New York –
Productsup, the leading product-to-consumer (P2C) software company, today launched business growth report, a study that compares business priorities for the year ahead with consumer expectations today. The report reveals stark contrasts between what consumers want and how businesses intend to meet it in the downturn, and offers policymakers actionable recommendations on how to create competitive advantage by deviating from the norm.
The report identifies four key areas businesses should focus on in 2023:
Businesses are increasingly concerned about the quality, consistency and accuracy of product information in their global marketing campaigns. Sixty-two percent (62%) of businesses are concerned that poor product information will create a negative online experience, up 72% year-over-year. Additionally, 55% believe it could make them vulnerable to competitors, a rise of 49%.
Given that consumers report that knowing more details about a product is one of the top factors that entice them to choose one brand or retailer over another, companies need full control over their product data ecosystem.
Nearly half (49%) of businesses are recording increased demand for sustainable products by 2022, but 34% of consumers say brands and retailers are making sustainable information too difficult to find.
Providing shoppers with greater supply chain transparency by adding ESG data to product labels, listings and advertisements can have a significant impact on sales and brand loyalty. In the coming year, 55% of businesses plan to increase the level of their sustainable product information to meet changing consumer expectations and differentiate themselves from competitors.
The Metaverse and Digital Collectibles
Given the industry-wide skepticism, many businesses are avoiding virtual and augmented reality experiences. Only 14% of businesses believe consumers are more likely to purchase products based on in-store AR experiences, such as enhanced fitting rooms. For online VR and AR experiences like the Metaverse and digital collectibles, that number drops to 13%.
However, compared to consumer data, 42% of consumers said they were more likely to purchase a product after experiencing VR or AR in a store, and 40% expressed interest in purchasing “purely virtual” goods in the Metaverse. Companies that have shown caution with these innovative technologies are now missing out on an opportunity to make their mark on the space before a clear leader emerges and wins over younger shoppers.
Only 24% of businesses expect to increase overall ad spend this year due to tighter budgets. They’re pulling back on newer channels — 79% of businesses aren’t planning to increase ad spend on Snapchat or TikTok — and instead focus on platforms they’re more familiar with, like Facebook and Youtube. Less activity for advertisers opens up more ad space for others — and at a lower cost. Businesses should take this opportunity to secure popular placements on some of the channels most used by Millennials and Gen Zers.
“If the majority of businesses are struggling to drive sales, move inventory and attract new customers, it’s time to stop following the majority,” said Marcel Hollerbach, Chief Innovation Officer at Productsup. Brave outsiders who change and go all-in on innovation. To succeed in 2023, companies must be willing to experiment and invest in areas outside the norm.”
The report is based on a survey of 755 senior decision makers from 16 countries who are personally responsible for or report to those responsible for managing product information in their organizations.
download full business growth report Learn more about the top business issues and priorities for the year ahead for free. To access an actionable checklist based on the report’s insights, click here.
Productsup gives brands, retailers and service providers full control over their product data, helping them sell more products, faster, to more consumers. This includes quickly and efficiently importing, building, enriching, and sharing product data with any channel and touchpoint. As the first and only global enterprise-scale product-to-consumer (P2C) platform, Productsup processes more than 2 trillion products per month. Founded in 2010 and headquartered in Berlin, Productsup has grown to over 300 employees in offices around the world and works with over 900 brands, including IKEA, Sephora, Beiersdorf, Redbubble and ALDI. Learn more at www.productsup.com.