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Shoppers worldwide are flocking to online marketplaces and social commerce for convenience, variety, and competitive pricing. While price remains key, brand trust is becoming a major factor in certain markets. As these platforms drive discovery and sales, brands must adapt to stay competitive. Here are three ways digital shopping habits are evolving among consumers worldwide.

Retailers adjust China strategies to coax cost-conscious shoppers to open their wallets: Ikea and Pizza Hut will open more small-format stores to reach new customers, while H&M set up shop on Pinduoduo and Douyin.

Latin America is a global leader in social commerce usage. More than half of digital buyers in the region鈥檚 two largest markets, Brazil and Mexico, will make a purchase via social commerce this year, per our forecast. That鈥檚 just roughly 5 percentage points behind the world鈥檚 largest social buyer market, China, where the trend first originated in the early 2010s.

But broadly speaking, demand continues to be patchy, especially as more Chinese consumers prioritize spending on services like travel and dining out over physical goods such as apparel and alcohol.

Offering deep discounts and other incentives is a tried-and-true route to acquiring both customers and sellers in China, where TikTok鈥檚 counterpart Douyin now stands as the fourth-largest ecommerce player. But livestream shopping in the US is unlikely to ever reach the scale of China, where it will account for 22.0% of retail ecommerce sales in 2024.

Pinduoduo owner PDD鈥檚 growth slowed in Q4: That reflects a sluggish retail landscape in China, which is why the company aims to diversify its revenue streams.

Ecommerce players with roots in China have gained ground on established retailers by introducing innovative shopping experiences. App-based, entertaining, and highly deal-driven, the platforms appeal most to Gen Z and budget-conscious shoppers. They cut out the middlemen of retail distribution and connect directly to China鈥檚 vast manufacturing base.

No other market in the world comes close to China when it comes to ecommerce. Its highly competitive digital market has spurred retail innovations that are making their way around the world.

Luxury consumption in China will rebound strongly in 2023 following the end of pandemic restrictions. While economic headwinds may create challenges in the medium term for luxury鈥檚 growth, China will be a main driver of luxury鈥檚 long-term expansion prospects. China will account for two-thirds of global luxury sales growth this year. Luxury in China will see a bumpy 2023, following a disastrous 2022.

TikTok Shop drove $100 million in Black Friday sales: Efforts to introduce social commerce to users are working, but the ban looms large.

That鈥檚 not to mention brands such as Benefit Cosmetics and COOLA that have livestreamed via TikTok Shop to reach consumers on Gen Z鈥檚 favorite destination for social commerce. Our take: While livestream shopping was slow to catch on in the US, it is starting to find a foothold with consumers.

Behind the numbers: TikTok Shop鈥檚 popularity is a sign of Gen Z鈥檚 affinity for social commerce, as well as a reflection of the platform鈥檚 successful efforts to woo consumers with a combination of viral products and irresistible deals.

The rise of shopping apps selling ultralow-cost goods from China is drawing more value-driven US consumers. But are their strategies sustainable over the long term?

The popularity of livestreaming ecommerce is spreading to other parts of the world besides China. But not every market has embraced this new retail format to the same degree.

The pandemic no longer has a major impact on Chinese supply chains, improving cross-border ecommerce. China lifted pandemic restrictions at the end of 2022, putting manufacturing and ports back to business as usual. US consumers can now access a larger variety of goods from China and benefit from faster shipping times from the country. A strong dollar is buoying cross-border ecommerce.

They include: inviting a group of influencers to tour its 鈥渋nnovation center鈥� in Guangzhou, China; bolstering its in-house compliance team and expenditures with firms that vet supply chains; and promoting a culture where US managers can report potential issues without fearing negative consequences. Bad timing: The investigation comes at a time when the company is attempting to go public.

Mytheresa expands China presence in long-term bet on luxury growth: While the retailer is bullish on its ability to woo big spenders, the country鈥檚 economic crisis and booming daigou industry could weigh on its near-term prospects.

Gen Z shoppers embrace Temu, Shein, and TikTok Shop: 1 in 4 makes a purchase at a Chinese online marketplace at least once a week, as their array of cheap, trendy goods proves impossible for the price-sensitive cohort to resist.

Looking to China. Chinese ecommerce provides a model of where Latin America鈥檚 commerce media may be headed. Latin America鈥檚 hybrid retail and banking institutions follow the lead of Chinese superapps like WeChat and AliPay, which blend multiple industries into one platform, and Latin America may soon see similar superapps.

This year, programmatic will account for more than 9 in 10 display ad dollars in every major market except China. Despite relying heavily on digital channels, advertisers in China have been slower to embrace programmatic. Digital represents 86.1% of total media ad spending in China鈥攖he highest proportion of any country or region we track.

Why this matters: While the integration could boost ecommerce growth in less developed areas of China where WeChat Pay is the more popular mobile wallet, it could cost Alipay some market share. Pursuing growth elsewhere: Alipay is gaining momentum internationally, which will help mitigate potential volume losses from its online stores.