AI and sustainability will be this year’s key trends

By: Tisza Andrea Date: 2025. 02. 26. 11:25

This article is available for reading in Trade magazin 2025/2-3.

Price-sensitivity is still with us, as consumers are still struggling with the cost-of-living crisis, claims Capgemini in its What Matters to Today’s Consumer study. Last year 64% of consumers visited more stores to get the best deals, up from 56% in 2023, and 65% of shoppers buy private labels or cheaper branded products.

Growing expectations can set back loyalty

After three years of elevating prices, the spendable income of consumers has shrunk significantly, at the same time quite understandably shopper are raising their expectations from the companies whose products they are purchasing. A company that can’t or won’t meet these expectations is likely to be punished: according to figures from Qualtrics, one bad experience from a total of two (53%) is enough for a customer to spend less. What makes an experience good or bad? One of the determining factors is how consistently a brand sticks to its promises and its brand vision. It isn’t just premium brands that achieve success: the secret is how well a company can deliver on its commitments. According to Qualtrics, upgrading from a 1-2 star rating to a medium 3-star experience is already 1.6 times more likely to result in repeat purchases.

Honest communication leads to trust

Consumer trust in governments and in major global brands and companies is declining, says Innova Market Insights in its Lifestyle and Attitudes survey. Qualtrics is of the opinion that the key to building trust is clear, honest and reliable communication – at every touchpoint, from marketing to customer service. Such communication also increases satisfaction and builds long-term customer loyalty, which ultimately leads to shoppers spending more. Plus it improves brand perception, especially when sensitive topics such as AI and data usage come into the picture. Companies don’t seem to be doing well when it comes to communicating: communication problems are the second most common cause of negative customer experience and the number one cause in many industries.

Generative AI as a product search tool

Generative AI is more and more popular among shoppers, who want the technology to play an even bigger role in the shopping experience. In a recent Capgemini survey conducted in North America, Europe and 12 countries in Asia Pacific, 46% of respondents said they are enthusiastic about the impact of generative AI on online shopping. 58% of shoppers are already replacing traditional search engines with generative AI tools when searching for products and services, while 68% want AI tools to be able to offer a “one-stop-shop” for shopping by aggregating results from online search engines, social media platforms and retailer websites. For retailers who are looking to stay competitive and build brand loyalty, using AI to deliver a seamless yet exceptional customer experience could be essential.

Three out of four consumers are open towards recommendations by gen AI

Sustainability is still on the list

Sustainability is still high on the list of consumer priorities, but there is a sharp divide between what consumers say they are willing to do and what they are inclined to pay for. While sustainability is undoubtedly a top priority for many consumers, lots of shoppers are often reluctant to pay more for a product simply because it is sustainable. However, as PWC’s Voice of the Consumer research shows, shoppers are now demonstrating their commitment to sustainability in action: in spite of the cost-of-living crisis, they are still ready to pay 9.7% more on average for products that they know are made or sourced sustainably. People also like to invest in their health and well-being. They are becoming more conscious in their everyday lives, cutting down on food waste, recycling and engaging in activities that benefit both themselves and the planet, e.g. opting for eco-friendly transportation or growing vegetables.

Shoppers no more only talk about, but also demonstrate thair commitment to sustainability

Social retail and influencers

According to Porch Group Media, 84% of consumers search for brands on social media before making a purchase and 67% shop on social platforms – 29% already on the same day when they find the given product. The importance of social commerce is growing the fastest in Generation Z, who are the main users of Instagram and TikTok. Capgemini claims around 53% of Generation Z consumers purchase new products via social media. Influencers continue to have a big influence on brand visibility and engagement, especially among 13-27 year olds. Sprout Social has found that 49% of shoppers have already made a purchase as a result of an influencer post. Demand for fast home delivery increased dramatically in the last two years: Capgemini data shows that the popularity of delivery within two hours has risen from 34% to 65%.//