With consumer behavior changing rapidly due to unprecedented times, industry experts and consultants expect this holiday shopping season to be a far cry from those past.
Due to the pandemic, consumers have experienced a vast amount of uncertainty — leading to fear, anxiety and conservative spending.
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“Over 40 percent of Millennial and Gen Z shoppers expect to spend less this year, with a greater proportion of younger shoppers indicating this compared to older Millennials, according to our survey,” said Deborah Weinswig, chief executive officer and founder of Coresight Research, a global advisory and research firm specializing in retail and technology. “Younger shoppers are early on their jobs or are recent graduates and will be heading into the holiday season with a lower propensity to spend, given their low incomes compared to older shoppers. Savings rates in the U.S. are also on the rise, and younger shoppers are likely to want to be frugal spenders until the dust settles around the crisis.”
“We also have seen that individuals under 35 are increasingly concerned about making upcoming payments. That, combined with other economic indicators, mean that we will be looking for additional signs of rising financial concerns,” said Rod Sides, vice chairman, Deloitte LLP and U.S. retail and distribution sector leader. “COVID-19 has already left an indelible mark on the way consumers shop. We’ve seen significant growth in digital channels and a shift toward safer, lower-contact models, which is likely to continue during the course of the holiday season. Many retailers have historically looked to create welcoming shopping experiences so consumers would spend time browsing and looking for the perfect gift. This year, consumers might be looking for that influence online and through other social channels.”
According to a recent poll by Bazaarvoice, social will be key for retailers this holiday season. In the report, Bazaarvoice noted that 61 percent of businesses polled “anticipate higher engagement and purchasing through social media for the holiday season because of COVID-19.” This includes shoppable social content for channels including Facebook and Instagram and partnering with influencers.
“Retailers must be prepared to pivot quickly as things change. The focus should be on continued and strong messaging and reassurances of protocols via social media, i.e. Instagram, Facebook,” said Antony Karabus and Farla Efros, ceo and president of HRC Advisory. “Texting, TikTok, retailers’ web site and signage in stores to give them more assurance of safety.”