How the 2023 Holiday Season is Shaping Up: Insights for Marketers, Retailers, and Brands
The leaves are starting to turn, the air is getting crisp, and pumpkin spice lattes are back on the menu. These signs precede the fast approaching holiday season - a time of joy, togetherness, and, of course, shopping. As marketers, retailers, and brands gear up for the busiest time of the year, understanding what’s going on in the minds and wallets of consumers becomes more important than ever.
That’s why we decided to get a head start on the holiday spirit. We conducted a brief survey to take a peek inside the wish lists and shopping bags of consumers as they prepare for the 2023 holiday season.
While the basics of holiday shopping remain steady - gifts, family, and a focus on experiences - our data reveals subtle yet noticeable shifts. The increase in online, mobile, and ‘Buy Online, Pick Up In-Store” options, combined with increasing access to a widening variety of goods and services, have made consumers more adaptive and selective.
How early is too early?
While most people are savoring the last moments of summer, over a quarter of consumers (28%) have already started their holiday shopping. Of these super-early bird holiday shoppers, nearly 4 in 10 (37%) just started shopping in the past week (note: survey fielded from 9/13/23 - 9/21/23).
Insight for Retailers: Understand what items / categories they are shopping for and target these early birds with short term promotions and limited time offers.
Trimming the shopping list, not just the tree
Overall, the 2023 holiday shopping outlook isn’t shaping up to be very cheerful for retailers. Our data shows the vast majority of respondents are either planning to spend the same or less than they did last year. Only about one in six (17%) are planning to spend more.
Insight for Brands: Many consumers may be trading down, buying less gifts, shopping around and looking for discounts. Brands and retailers would benefit from offering deals as well as a range of products targeting budget conscious consumers, while also offering some more high-end products for those that want to splurge.
The Best of Both Worlds: Online and In-Store Shopping
A majority of respondents (60%) are balancing their shopping between online and in-store, indicating that a hybrid approach is most appealing. About one-quarter (25%) are planning on shopping online only, and less than 15% are going the traditional route of shopping only at brick and mortar stores.
Insight for Retailers: An omnichannel and integrated marketing strategy is essential. YOU want to Understand your customers’ journeys and ensure they have a seamless and satisfying experience from online and social to in-store. Your online shopping experience should be as inviting and efficient as the in-store one (and vice versa).
The Influencer Paradox
While influencers are a big part of today’s advertising strategies, they may not be one of the most effective tactics. Over half (61%) of shoppers are neutral towards influencer-advertised products, while nearly a quarter (23%) actively avoid these products. Only 16% of respondents claim to trust the influencers’ recommendations.
Insight for Marketers: Influencers may be effective at getting your name out there and increasing awareness but their power to impact purchase is still debatable. Utilize them in combination with other strategies that yield better bottom line results for your brand.
Offline meets Online when it comes to researching gifts
"In-store visits and window shopping" (27%) and "Online reviews and ratings" (31%) were the most popular methods for researching gifts. Rounding out the top 3 was “Word of mouth from friends and family” at 19%, indicating a blend of traditional and modern approaches in holiday shopping.
Insight for Brands: Understand where your consumers look for information and reach them on the right channels with the right messages.
As the 2023 holiday season approaches, it's clear that consumer behavior is evolving in significant ways. These shifts offer both challenges and opportunities for marketers, retailers, and brands willing to adapt. If you're interested in diving deeper into consumer insights tailored to your brand's unique needs, we invite you to set up a capabilities call with us.
