Consumers will be eager to spend this upcoming Black Friday weekend, but the competition for their attention – and their dollars – is tougher than ever. This is how merchants attract them.
Retailers have noted that just as Americans have embraced live video streams for things like work meetings and family gatherings, they’ve also been using them for shopping.
Because it is important:
- Holiday spending is expected to be strong this year, but with more sales channels than ever, retailers have to be smart about how they connect with customers.
- Retailers are embracing new technologies this holiday season, including live shopping videos and buy now, pay later (BNPL) platforms.
- Conscious consumption is one of the top trends this year, but shoppers are also looking for deals.
As they head into the biggest shopping weeks of the holiday season, America’s largest retailers are responding to changes in consumer behaviors.
Business insights about when, where and what consumers are expected to buy this holiday season are driving retailers to adopt new tactics and revisit some old ones.
The good news for retailers is that spending is expected to exceed last year’s 8.3% growth, despite supply chain challenges and potential merchandise shortages.
Sales during Thanksgiving week are expected to be particularly strong, with latest survey Mastercard spending which predicts 10% growth over last year.
The bad news is that there are more sales channels than ever competing for shoppers’ attention, making it more important for retailers to stay on top of trends.
These are the trends that big retailers are betting on to boost sales this Black Friday shopping weekend and throughout the holiday season:
Live virtual shopping in your living room
Retailers have found that just as Americans adopted live-streaming video for everything from work meetings to family gatherings during the pandemic, they are using it for shopping.
Retailers as varied as Walmart, Saks Fifth Avenue, Clarks Shoes, Bloomingdale’s, Macy’s, Kohl’s and Nordstrom have held successful livestream shopping events this year, and they and others are doubling down on them this holiday sales season.
saks In early November, it said it will hold a dozen or more Christmas-themed live shopping events in November and December, with celebrity hosts who can interact with viewers via chat and help them purchase merchandise featured at the events. live.
“This is another example of how we are meeting customers where, when and how they want to shop with us,” said Emily Essner, chief marketing officer at Saks, announcing the live events.
Meanwhile Amazon, which launched Amazon Live In 2019, it typically has half a dozen live shopping events running simultaneously on its Amazon Live link, with dozens of new livestreams each day hosted by influencers.
Coresight US live streaming e-commerce market expected to be $11 billion this year and grow three times as much over the next three years, to $35 billion by 2023. Less than a third of Americans had watched a purchasable live stream according to a recent report from Coresight, making it a huge growth opportunity for retailers.
Preparing for a bounce in the store: “They enjoy seeing merchandise and being close to each other”
While Americans are still expected to do most of their holiday spending online this year — 62% online versus 33% in stores, according to this Deloitte 2021 Holiday Retail Survey Retailers are preparing for a surge in holiday store traffic.
Walmart CEO Doug McMillon, on the retailer’s most recent earnings call, said he believes there is pent-up demand for in-store shopping. As pandemic restrictions eased, he said: “People went back to the shops and I think they like the shops.
“They enjoy seeing merchandise, being around each other,” McMillon said.
Walmart prepared for the return of shoppers in stores by fully staffing its stores in time for the holiday rush, McMillon said.
The Deloitte survey found that consumers this year plan to visit more stores, are willing to travel farther to shop in-store, and are less concerned about COVID dangers related to physical shopping than last year.
While more than a third of consumers told Deloitte they are prepared to spend more on gifts this year due to higher costs, holiday research also shows that a big part of the fun of holiday shoppingg, especially during crucial Thanksgiving week and on Cyber Monday, you’re finding a deal.
Buy Now, Pay Later is Now Available Virtually Everywhere
This is the first holiday season in which all major retailers have partnered with new fintech platforms to offer easy buy now, pay later (BNPL) and virtual wallet options, essentially ready for the era of digital shopping.
Buy now, pay later platforms like Klarna, I affirmed and After Pay They typically split payments into four equal amounts, making it easier to pay for purchases over time. They can also serve as virtual wallets similar to Venmo and Apple Pay, allowing shoppers to track their purchases and budget their spending, a feature that is driving usage by millennials and Gen Z consumers.
target This year it announced it was partnering with two BNPL providers, Affirm and Sezzleand Macy’s has expanded its partnership with Klarna to allow its use for in-store purchases as well as online.
Klarna has also partnered with two of the largest mall companies in the United States, Simon Properties and Macerich, to enable shopping at participating mall tenants.
Walmart was an early adopter of BPNL, with a 2019 partnership with Affirm. This holiday season it went further and announced it was replacing its long-standing in-store program entirely, with Affirm.
Bloomingdales is leaning into its partnership with Klarna this holiday season. The BNPL platform is sponsoring Bloomingdale’s Santaland at its New York flagship store, as well as a gift wrapping station with custom gift wrap printed with a personal photo and a “Give Happy Klarna” lounge to relax with a holiday gift.
«Tis the season to target high-spending ‘conscious consumers’
A survey Realized by Sitecorea software platform that manages online customer experiences, found that more than three-quarters of consumers plan to be more conscious of how they spend their money this holiday season.
Sixty-three percent said they are willing to pay more for locally made gifts, and 62% said they want retailers to offer more products from minority-owned businesses.
Deloitte’s Christmas report identified conscious consumers as one of the key groups retailers should target this gift-giving season, with 17% of shoppers in that category. Those consumers are expected to spend more, an average of $2,228 during the season, and are more likely to use social channels and prioritize local shopping and sustainability, Deloitte said.
Kohl’s is responding to that trend with a holiday campaign it calls “Give with all your heart,” and a pledge to donate $8 million to approximately 150 U.S. nonprofits. She is selling Kohl’s Cares Collection, classic children’s books paired with a plush toy, and giving all profits to nonprofit organizations that support the health and well-being of children and their families.
Additionally, it’s using a TikTok challenge and other social media engagement aimed at inspiring shoppers “to share intentional and meaningful gifts with loved ones,” according to the campaign announcement.
Target, for its part, has expanded its partnership with the sustainable cleaning and home goods brand Grove with a limited edition Christmas collection called Sparks of Joy, with Christmas scents and a candle.
Etsy and Amazon are betting on artisanal food to boost gift sales.
The Christmas campaign Etsy“More Than a Gift,” features social media ads that show how handmade and personalized gifts strengthen human connections.
Amazon is promoting its merchandise handmade or handmade through a partnership with actress and screenwriter Mindy Kaling, highlighting her selection of co-designed items from artisans around the world.
Despite inflation and shortages, agreements remain important
While more than a third of consumers told Deloitte they are prepared to spend more on gifts this year due to higher costs, holiday research also shows that a big part of the fun of holiday shopping, especially during crucial week of Thanksgiving and Cyber Monday, you’re finding a deal.
Deloitte found that 60% of consumers said getting a great deal is the main reason they choose one retailer over another.
Walmart, Target and Amazon, the three main competitors in the fight to attract shoppers with low prices, began offering holiday deals earlier than ever. Walmart said it plans to absorb raw price increases rather than pass them on to consumers, to maintain a low-price advantage.
In this year’s National Retail Federation’s annual consumer survey, 58% of respondents said deals that are “too good to pass up” are their biggest motivation for shopping between Thanksgiving and Cyber Monday.