The holiday shopping season is approaching, and consumers are gearing up for another busy period. However, their spending habits may differ from previous years. A recent survey by ESW found that while 61% of respondents plan to spend over $600 this holiday season, up from 48% last year, half of the consumers will cut back on gift spending.
47% of those reducing their spending cite the high prices of everyday items like groceries and gas as the main reason. Martim Avillez Oliveira, ESW’s chief revenue officer, believes that retailers can navigate the challenges of this holiday season by leveraging a robust global commerce platform. He notes that 43% of consumers plan to shop more online, presenting an opportunity for global direct-to-consumer e-commerce retailers to capture a larger market share and offer competitive prices.
Changing holiday spending habits
The survey also revealed some interesting consumer preferences. For instance, 51% of consumers will not use TikTok for holiday shopping, but 65% of millennials and Gen Z combined will use the platform for inspiration.
Black Friday and Amazon Big Deals Day are the most popular shopping days, outshining Cyber Monday and Columbus Day. Free returns and shipping are also important factors for consumers. Nearly half of the shoppers will only purchase items with free returns, and many are willing to wait 4-10 days for free shipping.
As retailers prepare for the holiday season, they must consider these consumer preferences and adapt their strategies accordingly. By offering competitive prices, free returns and shipping, and leveraging popular shopping days and platforms, retailers can turn the challenges of this holiday season into opportunities for success.