This year's holiday shopping peak will be like no other (Image: AdobeStock)
Insights from more than 3,500 holiday shoppers in China, France, Germany, the United Kingdom, and the United States, show that the pandemic has induced changes in behaviours that are now set to remain part of the retail experience.
It means that the stakes for this year’s holiday shopping season have been ramped up—both for attracting new shoppers and winning back those previously loyal to their brand.
So finds the latest research conducted by Periscope® by McKinsey, which goes on to reveal six trends retailers need to adjust to, following the unprecedented changes in consumer shopping behaviour and the re-introduction of COVID-19 lockdowns and restrictions.
Overall spending falls, shoppers eye blockbuster day deals
While consumers across the globe plan to reduce holiday spending, with China as the only exception, three quarters of all holiday shoppers surveyed say they intend to take part in at least one of the season’s blockbuster shopping events.
Leading the pack is Black Friday (55%), followed by the recent Amazon Prime Day (43%), Cyber Monday (39%), pre-Christmas sales (38%), and Singles Day (26%).
Overall, 81% (China: 90%, Germany: 89%, France: 85%, the United Kingdom: 75%, and the United States: 73%) say they will spend the same or more as last year on holiday blockbuster deal events. This sense of excitement is especially true in China, which is the first major economy to recover from the pandemic. However, retailers should be cautious of heightened demand as 42% of holiday shoppers expressed a slight or significant income reduction (the United States: 27%, the United Kingdom: 26%, France: 16%, Germany: 11%, China: 10%).
An early start to avoid disappointment
Burned by out-of-stock items, limited availability for curbside pickup windows, and delivery delays that occurred in the spring, many shoppers have already started shopping for holiday gifts. Almost half of the respondents said they intended to begin shopping earlier, with holiday shoppers in the United Kingdom most likely to get a head start and those in France least likely (the United Kingdom: 56%, the United States: 52%, China: 48%, Germany: 48%, and France: 40%). Retailers are initially responding to the early demand by expanding blockbuster sale days to multi-day events, spanning a week or more, and starting them earlier.
Now, the emphasis is on how the retailers governed by new shutdown restrictions can pivot to provide digital browsing experiences for consumers.
Black Friday events need to be sensitive to shopper anxiety
Black Friday continues to grow in popularity and is expected to be the most popular deal day in the United States, the United Kingdom, France, and Germany in 2020, with an average of 60% of holiday shoppers in these countries saying they plan to participate this year, up from 50% last year.
Shopper anxiety and stress is a feature of this year’s holiday season that has come through in the survey. Retailers should be aware of the issues and instil confidence in areas such as in-store COVID-19-safe environments, their ability to deliver a great experience at scale, stock availability, and deals that offer great value for money.
The survey showed an average of 24% of respondents are anxious and/or stressed this year, with much higher levels in the United States and the United Kingdom (30% and 36% respectively) and stunningly low levels in China (5%).
via https://AiUpNow.com November 9, 2020 at 01:29AM by Paul Skeldon, Khareem Sudlow,
