In a year when the global economy expanded at a slower pace than many expected, retailers worldwide continued to see their sales grow considerably online. Estimates suggest that globally, the e-commerce sector will generate $1.2 trillion in sales by the end of this year, driven largely by rapid growth in Asia and changing shopping habits across the globe.

Over the next 12 months, global e-commerce sales are expected to surpass $1.4 trillion for the first time, as more consumers use mobile devices and tablets to shop. However, 2014 will not be a year for retailers to become complacent. Customers are looking for a more personal and richer shopping experience, and retailers must reassess how and what they sell if they want to thrive.

Customers are looking for a more personal and enriching shopping experience, and retailers must reassess how and what they sell if they want to thrive.

Rakuten, a marketplace for small and medium-sized businesses and owner of Rakuten Shopping in Brazil, presented its five main trend predictions for online retail in 2014:

1. Content-driven purchases will reign supreme.

• The lines between entertainment and shopping are blurring ever more, and in 2014 we will see more retailers offering consumers a richer, content-focused shopping experience. To attract consumers, more savvy retailers are investing more in multimedia content than in advertising. Retailers recognize that consumers are no longer satisfied with the 'vending machine' model of the last decade; they want to be entertained and informed as they browse the web and make purchasing decisions.

2. Social media will guide retailers' inventory.

• The power of social networks to influence what people buy is widely recognized, and in 2014 it will also influence what retailers sell. The rapid growth of curated communities, such as Pinterest, where consumers catalog their own collections of favorite products, offers retailers access to valuable insights almost in real time, something that traditional market research simply cannot compete with. Experienced retailers use social shopping communities to gauge the temperature of popular product trends and use this knowledge to define and refine inventory decisions.

3. Omni-channel will require the creation of a more comprehensive customer profile.

• Retailers understand that consumers often reach them through multiple channels, but what actually happens along this journey can be a mystery. On any given day, a customer might interact with a brand across multiple devices and platforms, from browsing on a mobile device in the morning, to shopping on their work laptop at lunchtime, or liking a product on a social media news feed at the end of the day. In 2014, a priority for retailers will be connecting the dots between these channels so that a more comprehensive customer profile can be developed. Insights gained from analyzing the consumer buying journey will help retailers align the channels in which they sell and personalize the shopping experience, helping to increase their bottom line.

4. Hyper-segmentation will bring online personalization to physical stores.

• The long-held dream of being able to reach consumers in real time with personalized, relevant, and location-based offers took a giant leap forward in 2013 with the launch of Apple's iBeacon, which allows for precise and low-cost in-store tracking. There is much excitement about the prospect of hyper-segmenting consumers on the go, and in 2014 retailers will begin to take this proposition more seriously. We expect to see a number of high-level trials of hyper-segmentation technology as retailers struggle to deliver the highly personalized experience that shoppers expect online, now in physical stores.

5. Mass customization will make products more personal.

• Today's consumers don't just want ordinary products; they want something unique that reflects their personality. Retailers understand this, and we're seeing more companies offering personalized products, from custom engravings to the ability to select zipper or pocket colors in advance. As this trend gains momentum in 2014, there's a great opportunity for small and medium-sized businesses to carve out a market niche against larger retailers while adding value to existing products through customization. Furthermore, the concept of customization should extend to the product itself; retailers need to see how they can offer a more customized online shopping experience using insights gained from customer profiles.

Commenting on what retailers can expect from the New Year, Ricardo Jordão, CMO of Rakuten Brazil, says: “In 2014, retailers will have access, more than ever before, to more information about their customers' preferences and shopping habits. Used intelligently, these insights will not only shape which products retailers stock, but also how they market and sell them. As more consumers adopt multiple channels when shopping, retailers must take steps to better understand the customer journey. This insight will give retailers the understanding they need to develop relevant content and personalized offers and, ultimately, help generate more sales.”

Source: Rakuten Blog

Now it's your turn!

• Do you believe these trends will be essential for the online retail market?
• Are you doing any of these and have you already felt a positive result?

I'd love to hear your opinion in the comments!