The Future of Buying: How Technology is Changing the Way We Shop

COVID sped up the way people shop. Lock downs and supply chain shortages, hindered our ability to buy things we needed in stores, forcing us adapt to online shopping for essential and non-essential goods.

If you haven't heard, advancements in Artificial Intelligence (AI), Quantum Computing, and Web 3.0, to name a few will provide even more drastic transformations. But how will technologies change the way you shop?

In the next few years, we will see growth shopping in the following areas:

• E-commerce
• Mobile shopping
• Social commerce
• AR/VR
• Sustainability-driven shopping

E-commerce

In Canada, retail ecommerce sales jumped “from 3.9% in 2019 to 6.6% in 2020”, surpassing previous year average growth of 3.1% from 2017 and 2018. Which is just the beginning of online retail sales.

Globally, in 2023, e-commerce sales hit $5.8 trillion USD and is forecasted to growth 39% by 2027. Canada’s growth is expected to raise by 9.76% annually until 2027. Factors driving this growth include people becoming more tech-savvy, availability of internet in most places such as coffee shops etc., and our preferences for convenience, variety, and ability to compare prices.

I certainly shop more frequently online. Sometimes I've run out of protein powder and through convenience Amazon will deliver it the next day. Or I buy a bunch of clothes online super cheap, with the ability to return hassle free.

Have you noticed your buying patterns change as technology becomes easier to use?

Mobile Shopping

Mobile shopping or “M-commerce” involves purchases made with smartphone or tablets. As we touched on, the rise of internet availability and tech-savviness has significantly surged purchases conducted on mobile devices. In 2022, 34% of e-commerce sales were completed on mobile devices, and of course this number is expected to grow over the next few years.

Additionally, mobile tap-to-pay technology is gaining popularity. All you need to do is download a mobile wallet, add your payment cards, and you're all set to pay at checkout with a tap from your smart phone or watch. While not adopted by all retailers, studies show that mobile tap payment is more secure than traditional card taps due to the security involved such as biometric, tokenization, and encryption.

As a consumer, have you adopted M-commerce yet? Why or why not?

Social Commerce

Have you ever come across a TikTok ad for a product and felt as tough TikTok was reading your mind? That's social commerce, where product and services are discoverable on social media platforms.

Behind the scenes, algorithms collect your data and, in combination with machine learning, predict which ads will grab your attention. Considering the average person spends over 2.5 hours a day on social media—that's a whopping 67 hours a month!—it's no wonder businesses are eager to advertise where you're already spending so much time.

Buyer beware! Internet scams are just as prevalent as phone scams. Always do you due diligence before buying and sharing your personal information. Check for reputable businesses, their post history, and customer reviews. Look for inconsistencies or red flags. If something feels too good to be true, then it probably is.

AR/VR

The next frontier in retail lies in the realm of immersive experiences, driven by technologies like Augmented Reality (AR) and Virtual Reality (VR). While not entirely new, they are rapidly evolving and transforming how consumers interact with products and brands. Let's explore their definitions and how they are being used in the marketplace.

AR

Technology used with smartphones, tablets, or AR glasses that enhances the real world with a digital overlay of pictures, text, etc. Users can interact with digital elements and be present in the physical world.

• Social Media: used in filters and lenses to modify appearances, add fun effects, etc.
• Virtual Try-Ons: an overlay for people to virtually “try-on” how a product will look for example a pair of glasses, or make-up.
• Product Visualization: an overlay used to visualize how products will look like in a space, or home before buying.

VR

Technology that replaces our physical world with a computer-generated environment. Using headsets that provides users with an interactive and 360 experience.

• Virtual Worlds: experiencing virtual worlds with created avatars to interact and socialize with other people in chats.
• Virtual Events: attending conferences, concerts, etc. For people to share in same experiences from across the world.
• Virtual Shopping: enables virtual customers to shop in virtual stores and experience products, such as trying on clothes before buying.

As per Fortune Business Insights, in 2023, the global AR market was approximately $62B, forecasted to hit over $1,869B by 2032. The VR market is steadily growing from $15.9B today, to $38B by 2029. VR has been slower to market due to the development, cost, and adoption but certainly has the potential to drastically disrupt the retail market, especially the brick-and-mortar business model.

Whether augmented or virtual, the Realties are the next generation of shopping. It increases consumers experience, expands consumers exposure to unlimited retailers, and piggy backs off the convenience factor most people strive for. I don't know about you, but this sounds like a sustainable shopping experience to me!

Sustainability-Driven Shopping

It's impossible to discuss emerging shopping trends without highlighting the growing importance of sustainability. By sustainability, I mean products and services created and delivered with a focus on people, planet, and profit - the three pillars of sustainable business practices.

Consumer demand for eco-friendly and socially responsible products is on the rise.  In 2024, a significant 80% of surveyed consumers indicated a willingness to pay an average 9.7% more for sustainable products.  This signals a shift in consumer priorities and a growing awareness of the impact of their purchasing decisions.

When we talk about the "people" aspect of sustainability, we're talking about ensuring fair treatment and wages for everyone involved in the supply chain, from the harvesting of raw materials to the manufacturing and transportation of the final product.  This includes a commitment to eradicating human rights abuses and modern-day slavery.

Both the "people" and "planet" aspects of sustainability rely heavily on transparency.  We can no longer simply take companies at their word – there needs to be verifiable proof of sustainable practices.  Unfortunately, consumer pressure for this transparency is still lacking.

However, change is on the horizon. It is predicted that by 2030, purchasing power will fall to Millennials and Gen Z. The shift giving them significant influence to drive profound changes in the retail landscape, going beyond simply eliminating single-use plastics.

The shift toward sustainability-driven shopping represents a positive step forward.  As consumers, we have the power to shape the future of retail by demanding transparency and supporting businesses that prioritize people and the planet alongside profit.  If you'd like to delve deeper into this topic or discuss sustainable procurement practices, please don't hesitate to reach out!

Final Thoughts

The future of shopping is undoubtedly exciting!  Technology is not only revolutionizing how we discover and purchase products, but also shaping our expectations for convenience, personalization, and sustainability. 

As e-commerce, mobile shopping, social commerce, and immersive technologies like AR/VR continue to evolve, we can anticipate a retail landscape that is increasingly interactive, engaging, and conscious of its impact on the world. 

As consumers, we have a vital role to play in this transformation, using our purchasing power to support businesses that align with our values and demanding transparency throughout the supply chain.  The future of shopping is in our hands, and it looks brighter than ever.