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This year, most buyer and sales growth will be driven by TikTok Shop, which will convert over 40% of TikTok users into buyers. Social commerce and retail media will converge as Amazon鈥檚 ad partnerships with the social platforms start to pack a punch.

So, I think as influencer, creator marketing continues to expand beyond beauty, fashion, accessories and all those things that we associate it with the most, it's also going to organically bring in new audiences. Alexandra Canal:. Speaking of Gen Z, what percentage of Gen Z either is an influencer or wants to be an influencer? Jasmine Enberg:.

Many shoppers are using ecommerce to purchase new items in traditionally offline categories, like food and beverage. But in-store buying has remained popular in mature ecommerce categories, such as clothing. Social commerce shows its strength in several key categories.

Electronics, toys, appliances, and beauty were also top performers鈥攊n part because some shoppers (and retailers) saw an opportunity to get ahead of tariffs that will likely drive up prices in the coming year. Brick-and-mortar loses out: While shoppers were happy to spend online, retailers had a tougher time convincing them to shell out on in-store purchases.

Clinique is the latest prestige beauty brand to make the leap to Amazon: The partnership signals the retailer鈥檚 growing clout. It鈥檚 set to overtake Walmart as the US鈥� top beauty retailer by 2025.

鈥淥耻迟-辞蹿-丑辞尘别鈥檚 beauty is its proximity,鈥� said Steve Nicklin, senior vice president of marketing and analytics at the Out of Home Advertising Association (OAAA). 鈥淲e're also intercepting consumers when they're most likely to act.鈥�

It鈥檚 not just beauty and fashion; creators and influencers inspire purchases in many product categories. Section 3: Challenges Facing Marketers. Brands must balance a growing number of platforms and channels as the creator economy expands. Many social platforms are inundated with sponsored content, making it difficult to break through.

Social shoppers find inspiration for their purchases from many different types of content, but none more so than creator, influencer, or celebrity influencer content.

Dupe culture goes mainstream: Target and e.l.f. Beauty are among the companies benefiting from Gen Zers鈥� affinity for cheaper versions of premium products.

Gen Z consumers of beauty and skincare products are most attracted to brands for their pricing (48%), samples (46%), and sustainability (44%), according to Bolt. Pricing is a bigger influence for older consumers, cited by 61% of those ages 18 and older.

This was particularly true of beauty products, which young influencers like Evelyn GRWM have been showcasing on their own accounts. Shein and Casetify worked with Gen Alpha influencers, while Claire鈥檚 focused on the generation with a new fragrance line. Drunk Elephant made a post about which of its products were safe for children. And Dior even launched a $230 perfume for babies.

Walmart bets on AR: The retailer experiments with several use cases for the technology that it hopes can make shopping online as immersive, interactive, and social as in-person experience.

Spending also rose in categories like oral care, fitness trackers, cosmetics, and apparel. Our take: Rising drug costs may force consumers to cut back on discretionary spending for non-essential items like apparel, electronics, and home goods, creating headwinds for retailers already grappling with tariff-driven cost increases.

US cosmetic and beauty sales are expected to grow over 10% this year鈥攎ore than three times the 2.9% rate of the overall retail market, according to our forecast. It鈥檚 a sign of the 鈥渓ipstick effect,鈥� said our analyst Sky Canaves on our 鈥淏ehind the Numbers: Reimagining Retail鈥� podcast.

Go further: Read our analysis of Macy鈥檚 and other major retailers鈥� Q3 results in our Retail & Ecommerce Earnings Q3 2024 report. This article is part of 蘑菇AV鈥檚 client-only subscription Briefings鈥攄aily newsletters authored by industry analysts who are experts in marketing, advertising, media, and tech trends.

This week, it began selling fragrances and wellness products like collagen powder, per Modern Retail. Even as it expands its product range, the retailer has stayed true to its strategy鈥攑roducing items in small batches to minimize waste and maintaining transparent pricing to build consumer trust. Our take: Quince deeply understands a fundamental retail principle: Know your customers.

Meanwhile, a growing focus on price and value is pushing shoppers toward lower-priced competitors like Walmart, Amazon, and Ulta Beauty. Our take: The retail landscape is always in flux. Even amid the swirling headwinds, 5,800 new stores are expected to open this year. But the merchants that will succeed are those with a clear, compelling value proposition.

Walmart dominated the US retail landscape in 2024: The mass merchant鈥檚 ability to offer savings and convenience won over shoppers, and its growing ecommerce and advertising businesses are helping it make inroads against Amazon.

DoorDash aims to transform how brands connect with customers through two new partnerships intended to make ads more relevant and shopping more personalized.

That said, events like the Victoria鈥檚 Secret Fashion Show are introducing the brand to a new generation of shoppers鈥攁nd reactivating millennial and Gen X customers. Expanding its merchandise beyond intimates could also help the retailer gain greater consideration from shoppers.

But it couldn't convince shoppers to splurge on the types of discretionary purchases it relies on, leading to a frustrating quarter. Revenues were $25.67 billion, up 0.9% YoY but below the $25.90 billion expected. Earnings per share were $1.85, down 11.9% YoY and roughly 20% short of the $2.30 that analysts expected鈥� its biggest miss in two years.

The news: Several websites selling President Donald Trump-branded watches, sneakers, and fragrances now accept the $TRUMP meme coin as a payment method, per Bloomberg. The cryptocurrency launched ahead of Trump鈥檚 inauguration in January and has fluctuated in price. As of writing, $TRUMP had a market cap of $5.49 billion, per CoinMarketCap.

TikTok Shop joins Amazon in holding a July sale: The marketplace hopes exclusive discounts on brands like L鈥橭r茅al and live-shopping events will boost GMV.

UK retail sales are performing better than expected, with consumers still spending despite high inflation鈥攂ut ecommerce will lose further share this year as shoppers continue returning to stores and cut nonessential spending.