Today, we’re taking a look into a couple of the consumer trends of the first half of 2024 that have caught our eye. Buckle up, because there are some surprising shifts that you need to know about!
Steady Spending Patterns
In a twist from previous years, consumer spending in the first half of 2024 has remained relatively stable compared to the last half of 2023. This is a departure from the trend we’ve seen over the past three years, where spending in the first half of the year typically dipped. This change could be attributed to consumers’ savvy approach to holiday spending in the previous year, which included shopping earlier, buying fewer gifts, and employing various money-saving strategies.
Interestingly, only 16% of consumers reported an increase in their spending in the first half of 2024, marking the lowest increase in the past three years. This intriguing shift in consumer behavior is not the only noteworthy trend.
Popular Products: What’s Hot and What’s Not
When it comes to popular products, 14 out of the top 24 most categories have seen year-on-year sales increases with consumers increasing their spend in Arts, Crafts & Sewing, Pet Supplies, and Beauty & Personal Care. Conversely the seems to be a sales decline in categories like Camera & Photo, Video Games, and Software.
The Retail Giants: Amazon and Walmart
In terms of where consumers are shopping, the top two online retailers are Amazon (53%) and Walmart.com (28%). Consumers’ preferred retailers vary depending on which products they are shopping for. A majority shop for Art Supplies, Home and Kitchen products, Beauty and Personal Care items, Over-the-Counter Medications, and Baby Products in-store at Walmart. However, most consumers turn to Amazon for Electronics, Books, and Exercise Equipment.
Why It’s Important for Your Brand to Be on Both Platforms
Having your brand and products on both Amazon and Walmart offers several advantages:
- Reach a Broader Audience: Both platforms have a massive customer base, which means your products can reach a wider audience.
- Leverage Their Trust and Reputation: Both Amazon and Walmart are trusted by millions of consumers worldwide. Having your products on these platforms can enhance your brand’s credibility.
- Benefit from Their Advanced Technologies: Both Amazon and Walmart have invested heavily in technologies like AI and AR to enhance the shopping experience. Brands on these platforms can leverage these technologies to engage customers and boost sales.
The Power of Social Media Proof and User-Generated Content (UGC)
Social media proof and UGC play a crucial role in e-commerce. They provide social proof of your brand’s value, influencing purchasing decisions by offering reassurance about the quality and reliability of your products.
For instance, Amazon’s AI-powered feature provides a snapshot of customer satisfaction with a product, generated from the text of customer reviews2. This serves as social proof, influencing other customers’ purchase decisions.
Moreover, social media continues to expand its e-commerce reach. At least one in five consumers now say they are likely to buy directly from TikTok, Instagram, YouTube, or Facebook. Even for consumers who are hesitant to buy directly from social media platforms, channels like TikTok have a heavy influence over product discovery and purchase decisions.
Having your brand and products on both Amazon and Walmart, leveraging social media proof, and encouraging UGC are strategic moves that can significantly enhance your brand’s visibility, credibility, and sales in the e-commerce landscape.
Are you ready to use the power of WOM and UGC to boost your sales?