4 TRENDS TO MAXIMISE 2020 HOLIDAY SEASON SHOPPING SPREE
Brands and Retailers are concerned of many challenges for the upcoming peak shopping season due to the pandemic. With the tough times, the consumer might not have the budget to buy or perhaps if they do, the location in which they would be shopping in is also tough to determine. As 2020 has been already very difficult, the year-end season - traditionally a major shopping season – is more important than ever. To ensure that Customers will spend their hard-saved money with them, Brands need to integrate 4 current market trends.
1. Stretched Out Holiday Season
A RetailMeNot study found that the traditional seasonal shopping timeline is shifting. This is of course due to the shift of way of life, which means a shift in customer behavior. For one, the growing importance of ecommerce. But also, the importance of still maintaining the structure of physical stores. Two points in which must convert at a certain level to fit the targeted consumers.
2 shifts are happening at the same time.
The first one of course being the continuous growth of ecommerce.
The second is that the Holiday season, from a shopping perspective, now starts much earlier. Holiday Season now starts earliest in November. In Asia, the Big Start is with Lazada’s famous 11.11. This leads other shopping apps such as Shopee and Taobao to follow in order to keep up with their competitors. With ecommerce being the face of marketing, physical stores will have to keep up too in order to stay in the loop of marketing.
This streched Holiday Season and its 2 major shifts have consequences for Marketers:
Promotion activities need to be sufficient to cover the whole period, with the risk, if not sufficient, that customers switch to other more attractive offers.
According to Criteo, shopping apps correspond to 60% of downloaded apps. Additionally, 50% of shoppers said they don’t mind watching or seeing in-app ads if they get free content in exchange. This means new potential of attracting new customers.
2. Online Representation
Now that everything is turning digital, this means online presence and representation is more important than ever. Not only having an online store, but having social media platforms to share products in store and keep customers active with the brand, whether by likes or comments.
Most social media platforms such as Facebook, Instagram, and TikTok, has made business easier to reach consumers. Not only because they’re popular which means more people are aware of a brand’s product, but also because it enables them to maintain a relationship with the brand, creating a certain level of authenticity. A factor in which creates a greater likelihood of gaining and maintaining loyal customers.
Because of the importance of several sales channels (physical, market place, social platform, etc), the season offering must be tailored to each sales channel audiences.
According to data from 14,000 retailers globally, Criteo found that online retail sales were 17% higher worldwide compared to a pre-pandemic average. In the meantime, research from Signifyed shows that Buy Online Pick up In-Store orders more than doubled globally (BOPIS).
Queue-it predicts that 10% of mobile orders will be through social channels (with peak days reaching between 12%-15% of mobile orders).
3. Sustainability is Key
Hypertrade Consulting has written an interesting article about Gen Zers’ trends. And for those who have read it, they already know that physical stores will become popular again this year. Although, not just any physical stores. Shoppers are now, as stated previously, considering sustainability whilst shopping. This means that anything from rental to resale has become more and more popular. In fact, according to Queue-it, the resale market is expected to double in size in 2023, while apparel rentals services are expected to grow by 20% annually.
This market is such a great opportunity that retailers such as Macy’s and Urban Outfitters have announced subscription rental services, while other retailers have buy-back programs for their used products.
According to PWC’s 2019 Holiday Outlook report, 75% of shoppers now consider sustainability when shopping seasonal sales.
Although there is new potential for attracting new customers, doing so can be costly. But not to worry, because during the lockdown, consumers have discovered new favorites during lockdown across online grocers, brand websites, and direct-to-consumer (DTC) businesses.
This is due to the fact that shoppers need to be more mindful with their shopping now that a majority of them has been gaining less due to the pandemic. Which means consumers will be more particular with what they are looking for. From quality, affordability, reliability, to sustainability.
Customer Data can be difficult to track, all the while an important aspect of sales. It comes to no surprise that it helps businesses better understand their clients. This allows them to better target their products, and improve targeted promotions.
It is for that reason that HPT Ariane has partnered up with Hypertrade Consulting to create the ultimate cloud-based solution for Retailers and Manufacturers to monitor CRM performances and understand Shoppers Behaviors: ULYS CRM
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