CI&T Releases 2024 Connected Retail Report
- None.
- None.
Heightened price-sensitivity among consumers, as detailed in the recent Connected Retail Report, has significant implications for omnichannel retailers. The shift in consumer behavior towards prioritizing cost over other factors can lead to increased competition on price, potentially squeezing margins. Retailers must adapt by enhancing efficiency and cost management to maintain profitability while meeting consumer price expectations. This trend also underscores the importance of robust data analytics to understand consumer preferences and tailor offerings accordingly. The focus on omnichannel strategies highlights the need for seamless integration between online and offline channels, which could drive investments in technology and logistics to deliver a consistent and cost-effective customer experience.
The report's findings on consumer price-sensitivity are a direct reflection of the broader economic environment characterized by persistent inflation. As consumers adjust their spending habits, the ripple effects extend to retail sales volumes and economic growth. Retailers that can navigate this environment by offering value without compromising on customer experience may gain market share. However, if inflation continues unabated, discretionary spending could further contract, posing a risk to the retail sector and potentially leading to a recalibration of stock valuations for affected companies.
Consumer ambivalence towards the use of Generative AI in retail, as indicated by the report, presents both a challenge and an opportunity for retailers. The concerns about personal data access and distrust in search results highlight the critical need for transparency and ethical use of AI. Retailers that proactively address these concerns by implementing clear data governance policies and communicating them effectively to consumers could differentiate themselves and build trust. This trust is essential for leveraging AI to enhance the retail experience without alienating customers sensitive to privacy issues.
Inflation Continues to Raise the Bar on Consumer Expectations for Omnichannel Retailers
After enduring roughly two years of inflationary pressure, consumers are feeling extra budget-conscious, looking to prices as the primary decision driver when choosing between retailers and shopping channels. According to the report,
In its fourth year examining consumers' evolving attitudes and behaviors, the Connected Retail Report shows that consumers have a strong preference for omnichannel retailers and the same set of criteria for both offline and online retail experiences. In 2024, consumers are on a relentless quest for the best prices, and their shopping decisions are calculated and in support of that quest.
-
71% reported that all retailers, regardless of price, should provide an equally impressive shopping experience -
81% prefer to shop at retailers who have both online and offline channels, with price being the primary driver on where to shop -
58% regularly use only 1-3 retailer apps with better prices being the number one motivator for shopping via an app
“There was a consistency in responses this year that we’d never seen in years prior. Decisions around where to shop and which channel to leverage repeatedly came down to price, while simultaneously, there was the overarching viewpoint that lower prices shouldn’t mean lesser experience or more inconvenience,” said Melissa Minkow, Director of Retail Strategy at CI&T and author of the report. “This survey continues to show that omnichannel is ideal for consumers, and there are particular use cases for each channel that can help retailers understand the evolution of the path to purchase.”
Consumers were evenly split as to whether or not retailers should use AI to improve the retail experience, and Generative AI proved even more controversial. Over half of consumers understand what Generative AI means and of those,
CI&T’s 2024 Retailers to Watch
The report’s consumer insights survey helps inform CI&T’s Retailers to Watch List, which highlights the retailers making unique and innovative strides in their experience strategies. This year’s retailers include: Container Store, Crumbl, Dyson, Mango, Nordstrom Rack, and Zenni Optical.
NRF 2024
Minkow will be sharing insights from CI&T’s Connected Retail Report at NRF 2024: Retail’s Big Show in a session with Domino’s Pizza on Tuesday, January 16 from 10:15-11:00 am ET. The “What Retailers Can Learn from Domino’s Digital Experience'' session will explore how Domino’s optimized their digital strategy in addition to highlighting key insights from the report.
Methodology
CI&T surveyed over 1,000 US consumers of all ages, races, and genders in October 2023 to capture purchase preferences and shifts in buying behaviors over the last year. By uncovering key motivations along the path to purchase, the survey bolstered our criteria for determining the most exciting digital retail strategies.
View the full report here.
About CI&T
CI&T (NYSE:CINT) is a global hyper digital specialist, a partner in AI-powered digital transformation and efficiency for 100+ large enterprises and fast growth clients. As digital natives, CI&T brings a 28-year track record of accelerating business impact through complete and scalable digital solutions. With a global presence in nine countries with a nearshore delivery model, CI&T provides strategy, data science, design, and engineering, unlocking top-line growth, improving customer experience and driving operational efficiency. CI&T is the Employer of Choice for more than 6,000+ professionals.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240110401259/en/
Stephanie Wheeler
Illume PR for CI&T
ciandt@illumepr.com
Source: CI&T
FAQ
What is the main focus of CI&T's Connected Retail Report?
What percentage of consumers have changed their shopping habits due to the economy according to the report?
What are the main concerns expressed by consumers regarding retailers using Generative AI?
Which retailers are featured in CI&T's Retailers to Watch List?
Where can the full report be viewed?
