Every time the calendar changes to a new year, almost everyone has their own forecast about what three, four, five, or 10 things will happen. So many of those points of view are just fluffed-up repetition of the obvious, squandering the potential to take a few smart risks when anticipating how the digital transformation environment would change.
With that in mind, here are my predictions for the ten trend lines that will shape the connected economy’s trajectory in 2022.
Proximity will no longer be a stumbling block or a competitive advantage.
With the help of digital transformation consulting services choosing a shopping location used to be focused on how close it was to home or work. Not that much these days. According to the latest PYMNTS report, consumers are increasingly purchasing retail products online, with 30% of them doing so.
It used to be that deciding where to get carryout was based on how long it would take to travel there and back. This is no longer an issue thanks to aggregators and restaurant delivery services. Consumers are ordering more takeout for delivery at home, with 74 percent doing so in June 2021, up from 66 percent in June 2021.
Consumers are no longer bound by the distance between them and the goods they want to buy, the service provider they want to engage, the employer they want to work for, the trainer they want to buff up, or the concert or movie they want to attend, thanks to the digital transition. Or do pretty much anything else they want.
According to some digital transformation consultants Technology is transforming once-physical encounters into immersive digital experiences, sometimes complementing and sometimes replacing tasks formerly performed in the actual world.
This is both a threat and an opportunity for businesses, and it is an irrefutable factor driving the linked economy’s progress. In the retail industry. In the supermarket. In the field of entertainment. In the workplace. In the banking industry. In almost every aspect of life, including numerous healthcare services.
Proximity is no longer a barrier, and those who want to take advantage of it must now outperform the digital alternatives that customers find quicker, more convenient, and less time-consuming.
Logistics will become a core competency for the winners of the connected economy.
Today’s news cycle is dominated by logistics, as supply chain difficulties highlight the economic importance of effectively delivering commodities between endpoints both domestically and internationally. Logistics is about something different in a linked economy, where the digital transformation of industry sectors is as much about the revolution within those sectors as it is across them. It’s all about efficiently moving money, information, products, and services between endpoints, and it’ll become a core skill of linked economy champions, whether they build it in-house or outsource it. Logistics and mobility will become the de facto language for how enablers aid in the streamlining, perfecting, and management of those flows. This is why.
According to the digital-first consumer, the world is now divided into two streams: what they require immediately and what they can wait for. In payments, it’s reliably and securely moving money in and out of consumer or business accounts from and to any given endpoint at any given speed – with any given payment modality – and monetizing those choices. In banking, it’s delivering services once only done in person in a digital-first way. In healthcare, logistics is about integrating data and diagnostic connected devices into the online experience to make the digital visit as informative as the physical one. For retail, it goes beyond mastering the logistics of delivering goods to eliminating the line between the physical and digital channels.
Luxury brands will reinvent reCommerce and use BNPL and subscription plans to do it.
According to The RealReal’s Q3 2021 earnings, 772,000 customers spent an average of $486 on used luxury designer clothing, purses, and shoes in the previous twelve months, up 25% and 10% correspondingly from the previous period. They further claimed that 84 percent of those customers were returning customers, drawn in by the chance to acquire gently worn Chanel, Dior, Hermes, Givenchy, or Christian Louboutin shoes from the world’s largest authenticated luxury resale marketplace.Luxury companies will strike back in 2022, using payments to help them redefine the reCommerce experience.
Luxury has become increasingly popular among consumers, as evidenced by holiday sales. According to Mastercard Spending Pulse, luxury purchases soared over the 2021 holiday season. Luxury goods reached $309 billion in 2017 and are anticipated to reach $383 billion in 2025. Luxury resale is anticipated to be worth $3.3 billion, or little more than 10% of total luxury sales, according to a Bain & Company analysis on luxury retail released in November 2021. Gen Z and millennials are driving demand for both.