Ready or not, 2023 is upon us. And we feel fairly certain that this is the least certain retailers have ever felt going into a new year. From historic inflation and a potential recession to an unstable supply chain and international tensions, 2023 is shaping up to be a bit like a box of chocolate — brands just don’t know what they’re going to get.
To help ease this anxiety and provide a little insight into what’s likely coming down the pike, we’ve decided to round up some recent statistics that we think retailers should keep top of mind over the next twelve months. From operational efficiencies to digital transformation to responsible fashion, here are 55 stats that we believe are key indicators of what’s to come in the new year.
Operations and Efficiency
Not only does it take most brands an average of 18-24 months to develop a single assortment, but never-ending supply chain issues are causing further delays. Meanwhile, the traditional supply-driven mindset has led to record overproduction and inventory glut that’s wreaking havoc on operational efficiencies.
…and 60% want to increase their number of small-batch suppliers.
43% of retailers are changing their shipping strategies to reduce the impact of global shipping delays.
Profitability and Pricing
Retailers’ profit margins are taking a major hit due to so much excess inventory, increased competition, and rapidly evolving consumer interests. Inflation and the looming recession are further complicating matters by leading consumers to seek out discounts and spend less.
Consumers are holding brands accountable for helping the environment and demanding more products made from eco-friendly materials. However, not only are most claims about these materials misleading, but this doesn’t solve the overproduction issue ultimately driving both environmental and economic waste. Instead, brands must explore other responsible initiatives.
…and 77% say that it leads to increased customer loyalty.
The most effective way for brands to appeal to consumers, create products they love, and maximize profitability is to pulse check new products with target segments. Feedback data should be used to inform assortment development at every stage of the value chain and help shape decisions around concepts, colorways, fabrics, patterns, and more.
In addition to understanding consumer preferences and demand, brands must also make an effort to adapt to shoppers’’ evolving purchase behaviors. Going beyond traditional brick-and-mortar or eCommerce only and adopting an omni-channel retail strategy is critical for meeting modern consumers where they are.
…and spend nearly 35% more than those who shop using only one channel.
Improving operational efficiencies, engaging in digital commerce, and capturing and analyzing consumer data requires brands to tap into the latest technologies at their disposal. Retailers are rethinking traditional tools and approaches to product creation and assortment development and embracing digital transformation.
Chief Purchasing Officers rank “Lack of digital tools supporting efficient product development and sourcing processes” as the number one hurdle in implementing speed and flexibility to manage demand volatility and supply risk.
30% of companies plan to use virtual sampling for more than half of their products by 2025.
Research shows that the best digital testing platforms are able to run roughly twelve detailed, highly targeted consumer tests in less time and for far less money than four live, 6-person focus groups made up of general-population 18-49-year-olds in a single city.
What’s Next for Your Brand?
Of our 55 stats, which ones stand out and speak the loudest to you? Has your brand already started to take action on any of these insights? What are your predictions for 2023?
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