Last week, saw the home of direct commerce hosting their event where we were able to hear from experts and gain insights on the commerce landscape moving forward. Below are some of our key takeaways and thoughts from the event.
Competition on price is tight:
With the current economic state still being unstable and the cost-of-living crisis remaining in full swing, pricing of goods are fluctuating to meet budget forecasts whilst also trying not to startle consumers in paying more for a good they are regular consumers of and have previously, paid a smaller amount for. As a result of this, it’s hard for businesses to stand out and be the most cost efficient option for consumers as there is a risk in compromising quality when looking at reducing costs.
Whilst everyone is doing what they can to accommodate the financial restrictions their buyers are facing, this is not expected to change soon; budgeting effectively and retaining your loyal audience groups are important as it could be more expensive to acquire new customers AND retaining current ones.
Short form video content should not be overlooked:
With the rise of YouTube shorts and TikTok being preferred social media platforms, it is no surprise that short form is becoming the chosen format of consuming content. With the accessibility to such vast information and entertainment, we are being overwhelmed and therefore, we are likely to better retain and enjoy content that is quick, and straight forward; short form.
Our attention span is smaller than it’s been before and where we once had to rely on written word for research on new products on the market, we now have access to such short-form content that explains and justifies our needs in less than 30 seconds in an innovative and visually enticing technique.
Packaging/brand identity remains key:
With brands such as Burberry and Facebook that have rebranded over the past few years, we can expect to see other brands make this change in identity to draw attention to themselves in such a chaotic market. But we know and it is proven that some consumers are loyal to what they know. Whilst a rebrand can be refreshing and make your product inviting to a new audience, it can shock your long-time consumers who are familiar with what they have always know. Packaging is what makes a brand recognisable, and the human eye can register a brands colour/imagery/messaging in the first few seconds of receiving it.
Change, especially with branding, is risky as some people may assume they product has changed, and they may resort to sourcing their goods elsewhere without realising it’s just the aesthetic of the brand that has changed, nothing more. We are creatures of habit so it’s key for us to brand our products effectively and maintain our identity in the market – consistency helps with retention.
Chat GPT is limited in knowledge:
Despite being launched in full force this year, Chat GPT does not have a recent knowledgebase with it holding data up to 2021. Although it is in its early stages and it is extremely likely to develop to host more recent, relevant data, it is not the most reputable source for gathering information. Its convenience is unmatched and this AI is a great step forward in technology and our use of it. However for businesses, we should be mindful of how much we expect from it and remain conscious of the information we are inputting into it, such as figures and personal data.
The Direct Commerce Southwest event was eye opening and the aforementioned topics of discussion are something we should continue to bare in mind when we plan and budget for future campaigns and business ventures.
If you have any thoughts or queries you would like us to help with, contact us!