Top Five Digital Consumer Trends in 2021

February 2021

The Coronavirus pandemic ushered in unprecedented changes across consumer life. Technological advances in 2021 will continue to reshape shopping behaviour for digitally- savvy consumers. Leveraging Passport Digital Consumer data and analysis, this report explores the top five tech-driven trends expected to reshape commerce the most in 2021. Some of the trends included in this report’s edition relate to topics such as last-mile delivery and collection, virtual engagements and livestreaming.

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Key findings

Trend No. 1: The Digital Balancing Act

Homebound consumers turned to digital for more activities during the pandemic, including commerce. Even those who were already shopping online pre-pandemic researched and purchased across more categories. The pandemic also widened the pool of digital consumers with more coming online for the first time. In 2021, companies will find themselves in a balancing act as they serve these two extremes.

Trend No. 2: Commerce Your Way

Commerce is about meeting consumers where they want to be, but the digital revolution has led to a more complicated and fragmented landscape. These shifts were challenging for retailers, consumer brands and hospitality operators to navigate with the crisis only further diversifying the ways they might reach a consumer.

Trend No. 3: Virtual Hits Mainstream

The pandemic has re-orientated the way that consumers shop, including how they discover and eventually purchase. During the crisis, more businesses experimented with virtual immersive experiences. Although this approach was used to drive engagement with consumers who were spending more time at home, virtual experiences will become more commonplace in the digital-first, post-pandemic era.

Trend No. 4: From Livestreaming to Live Selling

With the reduction of in-person shopping due to health concerns, livestreaming made inroads during the crisis as a shopping medium with the ability to create the emotional connection more associated with in-person shopping. Live selling has the potential to further disrupt an already-battered retail industry in 2021.

Trend No. 5: The Great Reset on Last Mile

Rising last-mile delivery costs and environmental concerns magnified by the crisis-inspired e-commerce boom are forcing retailers and foodservice operators to explore new delivery and collection methods. While companies struggle to build up logistics networks and re-imagine physical assets to handle this new level of demand, consumers will likely be forced to reset their last-mile expectations in 2021.

About the report
Key findings
A snapshot of the global digital consumer in 2021
The five tech-driven trends that will redefine commerce the most in 2021
Pandemic gives way to savvier digital consumers and more of them
Millennials are twice as comfortable with technology as baby boomers
Digital adoption during crisis gives way to more complex consumer base
Case study: Xesto eases process for consumers buying footwear online
Case study: parcelLab helps retailers personalise post-purchase step
Case study: Instacart offers additional support on platform to seniors
Digital will increasingly become the default channel for all consumers
What to expect in 2021 and beyond
Digital consumers have more ways to shop in the manner they desire
Much of this channel diversification benefits e-commerce long term
Technologies enable businesses to pivot to changing consumer demands
Companies are exploring new business models more than ever before
Case study: PepsiCo launches direct-to-consumer sites within a month
Case study: Warner Bros. could uproot industry with direct releases
Case study: Crisis boosts pay model popularised by the likes of Afterpay
Companies must continue to innovate with the end-consumer in mind
What to expect in 2021 and beyond
Going virtual will continue to supercharge the online shopping experience
AR/VR expected to play an important role in virtual engagements
Companies turned to virtual engagements to connect with consumers
Software and hardware improvements facilitating transition to virtual
Case study: Le Petit Chef food projection enhances in-person dining
Case study: Kohl’s Snapchat tie-up enables users to create virtual looks
Case study: adidas utilises AR tech to create virtual try-on service
Case study: teamLab creates multi-sensory immersive museum experience
Perceived future impact of AR/VR on commerce varies across regions
The future of going virtual is bright
What to expect in 2021 and beyond
Livestreaming emerges as a tool for engaging digital shoppers in real time
Livestreams as content and even commerce tool first took hold in China
Next-gen shopping often driven by younger, emerging market consumers
Live shopping follows pattern of e-commerce and social media adoption
Companies globally experiment with live selling as shopping channel
Case study: Alibaba’s live selling platform surges during COVID-19 crisis
Case study: Shopee teaches its sellers how to hawk through livestreams
Case study: Bissell leverages livestreaming to expand business in China
Case study: Walmart teams up with TikTok app for live shopping test run
Case study: Beautycounter brings commerce livestreams into the store
Live selling likely to continue its global expansion in 2021 and beyond
What to expect in 2021 and beyond
Last mile faces its day of reckoning as e-commerce reaches new heights
Enhancing last-mile options emerges as key focus area in commerce
Crisis-led e-commerce boom is outpacing maturity of logistics networks
Retailers and foodservice operators quickly seek to expand capacity
Case study: Westfield introduces multi-retailer click-and-collect service
Case study: Ohi uses nano-fulfilment centres to get items closer to homes
Case study: Rebel Foods maps path to delivery-only foodservice success
Case study: Russian food platform Yandex.Eats turns to robots for delivery
Crisis brought the challenges of delivery and collection into greater focus
Initiatives to improve last-mile operations likely to last several years
What to expect in 2021 and beyond
How these tech-driven trends will change commerce in 2021
Digital Consumer analysis regularly leverages multiple methodologies
An overview of methodologies often used in Digital Consumer analysis (1)
An overview of methodologies often used in Digital Consumer analysis (2)
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