A new study, 2022 Holiday shopping and travel report, released on Oct. 17 by IBM, looks into how people plan to allocate their holiday shopping budget, travel and celebrate the season. This comes amid shifting focus from pandemic-related fears to concerns about economic and supply chain uncertainty.
According to the survey of 12,000+ adults across 9 countries:
Consumers are shopping earlier but want to keep their options open:
58% of consumers plan to jumpstart holiday shopping by the end of October.
63% of consumers are planning to pre-order goods this season to get products on time with guaranteed prices.
Uncertainty around inflation, gas prices, and supply chain concerns will continue to affect consumers' holiday plans:
Roughly half of consumers say that they will spend less if inflation continues to drive price increases, while 41% of consumers say they will spend less if goods are not available due to supply chain issues.
Brands and retailers need to be mindful that if consumers are forced to cut their holiday budget, 60% of consumers said that they will cut the non-essential categories like apparel, footwear, jewelry and accessories.
Sustainability still remains top-of-mind for the majority of people despite economic worries
73% will keep sustainability in mind when shopping for the holidays. On average consumers are willing to pay an average premium of 41% for sustainable products.
Action Plan
The study offers steps companies can take to connect with consumers this holiday season—and help them enjoy their celebrations, no matter how plans may change.
Target the right customers.
Reach consumers that have interest and cash—but haven’t finalized their holiday shopping lists and travel plans.
Personalize and differentiate products and services.
Tailor policies, unique products, and relevant services to meet shoppers’ demands.
Reward and incentivize customers to build brand loyalty.
Discount programs and other loyalty strategies can attract and engage new and existing customers, especially in the nonessential and luxury product segments.
Emphasize sustainability.
Identify purpose-driven consumers and provide feasible ways for them to connect with your company in supporting sustainability.
Plan for the unexpected.
Make contingency plans to seize fresh market opportunities. Build capabilities to enable flexibility and adaptability. Increase visibility into inventory and enable ways to reallocate products to respond to change.
