8 Ways Shopping Will Evolve in 2022

As 2021 comes to a close, it’s time to once again gaze into our crystal ball—which is actually a group of retail and ecommerce experts—and ask what’s to come in 2022. Much of what’s in store will be familiar, but there is at least one new entrant on the list. We’ll be back in December 2022 to see how they did. For now, here are eight predictions on the future of shopping: More livestream commerce One of the biggest trends of 2021—livestreaming—is expected to continue into 2022. “I still think it's very much in its infancy, though it will grow next year,” said Zach Weinberg, vp of ecommerce at performance marketing network Reprise Digital. That’s thanks in part to platforms like TikTok expanding their commerce sides. “I think live commerce may see a bit more of an acceleration [in 2022], though nowhere near the penetration that it sees already in the Far East,” Weinberg added. The rise of stream-fluencers On a related note, Jeff Malmad, executive director of Shop+, a Mindshare unit focused on retail and ecommerce media, expects to see the rise of livestream influencers (or stream-fluencers) in the U.S. In China, influencers like Li Jiaqi, better known as Lipstick Brother, host livestreams that can move billions of dollars’ worth of inventory in a single day. “Trying to achieve that kind of growth and success in the U.S. market obviously won’t happen overnight,” Malmad said. “But in 2022, we will absolutely see more platforms creating and leaning into livestreaming sales events.” Meanwhile, Amazon continues to experiment with its Amazon Live platform, which allows customers to follow the brands they like and be notified about livestream events, while Walmart is hosting events on TikTok and Twitter. “Combine livestreaming with the right personality, and the ambitions of replicating the success of China becomes more real,” Malmad added. “Net-net, influencers want to be rich, brands want to grow, and consumers are addicted to social and shopping—it’s all a very powerful combination.” Indeed, Gartner research shows 60% of millennial and Gen Z consumers will prefer making purchases on social platforms by 2026. In that same timeframe, CMOs will dedicate 30% of their influencer budgets to virtual influencers. Continued prioritization of first-party data Despite the flurry of retail media networks in recent years, Weinberg expects to “see a few more next year as the larger retailers who have large physical footprints continue to try to use their audiences as a way to monetize digitally.” That’s in part because first-party data is becoming more important than ever. “The agencies and brands that combine [first-party data from the brand and retailer sides] and harness them in a seamless way will win,” Malmad explained. “When done right, we can build strong connections with consumers, maximize our media impact and minimize overall inefficiencies.” Fred Segal Partners With Subnation To Take Physical Retail Stores Into The Metaverse In addition, Elizabeth Marsten, senior director of strategic marketplace services at performance marketing firm Tinuiti, noted that while retailers’ reporting user interfaces and templates have improved, they still have a long way to go—especially when compared to more mature platforms like Amazon, Google and Facebook. “However, what we're seeing roll out today, the speed in the improvements in retail media are pacing faster than the early days of those same platforms back when they first emerged,” she said. And as first-party audiences become more accessible, Marsten said we should see a push among non-endemic brands, or brands that don’t sell products or services in stores, to retailer media buys, especially in the b-to-c and lead gen space. “What's to say that Disney+ can't go and do a self-serve campaign for Kroger audiences?” she asked. Omnichannel, omnichannel, omnichannel Another big buzzword from 2021 will remain in 2022 as well: omnichannel. That was a huge focus for retailers like Walmart. “I think we'll continue to see innovation from Walmart and how they're really tying their physical stores and their digital footprint together in a way that we'll continue to try and take share away from Amazon,” Weinberg said. He also pointed to Target, which he said “does a very good job of click and collect” and has an “entire app-to-store-to-website experience [that] is very well oiled,” so the retailer may “emerge more as a stronger force.” Research from Gartner aligns with this perspective on omnichannel. “Consumers are toggling and blending online and in-person experiences well beyond the realm of shopping,” a report said. “In 2021, 57% of U.S. consumers say they’ve enjoyed new conveniences of going online or doing things virtually in various areas of their lives, while 39% report online or virtual experiences are an adequate replacement for offline or in-person experiences.” Consolidation of third-party sellers and DTC sites One burgeoning trend for 2022 is the consolidation of Amazon’s third-party sellers. As of 2020, the ecommerce giant had more than 1 million U.S. based sellers, per ecommerce intelligence firm Marketplace Pulse. “We've seen in the second half of 2021 a number of different venture capital companies starting and raising a lot of money to start to consolidate the third-party sellers on Amazon,” Weinberg said. “And I think we'll continue to see that.” In addition, he said we may see consolidation or marketplace activity across direct-to-consumer (DTC) sites. “There’s been an expansion for at least three to four years now of DTC sites across every single category that exists,” Weinberg added. “At a certain point, there will be an inflection point where someone starts to aggregate them … together to simplify that overall shopping experience for consumers.” Seema Shah, senior director of research and analytics at web analytics platform Similarweb, also expects to see growth in marketplaces in 2022. “Consumers tend to like that marketplaces carry a wide variety of products but also offer easy payment and shipping options,” she said. “This will rise as more commerce moves to apps.” Digital everything Speaking of which, we can also expect to see mobile- and app-based purchases grow alongside BNPL. That’s according to Jonathan Johnson, CEO of Overstock.com, who noted the platform saw an increase in digital interactions throughout 2021 and expects this momentum to continue in 2022. Shah agreed that digital commerce will remain elevated compared to prior to the pandemic and digital penetration at large publicly traded retailers will be even greater. At some of these retailers, digital commerce may even account for more than 50% of sales. This is thanks in part to prior investments in fulfillment and partnerships with delivery platforms like Instacart. “This may also induce small retailers to focus on their digital business and try to create an omnichannel experience to better compete with larger rivals,” she said. Shah also forecasts growth in payment options, which include Apple Pay, Amazon Pay and PayPal in addition to BNPL. “The easier the payment option, the less likely there will be cart abandonment,” she added. Even more social consciousness Younger consumers will still focus on brand values. This continues to bode well for socially conscious DTC brands like Rothy’s and Toms, as well as retailers like H&M, which have started to accept clothing for recycling, Shah said. Meanwhile, we’ve also seen growth in resale platforms like Poshmark and Rent the Runway. “Brands are more openly supporting causes that may induce support from these younger cohorts, such as Black Lives Matter,” Shah said. Continued supply chain investments Finally, as supply chain bottlenecks continue into 2022, Shah pointed to increased investment in technology, the supply chain and logistics. “The logjam in the supply chain during the pandemic, beginning with the lack of household essentials at the start of the lockdowns through the inventory shortages this holiday, have further highlighted the importance of a robust supply chain and logistics network,” she said. Bumble Moves Into Retail With Gear for Dating

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8 Ways Shopping Will Evolve in 2022

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