According to a recent study conducted by research firm Gartner, retailers worldwide may face a less prosperous holiday shopping season than initially anticipated. The study reveals that consumers are planning to tighten their wallets this year, with 28% of respondents indicating that they will be cutting back on their holiday spending. Only 10% of consumers surveyed intend to spend more. Interestingly, the increased spending among this group is not motivated by a desire for extravagant gifts, but rather by the need to compensate for higher prices of goods and services.
Insights from the study, which involved 306 consumers, indicate that 48% of respondents intend to begin their holiday shopping in either October or November. Additionally, 16% of consumers have adopted a year-round approach, shopping for holiday gifts throughout the year. Kassi Socha, a director analyst at Gartner Marketing Practice, highlights the significant impact of inflationary pressure on consumers’ holiday spending plans. This hesitancy towards budgeting, coupled with the shifting timing of holiday shopping, demands that marketers adopt an “always-on” approach that emphasizes the importance of omnichannel strategies.
Given the concerns surrounding inflation, it is unsurprising that 65% of respondents consider price to be a key factor in their gift decision-making process this year. Value (53%) and free shipping (51%) were identified as the other two significant factors. Ultimately, consumers are seeking to maximize the value of their purchases.
The study also uncovered insights into consumer preferences for gift categories. Gift cards emerged as the top choice for this holiday season, potentially reflecting a desire to avoid wasting money on unwanted items. However, apparel and accessories continue to be popular choices. When it comes to finding inspiration for their holiday shopping, 35% of respondents rely on friends’ and family’s wish lists, while 22% turn to Google search. Other sources include considering friends’ and family’s previous purchases (21%), visiting brand websites (18%), reading online reviews (16%), engaging with brand emails (11%), and browsing catalogs (10%). Interestingly, online sources that typically receive significant attention, such as Instagram, online articles, and YouTube, rank lower on the list, with only 7% of respondents relying on them for inspiration. Platforms like Pinterest, Facebook, TikTok, influencers, blogs, and brand messages have even lower percentages.
Despite the resurgence of physical stores following the pandemic, the study indicates that online shopping will dominate during the 2022 holiday season. A notable 21% of consumers plan to shop more online than in-store this year, a significant shift from 2021.
In summary, the Gartner study presents a more cautious outlook for the upcoming holiday shopping season, with consumers planning to scale back their spending due to inflationary pressures. This poses a challenge for marketers, who must adapt to consumers’ changing behaviors and implement omnichannel strategies to engage and attract shoppers. Price, value, and free shipping are the primary factors influencing consumers’ gift decisions, with gift cards taking the top spot in terms of popularity. Friends’ and family’s wish lists and online searches serve as the primary sources of inspiration for consumers, while physical stores continue to face fierce competition from online shopping.
Useful Links:
1. Tips for Effective Holiday Marketing Strategies
2. The Impact of Inflation on Consumer Behavior During the Holiday Season
