What: European retailers are investing heavily in digital trends, AI, and social commerce, with significant emphasis on TikTok, to meet the evolving demands of consumers and stay competitive in a rapidly changing market.

Why it is important: Understanding and leveraging these trends is crucial for retailers to innovate and adapt to the shifting preferences of younger, digital-savvy consumers, ultimately driving customer loyalty and increasing sales.

At the recent eTail London conference, European retailers highlighted key digital trends shaping the industry. These include hyper-personalization through generative AI, the rise of social commerce with platforms like TikTok, cost-saving platforms like Shopback, a surge in second-hand shopping driven by Millennials and Gen Z, and the importance of seamless product returns. AI's role is expanding in customer service, dynamic pricing, task automation, and logistics optimization. TikTok's entertainment and discovery-driven environment offers a unique opportunity for brands to engage with users and boost purchase intent, with social commerce in the UK projected to double in the next four years. Retailers globally must innovate rapidly to align with these trends and cater to younger consumers' preferences.

Digital trends, AI, and TikTok: European retailers’ investment focus