The upcoming holiday season promises to be big. A stronger job market and higher wages have led to a good retail season this year; these two factors are expected to positively impact holiday sales too, according to the National Retail Foundation (NRF).
Amazon plans to hire 120,000 temporary workers in the US alone to deal with the holiday order flood -that’s an impressive 20 percent increase in holiday staff compared to last year. As e-commerce and home delivery are expected to grow, delivery companies such as UPS and FedEx are also planning to increase their staff by the tens of thousands to maintain quality service during the peak holiday season.
The outlook is good – but are you ready to satisfy holiday shoppers with their specific demands? We have identified seven shopping trends that will be big this holiday season.
1. E-commerce growing steadily
In the 2015-2016 holiday season, online sales went up by 16 percent over the previous year. This holiday season, e-commerce sales are expected to grow even more: Deloitte forecasts an increase of 17 to 19 percent over last year.
As more consumers head to digital stores for their holiday shopping, it is important for retailers to have a clear online strategy in place, which includes extended return policies and free shipping. Make sure that your website is mobile-friendly: last holiday season, mobile traffic made up around 60 percent of the traffic of big online retailers like Amazon and Target. Shopping from mobile phones is expected to become even more important this year.
2. Webrooming and showrooming
Consumers are increasingly mixing channels to browse and buy products. A UPS study revealed that 55 percent of shoppers look at products online before buying in store (“webrooming”); at the same time, but in the opposite direction, 54 percent of consumers go showrooming, looking for products in physical stores before heading online to find the best deals.
As channel-mixing is growing, entice shoppers to your store online and offline by offering good service throughout and perks for loyal customers.
3. Make it an experience
Consumers increasingly look for experiences, rather than products. This is good news for retailers selling items with strong connotations – think Apple, a brand which sells the feeling of innovation and belonging to a group rather than mere phones and computers, or Lush, whose premium cosmetics and soaps are bought by people who wish to feel both beautiful and ethical. Are you marketing your products the right way?
4. Social consumers
Shoppers used to bring along a family member or friend to get a second opinion before making a purchase; today, they ask “what do you think?” on social media. A recent survey run in the UK by Maybe*, a platform that gives shopping advice, discovered that two out of five young consumers ask their friends for an opinion before they buy items over £60.
It’s not just friends that people turn to for an opinion. A Google research showed that a growing number of consumers rely on YouTube gift guides; when it comes to buying consumer electronics, for instance, 68 percent of smartphone users watch YouTube videos to get ideas about what to buy.
Retailers looking to reach this audience should make sure they have appealing, mobile-friendly, visualcontent on their website and on social media, and a social media influencer strategy in place – increasingly, consumers consult social media stars for gift advice.
5. Blending the digital and the physical
As people spend more time on e-commerce and social media sites, digital platforms are shaping expectations of how a great shopping experience should be. Increasingly, shoppers look for the same attributes in store as they find online: a large assortment of goods, product information, quick purchases, great visuals, buying suggestions and recommendations. Keep these changing expectations in mind when designing your holiday store and campaigns.
6. Be different
According to Rod Sides, vice chairman at Deloitte, this season’s disruption will not come from big box stores and major e-tailers, but from small and midsized retailers focusing on niche products and experiences. “The retailers that compete on differentiated products and experiences should be better positioned to outperform those who try to compete on low-price, value and convenience, or continue to rely on conventional sales events and promotions,” said Sides. Are your products original enough to attract customers without the need to organize a holiday sale?
7. Something new
Last holiday season, 77 percent of consumers shopped in stores or websites where they don’t usually shop. Whether this happens because people look for novel ideas, because they need purchase an item that has been requested as a gift or because they are looking around for good deals, this is a great opportunity for retailers. Make sure you have retention strategies in place: keeping these customers loyal will be much cheaper than attracting new ones.