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Shoppers are also being more intentional about when and how they spend. For many, this reflects worries about the cost of the season. Almost half will be using loans or credit cards to fund their spending, and buy-now-pay-later solutions will be an increasingly important way of deferring shopping costs, both online and in store. Not everyone is borrowing to spend; around half of all consumers say they’ve been saving for the festive season for some time.
Wherever the money comes from, more consumers are determined to spend it well this year. Overall, they are more interested in buying items that promise value that lasts beyond the season. For example, they are spending more on technology and reusing last year’s festive décor. They are also making their holiday budgets go further by, for example, skipping holiday foods and beverages that feel a little too indulgent.
It’s also true that for many consumers, and many products, festive shopping behavior has nothing to do with bargain hunting. For example, 48% of global consumers say if they find the ideal priority gift they will buy it, whether it’s on sale or not. Also, 64% of consumers say they often question the real value of the discounts and promotions they see in festive sales and 58% say the items they want will not be in the sales and promotions anyway.
Taking action
To maximize value during the festive season, consumer products companies and retailers should focus on digital promotions and messaging:
- Actively fine-tune digital promotions to align with consumers' search for value.
- Design signature sales promotions to rapidly expand audience reach and increase perceived value in priority channels.
- Maintain current, integrated and easily accessible messaging throughout the season.
Festive fragmentation: balancing physical stores and rising social commerce is critical
A physical store is still where most consumers (68%) plan to shop this festive season. Yet smart, savvy, shrewd consumers will happily switch between channels to get what they want. Hence this season will intensify the ongoing fragmentation of channels.
The value of the store extends beyond the festive atmosphere it offers; many consumers want to see, touch, and physically experience a product before they commit to purchase. In this regard, stores provide a level of confidence that is difficult to replicate in the digital space. However, the digital experience is evolving fast.