5/2/2024
February 5, 2024
This article discusses the major challenges and trends in e-commerce for 2024, including the rise of immersive omnichannel experiences, the adoption of AI for personalized consumer interactions, the increasing importance of sustainability, and the quest for profitability amidst inflation. Insights from Florimond de Tinguy of VTEX highlight the need for e-commerce to adapt to these evolving consumer demands and market conditions.
As we navigate through 2024, the e-commerce sector is encountering significant evolutions. Florimond de Tinguy from VTEX shares insights into the major market trends, emphasizing AI, omnichannel strategies, sustainability, and profitability as key investment areas for companies.
With 15 years in the e-commerce field, Florimond de Tinguy, VP of sales for Western Europe at VTEX, has witnessed the industry's transformation. He has contributed both as an entrepreneur and a manager at companies like Bazaarvoice and Salesforce, now aiding major corporations with VTEX in implementing next-gen e-commerce infrastructures.
The post-Covid digitalization surge, the Ukraine conflict, inflation, and sustainability challenges have slowed the sector's exponential growth. In 2023, consumer purchasing habits shifted towards an even more omnichannel approach, with social networks becoming a new online shopping showcase. AI-driven customer experience optimization now competes with traditional buying criteria, though inflation has recently reshuffled priorities.
Omnichannel strategies dominate e-commerce, with about 75% of online shoppers using multiple channels before making a purchase. The millennial market segment, expected to make up nearly a quarter of the population and about 40% of consumers in 2024, prefers diverse and immersive shopping journeys, including social commerce. In France, 41% already engage in social commerce through platforms like Facebook, YouTube, and Instagram. Live shopping and strategic partnerships between social platforms and retailers are set to enhance this trend.
E-commerce has long utilized AI for improving conversion rates and profitability. However, generative AI is propelling the sector into a new dimension, with consumers expecting more efficient and personalized shopping experiences. AI is becoming a digital co-pilot for merchants, helping understand real-time buying behaviors while consumers demand stricter data privacy controls.
The contrast between Black Friday and its sustainable counterpart, Green Friday, highlights the growing emphasis on sustainability among consumers. Despite inflation, ethical considerations are becoming increasingly important, with 46% of consumers factoring them into their online purchases, a number that rises to 71% among Gen Z. E-commerce will need to evolve towards more collaborative and sustainable supply chains, with transparency being key to maintaining a good brand image.
A Publicis Sapient study revealed that 37% of retailers do not meet their e-commerce profitability goals, making profitability a sector-wide obsession. Adapting to inflation and moving beyond price wars are crucial, with strategic measures like leveraging existing customers and optimizing inventory and supply chain management becoming central to performance. Investing in agile, scalable, and robust e-commerce infrastructures is essential for adapting to shifting trends and aiming for future profitability.
