Global shoppers are likely to embrace a 'smart, savvy and shrewd' approach this festive season, following a shift in the way consumers plan to shop and what they expect and value, according to a new study by EY.
It involves shoppers using a full range of channels and technologies to get what they want, weighing the marketing and promotional offers they encounter, and being more discerning of what value truly means to them.
These trends might shape consumer behaviour well beyond this year’s sales, the study noted.
Shoppers across the world are looking forward to the festive sales despite subdued consumer confidence, the study revealed.
More than two-thirds (69%) are looking forward to this year's discounts with around a third saying they will spend more than last year, data showed.
Here are some other findings from the report:
Maximising Budgets
While many companies launched their seasonal sales earlier this year, 52% of global consumers said they won’t start spending their holiday budget until later in the season.
Many shoppers believe that better deals will emerge as the seasonal sales unfold, the study noted.
Around 67% are actively tracking the offers in the market to ensure that they get the best possible deals. This figure rises to 73% for consumers with children.
Consumers are also maximising their budgets, with 79% in the EMEIA region focusing on minimising food waste, 60% buying fewer decorations, and 43% not trading up to more expensive food and alcohol.
Fragmentation
Shoppers are planning to switch between channels to make their purchases but a physical store is still where most consumers (68%) plan to shop, the report revealed.
In terms of roles of each channel for consumers this festive season, 39% plan to visit a physical store to experience the product, and 25% for gift ideas and inspiration.
Close to a quarter (24%) will rely on brand and retailer communications to learn about products and 22% aim to use the channel to find and track promotions and deals.
Platforms like TikTok, YouTube, and Instagram will be significant sales channels in their own right this season, with Chinese consumers leading the way, EY noted.
In China, 50% of consumers plan to make purchases via shoppable social media, compared with 24% in the US and 17% worldwide, data showed.
Global consumers are expected to turn to social sales channels as new technologies allow brands to replicate in-store experiences.
Shopping Trends
The most active shoppers this season will comprise a younger demographic, with Gen Z respondents planning to increase spending across nearly every category, from clothing to technology to experiences.
Gen Z will prioritise products that are organic or sustainably sourced, with a third planning to purchase second-hand goods as gifts, either to stretch their budgets or to afford items that are beyond their budget when new.
Self-gifting has emerged as a popular trend among young consumers, with Gen Z leading in most categories - clothing, food, electronics, beauty, and experiences - while millennials lead the home goods and appliances segment.
