Shoptalk 2023, a major industry event, brought together key players and thought leaders in the world of commerce. With various performance tracks, side events, and one-on-one meetings, the conference provided a comprehensive overview of the current state of the industry and the key trends shaping its future. This blog post will discuss some of the most important considerations from the event, highlighting insights from prominent figures such as Target's CFO and Pinterest's CEO, as well as exploring emerging trends and technologies.
Key Trend: Composable Commerce
One key trend that emerged from the conference was the shift from headless to composable commerce. While still in the early stages, composable commerce allows brands to build their digital infrastructure using modular components. However, for many brands and chains, this approach remains too expensive and complicated, with the focus often slipping onto less relevant aspects of the technology.
”With headless the ecommerce agency will stick around. This doesn’t happen as much with traditional platforms. Composable is just another form of headless. The issue is that as a brand you should be self sufficient. To make headless really work you need a tech team inhouse, where your agency will teach them. Choose your agency carefully.” - Rick Watson, CEO and Founder, RMW Commerce Consulting
Key Trend: From Metaverse to all in with AI
As many attendees considered the Metaverse a bubble, investments have shifted towards AI and Web3 projects. AI was a hot topic throughout the event, with discussions surrounding Chat GPT and AI applications in advertising, A/B testing, logistics, and procurement. Despite the buzz, it remains unclear which are the most important AI-driven implementations for brands and retailers.
The attendees delved into the daily usage of AI in operative commerce processes, exploring how artificial intelligence is revolutionizing the industry. AI is becoming an integral part of digital commerce, streamlining and enhancing processes such as inventory management, pricing, and personalization. Through the use of AI-driven algorithms, companies can optimize their supply chain, identify market trends, and offer personalized experiences to customers. However, the challenge lies in identifying the most valuable AI applications and effectively integrating them into daily operations.
Key Trend: Frictionless Experience
Another recurring theme was the concept of frictionless experience in online shopping. Although no one provided a concrete definition, the overarching idea is that everything should be easy, with fast payments and seamless functionality on mobile devices – something that digital commerce professionals already consider self-evident.
”We all know that the shopping journey has been the same. Google saw last holiday season that users were on up to 5 different platforms before the purchase occurred. Steps are the same, but it's just getting much more complex. Now the task for brands and stores is to make sure, how this journey wouldn’t have any unnecessary friction.” - Carrie Tharp, VP, Google Cloud
Key Trend: Inflation and Economic Uncertainty in 2023
The global economy has been marked by inflation and economic uncertainty, which has had significant implications for global commerce. Businesses must adapt to fluctuating market conditions and devise strategies to maintain customer trust and loyalty. During Shoptalk 2023, experts discussed the importance of data-driven decision-making, risk mitigation, and cost-effective solutions in navigating the uncertain economic landscape.
One such approach is adopting dynamic pricing strategies that allow businesses to respond to market changes in real-time. By leveraging AI and data analytics, companies can optimize their pricing to remain competitive while protecting their margins. Additionally, businesses should focus on providing exceptional customer service, addressing concerns related to price fluctuations, and ensuring a frictionless shopping experience to maintain customer satisfaction.
Other Key Trends: The Rise of TikTok and corporate players exploring D2C Strategies
TikTok was a major talking point at Shoptalk 2023, particularly regarding its uncertain future in the US. As the number one channel for organic content for many online stores, risk management strategies were a key focus of several speeches.
“I think that you're going to see the difference between like doing true advertising on TikTok versus again, the importance of the influencers on their end. And we've seen brands start to release some of that control as TikTok has expanded those micro influencers. So yeah, I think one type of traditional advertising may migrate to one channel and the influencers may migrate to the other.” - Steve White, COO, The Integer Group
Additionally, large retail chains and Fortune 500 brands are increasingly adopting direct-to-consumer (D2C) strategies, with "shadow online stores" targeting specific customer segments or profiles. Examples of active D2C strategies were presented by companies such as Kroger, Target and Pepsi.
The Importance of Networking and Engagement
Shoptalk 2023 was an overall positive experience, offering valuable insights and opportunities for networking. High-level executives from brands such as Nike and digital commerce giants attended side events and participated in conversations that provided exclusive knowledge. Engaging in one-on-one meetings also proved fruitful, with attendees having the chance to connect with leading experts from various retail industries from analysts to Fortune 500 corporations.
Final Thoughts
Shoptalk 2023 highlighted the ongoing transformation of digital commerce, with key trends such as composable commerce, AI, and frictionless experiences shaping the industry's future. Additionally, the event underscored the importance of staying informed about emerging platforms like TikTok and adopting innovative strategies such as D2C. To make the most of events like Shoptalk, professionals must actively participate and engage with their peers, taking advantage of unique networking and learning opportunities.
Written by Chief Evangelist Mikko Rekola