Only 100 days until the holiday day season is in full swing. Yes, we know it’s barely swimsuit season and the kids are still enjoying summer popsicles, but as marketers, we are gearing up for Santa. Get out your jingle bells and stock up on turkey because the holiday season is on the horizon for 2023 and businesses are already preparing to maximize their profits during this festive time of the year. In the midst of growing price-consciousness, consumers are set to kick-start their holiday shopping earlier than ever in 2023. Online retailers will likely kick off their promotions in October, creating an elongated holiday shopping season where consumers wait for the best discounts. ‘Tis the season to sleigh your holiday marketing game, as January Spring spills the eggnog on the latest trends, ensuring you capture even the earliest of holiday shoppers this year! So, what are the consumer predictions for the 2023 holiday season?
The Early Bird Gets the Most Holiday Shoppers
Embracing the spirit of savings, merry spenders are eagerly primed to kick-start their holiday shopping as early as October this year, igniting a wave of festive cheer and early retail success. This proactive approach allows consumers to capitalize on early bird deals and avoid potential shipping delays. Retailers need to be prepared to gain the attention of these early holiday shoppers by capturing enticing promotions and campaigns well in advance. By doing so, they can ensure their products and services are readily available to meet the early surge in demand for a holiday shopping frenzy!
Thriving Amid Economic Challenges: How to Stay Ahead of the Holiday Season
We get asked all the time about effects of inflation on holiday shopping: we’ve got you covered, download our infographic here. Spoiler alert: people are still planning to spend; however, two-thirds of shoppers say they’ll buy holiday items on sale and more than half will buy fewer items overall (Numerator).
In the face of this challenging economic landscape and the ongoing rise in the cost of living, consumers are projected to become more price-conscious, making it crucial for brands to find innovative ways to meet their needs and stand out from the competition. Shoppers will focus on cost-effective options for their holiday celebrations and prioritize value. To adapt to this shift, retailers should focus on offering competitive pricing strategies, attractive discounts, and compelling value propositions in their advertisements to cater to this price-conscious mindset. Convey these important messages to holiday shoppers by showing how they can shop for their family’s needs (and special wants) while not breaking the bank! The two best ways are by offering the best deal or by providing exactly what the customer wants. By catering to the price-conscious mindset of shoppers, businesses can better navigate the challenges presented by the potential recession (Psfk.com).
Jingle All the Way to the Bank: Holiday Spending Soars with a 4.8% Surge
In 2022, the holiday season witnessed a solid 4.8% growth in retail sales, following two years of remarkable expansion in both retail and ecommerce, largely driven by the pandemic. Get ready to celebrate as the 2023 holiday season is projected to bring a 4.5% increase in retail sales, amounting to a whopping estimated total of $1.328 trillion, spreading cheer and prosperity despite a more moderate growth trend (eMarketer).
The number of worldwide digital buyers will rise 3.1% as well this year to reach 2.89 billion, a little over 36% of the global population. As consumers increasingly prioritize convenience, it comes as no surprise that ecommerce has experienced a notable 11.9% growth in 2023. To accommodate this growing number of shoppers, brands will invest in their ecommerce, mobile commerce (also known as mcommerce), and livestream commerce capabilities while also creating a seamless experience across channels. The desire to save time and effort will drive more consumers towards online shopping and mobile apps. Retailers must prioritize efficient and hassle-free shopping experiences, including user-friendly interfaces, fast and reliable delivery options, and convenient return processes, to meet the heightened expectations of convenience-seeking consumers. Last year, online discounts reached record highs (especially on toys, electronics, and computers) as consumers sought out the best deals. This year will be no different (eMarketer).
Leveraging Market Data: TikTok and Buy Now, Pay Later
TikTok is the main reason we can expect social commerce to grow by 29.8% this year (eMarketer). Marketers have an excellent opportunity to capitalize on this trend and should take advantage of this for lifestyle and consumer brands by running both paid and organic campaigns to maximize growth. The #TikTokMadeMeBuyIt trend is in full swing and should be leveraged this 2023 holiday season!
Another way to take advantage of these data projections is to expand buy now, pay later (BNPL) offers to physical stores. As consumers remain cautious about spending, providing flexible payment options can be a game-changer. Offering in-store pay alternatives can allow customers to use incremental payments as a convenient in-store payment alternative, therefore capturing a wider audience of holiday shoppers.
To summarize, in the wake of inflation and a potential 2023 recession shoppers are seeking earlier shopping and attractive deals to accomplish their holiday celebrations. January Spring recommends for marketers to be prepared to capture the attention of these early, value-conscious holiday shoppers by implementing enticing promotions and campaigns well in advance, offering the best deal or by providing exactly what the customer wants, and to prioritize seamless and efficient shopping experiences to meet the heightened expectations of convenience-seeking consumers. In addition, marketers can take advantage of these data projections by cultivating their TikTok presence and introducing buy now, pay later financing to their physical locations. ‘Tis the season to be shopping, spreading holiday cheer, and finding gifts that sleigh with January Spring!