Nearly every customer journey now involves a digital component, whether during the research phase or during the transaction itself. As technology continues to advance, as is happening now with the increasing implementation of generative AI (GenAI) in retail, consumers' expectations regarding their online experience have also evolved. As a result, the way consumers behave online is changing, as is what they demand of retailers. In response, retailers are adapting by enhancing the online experience using GenAI solutions, AR/VR activities, social media engagement, and other innovative approaches. Every year, Euromonitor International carries out its Voice of the Consumer: Digital Consumer Survey to analyse how consumers utilise technology, its impact on their daily lives, and their evolving expectations regarding its use. The insights in this article, based on the results of the survey, demonstrate how the customer journey is currently being reshaped by retailers’ ongoing integration of these novel technologies.
Consumers demonstrate growing comfort with new technologies
Consumers in 2024 are increasingly recognising the benefits of generative AI in enhancing their shopping experiences, with one in four acknowledging that GenAI has improved their shopping experience by providing more relevant recommendations and a more personalised touch.
For example, L'Oréal launched Beauty Genius in January 2024, an AI-driven programme that uses advanced algorithms and customer data to provide personalised beauty recommendations and product advice tailored to individual needs.
Social media has disrupted how consumers interact with retailers and brands
Social media has evolved significantly, transitioning from a platform mainly for communication and entertainment to a key component of business strategy. It is now a critical tool in product promotion, research, and sales. A prime example of how social media is revolutionizing consumer interactions and brand engagement is the rising popularity of livestreaming, which initially gained traction during the COVID-19 pandemic.
In 2024, 40% of global digital consumers have at least experimented with using livestreaming to make purchases
Source: Euromonitor Voice of the Consumer: Digital Consumer Survey, fielded March to April 2024
In Asia Pacific, 48% of consumers embrace it, led by China, where 77% of digital consumers have made a purchase using the livestreaming model. Following TikTok’s launch of its TikTok Shop feature in the UK and US, livestreaming usage in North America and Europe has also risen, reaching 26% and 24%, respectively, in 2024. Discounts, enhanced product insights, and interest in new shopping experiences drive its use.
In 2024, GenAI is transforming livestreaming by offering customized product recommendations, enhancing user engagement and optimizing human involvement. Companies are experimenting with digital hosts, from avatars to virtual beings. For instance, Chinese e-commerce giant JD.com used over 4,000 virtual anchors during the Double 11 (Singles' Day) shopping event in 2023, showcasing the potential and acceptance of this technology. One virtual streamer even broadcast for 28 hours straight. Major beauty brands such as Estée Lauder, Jo Malone and L'Oréal also used virtual anchors as part of their livestreaming e-commerce activities, demonstrating how AI is becoming more common in retail.
Consumers expect a seamless shopping experience throughout their entire shopping journey
With advancements in technology and enhanced data collection capabilities, consumers now expect an online shopping experience that is intuitive, hassle-free, and personalised – from the initial search through delivery, and even during the return process.
With data privacy becoming a growing concern, consumers are less willing than before to exchange personal information unless they obtain some type of real benefit.
In 2024, 70% of global digital consumers indicate a willingness to share their data if it leads to a more personalised shopping experience
Source: Euromonitor Voice of the Consumer: Digital Consumer Survey, fielded March to April 2024
The primary motivations for this include receiving customized product recommendations, accessing exclusive offers, and experiencing superior customer service. Consumer preferences for shipping and returns have remained consistent, highlighting a demand for free delivery (60%) and free returns (47%).
This trend underscores the modern consumers’ desire for a seamless shopping journey characterised by tailored offerings, an intuitive search process, rapid transactions, and straightforward delivery and return policies. These elements combine to meet the high expectations consumers have for an efficient and personalised online shopping experience.
Learn more about digital consumers’ behaviour and expectations in our report, Voice of the Consumer: Digital Consumer Survey 2024 - Key Insights, to better understand shifts in consumption habits and attitudes toward technologies in consumers’ daily lives.