Frugal or Frivolous, Feast or Famine: Holiday Retail Trends, Festive Spending, and Digital Marketing Insights.
Michael Boyle
Design | Sourcing | Manufacturing | Brand Licensing | Buying | Distribution | Customer Experience | Digital | D2C | Marketplaces | Brand | Creative | Marketing | Strategist | eCommerce | Logistics | Retail | Luxury
Record Christmas Ad Spending
Brands are set to unleash a staggering ￡9.5 billion in Christmas ad campaigns, reflecting a 4.8% increase from the previous year. While the figure is record-breaking, the adjusted growth is a modest 0.3%, indicating stability at pre-Covid levels. Notable shifts include a 20.2% boost in video on demand, a 10.3% rise in out-of-home, and a 9.1% uptick in online display spending. The report, based on Advertising Association and Warc data, notes the resilience of the market and the recognition by brands of the value of Christmas advertising, contributing ￡430 million to the total market value in 2023.
Read More: Dive into the Full Festive Report
Iceland's Unconventional Christmas
Iceland Foods breaks from tradition by opting out of Christmas advertising for 2023. Executive Chairman Richard Walker emphasizes the decision to invest millions in supporting customers during the cost of living crisis rather than creating a TV ad. Iceland focuses on keeping prices low, offering initiatives like the 'Christmas Bonus Card Saving' scheme, providing ￡15 cashback on a ￡100 loyalty card credit. This unconventional move aligns with Iceland's commitment to customer support and echoes its past success with the 'Rang-Tan' ad in 2018, which gained viral attention after being 'banned' from TV for being too political. The commercial, made with Greenpeace, features an animated orangutan and highlights the destruction of the rainforest by palm oil growers.
Read More: Explore Iceland's Unique Approach
TikTok's Met Gala Sponsorship
In a groundbreaking move, TikTok sponsors the 2024 Met Gala and Costume Institute exhibition, themed "Sleeping Beauties: Reawakening Fashion." The collaboration emphasizes global accessibility through TikTok's platform, utilizing technology like holograms and magnifying glasses. The exhibition explores the intersection of fashion, technology, and nature, promising a captivating blend of modern technology and timeless fashion. The sponsorship aligns with TikTok's tech focus, offering a unique synergy for a global conversation on fashion, technology, and privacy.
Hugo Boss's Q3 2023 Growth
Hugo Boss reports phenomenal growth in Q3 2023, with a 15% surge in group sales to ￡842 million. BOSS Menswear and BOSS Womenswear see 12% and 24% currency-adjusted revenue spikes, while HUGO experiences an impressive 25% sales increase. The digital channel registers a robust 25% boost, accompanied by 8% growth in brick-and-mortar retail and an outstanding 21% surge in wholesale. CEO Daniel Grieder attributes success to strategic initiatives, marking a positive outlook for 2023.
Read More: Explore Hugo Boss's Soaring Q3 Performance
Amazon and Meta's Shopping Integration
Tech giants Amazon and Meta Platforms Inc. collaborate on a feature allowing users to directly purchase Amazon products through ads on Facebook and Instagram. The partnership aims to streamline the shopping experience, enhance Meta's appeal to advertisers, and broaden Amazon's shopper base. The real-time integration displays pricing, delivery estimates, and product details on select Amazon ads within the social media platforms. This strategic alliance positions the companies to counter challenges from TikTok's US e-commerce marketplace and emerging Chinese platforms like Temu and Shein.
Rixo Introduces "Try Before You Buy" Service
Fashion brand Rixo launched a pioneering "Try Before You Buy" service, enhancing the online shopping experience. This innovative approach allows customers to sample clothing items before making a purchase, aiming to reduce returns and improve customer satisfaction. By embracing this strategy, Rixo aligns itself with evolving consumer expectations and stands out in the competitive fashion landscape.
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Read More: Rixo Launches "Try Before You Buy" Service
Cautious Consumers Stall Spending
Amidst a 2.5% growth in total retail sales in October, caution among consumers is evident. The figures, not adjusted for inflation, mask a likely drop in volumes considering the higher-than-normal inflation levels. While food sales and online non-food sales show positive trends, overall retail sales growth is below the 3-month and 12-month averages. Retailers face challenges as high mortgage and rental costs shake consumer confidence, leading to delayed Christmas spending. The "Lipstick Effect" is observed, with more spending on lower-price indulgences. Retailers continue to navigate cost pressures and affordability concerns in the run-up to Christmas.
Read More: Cautious Consumers Stall Spending
Record Online Spending in October
Consumers drive online sales to a record $76.8 billion in October, marking a $4.3 billion increase from the previous year. Mobile shopping sees a remarkable 46.7% year-over-year surge to $35.9 billion, with "buy now, pay later" transactions increasing by 6% to $6.4 billion. The strategic approach includes taking advantage of early deals, resulting in a 6% decline in online prices compared to October 2022. Retailers successfully entice budget-conscious shoppers, especially in categories like apparel, electronics, and sporting goods.
NRF's Holiday Spending Forecast
The National Retail Federation (NRF) forecasts holiday spending to reach "record levels" with a 3%-4% year-over-year growth, totaling between $957.3 billion and $966.6 billion. Online and non-store sales are expected to rise between 7% and 9%, reaching $273.7 billion to $278.8 billion. Despite a more modest growth rate compared to the previous year, consumers remain resilient, navigating challenges such as inflation and higher gas prices. The NRF attributes this resilience to solid job and wage growth, with consumers seeking deals to maximize their budgets.
Read More: Explore NRF's Insights into Holiday Spending
The Future of Customer Experience
In the evolving marketing landscape, the future of customer experience centers around the adept handling of first-party data. With over 12,000 tools competing for attention, brands must fortify their first-party data strategies. This journey involves prioritizing first-party data, tripling down on privacy, leveraging privacy as a strategic differentiator, embracing zero-party data directly shared by consumers, and shifting from assumed behaviors to explicit data requests. Understanding these dynamics is crucial for businesses aiming to stay ahead, build trust, and create personalized, value-driven connections with customers.
Michael Boyle is a highly accomplished marketing professional and the owner of?Modernity Marketing ?— a digital and creative marketing agency. Michael is a sought-after freelance marketing consultant overseeing digital marketing channels, e-com, budgets, logistics, customer care, creative direction, and spearheading brand launches from concept to reality.?His breadth of expertise makes him a rare go-to authority for premium D2C brands.