Consumer Behaviors Are Shifting
Macroeconomic events will continue to impact spending, shopping preferences, and gift trends.
Gift Givers Want Efficiency
Two-thirds of consumers aim to get their holiday shopping done as fast as possible.
Consumers Will Shop Early
Forty-two percent of consumers shop year-round for the winter holiday and 31% of US shoppers have already started their holiday shopping.
Gifting Clothing is Back
There will be a focus on experiential gifts and wellness-related items, more so than in 2020. The same is true for clothing and beauty as people go back to work, school, and socializing.
Spend Will Increase Slightly
A 2.5% sales increase is predicted, pushing total holiday spend to $853 billion.
*Note: Americans shopped less than expected last month as the delta variant continues to spread (CNN)
RECOMMENDATION
To win holiday gifting dollars, capture consumers’ attention early and be transparent about promotions. As the holidays approach, consider messaging that assures shoppers that your brand can help make their holiday shopping more efficient. For example, share gift ideas and gift guides tailored to key audience segments to make gifting easy.
Holiday Shopping Season Underway Already
While optimism is high, levels will fluctuate with continued uncertainty surrounding COVID-19 variants and global events.
Making Up for Lost Time
Nearly all adults currently feel comfortable socializing in person, so expect an increase in travel and gatherings as consumers approach the holiday season with a new appreciation for traditions and celebrations.
Seen by many as superior to tangible gifts, experiences are expected to increase in popularity after the extended period at home and with the promise of protection afforded by vaccines. Flexibility in terms of dates and refunds will be important to promote consumer confidence.
Purpose-Driven Holiday Shopping
Over half (56%) of all adults want brands to recognize holidays from a variety of cultures, with young adults increasingly expecting brands to do so (68% of 18–44-year-olds vs. 40% of 55+).
With many prioritizing both physical and mental health, wellness is an important gift category and messaging theme this year.
More consumers are looking for brands and retailers who offer sustainable products, leading to a boost in the popularity of secondhand shopping.
Early Shopping & Deal Seeking
More than four in ten adults shop year-round for the holidays to take advantage of sales and deals throughout the year.
Last year, Black Friday promotions started earlier to account for COVID-induced shipping delays and to compete with Prime Day. We anticipate seeing sales start as early as October this year.
Expected shipping delays due to continued COVID-19 impacts on supply chains will spur some customers to start shopping earlier and to avoid deliveries altogether by using curbside pickup or shopping in-store.
RECOMMENDATION
Consider different financial situations when planning segmentation and messaging around holiday promotions, as well as transparency around the best deals of the season, so shoppers know when to act fast. Inclusivity in messaging and creative will be important to attract younger consumers.
Purpose-Driven Shopping
Brand loyalty shifted during the pandemic, with consumers prioritizing the brands that align to their values and beliefs.
Shopping with a Purpose
Over 70% of adults aged 18-55 care more about product sustainability now than they did a year ago. Green business practices are increasingly important to all demographics, with 82% of millennials and 52% of baby boomers saying sustainability is important to them when shopping for clothes, beauty products, and travel experiences. In fact, more than half of lifestyle consumers bought a new brand or product specifically because of its sustainability practices.
Inclusivity is In
Racial issues received increased attention in mid-2020, and as a result, brands have begun to implement more inclusive marketing and business practices, such as fashion brands embracing extended sizing and inclusive products. Nike began advertising its Nike Pro Hijab for Muslim female athletes and adaptative activewear for people with disabilities. The “beauty for all” movement moved beyond greater foundation shades to support for Black-owned brands in 2020. Unilever eliminated the word “normal” from its branding and indie startups like Fluide now offer gender-neutral makeup.
Brands’ Voices Matter
Forrester found that when choosing between two brands with similar products, 43% of US adults will favor the company that takes a stand on like-minded social, environmental, or political values. This is increasingly important for younger consumers. Gen Z will be the most racially and ethnically diverse generation in US history, and they’re paying attention to where brands stand on societal issues – with 58% of LGBTQ+ youth saying brands that voice support for the LGBTQ+ community positively impact their feelings about being LGBTQ+.