How retailers are adapting to changing digital consumer expectations

They now seek highly personalised, seamless online experiences.

Retailers are leveraging GenAI, AR/VR, and social media to meet consumers' growing expectations for digital experiences.

According to a report by Euromonitor International, consumers now expect highly personalised, seamless online experiences, and retailers are stepping up, implementing tools like GenAI, augmented and virtual reality (AR/VR), and robust social media strategies to meet this demand.

Euromonitor International’s Voice of the Consumer: Digital Consumer Survey revealed that GenAI is significantly enhancing shopping by delivering tailored recommendations, with one in four consumers reporting better experiences due to these advancements.

Social media is also now central to shopping, moving beyond communication to become a powerful driver of sales.

Livestream shopping, initially popularised during the COVID-19 pandemic, has surged, with 40% of global digital consumers having tried it. Asia Pacific leads this trend, with 77% of Chinese digital consumers using livestreams to shop.

Moreover, GenAI is also now reshaping livestream shopping by creating customized recommendations and even using digital hosts, from avatars to virtual beings.

During China’s Singles’ Day 2023, JD.com used over 4,000 virtual anchors to engage shoppers, and some streamed for up to 28 hours. Brands like Estée Lauder and L'Oréal are also integrating virtual hosts to elevate the livestream experience.

The report said today’s shoppers expect intuitive and personalized service but remain cautious about data privacy.

About 70% of consumers are open to sharing data if it leads to personalisation, like exclusive offers or customized recommendations.

Consistently, consumers still favour free delivery (60%) and free returns (47%) as top priorities.