Retail Trends to Watch for 2023

Economic Pressures Push Retailers to Cut Costs, Add New Revenue Streams

About This Report
Another eventful year is on tap for retailers as inflation forces consumers to prioritize basics, supply chain snarls continue, and customer loyalty wanes. Retailers that cut costs or add new revenue streams—and provide frictionless customer experiences—will prevail.
Table of Contents

Mixed headlines continue for retailers as economic uncertainty deepens. But the Gen Z-TikTok effect, bold new partnerships, and an exploding retail media market offer opportunities for brands in 2023. Those that remain nimble will come out on top.


US digital buyer's average ecommerce spend, 2022


TikTok Makes Them Buy It: Gen Z’s Social Commerce Habits Are Shaped by Chinese Players

Gen Z’s favorite platform has started testing TikTok Shop with select US merchants. The company’s latest corporate reshuffle and hiring plans point to a focus on commerce, which will offset a lowered ad revenue outlook. US ecommerce livestreaming and owned fulfillment centers are on the horizon—building on the #TikTokMadeMeBuyIt phenomenon (30 billion views and counting) to entice young shoppers.

TikTok is poised to crack the elusive US social commerce nut:

  • TikTok parent ByteDance pursues global growth. The ecommerce gross merchandise value on Douyin (China’s TikTok) quadrupled to $100 billion from 2019 to 2021. TikTok took this “made in China” model to Southeast Asia and the UK and is now aiming for the US.
  • US social commerce will grow twice as fast as China’s through 2026. Almost all new US digital buyers will be Gen Zers, whose shopping habits are still evolving.
  • Early US leaders like Facebook and Instagram pull back. Companies are moving away from social commerce and doubling down on core advertising. TikTok’s share of users who are social buyers will surpass Facebook’s in 2024, per our forecast.

Here’s what’s in the full report


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Table of Contents

  1. TikTok Makes Them Buy It: Gen Z’s Social Commerce Habits Are Shaped by Chinese Players
  2. A Tale of Two Consumers: Mid-Tier Brands Face Uphill Battle
  3. Return Policies Will Make or Break Retail Loyalty
  1. Retail Media Is Ready to Disrupt the $70 Billion Linear TV Ad Market
  2. Profitability Requirements Put Pressure on Business Models
  3. Read Next
  1. Sources
  2. Media Gallery


Suzy Davidkhanian, Sky Canaves, Blake Droesch, Andrew Lipsman


Amy Rotondo
Director, US Research
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