glamorous, but it’s what makes everything else possible. Think of your operations as the unsung hero that allows the magic to happen seamlessly. When everything is in place, customers don’t just shop—they are swept up in the experience, leaving with a smile and a story to tell.

Rachel puts it simply: “The real work in retail happens behind the scenes. It’s the operational excellence that ensures every interaction, every purchase, and every moment feels effortless to the customer.”

The Emotional Impact of Your Retail Store

Transitioning from a digital-only model to a physical one is more than just a business decision. It’s about creating an emotional experience that draws people in and makes them feel connected to something bigger than just a product. It’s about telling your story, building your community, and offering an experience that resonates deeply with your customers.

When you get it right, your store becomes more than just a place to buy things. It becomes a destination—a place where customers can connect with your brand in a way that feels meaningful. It’s a space where they feel valued, seen, and part of something important.

As Rachel wisely puts it, “A physical store isn’t just a retail space; it’s an experience that deepens the relationship you have with your customers. When done right, it becomes a place where your brand truly comes to life.”

The journey from DTC to physical retail isn’t just about selling products; it’s about creating a lasting impression, a deep connection, and an unforgettable experience. So when you open that door, make it more than just a store—make it a place where your brand and your customers’ hearts meet.

At ASG, we understand the emotional journey of expanding into physical retail. We’re here to help you make that leap with intention and heart, so your brand’s story can unfold in the real world. Let’s bring your vision to life, one unforgettable experience at a time.

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Now’s the Moment for DTC Brands to Go Physical—Here’s How

Now’s the Moment for DTC Brands to Go Physical—Here’s How 1440 428 ASG
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The U.S. retail landscape is undergoing one of its most significant shifts in decades. In 2024 alone, over 7,000 stores closed their doors, and early signs indicate that 2025 could exceed that number. From mass market chains like Big Lots and Rite Aid to category-specific retailers like Joann and Forever 21, legacy brands are pulling back—leaving behind a trail of vacancies in once high-demand locations.

On the surface, it may look like traditional retail is collapsing. But the reality is more nuanced: retail isn’t dying—it’s being restructured. The contraction of underperforming legacy brands is clearing the way for a new generation of retailers. And at the front of the line? Digitally native direct-to-consumer (DTC) brands.

These DTC brands were born online. They understand how to connect with customers, build community, and scale through digital channels. But now, they’re turning their attention to physical retail—not because they have to, but because it’s a strategic advantage. And timing couldn’t be better.

Physical Retail Is Evolving—and DTC Brands Are Built for It

Physical stores have evolved from transactional environments into multi-functional brand hubs. They’re no longer just a place to sell products—they’re an extension of a brand’s digital presence, a tool for acquisition, a vehicle for retention, and a differentiator in a noisy marketplace.

Consider Warby Parker. The eyewear brand began online but quickly recognized the value of brick-and-mortar in improving conversion, lowering customer acquisition costs, and expanding brand presence.

Today, more than half of its revenue comes from physical stores. Parachute, Allbirds, Glossier, and Brooklinen have followed a similar path—relying on retail locations to increase average order value, reduce returns, and give customers a tactile experience that’s hard to replicate online.

DTC Brands

Importantly, these stores don’t follow the traditional playbook. They’re showrooms, not stockrooms. They’re built for service, not just sales. And they’re designed with data in mind—from site selection to staffing strategy to inventory planning.

The CEO's Guide to Launching Physical Retail From DTC Roots

Entering physical retail is complex. Learn how the smartest DTC brands get it done, and get a step-by-step execution plan.

The Real Estate Market Has Shifted in Favor of the Agile

Legacy closures are creating more than just empty storefronts—they’re creating opportunities in top-tier trade areas that were previously out of reach for emerging brands. Prime mall spaces, urban streetfronts, and neighborhood power centers are opening up—and landlords are more flexible than ever.

Why? Because they need fresh concepts that drive foot traffic and align with the modern consumer. Digitally native brands bring just that. Landlords are now offering:

  • Short-term lease options for pop-ups or pilot stores
  • Revenue-sharing agreements that reduce fixed costs for tenants
  • Tenant improvement (TI) allowances to help offset buildout costs

This flexibility lowers the barrier to entry and allows brands to test physical retail without committing to long-term leases or high capital investments.

DTC brand

Start Small. Think Strategically. Scale Smart.

The beauty of the DTC playbook is how it translates to real estate: test, learn, iterate, expand. Physical retail doesn’t have to start with a fleet of flagship stores. In fact, the most successful brands are starting with one or two test markets, validating demand, and refining the model before scaling up.

Pop-ups are a smart entry point—especially in high-footfall corridors or recently vacated spaces. A six-month test can reveal everything from foot traffic conversion rates to local inventory preferences. It also helps brands understand operational needs, from staffing to fulfillment.

Once the model is proven, brands can move into permanent locations, expand to similar trade areas, and begin building a portfolio of stores that are not just branded, but profitable.

The Moment to Move is Now

What’s happening in retail today is a rare moment of realignment. The big, legacy players are shrinking. The leases are available. The terms are negotiable. And the consumer is ready to meet you offline.

For DTC brands that have mastered digital, the next frontier is clear: own the physical channel on your terms. With the right strategy, you don’t just get into brick-and-mortar—you use it to strengthen your brand, grow customer lifetime value, and outperform your competition.

The window is open. Smart brands are already moving through it. The only question is: will yours?

Why Livestream Retail Matters Now More Than Ever

Why Livestream Retail Matters Now More Than Ever 1440 428 ASG
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Bloomingdale’s leveraged livestream retail throughout the pandemic, transforming static shopping into dynamic, interactive experiences. These events weren’t just about showcasing products—they fostered direct engagement, exclusive access, and real-time purchasing.

Today, livestream shopping has evolved from an experiment into a core retail strategy. It doesn’t replace brick-and-mortar; rather, it enhances customer engagement by integrating digital and physical touchpoints.

With U.S. livestream e-commerce sales projected to hit $68 billion by 2026, leading platforms like TikTok Live, Whatnot, and eBay Live are setting new standards. For brands, this isn’t just a trend—it’s an opportunity to drive sales, build community, and create seamless omnichannel experiences.

 

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The New Frontier of Retail Engagement

Retail success hinges on meeting customers where they engage most—whether in-store or online. Livestream retail isn’t just another channel; it’s a high-engagement, data-rich touchpoint that blends entertainment with commerce. In today’s digital-first world, livestream shopping offers brands a direct, interactive way to build real-time relationships, showcase products in action through live demonstrations, and create urgency with exclusive, time-sensitive offers. More than just another sales avenue, it is a powerful tool for driving both online conversions and in-store traffic, reinforcing an omnichannel strategy that strengthens brand loyalty and deepens customer engagement.

10 Emerging Retail Trends

Understand the other key factors impact retail and wholesale in 2025.

Why Livestream Retail Matters for Physical Stores

Livestream retail isn’t just an online sales tool—it actively shapes in-store behavior. With 83% of shoppers researching online before visiting a store, brands that leverage livestreaming effectively can influence purchasing decisions before customers even set foot in a physical location.

Retailers that integrate livestream shopping into their strategy can bridge digital and physical retail, using online events to drive store foot traffic and strengthen customer relationships long before an in-person visit. Beyond sales, livestreaming provides real-time consumer insights, helping brands refine merchandising strategies, experiential retail concepts, and store layouts. In the evolving retail landscape, success isn’t about choosing between digital and physical—it’s about orchestrating both in a way that maximizes customer engagement and long-term profitability.

Modern Livestream Shopping vs. Traditional TV Retail

The rise of livestream shopping may resemble the era of QVC and home shopping networks, but today’s version is more powerful, interactive, and omnichannel. Unlike traditional TV retail, modern livestream commerce offers:

  • Direct audience engagement – Real-time chat, polls, and Q&A create a two-way conversation between brands and consumers.
  • Omnichannel accessibility – Shoppers don’t need a TV; they can join via TikTok, Instagram, YouTube, or a brand’s website.
  • Frictionless purchasing – Seamless, in-stream checkout options enable instant conversion with fewer abandoned carts.

“At the heart of livestream commerce is a simple yet powerful psychology: viewers tune in not just to buy products but to be part of a moment.”
– Hackernoon

The shift from passive viewing to active participation is what makes livestream retail a game-changer. Consumers trust influencers and brands they engage with in real time, transforming shopping from a transaction into an experience.

Where Livestream Shopping is Scaling the Fastest

Livestream shopping is growing rapidly, but not all platforms are equal. TikTok, Whatnot, and YouTube are leading the charge, each offering unique advantages for brands:

  • TikTok – The undisputed leader in live shopping engagement. Since launching TikTok Live Shopping in 2021, the platform has rapidly scaled its e-commerce ecosystem. In November 2024, BK Beauty’s eight-hour live event shattered expectations, generating $100,000 in sales—five times its initial goal. With 40 million U.S. TikTok shoppers projected by 2026, brands that master TikTok Live gain a competitive edge.
  • Whatnot – It’s the fastest-growing livestream shopping platform in the U.S. and initially popular in niche categories like collectibles and streetwear. Whatnot’s explosive success—$2 billion in 2024 sales—proves its potential across industries. With 175,000+ weekly livestream hours, Whatnot now outperforms QVC’s weekly broadcast hours by 800x.
  • YouTube – With 2.7 billion users, YouTube dominates livestream video consumption. While 40% of retail shoppers have purchased products from YouTube livestreams, its real advantage is discoverability. As the second-largest search engine, YouTube helps brands drive long-tail engagement far beyond a single live event.

Retailers must match platform selection to audience behavior—leveraging TikTok for viral engagement, Whatnot for passionate communities, and YouTube for sustained visibility.

Integrate Livestream Shopping into Your Brand Strategy

Livestream retail isn’t a side project—it’s a scalable revenue channel that deepens brand-consumer relationships. Breaking into livestream shopping doesn’t require massive budgets, but it does require precision and strategic execution. Brands that succeed in this space aren’t just selling products; they’re building communities, driving engagement, and converting passive audiences into loyal customers.

One of the most effective ways to drive livestream success is through influencer partnerships. Collaborating with trusted creators—especially micro-influencers with highly engaged audiences—allows brands to tap into pre-existing trust and credibility. Choosing the right platform is just as critical. TikTok drives impulse purchases, Whatnot fosters high-intensity niche communities, and YouTube ensures long-term discoverability. Each platform serves a different purpose, making it essential for brands to align their strategy with audience behaviors.

Beyond partnerships and platforms, brands must prioritize engagement over hard selling. The most impactful livestreams feel organic and interactive, incorporating live Q&A, behind-the-scenes content, and exclusive promotions that create urgency and excitement. Finally, livestream shopping should be an extension of a broader omnichannel strategy—used not just to drive online sales, but to increase store visits, build brand loyalty, and strengthen the overall retail ecosystem.

The Future of Livestream Retail

Whether consumers shop in-store, online, or through livestreams, every touchpoint shapes their perception of a brand. Success will depend on the ability to blend entertainment with commerce, leverage real-time engagement, and build seamless omnichannel experiences that drive both online and in-store transactions.

The next wave of retail isn’t about choosing between physical and digital—it’s about orchestrating both to create deeper customer relationships, maximize lifetime value, and drive sustained growth.

The future of retail is about creating immersive, real-time experiences that drive engagement and sales. Livestream shopping is revolutionizing how brands connect with consumers, blending entertainment with commerce to shape the next era of retail.

Learn how livestream retail fits into the bigger picture of emerging trends shaping the industry. Download our exclusive report, Emerging Retail Trends 2025, and discover the strategies leading brands are using to stay ahead.

The Dollar Store Disruption: What It Means for Retail’s Future

The Dollar Store Disruption: What It Means for Retail’s Future 1400 428 ASG
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Look around your community, and you’ll likely spot a discount store like Dollar Tree, Dollar General, or Family Dollar. Once catering primarily to lower-income families, these stores now attract a much broader demographic, including middle-class and even affluent shoppers looking for ways to combat rising prices. As inflation reshapes consumer behavior, dollar stores have become formidable competitors in the retail space.

But while discount chains thrive, the success of the dollar store is no longer guaranteed. Expansion alone isn’t a strategy, and retailers that fail to adapt to changing definitions of value risk being left behind.

Higher Earners Are Trading Down—Retailers Need to Take Notice

Traditionally, the core customer base for dollar stores had a median income of $30,000-$60,000, according to research published in Retail TouchPoints. Today, that demographic is shifting.

Dollar Tree executives reported in a Q1 2024 earnings call that their fastest-growing customer base earns more than $125,000 a year. The reason? Rising interest rates and inflationary pressures have forced consumers across income levels to rethink how and where they shop.

Retailers beyond the discount sector need to take note: price sensitivity is no longer just a low-income concern. This means premium and mid-tier brands must reexamine their value propositions. Are you offering products that feel like a good deal? If not, consumers are increasingly willing to shop elsewhere—even if “elsewhere” is a dollar store.

Dollar General’s Winning Playbook vs. Family Dollar’s Expansion Mistake

Dollar General had ambitious plans to open 800 new stores and remodel 1,500 existing locations in 2024, continuing its aggressive push into rural communities. The company’s success is built on a clear strategy: providing essential goods, adding fresh food options, and maintaining operational efficiency.

In contrast, Family Dollar—purchased by Dollar Tree in 2015—planned to close 600 underperforming locations in 2024 alone, with hundreds more closures planned as leases expire. The reasons? Poor locations, misalignment with the Dollar Tree model, and operational challenges, including a $40 million fine for a rat-infested warehouse in 2022.

The lesson for all retailers: Expansion without differentiation is a losing game. Growth needs to be strategic, customer-focused, and operationally sound. Are you scaling smartly, or are you chasing market share without a sustainable plan?

10 Emerging Retail Trends

Understand the other key factors impact retail and wholesale in 2025.

Shrinkflation: A Dangerous Game That Could Backfire

Dollar stores have become prime examples of shrinkflation—where products remain the same price but contain less product. While this strategy has helped Dollar General and Dollar Tree maintain profit margins of 31.5% in 2023 (significantly higher than Walmart’s and Kroger’s), it comes at a cost: consumer trust.

The question retailers must ask is: Is the short-term boost worth the long-term brand damage? Some retailers have an opportunity to take a stand against shrinkflation by offering clear, transparent pricing and “no-shrink” product lines. Brands that do so could earn lasting consumer loyalty at a time when trust in pricing is eroding.

What Retail Leaders Should Do Next

The evolution of dollar stores isn’t just their story; it’s a signal for the entire retail industry. Here’s what C-suite executives should focus on:

  1. Redefine Value Beyond Just Price – Consumers don’t just want cheap; they want affordability plus convenience, accessibility, and perceived savings. How does your brand deliver that?
  2. Be Strategic About Growth – Expansion for the sake of expansion leads to failure. Family Dollar proves that. Invest in location strategy, customer insights, and operational efficiency.
  3. Decide Where You Stand on Shrinkflation – Will you join the race to shrink products, or will you differentiate by prioritizing consumer trust and transparent pricing?
  4. Prepare for Even More Trade-Down Behavior – The next wave of shoppers trading down may not be who you expect. How are you adapting to serve higher-income customers looking for savings?

Adapt or Risk Irrelevance

The rise (and struggles) of dollar stores offers critical lessons for all retailers. Consumers are rewriting the rules of value, and retailers that don’t evolve will be left behind. Whether you operate in discount, mid-tier, or even premium retail, the question remains: Are you meeting the new expectations of value-conscious shoppers, or are you hoping they’ll return to old habits?

The future of retail won’t be defined by who offers the cheapest price—but by who understands and delivers on the new definition of value.

Enhancing Customer Experience with Digital Price Tags

Enhancing Customer Experience with Digital Price Tags 1440 428 ASG
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Today’s shoppers demand transparency, convenience, and personalized experiences. Digital price tags—also known as electronic shelf labels (ESLs)—are emerging as a powerful solution to meet these expectations. By offering real-time pricing updates, detailed product information, and seamless integration with inventory systems, ESLs help retailers reduce costs and enhance both operational efficiency and customer satisfaction. Leading brands like Walmart and Carrefour are already harnessing this technology to stay ahead of the competition and deliver the exceptional shopping experiences that consumers now expect.

RFID vs. Digital Price Tags: Distinct Technologies with Unique Roles

RFID and digital price tackle different aspects of the customer journey—each enhancing the other. RFID (Radio Frequency Identification) works behind the scenes, using microchips embedded in products to ensure real-time tracking and accurate stock management. This allows retailers to streamline inventory processes, reduce stockouts, and accelerate checkout speeds by eliminating manual scanning.

In contrast, digital price tags, or electronic shelf labels (ESLs), focus on the consumer-facing side of retail. These digital displays on store shelves instantly convey up-to-date pricing, special offers, and even detailed product information like ingredients or customer reviews. Together, RFID and ESLs create an integrated, frictionless experience. While RFID optimizes inventory and backend logistics, ESLs directly engage customers with transparent, real-time data—resulting in smoother, faster, and more satisfying shopping experiences.

Streamlining Checkout with RFID: A Win for Customers and Retailers

RFID technology offers a game-changing solution, especially in high-traffic retail environments like grocery stores, where checkout speed is crucial. By automatically detecting every item in a cart without needing manual barcode scans, RFID accelerates the checkout process, drastically cutting down wait times and enhancing customer satisfaction. This means that retailers can serve more customers in less time, especially during busy periods, without sacrificing service quality.

As highlighted by Mediaset Retail, RFID-enabled checkout counters instantly scan and register all items in a cart, transforming what would typically be a lengthy checkout into a seamless, near-instantaneous experience. This efficiency not only reduces customer frustration, but also leads to increased spending, as happy and stress-free shoppers are more likely to make additional purchases. The smoother the process, the more likely it is that consumers will keep returning, creating a cycle of positive customer experiences and loyalty.

Beyond improving checkout efficiency, RFID helps retailers manage inventory in real time, ensuring that stock levels are accurate for both in-store and online orders. While the initial investment in RFID systems may seem significant, the long-term return on investment—through operational savings, increased customer loyalty, and improved shopping experiences—makes it a vital technology for the future of omnichannel retail.

Digital Price Tags Can Provide More Transparency to Consumers

Modern digital price tags, such as electronic shelf labels (ESLs), offer far more than just pricing information. Enhanced with technologies like Near Field Communication (NFC) and Quick Response (QR) codes, these tags provide consumers with valuable insights, including nutritional details, allergen warnings, stock availability, product reviews, and even real-time currency exchange rates. Some advanced Bluetooth-enabled ESLs take personalization a step further by delivering tailored promotions or price comparisons directly to shoppers’ mobile devices.

As Chute Gerdeman highlights, consumers crave immersive, personalized experiences, driving a compelling case for investment in “phygital” retail strategies that blend digital capabilities with physical environments. Personalized shopping experiences can increase consumer spending by as much as 40%, underscoring the financial upside of adopting ESL technology.

ESLs also streamline operations, allowing retailers to rapidly update pricing, sometimes as frequently as six times an hour. This minimizes confusion, reduces labor costs, and eliminates errors associated with manual updates. However, retailers must be cautious about consumer perceptions of dynamic pricing. While ESLs can support seamless promotional updates, 68% of US adults view dynamic pricing as price gouging. Transparency and clear communication about pricing strategies will be critical for retailers to maximize the benefits of digital price tags while maintaining customer trust.

Are Digital Price Tags Worth the Investment?

Digital price tags offer compelling advantages that go beyond their upfront costs, positioning retailers to stay competitive and meet evolving customer expectations.

Cost Savings: Replacing traditional paper tags with ESLs eliminates printing and labor expenses associated with frequent price updates. These savings contribute to a strong ROI over time. Moreover, ESLs enhance operational efficiency by notifying employees of low stock levels, enabling quicker replenishment. For example, Asda’s use of ESLs in Stevenage reportedly saved 60,000 sheets of A4 paper, as noted by The Grocer.

Integrated Logistics: ESLs provide real-time inventory alerts, improving supply chain communication and ensuring a seamless flow of products. When items are out of stock, digital tags can inform customers how long the product will be unavailable, enhancing transparency.

Less Food Waste: Grocery stores can rapidly reduce perishable foods using dynamic pricing before their expiration date, saving tons of food from the trash, and reducing methane from the environment, as well as expensive landfill fees and higher grocery costs for consumers.

Enhanced Product Discovery: By integrating with third-party apps, ESLs enable consumers to locate products, check availability, and receive accessibility-friendly alerts when they are near desired items.

Advanced Analytics: Digital price tags offer retailers valuable insights into consumer behavior. By tracking where shoppers spend the most time and identifying high-traffic areas, retailers can optimize store layouts and better cater to customer preferences.

The Human Touch in a Tech-Driven Future

While technology like digital price tags and RFID systems provides the foundation for automation and smarter decision-making, humans remain central to shaping exceptional customer experiences (CX). Retail associates play a pivotal role in driving satisfaction and loyalty through empathetic, personalized engagement.

By automating repetitive tasks and streamlining processes, technology empowers retail staff to focus on meaningful interactions with customers. This synergy between human connection and technological innovation elevates CX, ensuring a seamless and memorable shopping journey that resonates with consumers on a deeper level.

Retailer Takeaways from 2024 Holiday Shopping Trends

Retailer Takeaways from 2024 Holiday Shopping Trends 1440 428 ASG
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As we look at the insights from 2024 holiday shopping trends, several key themes have emerged, shaping how consumers are approaching spending and how retailers can adapt to meet their needs. Here’s what we’ve learned so far:

1. Early Holiday Shopping Trends are Becoming the Norm

In 2024, consumers began holiday shopping earlier than ever. Many started as early as August, with more than half of shoppers beginning by October. Consumers planned to spend as much or more in 2024, but the shift to early shopping has been largely driven by a desire to spread out expenses and capitalize on early promotions. Retailers who ramped up supply chains and launched holiday campaigns early have seen the benefits of engaging shoppers before the traditional holiday rush.

2. Price Sensitivity Is Increasing

Economic pressures have heightened consumer focus on price, with two-thirds of global shoppers prioritizing affordability when choosing where to shop. Many shoppers are also turning to value-driven alternatives, including private labels, the sharing economy, discount stores, as well as platforms like Temu, AliExpress, and Shein, challenging retailers to deliver competitive pricing without eroding brand value.

3. Omnichannel Shopping Is Essential

2024 has shown that consumers are increasingly expecting a seamless omnichannel experience. They want to shop online, check in-store availability, and enjoy the convenience of buying online and picking up in store (BOPIS). Retailers are realizing that investing in a mobile-first strategy is key to capturing sales. Mobile shopping continues to dominate, with more than half of online transactions occurring on mobile devices, making responsive web design and mobile-optimized checkout crucial.

4. AI Is Revolutionizing Customer Experience

AI tools and generative AI (GenAI) are playing an increasingly important role in retail this holiday season. From personalized recommendations to inventory management, AI is helping retailers enhance the customer experience by predicting trends, offering tailored shopping suggestions, and providing chatbots for immediate support. Retailers leveraging AI are better able to deliver customized discounts and promotions at scale, which is critical for converting browsing shoppers into buyers.

5. The Rise of Self-Gifting

Self-gifting, particularly among Millennials and Gen Z, is becoming a significant trend. Many consumers are not only purchasing gifts for others, but are also buying for themselves. Retailers are tapping into this trend by promoting deals that encourage self-gifting, especially in categories like fashion, beauty, and branded merchandise. Offering “buy one, get one” promotions or personalized shopping experiences helps encourage these purchases.

6. Sustainability Remains a Priority

Consumers, especially younger generations, are making purchasing decisions based on sustainability. 80% of Millennials and 66% of Gen Z consider sustainability an important factor in their buying behavior—and they’re willing to pay 9.7% higher prices for it. Retailers are responding by promoting eco-friendly products, sustainable packaging, and integrating sustainability goals into their overall business strategies. Transparent sustainability practices are becoming a key differentiator in the crowded holiday marketplace.

7. Traditional In-Store Events Are Losing Ground

While in-person shopping is still important, traditional events like Black Friday are losing their appeal. Consumers are increasingly gravitating toward online shopping events like Cyber Monday, which has now extended into Cyber Week. The shift toward longer shopping events allows retailers to capture sales across a broader window of time and meet the demands of multiple generations. As a result, retailers are refining their marketing strategies to target specific demographics on the most effective platforms—TikTok for Gen Z, Facebook for older consumers, and email for others.

8. The Silent Generation’s Spending Power Is Underestimated

While much attention is paid to Millennials and Gen Z, it’s becoming clear that the Silent Generation (those aged 75+) holds significant spending power. Research shows that while they do not plan to spend as much as Millennials this holiday season, their buying behaviors are often overlooked by retailers focused on younger generations. Inclusive marketing strategies that speak to older consumers could prove to be a lucrative opportunity for retailers in 2024.

9. Social Commerce Is Booming

Social commerce has grown substantially, with platforms like Instagram, TikTok, and Facebook driving direct sales through engaging, shoppable content. Social commerce sales in the U.S. more than doubled between 2020 and 2023, and 2024 is expected to follow this trajectory. As mobile-first shopping continues to rise, retailers are increasingly leveraging social media to meet consumers where they spend a significant amount of time and to provide a seamless, shoppable experience.

10. Consumers Are More Willing to Shop Through Discounted Platforms

While big-box retailers and well-known brands are still dominant players, discount platforms like Temu and AliExpress are gaining traction. Offering a wide range of products at lower prices, these platforms appeal to budget-conscious consumers looking for deals. This competitive threat will likely shape the strategies of major retailers in 2025 and beyond, who will need to balance value-driven offers with maintaining brand loyalty.

How Retailers Can Thrive in 2025

As 2024 ends, the blueprint for retail success in 2025 is taking shape. The retailers thriving this season have embraced early shopping trends, invested in personalized experiences, and demonstrated a clear commitment to sustainability. These are no longer just tactics—they are strategic imperatives for future growth.

Looking ahead, retail leaders must prioritize agility and innovation to meet evolving consumer demands. Early and decisive action on AI-driven solutions, omnichannel excellence, and mobile-first strategies will set industry leaders apart. At the same time, the rise of self-gifting, value-driven platforms, and social commerce presents untapped opportunities that demand attention.

The path forward is clear: to remain competitive, retailers must lead with a customer-centric vision, seamlessly blend digital and in-person experiences, and foster trust through transparency and purpose-driven strategies. The retailers who execute on these priorities will not only navigate change but define the future of retail.

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What’s Next in Embedded Lending for Retail

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By integrating financial services into their retail platforms, businesses are unlocking new revenue streams while enhancing customer loyalty and engagement. By offering financing options like Buy Now, Pay Later (BNPL), retailers can increase revenue and deepen customer engagement. With the global embedded finance industry projected to reach $1.5 trillion by 2030, growing at an annual rate of 27.5%, this movement signals a shift in consumer expectations and retail strategies. For retail leaders, the message is clear: embedded lending is no longer optional—it’s a competitive necessity.

Expanding Access with Embedded Lending

Embedded lending democratizes access to financial services by evaluating creditworthiness through alternative data, allowing more customers to participate. Philipp Buschmann, Co-Founder and CEO of AAZZUR, emphasized in Retail Voices how this innovation creates a competitive marketplace, enabling retailers to act as financial service providers. Customers who might not qualify for traditional loans can secure financing, resulting in increased sales and broader consumer reach.

Starbucks

Unlocking New Revenue Streams

Partnering with third-party lenders offers retailers diversified revenue streams while enhancing the customer experience. Starbucks provides a prime example; by embedding financial products, the company has personalized customer interactions, driven brand growth, and outpaced competitors in building deep customer relationships. According to Bain, payments and lending dominate embedded financial services, complemented by value-added offerings like insurance and tax services.

For retailers, these partnerships generate additional income and elevate brand loyalty, creating a virtuous cycle of engagement and profitability.

The Gen Z and Millennial Imperative

Embedded lending has become a strategic priority for retailers targeting Gen Z and Millennials. A third of these consumers say they would abandon a purchase if financing options weren’t available. Lenovo and Jerome’s Furniture showcase how embedding lending into the purchase journey drives higher order values and loyalty. By offering instant credit decisions at checkout, they remove financial barriers and streamline the customer experience.

Retailers that fail to adapt risk alienating these crucial demographics—and losing ground to competitors.

Gen Z on comupter

Transforming B2B Transactions

Embedded lending’s impact isn’t limited to consumers; it’s revolutionizing B2B transactions as well. Anil Stocker, CEO of Kriya, predicts a “colossal” impact on efficiency and growth, enabling faster credit approvals, seamless payments, and steady cash flow for retailers.

For B2B buyers, embedded lending expands purchasing power, making large orders more feasible without delays. For retailers, it ensures reliable cash flow and fosters stronger supplier relationships. Integrating financing directly into B2B platforms will empower businesses to grow while meeting customer demands for flexibility and speed.

Future Trends: AI, Blockchain, and DeFi

The future of embedded lending is being shaped by cutting-edge technologies like artificial intelligence (AI), machine learning (ML), and blockchain. These innovations are poised to transform the retail finance landscape by enhancing efficiency, personalization, and security.

AI and Machine Learning

According to EY, AI and ML will revolutionize embedded finance in several key ways:

  • Risk Assessment: By analyzing vast data sets, AI can predict repayment likelihood with precision.
  • Credit Scoring: Retailers can use AI to assess creditworthiness and determine lending terms instantly.
  • Personalized Offers: Tailored financing options can be crafted based on customers’ spending habits and credit profiles.
  • Inclusion: AI supports alternative lending models like peer-to-peer and crowdfunding, expanding access to financial services.
  • Fraud Detection: Advanced AI systems enhance security by identifying and preventing fraudulent transactions.
Online shopping

Blockchain and Decentralized Finance (DeFi)

Blockchain technology and DeFi are set to further enhance embedded finance by facilitating near-instant transaction settlements and reducing counterparty risk. According to PYMNTS, DeFi protocols streamline payment systems and improve cash flow efficiency. Retailers that adopt these technologies will position themselves as leaders in providing seamless, secure, and transparent financial services.

By integrating these advanced technologies, retailers can offer cutting-edge financial solutions that not only meet consumer expectations but also drive long-term growth.

Credit card

Challenges with Embedded Lending

Retailers do face certain challenges in embedding the necessary technology, especially using legacy systems. There are several hurdles many retailers will need to overcome to not only be able to offer comprehensive embedded finance, but to convince their customers that the option is secure. There are several third-party solutions entering the market who can help retailers make the leap forward.

By embedding an entire body of financial services, such as payments, lending, insurance, and investment options, directly into their platforms, retailers will be able to offer much more personalized services that make the shopping experience more efficient and convenient. The automobile industry tapped into this a long time ago, offering in-house and on-the-spot financing so that customers can drive away in the car of their dreams.

As we’ve seen with loyalty programs, customers are only willing to provide information to retailers if they feel that their information is protected and secure. It may take extensive communication to relieve consumers of the concerns they might have about retailers obtaining financial information.

The regulatory environment is going to require retailers to offer some of the same considerations – such as disputing charges on BNPL and other embedded financial services – as are offered with credit card purchases. The Consumer Financial Protection Bureau has already taken action to ensure consumer protections are in place.

The Future of Retail Finance

The evolution of embedded finance marks a turning point for retail. Retailers that embrace this opportunity will distinguish themselves as leaders in delivering personalized, convenient, and secure financial solutions. By addressing challenges and investing in advanced technologies, forward-thinking retail executives can position their brands for long-term success in a competitive and rapidly evolving landscape.

Embedded lending is not just an addition to retail—it’s the foundation of a future-ready, customer-centric approach to shopping.

How Dupe Culture is Reshaping Retail

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Navigating Dupe Culture

Dupe culture has emerged as a disruptive trend within retail, signaling a powerful shift in consumer spending, especially among Gen Z shoppers. For retailers, this growing demand for “dupes” is not simply about cost-effectiveness; it’s a shift that could redefine brand equity and reshape market positioning. As Gen Z, a generation marked by financial prudence and a heightened awareness of value, becomes a dominant consumer force, retailers must consider how dupe culture could influence both their customer base and overall brand perception.

The Allure of Dupes

Dupe culture—short for “duplicate”—is a phenomenon in which consumers actively seek nearly identical, lower-cost alternatives (“dupes”) to premium products that match in quality or functionality. Popular categories for dupes include luxury makeup, skincare, and designer apparel, with fast-fashion brands like Shein and Temu leading the way by providing cheap alternatives.

From home décor and tech gadgets to fashion accessories, dupe culture spans industries, allowing cost-conscious consumers to find “luxury for less.” This rising preference for dupes challenges traditional brand loyalty and raises the stakes for retailers aiming to balance premium offerings with value-based options.

The Consumer Appeal of Dupes

The dupe trend is reshaping consumer culture, with influencers actively hunting for budget-friendly alternatives to high-end clothing, beauty products, and home décor. This pursuit is not just about savings; it’s the thrill of discovery and the joy of sharing these finds. Unearthing a worthy dupe brings a sense of accomplishment; there’s no shame in choosing a “knock-off.”

“The rise of dupe culture speaks to a generational shift in consumption of goods and media,” said Jennifer Baker, growth marketing leader at creator management platform Grin. “Previous generations may have shopped for knockoffs on the sly, but Gen Z has not only normalized buying knockoffs or generic products, but has grown the #dupe movement into one of the most searched terms on social media.”

According to eMarketer, around one-third of makeup consumers ages 18 to 34 (33%) and 25 to 34 (35%) bought a dupe due to something they saw on social media. And research conducted by Alexandra J. Roberts for Northeastern University’s School of Law, revealed that “71% of Gen Z  and 67% of Millennials report they sometimes or always buy dupes. Where older generations clandestinely purchased dupes hoping to pass them off as the real thing, young bargain-hunters eschew gatekeeping and proudly share their finds with friends and followers.”

One-third of makeup consumers ages 18 to 34 buy dupes inspired by social media. Research from Northeastern University shows 71% of Gen Z and 67% of Millennials regularly purchase dupes, proudly sharing their finds as a badge of value over exclusivity. This financially savvy approach is redefining brand loyalty and pushing retailers to rethink how they deliver value.

Gen Z’s financially savvy, value-driven approach is fueling the rise of dupe culture. This generation is redefining brand loyalty, pushing retailers to reconsider how they deliver value and exclusivity.

Hashtags like #DupeAlert or #DupeCulture make it easy for consumers to find these alternatives. However, according to Roberts, “Amazon has banned its use in product descriptions, TikTok has blocked the hashtag #designerdupe, and Target’s legal team forbids the company from saying the word.”

Consumers know how to get around the hashtag and still share their favorite finds. BuzzFeed published a list of Amazon products that were “very similar” to higher-priced products; DUPETHAT, an Instagram influencer, doesn’t use the hashtag in her posts but has over a million followers.

But it’s about more than just finding a less expensive alternative to a popular luxury brand. It’s also about the thrill of discovery. This challenge to the traditional notion of luxury, where exclusivity and price once defined value, is driven in part by the constant companion of economic uncertainty over the past several years. Most shoppers are more budget-conscious, and dupe culture allows them to indulge in luxury experiences without the luxury price tag.

But for brands, it can be another story. When a $10 foundation is hailed as a perfect match for a $50 high-end product, it can dilute the prestige associated with the original brand. However, some brands have embraced dupe culture by marketing themselves as an affordable alternative to luxury, while other designers are creating their own dupes to capture market share.

Brands Thriving in Dupe Culture

e.l.f. Cosmetics has embraced dupe culture by aligning closely with its target audience. Influencer Marketing Factory attributes e.l.f.’s success to how it has “adopted the voice of its loyal beauty community, leaning into Gen-Z slang, TikTok trends, and playful comments.”

Olaplex, a pioneer in “bond-building” hair care, has also capitalized on dupe culture. When the hashtag #olaplexdupe hit over 30 million views on TikTok, the brand humorously joined the trend by sending influencers a “viral dupe” of a fake product, Oladupé No. 160, to turn imitation into brand engagement.

Lululemon hosted a “dupe swap” that allowed consumers to trade their dupes for branded versions. This came after a viral TikTok highlighted leggings that closely resembled Lululemon’s at a lower price point.

H&M and Mugler collaborated to create accessible high-fashion pieces, embracing the blending of luxury and fast-fashion. Fast-fashion retailers like H&M and Target openly sell duped products, generating buzz and catering to demand for high-quality yet affordable alternatives. These partnerships benefit designers by expanding brand visibility and reaching new audiences.

@jordannkelsey

The perfect new dupes by Mugler x H&M ✨ im into it, what do you think? #muglerxhm #mugler #fashioncollab #fashiontrends #hottopic #fashionnews

♬ Aesthetic - Tollan Kim

Sophie Hardie, client director at the Goat Agency, advises brands to lean into dupe culture. She says, “Brands don’t need to worry about their reputation being damaged… Instead of fighting dupes, high-end brands should light-heartedly engage with popular culture, showing confidence in their brand’s power.”

The Future of Dupes: Risks and Opportunities in Retail

As dupe culture expands, it brings both challenges and opportunities to retail. While dupes may not directly infringe on IP, the line between inspiration and imitation is increasingly blurred, with some designers seeing dupe culture as unregulated and exploitative. One indie designer described how an Amazon seller duplicated her product and used AI to alter her promotional videos without permission; another went viral after alleging a major retailer appropriated her original designs. Such cases underscore the vulnerability of creatives in a world where duplication technology is advancing rapidly.

Looking ahead, retailers may face more regulatory scrutiny. Evolving IP laws could strengthen protections for designers, especially around unauthorized AI use to imitate original work. This also raises concerns about consumer trust, as shoppers may struggle to distinguish authentic products from replicas. Retailers should innovate to help their brands stand out from fast-fashion dupes.

A crucial aspect of dupe culture is its environmental impact. Fast fashion, largely driven by dupes, contributes more to climate change than aviation and shipping combined, with textile production responsible for 20% of industrial water pollution, according to a report from a The Fifth Agency. Brands that emphasize fair labor practices and sustainable sourcing could gain loyalty and stand apart from dupe-centric competitors.

Ultimately, brands can address the rise of dupe culture by focusing on quality and authenticity while embracing transparent, ethical, and eco-conscious initiatives that resonate with today’s values-driven consumers.

AI, Retail, and the Do-It-For-Me Economy

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Forget DIY! DIFM (Do-It-For-Me) is the new name of the retail game, driven by AI technology that includes conversational AI chatbots, AI-driven personalized recommendations, and powerful data analytics for better decision-making. Time-pressed consumers are increasingly outsourcing not just tasks but decisions, creating a golden opportunity for retailers.

The “Do-It-For-Me” economy and its overlap with AI is transforming retail. AI-powered home reordering to virtual beauty consultations, DIFM services offer convenience and personalization that busy customers crave. Let’s breakdown the benefits and the implications.

Why Do-It-For-Me?

The DIFM economy is growing as consumers increasingly prefer services where experts or automated systems complete tasks on their behalf, rather than the traditional DIY (Do-It-Yourself) approach. It’s a shift driven by convenience, time savings, and the desire for professional results.

“The do-it-for-me movement caters to consumers who don’t have the time, resources, or desire to complete a certain task. So, whereas DIY would involve teaching a customer how to complete a task themselves, DIFM would have a business do the job for them. Although the do-it-yourself (DIY) trend had its time to shine, it’s now fading away. Replacing it is the do-it-for-me (DIFM) movement, which is changing how customers interact with businesses and how companies respond to consumer demand” – Business.com

How Does AI Function in the DIFM Economy?

We’ve explored in depth how AI can improve retail and restaurants. But AI is an essential component of the DIFM economy, providing sophisticated tools and technologies that cater to growing consumer demand for convenience and efficiency. In retail, this manifests in several ways:

Customized Recommendations – Because AI can crunch data quickly and effectively, it becomes a powerful tool for personalized shopping. Brands offering personalized shopping experiences see a 40% increase in consumer spending. Using the customer’s historical purchases, online searches, and demographic information, it can serve up recommendations to customers in-store or online. This not only makes them feel noticed and catered to but also increases their loyalty and spend.

Virtual Assistants – A retail AI chatbot offers a human-like experience with conversational AI capable of responding naturally, answering questions, and functioning as a virtual assistant to help customers find products and make purchases. AI chatbots have proven to be game changers in the retail industry, boosting sales by an impressive average of 67%. Notably, 26% of all sales originate from initial interactions. According to Gartner, Chatbots are predicted to become the primary channel for customer service in 25% of all businesses by 2027.

Automated Service – Once again, chatbots for retail come to the rescue, providing rapid, no-wait customer service for everything from locating products to processing returns. The instant service provided through automation increases customer satisfaction – gone are the days of waiting on hold for 20 minutes for the next available customer service rep. Customers now get immediate gratification with conversation AI and can escalate to a human when needed.

Walmart has been developing DIFM solutions that are enhancing the consumer experience.

  • Voice shopping through Walmart Voice Order allows customers to effortlessly reorder items using their smart speakers and mobile devices.
  • Text to Shop lets customers conveniently search for, add or remove items from their carts, reorder favorites, and schedule pickups or deliveries via quick text conversations on iOS and Android devices.

Walmart continues enhancing its mobile app experience to provide a more personalized shopping trip for customers on the go. An improved search tool now provides suggestions and recommendations tailored individually based on location, past purchases, product interests, and browsing history. Customers can also now find recommendations in dedicated sections of the app, like trending near me, new arrivals, rollbacks, and more.

Augmented Reality (AR) and DIFM Retail

AR is playing a huge role in changing how consumers shop. Whether in-store or online, AR allows customers to “try before you buy.” How? With AI interior design, you can use AI home rendering to visualize how a product will look in your room. Similarly, you can virtually try on clothing in front of an AR mirror in the store or through an app. United.ai highlights the key benefits of AR for DIFM interior design:

  • Utilizing AI tools for interior design revolutionizes the way spaces are envisioned and executed, allowing for the creation of designs that perfectly match individual preferences and spatial constraints.
  • With AI, designers can easily simulate and visualize spaces in 3D that enable clients to see and modify their future interiors in real-time.
  • AI technology streamlines the selection of furniture, color schemes, and materials.
  • AI-driven analytics can predict user needs and recommend design adjustments, leading to more innovative, personalized, and adaptable living spaces.
  • The integration of AI in interior design significantly reduces time and costs associated with manual planning and revisions.

Developing a Strong DIFM Strategy

Behind the scenes, AI is already working to improve operational efficiencies, improve supply chain excellence, and transform labor requirements. For example, Amazon achieved a 225% decrease in “click to ship” time by utilizing machine learning, reducing it to 15 minutes.

But the integration of AI in DIFM strategies can have an even larger impact on retailers, because by providing this desired service for customers it not only enhances customer experience and improves loyalty but can increase how much the customer spends.

When properly introduced, DIFM strategies should have a positive impact on core product sales. A great example is the DIY retailer, Wickes. Wickes began implementing their DIFM strategy in 2021.

Wickes DIFM sales doubled in a year. Its “performance was driven by having sales in local trade, DIY (or Core), and Do-It-For-Me (DIFM), with two-thirds of its sales in 2021 driven by digital channels. Its Core like-for-like sales increased by 35.7% on a two-year basis, while DIFM orders strengthened throughout 2021 from Q2. DIFM like-for-like revenue grew by 8.5% for the full year, with ‘buoyant’ bathroom sales.”

Actionable Takeaways for Retail Leaders:

  • Leverage AI for Personalization: Implement AI-driven solutions to offer personalized shopping experiences that can increase customer spend and loyalty.
  • Integrate AR for Enhanced Engagement: Utilize AR to provide immersive “try before you buy” experiences, reducing returns and enhancing customer satisfaction.
  • Invest in Cloud-Based Infrastructure: Use cloud computing to gain deeper insights into consumer behavior and streamline operations, enabling more agile and responsive business strategies.
  • Develop DIFM Offerings Thoughtfully: Ensure DIFM services align with your brand’s core values and customer expectations, focusing on enhancing rather than replacing the DIY experience.

AI is a key enabler of the Do-It-For-Me economy, transforming the retail sector by providing personalized, efficient, and automated services. As consumers continue to demand convenience and professional results, the integration of AI and conversational AI chatbots in retail will only grow, driving further innovation and reshaping the shopping landscape.

The Shoppable Content Era

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Some of you might remember the infomercial era—those late-night product pitches that caught sleepless viewers at their most vulnerable, selling everything from kitchen gadgets to miracle cures. Fast forward to today, and the concept of shoppable content has taken that idea and given it a digital-age makeover. Instead of drawn-out monologues, you now have instant, interactive shopping at your fingertips on platforms like Instagram, TikTok, and YouTube. With just a click or a swipe, you can buy what catches your eye in a seamless blend of entertainment and commerce. Whether it’s a livestream shopping event or a shoppable video from your favorite influencer, today’s shopping experience is all about engaging audiences in real-time, on their own terms.

For consumers, it’s all about convenience and immediacy; for brands, it’s an opportunity to engage audiences in more personalized and creative ways. Shoppable content is revolutionizing the retail landscape, making shopping more immersive, interactive, and enjoyable than ever before.

Why Shoppable Content?

More than a driver of immediate sales, shoppable content plays a crucial role in fostering long-term brand loyalty for businesses. By making products instantly accessible at the point of inspiration, your customers are more engaged and satisfied. That builds a deeper connection between brands and their audiences.

This strategy fits perfectly within a broader omnichannel approach, where digital transformation and customer experience management are keys to staying competitive. Shoppable content stands out as a pivotal element in creating a cohesive and personalized shopping journey. The goal is to ensure that every interaction with the customer is an opportunity to reinforce brand affinity and drive future sales.

The Competitive Advantage

By integrating shoppable elements into social media posts, videos, and even live streams, brands capture attention and convert engagement into sales in real time.

Beauty brand Sephora has successfully integrated shoppable Instagram posts into its marketing strategy, allowing users to purchase products directly from their feed. It’s an example of mastering social commerce to increase conversion rates and build stronger customer loyalty.

It’s worked. Digital storefronts have allowed Sephora’s 20 million social media followers to browse and buy products directly in the Instagram app. In August 2024, Instagram users in the United States spent an average of 33.1 minutes per day using the app. This half hour offers a prime opportunity for brands like Sephora to catch potential customers, as each minute spent on the app increases the likelihood of turning casual browsing into purchasing decisions.

This strategy was heavily influenced by the success of Sephora China’s partners, who served as a roadmap for enhancing the consumer experience in U.S. stores, according to Carolyn Bojanowski, Sephora’s general manager of e-commerce, in a Quartz news article. China’s social-commerce market exceeds $300 billion in annual sales.

L’Oréal introduced livestream shopping into its marketing strategy and quickly found success. The cosmetics company offers livestream makeup tutorials on YouTube and Instagram. Customers can meet with senior makeup and skincare experts who advise them on how to create popular looks using L’Oréal products.

During the livestream, the company creates excitement with calls to action like “click link for a 20% discount.” L’Oréal has held more than 50 livestream shopping experiences across five countries. At the same time, the company has seen a 150% increase in virtual try-ons through augmented reality (AR) immersion.

AI and Shoppable Content

As the digital shopping landscape evolves, shoppable content continues to grow, with sales through social platforms projected to reach  $82 billion in the United States by 2026.

Artificial intelligence is a major driver of this growth, enhancing the consumer experience through innovations like AI-powered shopping ads, virtual try-ons, and 3D product views. These technologies not only boost engagement and click-through rates but also provide a more personalized and immersive shopping journey, making it easier for consumers to interact with and purchase products directly within content.

Live shopping events are also gaining traction, where brands host live streams featuring product demonstrations, exclusive deals, and direct links to purchase items in real-time. These events are often powered by AI to optimize timing, content, and audience targeting, ensuring that the right products are showcased to the right customers.

AI algorithms also collect and process data from livestreams. This data often includes viewer comments, reactions and even purchasing patterns. Creating a personalized shopping experience then becomes easier and allows businesses to improve their customers’ overall satisfaction.

AI can even provide real-time language translation, allowing businesses to expand their markets, as well as enhance livestream shopping through image recognition capabilities.

Determining the ROI of Shoppable Content

  1. Sales Conversion Rates: One of the most direct indicators of ROI is the sales conversion rate, which measures the percentage of users who make a purchase after interacting with shoppable content. By tracking how many clicks on shoppable links result in actual sales, brands can gauge the immediate financial impact of their content.
  2. Customer Lifetime Value (CLV): Beyond immediate sales, it’s important to consider the long-term value of customers acquired through shoppable content. CLV helps brands understand how much revenue a customer will generate over their entire relationship with the brand. If shoppable content consistently attracts high-CLV customers, its ROI is likely higher than campaigns that only drive one-time purchases.
  1. Engagement Metrics: ROI isn’t just about direct sales. Engagement metrics such as click-through rates (CTR), time spent on content, and social shares can also provide insight into how well shoppable content resonates with the audience. High engagement often leads to stronger brand loyalty, which can translate into long-term financial returns.
  1. Attribution Modeling: To get a comprehensive view of shoppable content’s ROI, brands should use attribution modeling. This method tracks how different touchpoints—such as social media posts, email campaigns, or product pages—contribute to a sale. By understanding the role that shoppable content plays in the overall customer journey, brands can more accurately allocate credit and resources.
  1. A/B Testing: Conducting A/B tests allows brands to compare different versions of shoppable content to see which performs better. By experimenting with various elements—such as product placement, call-to-action buttons, or content format—brands can identify what drives the highest ROI and refine their strategies accordingly.

By leveraging these metrics and analytical tools, brands can determine a more accurate ROI of their shoppable content, allowing them to make data-driven decisions that enhance their marketing effectiveness and drive sustained growth.

Brands Getting It Right

Away is a travel brand that leverages social media and user generated content to reach consumers and not just sell products but build their brand around a cult of personality that truly engages, entertains, and attracts consumers.

ASOS leverages both shoppable content on Instagram and Snapchat, as well as user-generated content and encourages consumers to post their own photos with the hashtag #AsSeenOnMe.

With nearly 40 million followers on Instagram, H&M has transformed their Instagram page into a shoppable platform by tagging items and providing convenient purchase links.

Net-a-Porter is considered one of the most successful social commerce shopping successes. They give users insight and entertainment through well-written articles that contain links to products, like this interview with Gracie Abrams that includes photos with get-the-look links.

The Shoppable Content Outlook

The future of shoppable content is promising, with projections indicating that social commerce sales could reach $1.2 trillion globally by 2025. As consumers increasingly prefer to discover and purchase products directly through social media, retailers have a significant opportunity to meet their customers where they are, particularly as Gen Z leads this shift. However, success in shoppable content requires careful execution—common mistakes such as poor user experience, broken links, low-quality visuals, and ineffective influencer partnerships can deter potential buyers. To fully capitalize on this trend, retailers must prioritize seamless integration and continuously optimize their content strategies.

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