As the world recovers from the impact of the global coronavirus, consumers all around the world are also reaching for their wallets. According to a survey conducted by the Department of Statistics Singapore, retail sales grew 11.8% in January 2022 on a year-on-year basis. In the face of challenges including political instability and rising oil prices, this is a ripe example of a commendable performance.
Across the globe, the same trajectory has been noted. Despite a conservative forecast of a 2% rise in retail expenditure, the United States (US) recorded the biggest increase of these sales in 10 months – jumping 3.8% month-on-month in January 2022, reports Trading Economics. For businesses, this proves only one thing: the consumer market has become more resilient than ever. As such, knowing what makes customers tick becomes imperative in staying competitive. In this blog, we’ll share the latest market trends in the US consumer market.
The Gen Z crowd has been making waves not only in retail sectors, but also across different industries and communities. Born between 1995 and 2010 and fresh into the workforce, they present a formidable force capable of boosting global retail numbers. This is largely due to their unique shopping habits in which, unlike the generations before them, they respond well to personalised and omnichannel experiences.
Understanding their shopping behaviour is critical for retailers, and this comes with its own challenges. Having a greater purchase power, the Gen Z’s also have a growing appetite for higher-quality products and pop culture. There is also a higher awareness of brand activism or social justice, conscious consumerism and an emphasis on sustainable living and lifestyle enhancements.
These days, companies have surely shown an increased commitment to tackling such social issues. In January 2022, DHL Express added six Citroën ë-Dispatch electric panel vans to their fleet in a bid to combat climate change. These vehicles are driven by an all-electric, zero-emission powertrain and smart technology to increase convenience and environmental friendliness. Indeed, partnering with a logistics solution provider with a sustainable solution is a good way to reach out to this new generation of shoppers keen on being part of the go-green movement.
At the same time, the majority of the Gen Z’s place a strong focus on financial prudency. By providing comprehensive information of the products you carry as well as the promotions and deals you might have, you equip your consumers with what they need to make better purchasing decisions. Therefore, developing a strong social media presence, diversifying marketing channels and leveraging social trends are good ways to reach out to this target market.
During the peak of the COVID-19 outbreak, B2C shipments rose 65%, noted Ken Lee, CEO of DHL Express Asia Pacific. Of which, consumer technology products and fashion apparel contributed the most. This shows just how robust online shopping has become, as well as the demand for cross-border shipping.
In the US, the evolution of Black Friday events throughout the years pinpoints a shift in consumer behaviour and the need to switch up to the latest digital marketing strategies. Companies such as Target, which is a traditionally brick-and-mortar chain, has also shifted its strategy to ride on the e-commerce wave.
Contactless checkouts, same-day delivery, or even the quintessential gift wrapping services are just some of the features retailers can provide to value-add to their customers’ retail journey. Today, there is a rising demand for frictionless and seamless shopping experiences. New apps are also cropping up to support a wide range of lifestyles, from food delivery to home cleaning, all from a few swipes on the mobile phone.
For businesses, creating such conveniences to enrich the lives of their customers will make all the difference in the years to come.
Knowing the latest consumer trends helps you to stay ahead of the competition, especially in a diverse market like in the US. This will allow you to develop a resilient strategy and scale your business.
As a leading logistics service provider with networks all across 220 countries and territories around the world, DHL Express is committed to bringing your customers closer to you through convenient and versatile shipping solutions. Providing more flexibility on the buyer journey is one way businesses can retain loyal customers. Same day deliveries and time-sensitive shipments allow customers to receive their urgent orders in time. Those who need alternative options can also consider on-demand delivery, with which customers can choose how they want to receive their orders.
With the aforementioned trends indicating a strong preference for customer-centric solutions like fast international shipping, DHL Express stays ahead of the game to provide quality delivery services for its global network of clientele. Contact us today to learn more.