new york –
Productsup, a leading product-to-consumer (P2C) software company, today Business development report, a study comparing business priorities for the coming year with today’s consumer needs. The report highlights the stark gap between what consumers want and what businesses plan to meet their needs during the downturn, and prompts decision makers on how to break out of the norm and create a competitive advantage.
The report identifies four key areas where businesses should focus their attention in 2023.
Businesses are increasingly concerned about the quality, consistency and accuracy of product information in global campaigns. Sixty-two percent (62%) of businesses fear that poor product information is creating negative online experiences, an increase of 72% year over year. Additionally, 55% feel vulnerable to competitors, up from 49%.
Considering consumers know more detailed information about products is one of the main factors that motivate them to choose one brand or retailer over another, companies must have full control over their product data ecosystem.
Nearly half (49%) of businesses expect demand for sustainable products to increase by 2022, but 34% of consumers say brands and retailers make it too difficult to find sustainability information.
By adding ESG information to product labels, listings and advertising, providing consumers with greater transparency in the supply chain can have a significant impact on sales and brand loyalty. In the coming year, 55% of businesses plan to increase their level of sustainable product information to meet consumer needs and differentiate themselves from their competitors.
Metaverse and digital collectors
Given the uncertainty in the industry, many businesses are moving away from virtual and augmented reality experiences. Only 14% of businesses believe consumers are more likely to purchase a product based on in-store AR experiences, such as augmented reality. That number drops to 13% for online VR and AR experiences like Metavas and Digital Collectors.
But compared to consumer data, 42% of consumers said they were more likely to buy a product after experiencing VR or AR in stores, and 40% were interested in purchasing ‘pure virtual’ items in Metaverse. Companies wary of these new technologies are missing an opportunity to make their mark in the space before clear leaders emerge and win over younger consumers.
With tighter budgets, only 24% of businesses expect to increase overall advertising spending this year. They’re pulling back on new channels – 79% of businesses don’t plan to increase ad spend on Snapchat or TikTok – instead focusing on more familiar platforms like Facebook and YouTube. This move from advertisers opens up more ad space for others to occupy – and at lower costs. Businesses should take the opportunity to secure prime ad spots on some of the channels most used by Millennials and Gen Z.
“If most businesses are struggling to drive sales, move inventory and reach new customers, it’s time to stop following the crowd,” said Marcel Hollerback, Chief Innovation Officer at Productsup. “History shows that tough economic climates reward heroes who embrace change and go all out to innovate. To succeed in 2023, companies must be willing to experiment and invest in unconventional areas.”
The report is based on a survey of 755 senior decision makers from 16 countries who are responsible or accountable for managing product information in their organizations.
Download the full Business development report Free to learn more about the top business issues and priorities for the year ahead. Click here for an actionable checklist based on the report’s insights.
Productsup helps brands, retailers and service providers sell more products to consumers faster by giving them complete control over their product data. This includes quickly and efficiently importing, configuring, enriching and sharing product data from any channel and touchpoint. As the first and only global enterprise-grade product-to-consumer (P2C) platform, Productsup processes more than two trillion products per month. In the year Founded in 2010 and headquartered in Berlin, Productsup has more than 300 employees spread across offices worldwide and works with more than 900 brands, including IKEA, Sephora, Beiersdorf, Redbubble and ALDI. Learn more at www.productsup.com.