Consumer behavior is changing fast, and businesses must stay on top of it to set themselves apart and remain relevant in the market. In 2024, the consumer landscape will be dominated by a sense of calm, with individuals exercising more awareness of their spending habits. This change is driven by different factors ranging from tech advancements and global socio-economic shifts to reevaluating values in a post-pandemic world.
For brands, understanding consumer behavior is critical because it allows them to seize opportunities in a constantly evolving market and ultimately deliver customers what they expect. In a crowded marketplace, what really matters is to add value to customers lives through your products and services. But of course, this does not come easy, and it’s necessary to conduct thought leadership research in order to deliver innovative solutions and be a go-to expert for customers. Savanta specialists have an excellent definition of the meaning of thought leadership, describing it as “a powerful tool that increases the profile and reputation of a brand and drives sales”. Ultimately, its purpose is to boost customer relationships, which is what your business should always aim for.
In this blog, we will look at the trends that will shape consumer purchasing decisions in 2024 to give you an idea of the direction you should go.
Trend No.1: The Emergence of Neo-hedonism
Neo-hedonism resonates deeply with the modern consumer, especially with Gen Zers and millennials, and it refers to a shift in the way they seek fulfillment. Rather than looking to pursue extravagance, consumers are now associating pleasure with the appreciation of the present moment. The neo-hedonism trend gained popularity after the pandemic, and it’s easy to understand this shift. The lockdown made everyone realize that life is all about the moments you experience.
So, it’s no surprise that consumers now want to spend their money on traveling and concerts instead of setting it aside for retirement. After all, if the pandemic taught everyone a significant lesson, it’s that the future is uncertain and we must make the most of the here and the now. Neo-hedonism impacts different business sectors, including beauty, hospitality, fashion and popular culture.
For instance, in hospitality, this trend is reflected in consumers’ growing concern over environmental practices. In the beauty industry, they look for personalized experiences that fit their lifestyle and align with their values. And now more than ever, fashion prioritizes self-expression and inclusivity, with businesses creating clothing for all body types.
As for the popular culture, there is a rising trend in digital detox, a concept that encourages people to spend less time on their devices, and more time connecting to themselves and the ones they love. Businesses must be aware of this trend and rethink their practices to align with a world that embraces conscious and more sustainable living.
Trend No.2: An Increased Focus on Wellbeing
Consumers deal with many stressors in a fast-paced world, including environmental challenges and economic pressures. So, naturally, people are learning to appreciate a moment of calm, seeing it for the rare treasure that it has become.
In the aftermath of the pandemic, more and more individuals have realized that nothing is more important in life than your health and wellbeing, so they are now focusing more on the areas of their lives that play a role in how they feel.
In fact, many consumers believe that they need to look after their mental health just as they do with their physical health. Therefore, they are making practices like meditation, yoga, and spa treatments a part of their lives and choosing products with mood-boosting properties and nutritional benefits.
For instance, consumers are shifting from buying alcoholic drinks to herbal mocktails instead. Moreover, they’re spending their money on foods that can improve their health, such as blueberries, chia seeds, and salmon. This trend makes things as clear as day: brands that create their products with wellbeing in mind will likely see a boost in their sales, while those that don’t adapt to customers’ wants will fall behind.
Trend No.3: Value-driven Consumption
The planet is suffering a crisis – and consumers are well aware of it. This is why they are looking to purchase from businesses that practice sustainability.
When deciding whether to buy a product, they examine the entire product lifecycle, from sourcing and production to delivery and recycling or repurposing capabilities. This trend is predominantly seen in the automotive industry, with electric vehicles gaining more popularity as consumers seek transportation options to reduce their carbon footprint. In fact, the global electric market car is projected to reach 125 million EVs by 2030, reshaping the future of the automotive industry.
When it comes to value-driven consumption, people also consider companies’ social responsibilities. In other words, they are more likely to buy from brands that give back to the community by supporting charities or bringing jobs in local areas, and those that tackle social inequality issues, such as LGBTQ+ rights and racism. Therefore, companies should embrace this trend and communicate their commitment to ethical practices to see an increase in their customer base.
Trend No 4.: A Growing Impact of AI and VR on How Customers Engage with Brands
Technology has played a major role in consumer behavior, and this trend is only growing in 2024. Advancements like AR and VR are transforming the way people interact with each other by bridging the gap between the physical and digital realms through the creation of a phygital space. This way, customers can experience the best of both worlds, building meaningful and authentic connections.
Augmented and virtual realities are also shaping how customers engage with brands – before purchasing, they take advantage of the technologies to see whether a product is right for them or not. For example, they try on clothes to see how they would look on them, or see how a piece of furniture would impact their homes.
Moreover, with AI, consumers can get personalized shopping recommendations, which enhances their experiences and enables brands to offer quick support. These technologies play a massive role in strengthening businesses’ bonds with their customers, so e-commerce brands have no choice but to embrace digital transformation. This will help them match customer desires and boost shopping satisfaction.
Takeaway
These trends will shape consumer behavior in 2024, and it’s worth noting that they are more than just a fleeting phenomenon – they are a significant shift that will impact many industries. Therefore, brands must adapt to these trends to survive in the business landscape and create meaningful connections with consumers.
One thing is clear: the future belongs to businesses willing to innovate and adapt to their audience’s evolving needs and expectations.