Edition 3: Top Shopping Trends Expected This Holiday Season

We’re more than halfway into 2023. With Labor Day just around the corner, it won't be too long before the holiday rush begins.?

According to Insider Intelligence, the overall retail spending during the holiday season in 2023 will rise by 4.5% over last year despite the ongoing economic uncertainty.??

What shopping trends can we expect this year??Find out more in Edition 3 of Relevantly Yours, our bi-weekly LinkedIn newsletter.?

Key Holiday Shopping Trends in 2023

Trend #1: Consumers will expect discounts.

Last year consumers had ravenous appetites for deals driven by rising inflation. Even with the recent decline in inflation, US retailers expect a cautious spending pattern this holiday season.? According to? CNBC’s Supply Chain Survey,

71% of retailers believe consumers will cut back on spending this holiday season while 67% believe consumers will expect heavy discounts.

But this is not all bad news.?Amazon’s Prime Day this July clocked in a 6.1% year-on-year growth and the company recorded July 11 as its biggest Prime Day in history. This is a good barometer for brands to gauge what to expect later this year: inflation may not slow down spending this holiday season but rather drive consumers to search for the best deals and discounts.?

Trend #2: Personalization will be key to driving sales.

If consumers are expected to be on the lookout for discounts this holiday season, brands must respond by recommending products not only aligned with their intent but also providing the best value. According to Forrester research, almost two-thirds of US online adults find it valuable when companies recommend products that are on sale or offered with a promotion. Layering messages with first-party data such as loyalty or in-app purchase data across channels can further increase relevance for consumers.??

Trend #3: Holiday shopping will get more ‘social.’

According to research by Salesforce between March and May 2023,

more than half of consumers said they bought an item in-store that they discovered via their social media feeds.

Millennials and Gen Z are at the helm of the social commerce wave. Insider Intelligence predicts social commerce to grow by nearly 30% this year, much of it thanks to the increasing popularity of TikTok. Social media will also be an important channel to influence purchase decisions. A robust social strategy must be on the cards for brands this holiday season.

Trend #4: Customers may start shopping early (again).

In 2022, more than half of US consumers began their holiday shopping before Thanksgiving, likely spurred by mid-October early-access sales and deals for loyalty members. Many retailers continued doling out discounts to deal-hungry shoppers even post-Christmas in an attempt to clear through inventories. An extended holiday season (starting in October and perhaps continuing through the early weeks of January) is likely to repeat in 2023 as consumers’ appetite for value-driven deals has not waned.?

Trend #5: Omnichannel experiences will continue to remain in demand.

2022 saw customers return to offline stores either to shop in person or pick up orders they placed online (also called buy online pay-in-store or BOPIS). As per Salesforce,

39% of shoppers seek retailers who offer BOPIS and 41% are more likely than a year ago to buy after they browse online for available inventory in-store.

Brands and retailers that invest in such omnichannel experiences will increase sales as consumers value the convenience, flexibility and visibility they offer.?

Automate personalized, relevant offers this holiday season

The holiday shopping season can be particularly challenging for brands. The creative teams must pull together high-impact ads personalized to consumer preferences while the commercial and media teams must strike while the iron is hot with the best deals and promotions.?

Jivox’s Dynamic Offer Creative helps brands boost sales and save time to get the most relevant creative and offer in front of the consumer in a quick and efficient way. As you gear up for the upcoming holiday season, learn how your team can benefit from this powerful capability.?

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