Because everyone makes predictions, I’ve decided we should take a leaf out of the book of a favourite podcast of mine - Cortex. Every year, they set a theme rather than a list of resolutions, which serves as a kind of sign-post for their ambitions in a new year. For that reason, I bring you:
The Year of Grounded Innovation: A year of consolidation and mixing forward-thinking with practical, customer-focused solutions.
1. Consumer Behaviour Trends: Balancing Aspirations with Realities
-
Adapting to shifting priorities: Economic pressures will likely slow the growth of ethically driven purchasing, but growing awareness of ethical sourcing and sustainability will continue to drive demand as the damage of fast fashion gets further coverage. The cost of living crisis is ongoing, however, so striking a balance will be key.
-
Social commerce and mobile-first strategies: Platforms like TikTok will continue to shape buying habits, especially in fashion, beauty and wellness. Even with regulatory uncertainties, social selling offers brands an opportunity to meet consumers where they are, especially younger demographics.
-
Generational shifts in focus: As millennials age (and are set to benefit from an unprecedented transfer of wealth from baby boomers), brands must begin to cater to the evolving preferences of a 40+ demographic that looks entirely different to a similar age cohort a decade or two ago. Older consumers, often overlooked, have always represented untapped potential for online retailers, but represent a major potential market for those willing to innovate.
2. Innovation and Technology: Practical Application Over Speculation
-
AI for operational efficiency: The real value of AI lies in its ability to automate repetitive tasks like inventory management. Retailers should focus on established AI tools to streamline processes rather than chasing speculative solutions in domains where humans already excel.
-
Preparing for the future of AR: While AR remains in its infancy, industries like homeware should begin to look into 3D modelling - and there are Shopify apps that can offer a low cost solution in this area. Preparing now will position brands to capitalise on technological advancements in coming years as the hardware reaches wider acceptance.
-
Cautious optimism for metaverse-lite: The capital M Metaverse that received a lot of hype a few years ago is dead (I argued at the time it was never alive, but I was hardly alone in that) - but platforms like Fortnite and Minecraft have familiarised younger generations with the retail possibilities of virtual spaces. While widespread retail adoption may be years away, early exploration of these spaces can yield insights for future engagement strategies.
3. Sustainability and Ethics: Incremental Progress for Lasting Impact
-
Practical steps toward sustainability: Focus on reducing packaging waste and exploring local sourcing options. Environmental concerns remain a priority for consumers, but businesses must balance these efforts with economic constraints.
-
Embracing circular economy models: While financial concerns may overshadow environmental initiatives in 2025, brands that adopt circular practices - like resale or rental models - may be able to gain long-term consumer trust.
-
Transparency and ethical practices: Certifications like B-Corp can help brands communicate their values effectively, appealing to consumers who prioritise ethical business conduct.
4. Competitive Differentiation: Staying True to Fundamentals
-
Back to basics: Product-market fit remains essential. As economic uncertainty grows, retailers should reassess their offerings, pricing, and target audiences to ensure alignment with consumer needs.
-
Standing out in saturated markets: Smaller brands should focus on quality over price, leveraging their agility to create niche offerings that larger platforms like Amazon cannot replicate.
-
Authenticity over tokenism: Brands must embed authenticity into their organisation rather than using it as a superficial marketing tactic. Building long-term loyalty requires a genuine commitment to consumer values.
5. Data, Privacy, and Security: Building Trust in a Cookieless World
-
Personalisation without intrusion: Transitioning from cookies to login-based personalisation offers a transparent and effective way to enhance customer experiences.
-
Reinvesting in creativity: The shift to cookieless advertising could reinvigorate creative marketing, pushing brands to innovate in how they capture attention and communicate value.
-
Investing in robust security training: Technical solutions for data protection exist, but the human element remains the weakest link. Comprehensive training will be crucial in mitigating risks like phishing, social engineering and outdated systems.
6. Globalisation and Localisation: Thinking Big, Acting Local
-
Efficient cross-border solutions: Platforms like Shopify simplify international sales, but true success requires cultural sensitivity and high-quality translation to resonate with local audiences.
-
Navigating supply chain complexities: Rising shipping costs and potential geopolitical tensions highlight the need for localised supply chains. Brands that can source and manufacture locally will have a competitive edge.
-
Hyper-local Engagement: Building trust with localised audiences requires direct engagement, whether through community events, partnerships, or localised content marketing strategies.
7. Resilience and Adaptability: Preparing for the Next Crisis
-
Learning from COVID-19, and international logistics crises: The pandemic and various issues with the Panama and Suez canals showed that supply chain disruptions are inevitable. Moving away from just-in-time inventory and building buffers can mitigate future risks.
-
Diversifying and agile strategies: Successful brands must remain flexible, exploring adjacent markets or product categories to weather economic downturns.
-
Investing in people and processes: Beyond technology, the resilience of a business depends on its workforce. Training and empowering employees will ensure brands can navigate uncertainty with agility and expertise.
Succeeding in commerce in 2025
In 2025, a theme of Grounded Innovation invites commerce brands to embrace a balanced approach - driving innovation while remaining realistic about the constraints and opportunities of the present. By focusing on consumer needs, operational efficiency, and incremental progress, brands can navigate economic and environmental challenges while laying the groundwork for future success. If you’d like help making a success of 2025 for your brand, why not get in touch?
