Marketers, are you ready for this holiday season? Because consumers are about to get very serious about their spending. Play your cards right, and your brand just might be a part of the record sales expected this year.
The 2024 Deloitte holiday retail survey dives deep into consumers’ mindset as they shop during the busiest season of the year. Some of the data is promising, with the average person expecting to spend around $1,778 during the holidays—an 8% leap from 2023.
However, not all the data brings tidings of comfort and joy.
Don’t expect brand loyalty to get you through this season because 62% of shoppers are “willing to go for more affordable brands if their preferred brand is too expensive.”
Read on to unwrap the highlights of Deloitte’s findings and discover what it will take for marketers to sleigh this holiday season.
Experiences Are the Real Gift This Season
Shoppers may be moving away from their favorite brands for better deals, but they aren’t willing to miss out on experiences. This year has seen a 16% year-over-year (YoY) increase in spending on travel, events, and social activities.
The survey found that 39% of shoppers plan to gift experiences such as event tickets or spa packages, meanwhile, gift cards are falling out of favor with -12% YoY.
Consumers are also engaging in non-gift purchases such as party essentials and décor with a 9% uptick in these purchases.
Meanwhile, traditional gift spending is sitting flat at -3% YoY.
Cutting Back on Me-Season
Despite the expected increase in shopping this year, self-gifting is shrinking as shoppers continue to shop frugally.
The average budget for self-gifts sits around $250, but 49% are willing to cut back on gifts for themselves if their budgets become more constrained. That being said, the pattern of self-gifting varies across generations as Millennials (43%) and Gen Z (47%) are the most likely to splurge on themselves than Baby Boomers (17%) and Seniors (13%).
The trend toward experiences is also present among Millennials, as they are the most likely (32%) to self-gift with experiences than other generations.
Tech Under the Tree
Brands can expect a bulk of their sales to occur online with 48% of consumers planning to shop via smartphones and 13% on social media platforms. This phenomenon is especially present among Gen Z and Millennials as they tend to embrace mobile-first and social commerce experiences.
In accordance with growing frugality among consumers, 52% of shoppers add items to their wish list or digital shopping cart to watch out for deals and order them when the prices drop.
Unwrapping Opportunities for Marketers
Looking at the data from Deloitte’s survey, there are many opportunities for marketers to attract consumers to their products and services in a way that is relevant and meaningful to them.
Marketers can align themselves with consumer optimism and cater to frugal behavior by highlighting mid-to-high-tier products or offering premium products and services in bulk at a special price for a limited time.
To attract more purchases for self-gifting, marketers can run “treat yourself” campaigns with a focus on high-income groups and high-tier products for a higher possibility of purchases.
As more consumers are doing their holiday shopping on their smartphones, it is essential for brands to provide them with an omnichannel experience. By optimizing their mobile platforms and implementing targeted ads to encourage holiday shopping, they can capture sales from the younger, tech-savvy generations.
With the lack of brand loyalty becoming more prevalent this season, marketers can plan to add features to their loyalty programs to help consumers feel they are getting a better deal than if they shopped under a different brand. These loyalty programs for the holidays can include:
- Offering double or triple points on purchases
- Applying exclusive discounts for members
- Providing Bonus gifts for purchases above a certain threshold
- Incentivize shoppers with referral bonuses for bringing in new customers
That’s a Wrap!
This holiday season brings both opportunities and challenges for marketers to navigate. With consumers prioritizing experiences, seeking deals, and embracing mobile-first shopping, brands must adapt their strategies to stay competitive. When marketers align themselves with what consumers value, they can successfully position their brands to thrive in the busiest shopping season of the year.
Read the full report here.
