Winning in e-Commerce 2024 and Beyond

The original article was published by NIQ. You can find the article here.

The CPG landscape is undergoing a significant transformation. Consumers are increasingly turning to online channels for their shopping needs, demanding convenient and personalized experiences. Navigating this dynamic e-Commerce landscape can be challenging, but it also presents exciting opportunities for brands to connect with their audience in new and impactful ways.

By understanding the evolving market and implementing effective strategies, CPG brands can build lasting connections with their consumers and secure a winning position in the ever-evolving world of e-Commerce in 2024 and beyond.

Read on to learn more about the emerging trends shaping e-Commerce, explore the unique challenges and opportunities they present, and get actionable strategies for your brand to thrive in this digital age.

The e-Commerce Landscape in 2024 and Beyond

While the past few years have witnessed explosive growth in online shopping, fueled by pandemic-driven stay-at-home restrictions and the increasing adoption of smartphones and mobile wallets, 2024 presents a unique set of challenges and opportunities. Higher inflation, evolving consumer preferences, and the ever-growing presence of omnichannel retail are all shaping the future of e-Commerce. This requires a deeper understanding of these trends and a strategic approach to navigate the dynamic landscape, ensuring brands can not only survive but thrive in this ever-evolving digital marketplace.

With that in mind, here are 5 key e-Commerce trends to be aware of:

1. Omnichannel Shopping Continues

The continued growth of e-Commerce is directly tied to the rise of omnishopping. Within the US, 86% of CPG dollar sales are represented by “omnichannel shoppers.” This means consumers are buying CPG products through every channel, often at the same time. It gives brands more avenues for getting their foot in the door. But it also complicates marketing efforts and requires a good understanding of consumer behavior to get it right. In fact, more than one in five (22%) shoppers now plan an in-store shopping trip combined with a prior online order.

Most positively, in the US, online growth outpaced in-store by almost 3x the rate in 2023.1 Achieving on-shelf success–online and in-store–demands a dynamic approach that integrates knowledge of consumer buying behavior by channel, strategic assortment optimization guidance, and best-in-class omnichannel strategies. So, failing to connect with consumers on every channel means you can easily miss out on sales.

2. Financially Strapped Consumers

Financially strapped consumers are exerting a profound influence on the e-Commerce CPG market, with the cost of living high and the outlook on financial inflows shaping the landscape significantly. Despite stable unemployment rates forecasted for 2024 across regions, wages are experiencing minimal growth, failing to keep pace with the anticipated rise in consumer prices.2 This imbalance puts pressure on consumer purchasing power, intensifying competition among brands, manufacturers, and retailers vying for a share of consumer spending.

Moreover, the cost of borrowing globally remains notably higher than in recent years, with hopes pinned on potential interest rate reductions in the latter part of 2024. However, until such adjustments materialize, the prevailing high borrowing costs continue to impact macroeconomic conditions and consumer spending habits. While industry players may currently benefit from inflated prices (+6% YoY), the sluggish volume growth exacerbates the challenges faced by brands, manufacturers, and retailers, especially if the stable borrowing conditions persist without improvement.3

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