Talking only about the rivalry between branded retailers in 2022 is insufficient. They all eventually run into the same issue: the dominance of markets that impede the growth of smaller market participants.
Marketplaces account for more than half (54%) of all internet purchases. It was discovered that on these websites, shoppers are searching for a product category rather than a specific brand of a product. However, rather than, say, "Braun kettle" and "Levi's jeans," a request on the market would more likely sound like "electric kettle" and "jeans." This is so that the customer may examine a large number of comparable choices and select the one that meets their needs best in terms of pricing or other factors. It’s a perspective from CFA, as an eCommerce IT consultancy service provider.
So, what future does e-commerce app development hold? Branded shops' position will presumably become more troublesome. You must provide the customer with more than just a product in order to prevent them from choosing your tiny business over the market. It is brand personalization and product customization with a backstory.
How Are Branded Stores Able to Survive?
In recent years, storytelling has expanded significantly. Marketers have known for a long time that a well-considered brand concept and appropriate positioning attract customers. A story is a potent marketing tactic used to arouse feelings and create a deep connection with a product. Customers visit branded online businesses not just for the products, but also for the narrative, which they feel a connection to, and the creative presentation of the goods.
You must provide distinctive customization choices as a brand. In other words, tailor the goods to the preferences of the customers. For instance, offer to add their initials to the item or let them choose a certain component's color.
The psychology of the customer is significantly impacted by product personalization because, when they choose the configuration that best suits their wants and tastes, they start to feel like the owner of the item. The consumer will place the most value on a product developed with their preferences in mind, and as a result, they will be willing to pay more for it.
Of course, it will take more time and money to be able to offer customized products. But doing this will guarantee a customer's loyalty. Whatever the case, there are markets for everything else. Although brand stores will continue to exist, we anticipate that the latter will flourish further.
Future of E-commerce
Since the CFA’s expert eCommerce consultant team is in charge of undertaking several projects in the e-commerce space, I can say with certainty that the advancement and development of technology will have a direct influence on the e-commerce sector in the future.
The industry leaders are still those that incorporate the most recent knowledge into their mobile applications and do not overlook the most recent technology advances. This tendency will only get stronger, thus a company must advance and promptly upgrade its software with useful new capabilities.
Today, more and more people are making purchases online. Consider the fact that 150 million individuals have made their first internet purchase since the coronavirus outbreak began.
The consumer will be eager to purchase conveniently, quickly, and safely again after their first positive encounter. And I have no doubt that it is a top-notch, cutting-edge application that significantly improves the client retention rate. This metric is seen as one of the most significant in business.
Conclusion
Nobody can predict with absolute precision what the state of e-commerce and retail will be in 2022. However, consistent tendencies make it possible to predict how it will evolve in the near future.
The price of advertising on retail platforms and social media will keep rising as e-commerce becomes more and more popular.
According to experts, e-commerce will face intense competition in the future. Personalized offerings will be the main emphasis of branded retailers since global marketplaces are here to stay. Additionally, providing top-notch services on its own is no longer sufficient because today's market is driven by smart positioning and marketing.
Let's reiterate that the world is changing quickly before we close. Due to escalating market competitiveness and process automation, businesses must react to these changes quickly if they want to be visible and relevant.
