Consumer Spending: What to Expect in 2024

Want to know what people are buying in 2024?

There are plenty of people online who are ready and willing to buy from you, but what exactly are they looking for this year? Let's brainstorm how people are spending their money and try to predict some deals we can offer to attract more attention. As we move forward, we will see some major changes with new technologies, economic changes, and the latest trends.

In this blog post, we're exploring the latest consumer spending trends in food, fuel, and clothing. Services include haircuts, plumbing, TV repair, auto repair, medical care, financial planning, concerts, travel, and landscaping. According to the impact.com study, shopping behaviors will shift as prices rise, and inflation will also drive up cart values. We'll also give you a clear picture of what the future market could look like this year.  

1. Online Shopping

Electronic commerce, or e-commerce, has existed since the 1970s, but it wasn't until the 1990s that it really took off. During this period, people began to shop online for real, and of course, this was due to the public availability of the excellent World Wide Web in 1991. It was a big turning point, as it made online shopping more accessible to everyone,

Alongside the rise of the World Wide Web, the 1990s witnessed the emergence of giants like Amazon and eBay. These companies played a vital role in shaping the e-commerce landscape we know today, capitalizing on the growing popularity of online shopping.

Now, with shipping costs dropping globally, big retailers like Temu and Shein are a big threat to online sales. In fact, Temu shoppers' online spending on general merchandise is twice the total US spending and could lead to some severe consequences.

Businesses can compete with these global retailers by building customer loyalty, providing speedy delivery, enhancing user experiences, and emphasizing mobile-friendly features.

Addressing and putting into action strategies to compete effectively with these global retailers.

It's crazy to think about a world without online shopping. It's basically part of our daily routine now; whether it's getting groceries or planning a vacation, e-commerce has made everything so much easier.

2. Shopping Experiences with VR and AI 

One of the most exciting developments in e-commerce is the introduction of virtual reality (VR) stores. Retailers are using VR technology to give customers immersive shopping experiences. You can try on clothes, browse virtual storefronts, and even interact with products in a virtual environment.

Some brands, like Lowe's, IKEA, and North Face, use VR to show their products in remarkable ways. With VR headsets, you can preview furniture in your home, test drive cars, or climb Mount Everest with outdoor gear before buying!

This is the future of shopping, and it's engaging and interactive.

3. People Getting Serious About Wellness

In 2024, we're all getting more serious about our health. After a year filled with talks about mental health, new COVID strains, and the launch of new weight-loss medications, we're all taking our health more seriously.  The hype around health trends like plant-based eating, sleep health, and gut health shows that we all want to live better and longer.

The big focus on staying healthy and feeling good will continue. Experts say there will be even better wearable health technology, going way beyond smartwatches to keep track of a broader range of health metrics.  This consumer trend is universal across all incomes, generations, and ethnicities. So, it looks like we'll keep prioritizing feeling good.

4. Social Media is Growing Every Year

With everyone spending so much time online, Social media has become an excellent way for brands to chat with their audience and build trust. Social media's influence is massive; we believe what our online friends say about products, and it can totally change what we buy. Platforms like Instagram, TikTok, and Pinterest are key for finding new products, trends, and cool brands. We all dive into social media to get answers to our questions about what we need.

Technology's impact on social media has been a massive plus for businesses. Living without social media is almost impossible these days. It's just become part of our everyday routine. Technology has shaken things up, changing how we do life. You should definitely take advantage of using social media to boost your brand and connect with your audience!

 5. Experiences Over Things 

More people nowadays are starting to value experiences, memories, and connections over material things. This change is about "doing instead of having" and "less is more," shifting our spending towards occasions like travel, food, and events over buying things from stores. The concept of downsizing, simplicity, and burdens of excessive material possessions. It's not just about having fewer items; it's about valuing quality over quantity and ensuring that every object in our home has a purpose and brings happiness to your life. Remember, you can't take it with you...

In 2024, we'll see a rise in experiential spending, with people prioritizing travel, dining out more with friends and family, public events, and other memorable experiences over traditional retail purchases. 

6. Sustainable and Earth-Friendly Gear

You're not alone if you've noticed more sustainable brands on store shelves or online. More and more consumers are becoming interested in sustainability and eco-consciousness. As people explore new ways to reduce their environmental impact, they may spend more on alternative energy solutions, sustainable fashion, and zero-waste products.

Instead of constantly buying new items or following the latest trends, using what you already have is important. By being more responsible when purchasing, we can make more eco-friendly choices and save cash by reusing stuff we already own. Remember the three R's: reduce, reuse, and recycle.

7. The Buy Now, Pay Later Services

Many prefer to use Buy Now, Pay Later (BNPL) services because they offer easy payment options. BNPL services provide practical and flexible payment options to customers by breaking down the cost of items into manageable payments.

This is especially helpful if you want to spread the cost of something big or if you're low on cash. Companies like Uplift, Affirm, Klarna, and Afterpay are all about BNPL services. Unlike credit cards with high interest rates, BNPL platforms offer interest-free or low-interest installment plans. With more financial freedom, shoppers can make larger purchases, which increases their purchasing power and overall satisfaction without buyer's remorse. 

Businesses increase their sales by offering the Buy Now, Pay Later (BNPL) option. Studies show that people who are worried about the price tag are more confident in making purchases when they can split up the payments. It may be difficult for some people to pay a hefty amount upfront, but with BNPL options, they can buy without worries.

The increasing popularity of BNPL services has revolutionized the way we shop. It's all about making payments simple, flexible, and accessible. Both shoppers and businesses love it, making it a win-win situation for everyone. However, being smart with BNPL services is important to avoid financial troubles and overdoing it. BNPL services are still new, but many people are starting to use them. Businesses need to keep up with customers' preferences and make the most of BNPL services as they become more popular.

Here are some tips on using BNPL services without getting into trouble:

- Only use BNPL services for something you can afford.

- Understand the fees and interest rates.

- Pay on time.

- If you need extra time or help making payments, contact the BNPL company and see if they can help you. 

Final Thought 

How we spend our money will change in response to new trends, preferences, and technology. Businesses must remain flexible and provide effortless and sustainable shopping experiences that meet their customers' unique needs and preferences. By doing this, they will be well-prepared to succeed in the future and ensure that shopping is as enjoyable and easy as possible for everyone.

I hope this will be helpful to you!

Thank you, Readers!