What: After a year of survival mode in 2020 and a year of tech innovation in 2021, an increasingly digital consumer environment has developed and here are 5 tech trends for brands to stay relevant in 2022.

Why is it important: Retailers have learned to keep up with fast-paced, digitally savvy consumers by boosting their presence on popular platforms and adopting new capabilities in a relatively short amount of time. With those initiatives came massive retail tech funding for the space.

Five trends to look out for as the evolution of retail tech continues are:

Consumers continuing to lean on buy now, pay later options. BNPL allows consumers to pay for an item in smaller amounts within a certain timeframe, often interest-free. This momentum will likely continue well into 2022 and is quite attractive to young consumers who may not have the funds to pay for big-ticket items upfront. According to a survey from NerdWallet, the respondents who've used BNPL during the holidays are 36% millennials, 22% Gen Z, 18% Gen X and 3% baby boomers. If inflation persists, consumers may have even more reason to use BNPL services.

Social commerce playing a crucial role in consumers' purchasing journeys.

Social media sites are accelerating efforts to allow the purchase of products without leaving the platform. There is good reason to invest in shopping capabilities since over half of consumers surveyed by NPD said content shown on their Facebook and Instagram feed influenced them to make a purchase. A list of platforms where shoppers discover and learn about items include Facebook (41%), Instagram (35%) and Pinterest (21%) who ranked on top. The industry's scale in China is a reflection of what social commerce in the U.S. could be. Social commerce sales in the U.S. are just about one-tenth the size of China's $351.65 billion industry in 2021.

Brands normalizing the use of augmented reality

In 2020, only 20.1% of consumers said they've used AR to test makeup or try and discover new products. However, with the quantity of brands launching AR tools, consumer adoption may soon rise. Just last year, Snapchat teamed up with six companies in various industries, including Walmart and Hollister, to create virtual stores in the app during Black Friday. Fendi, Dior and American Eagle also ran AR shopping lenses on Snapchat around the same time.

Livestreaming living up to its potential

Coresight Research estimates that the livestreaming market would reach $6 billion in 2021, and in 2023, it could reach $25 billion. On multiple occasions, retailers and social media platforms have partnered to launch shoppable livestream shows. And like social commerce, livestreaming is already a multibillion-dollar industry in China. The market was estimated to be worth $305 billion in 2021, according to KPMG and research firm AliResearch cited by Coresight.

Retailers pressured to find way to deliver goods faster

Industry giants have set customers' expectations high, which might push other retailers to keep up. For example, Walmart has teamed up with automotive company Ford and startup Cruise for self-driving deliveries as well as investing in drone services for deliveries. The demand for speedy delivery has also presented opportunities for companies like Uber to diversify their sources of revenue. Uber worked with retailers like Hims & Hers, Bed Bath & Beyond and Costco to deliver goods.

Staying relevant in 2022 with 5 tech trends