How Businesses are Adapting to Changes in Consumer Behavior in 2024 

How Businesses are Adapting to Changes in Consumer Behavior in 2024 

Business 14th May, 2024 6 Mins Read

Consumer behavior is subject to continuous change. 2024 is a time for trendsetting and quick adaptation. Do you remember how many trends you are following in 2024?  

You need to know two things here. Firstly, the factors influencing these trends. Secondly, how businesses adapt to these new and changing trends.   

Experts have pointed out some common factors shaping trends in consumer behavior. These are:  

  • New technology  
  • Awareness of the surrounding environment   
  • Change in the social dynamics   

The brands must learn consumer psychology. It will help them grab the opportunity to satisfy the customers early in a competitive marketplace. Experts say you must create customer value through your product or service.   

As a result, you will be able to set a new trend. The customers will follow it. For evidence, 70% of Americans are ready to pay extra for purchasing ethical products. So, brands with unethical sourcing practices will lose out.   

What are the latest in consumer behavior in 2024?  

New and emerging brands set some trends. Market and social dynamics shape the other trends. Below, I have discussed some essential trends, their drivers, and how they impact business in 2024.   

Demand for Multi-Channel Retail   

Demand for Multi-Channel Retail   

Most people in the US want flexible shopping options. More than 60% of customers worldwide take part in omni-channel retail.   

Experts say that customers want to mix and match online and offline shopping as they like. 

Early adopters of this trend are doing good business. For instance, Sephora is an American brand that caught this trend early.   

They launched a virtual product trial option for customers. So, I can visit a Sephora store and try their products virtually. Then, I can get back home and order the selected products. 

At the same time, I can also use the virtual try-on feature from my Sephora app. Then, I may visit their store and buy the product.   

In the follow-up, this trend was introduced by brands like Gucci, Chanel, Fendi, and Louis Vuitton.   

Introduction Of AI and VR in Retail  

Introduction Of AI and VR in Retail  

I mentioned at first that new technology will drive new trends in consumer behavior in 2024. One of those technologies is AI, and the other is VR.   

PWC stated that AI and VR will increase revenues worth £1.4 trillion throughout the economy by 2030. It means one thing only. Customers love this new technology.   

This new technology is not only trendsetting for the retail and fashion industry. It is equally applicable to the entertainment sector.   

Favorites of the media and entertainment world like BlackMirror: Bandersnatch used this new technology. They allowed customers to select their individualized “dystopian horror” adventure.   

The telecom industry has also launched immersive experiences through AI and VR. For instance, the latest 5G technology is the most compatible for giving a seamless viewing experience to customers in VR gear.   

Eye For Sustainability  

Eye For Sustainability  

Thrift fashion is in vogue in the USA. A NARTS research shows that 12 to 15% of Americans shop thrift in one calendar year.   

There are other trends in consumer behavior, too. Nowadays, brands cannot get away with a reduce-reuse-recycle tag. Experts say that another new trend is impacting the trend towards sustainable shopping.  

This is the disruptive growth of social media content generation. Bernard Marr finds that 300 million photos are uploaded on social media daily. As a result, virtual content is highly impacting the mindset and approach of consumers.  

People get to see more videos on waste and its environmental impact. Most Americans (36% of Gen Z customers) favor secondhand shopping.   

Levi’s jeans were among the first companies to catch up with this trend. The company collected lightly worn products from the customers. Then, specific website slots were allocated for selling those products after refurbishment.   

In the wake of their initiative, H&M also walked the same path. They introduced a separate section named: “Conscious Collection”.   

All products in this range are made of 50% more sustainable products like organic cotton or recycled fabric. So. The environmental impact of this product range is lesser.   

Impact of Covid on new trends in consumer behavior  

Many of the trends in consumer behavior that we see now emerged during the Covid era. This period brought significant changes in the operations of all industries.   

I discussed that one of the essential drivers of trends in consumer behavior is social dynamics. Change in social dynamics was on steroids during this time.   

Some typical dynamics that emerged during this period are:  

  • 88% feared a landslide in the national economy  
  • 64% of the customers had a fear of losing a job  
  • 64% feared their health  

Indeed, this economic caution introduced some 180° turns in spending habits. Moreover, spending on health products has increased. For example, the sales of supplements increased in the USA.   

Most customers started consciously shopping. For instance, the expense of necessary and utility items increased. The spending on impulse buying decreased.   

A common response strategy was visible around this time. Many brands have created new product segments for skin wipes, face masks, and similar items.   

Among other changes, the consumption of online content increased. In 2024, US adults spend 1 hour more watching online content daily. As a result, most FMCG and high-street brands started using these channels for marketing and promotions.   

Most US brands now use online influencers’ help for marketing in 2024. Forbes says that influencer marketing is now a multi-million-dollar industry in the US.   

Boost To The Virtual Content Industry 

Boost To The Virtual Content Industry 

One of the unique impacts of the pandemic is that it kick-started the online content creation industry. The trends flaunted by local influencers now influence the shopping habits of most Americans.   

Many of these lifestyle influences promote sustainable shopping and conscious consumption. For example, Aditi Mayer is a recent influencer who has voiced for labor rights in hast fashion companies. Her videos make me aware of the issues like forced labor by brands like ZARA.   

Due to heavy growth in recent years, the US digital content creation industry is now valued at US$198.10bn.   

 Most Popular Brands Among New Trends In Consumer Behavior  

The US customer base is very receptive to new trends. Many new trends are also created in the country. I discussed some of these brands here.  

Dawn  

It is one of the household and personal care brands. This brand grew in the US market by capturing two of the latest trends. Firstly, they started a fluid online retail selling personal care hygiene products. Secondly, they focused on online brand promotions.  

Reese’s Peanut Butter  

Conscious buying is one of the best trends in consumer behavior in 2024. As a result, people searched for more optimum products in 2024. Reese used this opportunity to save funds for US shoppers. They introduced peanut butter cups.  

This means I can buy peanut butter in small quantities when I need to eat it. It saves me a lot of money.   

Therefore, many brands created new trends based on typical consumer choices and preferences in 2024.   

M&Ms   

M&Ms found a remarkable market gap. During the pandemic, the demand for finger foods and snacks increased. The snacks market in the US is expected to grow at a CAGR of 3.29%.   

M&M took an aggressive strategy to promote and launch new snack brands. As a result, they gained massive popularity in the US market.   

Wrapping up…….  

In conclusion, the common trends in consumer behavior require brands to be technology-friendly. You need to introduce new technology uses to make your product accessible and attractive to consumers.   

At the same time, all brands across all industries must focus on sustainability, too. This is one of the most critical trends in consumer behavior. Most brands are catching up with this trend. In the future, many other brands will walk the path of sustainability.   

I can see that all brands that caught up with the new trends remained relevant in the US market. Some innovative brands like Dawn also created scope for a profitable business by following the trends,.   

But that’s not all. More trends will follow. Customers will be fascinated by new trends overnight. As a fast-moving brand, you must be on top of these trends. 

tags

business Consumer Behavior consumer psychology

Ankita Tripathy loves to write about food and the Hallyu Wave in particular. During her free time, she enjoys looking at the sky or reading books while sipping a cup of hot coffee. Her favourite niches are food, music, lifestyle, travel, and Korean Pop music and drama.

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