Most consumers don’t want to wait for Christmas sales before doing their holiday shopping. Many of them are already buying gifts for loved ones due to inflation.
When the holiday shopping season begins
People began to save more because of the worldwide recession, particularly in the US, and they shop for Christmas and the New Year earlier. Ahead of the holiday shopping season, PartnerTrade has collected essential data to help entrepreneurs on Amazon successfully, and other marketplaces prepare for this season.
According to a Bankrate study, 25% of shoppers have either already started or plan to do their holiday shopping in September. Another 25% want to splurge in October, and only 40% will do so in the last couple of months of 2022.
A Salesforce study found that many consumers are looking to purchase gifts before prices increase this year. So 37% of American shoppers (and 42% globally) plan to buy gifts earlier than usual.
The sales expectation for this season
Retail sales, as experts expect, from October 11 to December 24 will increase by 6.2% year-on-year (according to MasterCard SpendingPulse) and by 17.1% compared to the same period in 2019.
Online sales will grow by 4.5% year-on-year and offline sales by 8.0%.
This distribution of purchase costs will make it much easier for retailers, logistics, and postal operators (UPS and FedEx) to deliver orders. In addition, there will be no need to hire additional workers in stores and warehouses.
Behavioral change due to inflation
Inflation is a concern for many consumers, according to Jungle Scout’s Q3 report. In particular, three out of four people believe that a recession is inevitable, so making purchases for the holidays not only earlier but also less and more economically is necessary.
55% of consumers plan to change their holiday shopping plans this year due to inflation, 30% started shopping in September, and 70% plan to splurge before Thanksgiving (November 24).
Reduction of spending on gifts and buying discounted items are two popular ways to save money among shoppers.
People expect to refuse to buy a gift for:
- themself;
- friends;
- distant relatives;
- colleagues;
- neighbors.
But they are most likely to spend on gifts for:
- children;
- grandchildren;
- partner/wife/husband;
- grandparents;
- pets.
Take these data into account to form a range of products. They will tell you which gifts and souvenirs you will likely buy in the next few months.
Where to shop more often
As the presence of brands in social networks and opportunities for online shopping increased, so did the desire of consumers to make purchases there.
Consumer spending on social media products is showing growth, and eMarketer predicts it will exceed $56 billion by 2023.
Jungle Scout research confirms interest in shopping on social media. It is more convenient for customers to shop on Facebook, Instagram, and YouTube. Interestingly, the third quarter of 2022 saw the most significant jump in TikTok.
Who buys and in which social networks
Generation Z and Millennials are the most likely to shop on social media, followed by Generation X and Baby Boomers.
Millennials have chosen YouTube as the top channel for making purchases. Gen Xers are more likely to shop on YouTube and Facebook, Baby Boomers are more likely to shop on Facebook, and Gen Z consumers are more likely to shop on Instagram.
Conclusion
Retailers should start promoting product discounts and promotions early to boost holiday sales. This will help avoid overstocking and reduce competition for buyers during the season.
In addition, it is worth investing more in the advertising budget for social networks since people are more likely to buy products there.
Do you need to replenish product stocks on marketplaces? PartnerTrade will take control of all logistics processes related to shipping goods to their destination. The company’s team guarantees detailed consultation on the chosen route and constant support during commercial cargo transportation.
FAQ
Half of the consumers want to stock up in the first two months of autumn, a small part – in November and December.
Inflation. Most respondents expect price increases closer to the New Year and Christmas holidays.
People buy goods more often on social networks, Facebook, Instagram, YouTube, and TikTok.