Aussie consumers are spending more money this holiday period according to Accenture’s annual holiday shopping survey.
However, with so many retailers and brands competing for attention and share of shopping dollars, there are three trends they should watch out for this season.
Trend 1. Cautious optimism as deal-seeking intensifies
There are positive signs around holiday spending, with consumers planning to spend $819 this season, on average.
Almost seven in 10 (69 per cent) consumers rated price and value among the most important factors in deciding what retailer to buy from and 31 per cent said they will shop as and when they are offered promotions or discounts.
“It is encouraging that consumers are planning to spend more this holiday season, but with this optimistic outlook comes a reminder that price and value remain front-of-mind for many,” explains Accenture ANZ retail lead Tom Priestley.
“Then there’s the challenge of where and how consumers experience a retailer. Everything from the adverts and digital marketing they receive to the online and in-store experiences, to the customer service they encounter along the way. These are all factors that can make or break the season.”
What can retailers do?
Retailers should look beyond the stand-alone sales events such as Black Friday and Cyber Monday and put in place a dynamic sales and marketing plan anchored around existing inventory and that can be adapted as demand fluctuates.
With 44 per cent of shoppers planning to shop between early November and early December, retailers will need to pay close attention to data and analytics to carefully balance how and when to offer promotions and discounts, while preserving their profit margins.
Trend 2. Gift cards—the untapped revenue accelerator for retail
Last year, six in 10 consumers (58 per cent) received gift cards. This year, 35 per cent of consumers plan to allocate their holiday spend to buying gift cards. Yet, despite being a popular choice among holiday shoppers, four in ten of the recipients surveyed said they failed to redeem the full balance of the card, resulting in an unspent balance of US$134, on average, per consumer.
While the purchase of a gift card immediately translates into revenue for the retailer, unredeemed cards represent a significant missed opportunity for retailers, which could gain new, lifelong customers and incremental sales.
“With holiday shopping underway, many customers will turn to gift cards as an easy way to save time and effort. However, they can be seen as lacking the personal touch by those on the receiving end. As a category, gift cards have tremendous potential to be reinvented.
“Building creativity and interactivity into the experience can help evolve gift cards from a last-minute, mind-blank gifting solution into a thoughtful and personal gift that customers are excited to give and recipients are excited to use. Done well, they could help retailers and brands attract new and lifelong customers.”
What can retailers do?
• Keep it simple, make it easy: for retailers to make the most of the gift card opportunity, they must make the cards easy to purchase, use and manage. Recipients of gift cards told Accenture that simplifying balance check options (46 per cent), regular reminders of unspent balances (38 per cent) and an easier redemption process online and in-store (31 per cent) would help ensure they use their gift cards.
• Personalised and price-aligned: retailers can increase customer satisfaction and generate loyalty through enhancing the gift card experience, making it less transactional and more personal.
Trend 3. Buyers’ block in the quest for the best
As holiday shoppers go in search of the perfect gift for friends and loved ones this season, six in 10 (62 per cent) don’t know where to start and almost seven in 10 (70 per cent) are worried they’ll make the wrong purchase decision and regret it.
However, a large group of consumers (72 per cent) could face ‘buyers’ block’—the effect of feeling overwhelmed by the number of options to choose from. The result? The majority (76 per cent) say they will abandon their shopping carts due to frustration or indecision and nearly one in three (24 per cent) will shop elsewhere.
“Successful retailers will be those who harness the power of their brand as a magnet to draw customers to shop with them over their competitors. It will require paying even closer attention to customer data, ensuring promotions, marketing campaigns and advice are tailored to individual customers with much greater precision,” adds Priestley.
“It is clear that consumers are open to receiving advice and inspiration to help check things off their holiday shopping to-do list. But there’s a careful balance to strike between being a helpful and trusted advisor and bombarding them with too much choice and information.”
What can retailers do?
• Deck the malls: successful retailers will apply creativity to store layouts to maximise the sales for each square foot of their allocated selling space. For example, a dedicated area for gift wrapping or personalisation services.
• Retail associates as ‘inspiration champions’: innovative retailers are empowering store associates to display their expertise and help inspire and advise shoppers, welcome news to the 40 per cent of consumers who appreciate personal customer support.
• ‘Tis the season for tech to shine: Gen AI is poised to add a touch of sparkle to this year’s holiday shopping experience. It can act as a personal shopping advisor with human-like response abilities suggesting gift ideas or advice on wrapping.
