It’s hard to believe that the end of 2022 is almost here! And with the end of year, comes the holiday season. If the past year has been an indication of COVID-19 pandemic affects effects finally waning, it should set up this holiday season as a prime shopping/selling period for consumers and brands – even with the thought of recession looming.
Inflation will have an impact, but won’t stop, holiday spending
The COVID-19 pandemic has been replaced by financial insecurity as consumers’ primary concern when it comes to their spending habits this upcoming holiday season. 48% of consumers believe we are already in a recession – with 25- to 44-year-olds leading the most concerned about the impact of a recession due to less experience in economic downturns.
But even with the financial hesitations, consumers will still be spending, just more creatively. Surveys from Bankrate and Creatopy sought to understand what would help consumers feel more comfortable with their spending, and found that:
- 41% are looking for coupons, discounts, and sales
- 40% will buy fewer things
- 21% will opt for cheaper brands
- 67% are choosing their retailers based on the offering of free shipping
- 66% are choosing their retailers based on their deals or promotions
- 58% are choosing their retailers based on value for the price
So, what can brands do?
Retail brands know that the holiday season is their last chance to head into the new year on a positive note. It isn’t enough that there’s changing consumer habits following the COVID-19 pandemic and the turbulent economic atmosphere, but the media landscape has also changed in the last three years, with more options, platforms, and attribution available for brands. One thing that hasn’t changed financially is that deals, and sales are a consumer’s priority.
It’s crucial for brands to time product launches and discounts to match seasonal demand. Keep in mind that increasing awareness and demand is just as important as driving conversions and having a partner who knows the right mix of media spend and channels to bring your brand both can set you up for unrivaled success.
Still unsure of what to do next? Check out our white paper Driven by Discounts: A Holiday Shopping 2022 Forecast and start today!
Retail sales absolutely depend on promotions, market conditions, and supply chain challenges but your marketing strategy and approach set you apart from the competition. Let’s talk about how Marketsmith can differentiate your go to market strategy and drive your retail sales in 2023.