Up to 2025, eCommerce will see strong low double-digit growth rates, adding more than $500 billion in new revenue annually. Do you know that, for the first time, global retail eCommerce sales will surpass $5 trillion in 2022 and account for more than a fifth of all retail sales? However, E-commerce retail growth will decrease in the foreseeable future due to the quick recovery of in-store retail.
The pandemic has drastically changed consumer purchasing habits. After two years of volatile markets and irregular growth patterns, 2022 was to be a watershed moment: global retail and eCommerce expenditure will slow, and purchasing habits will consolidate, and pressure on enterprises to adapt will be intense.
Retailers who stay lean and innovative will win, whether it’s risk mitigation by diversifying income sources with retail media networks, providing fulfillment choices that are flexible and handy for consumers, or creating distinctive and dynamic experiences in shops to bring the customer back.
Forecast for the Retail Industry in 2023
In 2022, global retail sales will increase by 5% yearly to $27.33 trillion. Although the rise of e-commerce expenditure is anticipated to decrease — partly due to the revival of brick-and-mortar stores — the channel will continue to represent more than 20% of all global retail. In-store retail has recovered over the past year, demonstrating its resilience and indicating that eCommerce’s dominance would take longer than anticipated. Consumers reacted fast when they returned to stores, increasing the recovery of the in-store market. The in-store sales increased 8.2% last year to $21.09 trillion, exceeding the amount in 2019. This trend of sales declining in 2020 and then increasing in 2021 was practically worldwide,
Up to 2025, eCommerce will see strong low double-digit growth rates, adding more than $500 billion in new revenue annually.
2023 Technology Trends –
In this era, consumers anticipate businesses will provide solutions that integrate digital and physical purchasing experiences, such as curbside click-and-collect or QR code payment choices. According to a Raydiant poll, roughly 35% of US respondents prefer shopping in person because they enjoy and have a better time doing it. That’s enough to persuade grocers and retailers to equip their stores with technology-driven solutions that provide more efficient, seamless services like self-checkout.
Augmented reality (AR) is also anticipated to play a significant role in linking the physical and digital shopping experiences with interactive activations that pull customers into stores and engage them at home with virtual product testing. Themed experiences, like the interactive Hogwarts Castle broom flight at the Harry Potter New York flagship shop in New York City, provide something that can’t be provided over the internet. . Retailers who mix enjoyment and a feeling of urgency, such as limited-time products, will ensure that customers return.
Rising Sustainability Trends –
A theory of “circularity” aims to reduce waste and resource consumption throughout time. To produce a closed-loop system and reduce resource inputs, waste production, pollution, and carbon emissions, circular systems employ reuse, sharing, repair, refurbishing, remanufacturing, and recycling. In order to increase the productivity of these resources, the circular economy seeks to extend the useful lives of infrastructure, machinery, and other items. H&M, a fast-fashion store, invented Green Machine, a unique technology that separates and recycles polyester and cotton-blend garments on a large scale.
Resale is another trend that fits inside the circular business model. According to the 2020 Resale Report, the secondhand industry is predicted to reach $64 billion over the next five years, surpassing the conventional thrift and donation category by 2024. Resale increased 25 times faster than the whole retail industry in 2019.
Upcycling often referred to as creative reuse, is the act of repurposing leftovers, waste goods, and unwanted items into new materials or items that are seen to be of higher quality and worth, such as those with artistic or environmental significance. Upcycling decreases cloth, textile, and furniture waste by repurposing deadstock or gently worn fabric and other materials to make new goods. .
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Practical Examples –
The furniture and home décor business is one of the most polluting industries. An average home contains roughly 2.5 tonnes of furniture, appliances, and other items. The production of these many products necessitates the use of 45 tonnes of raw materials and these items release around 6 tonnes of CO2 into the atmosphere from the time of their formation to the time of their decomposition.
The furniture and home decor business must consequently concentrate its efforts on three key areas to minimize its impact on our planet:
- Using ecologically acceptable raw materials and addressing natural resource depletion
- Creating items that are stronger and more durable, as well as easier to recycle at the end of their useful life.
- In the manufacturing process, using less energy and creating less trash.
We at GBSL advise creating sturdy furniture or enhancing current items to reduce their environmental effect. We also work with sustainable materials such as rattan, bamboo, and mango wood with tracing to the plantation. As a global supply chain management company, we suggest organizing the collection and recovery of old furniture so that furniture at the end of its life may be repurposed, recycled, or utilized to generate energy. We also provide product life cycle analyses and eco-design suggestions.