by Justin Thomas, VP Sales EMEA North at Akeneo
The 2024 holiday shopping season will be characterised by a dynamic blend of tradition and innovation, where consumers seamlessly shift between online platforms and physical stores. This hybrid approach reflects a growing demand for convenience, but also reveals a careful balancing act between budgetary concerns and ethical consumption. Even as inflation and economic uncertainty fall back, shoppers remain price-conscious even though many are still willing to spend more on sustainability.
Consumers prioritise hybrid, omnichannel experiences
In 2024, consumers are opting for hybrid shopping experiences that offer the best of both worlds, online convenience and the sensory advantages of in-store shopping. They plan to do most of their shopping online, but almost all will mix both online and in-person shopping. This trend indicates that while digital platforms are crucial, physical stores remain relevant as integral parts of the shopping journey.
Mobile apps are also cementing their role as indispensable tools for holiday shopping, for their ease and accessibility. In addition, social media has emerged as a growing channel for discovering and purchasing products, with platforms like TikTok Shop becoming increasingly popular.
Even when heading to brick-and-mortar stores, shoppers often begin their journeys online, researching products in advance. Around 65% of consumers check online before making a final purchase. This underscores the importance of Click & Collect, with the majority of consumers having used this service, further blurring the lines between digital and physical retail.
To succeed in this omnichannel environment, retailers must ensure that their online, mobile and in-store platforms are fully integrated and consistent. Offering seamless product information, smooth transitions between digital and physical experiences and services like Click & Collect will help retailers cater to hybrid shoppers and build long-term customer loyalty.
Consumers are more price-conscious this year
Economic pressures continue to significantly influence consumer spending decisions. With the overhang of inflation and economic uncertainty at the forefront, very few shoppers plan to increase their spending compared to last year, while the majority are planning to spend the same or less. Price sensitivity is higher than ever, with shoppers actively hunting for the best deals, comparing prices across platforms and timing their purchases around sales events such as Black Friday and Cyber Monday.
Impulse buying is on the decline as more shoppers adopt a strategic approach to holiday shopping, carefully weighing value for money. At the same time, sustainability continues to influence spending, particularly among younger generations. Half of consumers are willing to pay more for products that are sustainably sourced, indicating that price-consciousness doesn’t override interest in ethical purchases.
Brands and retailers should offer value-driven promotions to attract budget-conscious shoppers. Beyond simple discounts, consider creative bundling of frequently purchased items, tiered loyalty rewards and free shipping thresholds. By making sustainability part of the value proposition, retailers can appeal to eco-conscious consumers willing to spend more for products that align with their values.
Product information drives confident decision-making
Consumers are more informed than ever before, and they expect brands and retailers to provide clear and transparent product information. As shoppers become more discerning, they want detailed insights into the products they are buying, including how they are made, what materials are used and what ethical standards are upheld during production. This trend is driven by the growing conscious consumerism movement, where buyers are no longer content with vague claims about sustainability, they demand proof.
Over half of consumers are willing to pay a premium for sustainably produced products, highlighting the importance of clear, accessible and reliable product information. Inaccurate or insufficient details can lead to abandoned baskets and lost sales, while detailed, transparent information can increase conversion rates and build trust.
To capture ethically-minded shoppers, brands and retailers need to provide comprehensive product information across all channels. Use clear labelling, detailed product descriptions, and engaging storytelling to highlight the sustainability and ethical sourcing of products. Demonstrating commitment to responsible production practices can turn one-time buyers into loyal, long-term customers.
As the 2024 holiday shopping season approaches, the key to success for retailers lies in adapting to these evolving consumer expectations. From offering seamless omnichannel experiences to providing compelling value and transparent product information, retailers must prepare for a more discerning, price-conscious and eco-focused shopper. Those who can meet these demands will not only drive sales but also secure their place on consumers’ holiday shopping lists for years to come.
For more details and insights into maximising holiday sales download Akeneo’s 3 Key Trends for the 2024 report.
