In a 2022 holiday survey by Deloitte, holiday shoppers are navigating inflation and finding festivity with family and friends in a post-COVID-19 world. This shifting landscape leads the way for shoppers to prioritize gift-giving over non-essentials. Read more to discover the latest trends and 3 ways you can market this holiday season.
As celebrating life becomes a new priority, there is a trend in increased spending on non-essential items. Although 41% of people expect the economy to weaken, even low-income shoppers plan to spend around 25% more this year.
The reasoning behind this increase in spending has a lot to do with inflation, shoppers say. So while they are spending more, they’re buying less.
A Shorter Holiday Shopping Season
Due to the rising prices of products and services, shoppers are expected to have a shorter holiday season this year. The average shopping window was around 5.8 weeks compared to 6.4 weeks last year.
Consumers got an early start this year, with many having a portion of their budget spent by the end of October.
The Lure of Sustainable Products & Experience
In this survey, Deloitte reports that this pull-back from non-essential items paves the way for increased spending on sustainable products and experiences, such as traveling to an old friend.
In 2022, most shoppers experienced increased financial stability, meaning they are reverting to their pre-pandemic spending habits. Lower-income and middle-income consumers have the highest spike in spending.
Low-income shoppers are spending 25% more on gifts this year than in 2021
34% more on experiences
13% are sitting out this holiday, compared to 21% last year.
Middle-income shoppers are spending 3% more than last year.
69% of shoppers plan on buying fewer gifts in 2022, meaning they’re selective with what they purchase.
15% more on experiences
High-income shoppers pull back spending nearly 15% this year, with a significant decline in the amount they spend on electronics.
In-Store Shopping Sees Rebound; Online Retailers Still Dominate
While online retailers are still at the forefront, in-store shopping has seen its highest increase since 2019.
Online shopping stays the preference for many shoppers.
56% of shoppers will use smartphones to purchase online this holiday
34% plan to use social media for holiday shopping, with Gen Z and Millennials spending the most.
Travel Still Lays Low
This year, only 31% of Americans say they’re traveling between Thanksgiving and mid-January, compared to 42% in 2021. Older people are still likely to sit this year out, at only 22%, compared to 36% in 2021.
With fewer people traveling, hotels and airlines can expect a dip in earnings. Only 35% of travelers expect to stay in hotels this year, compared to 37% in 2021. Although traveling to hotels is down, both domestic and international flights will expect an increase due to travel intent.
Not traveling is due to financial concerns and the need to spend money on essentials. Only half of the travelers (15% of Americans) will be traveling this holiday season to paid lodging, a steep decrease from 29% last year.
3 Ways to Market Your Product this 2022 Holiday Season
1. Know Your Audience and What Platforms They Use
Understanding your target market will help you determine which platform(s) to focus on this holiday season. For Generation Z & millennials, or teenagers and young adults (18-41), Tik Tok, Instagram, Youtube, and Facebook will be your platform of choice. Comparatively speaking, Generation X and Baby Boomers are more likely to holiday shop using search engines Facebook and Youtube.
2. Know Your Unique Value Proposition (UVP)
By knowing what makes your brand stand out, you can better market your product to your target audience, creating an experience that matters. This experience intrigues holiday shoppers and maybe even makes them want to share your product with others. As time with family and friends goes up this holiday, focus on the experience that brings them together.
3. Create Sharable, Quality Content
Create sharable content that reflects your brand and UVP. Focus on content that provides real value to users solves a problem, answers a question, and leads them back to your product. Creating a solid content strategy will diversify and expand your target audience, and with social media being such a prevalent way to purchase gifts, it’s more important than ever.
View what your competitors are doing on social media and think of ways you can provide value to your customers this holiday season.
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