As the 2024 holiday season approaches, Zoho’s latest reports provide a comprehensive look at consumer behavior and actionable strategies for businesses. With insights from 1,500 respondents spanning various regions and generations, the data reveals trends in spending, timing, and shopping preferences, alongside tailored tips for retailers to optimize their holiday strategies.
Holiday Shopping Trends
Based on Zoho’s survey of 1,500 consumers and retailers ahead of the 2024 holiday shopping season, here are some of the biggest trends right now and how retailers can prepare their businesses to make the most of this season.
1. Timing: Early Birds vs. Last-Minute Shoppers
Holiday shopping begins at two distinct times: pre-Halloween and Black Friday/Cyber Monday. According to Zoho, 25% of shoppers start early, aiming to avoid crowds, while 44% wait for Black Friday and Cyber Monday, drawn by the promise of steep discounts.
- Generational Breakdown:
- Gen Z and Millennials: Black Friday remains their top choice, with over 67% citing it as their favorite shopping event.
- Gen X and Baby Boomers: While Black Friday dominates, Boxing Day and Thanksgiving sales also hold appeal.
Retailer Tip: Launch early-bird promotions to capture proactive shoppers, and ramp up Black Friday and Cyber Monday campaigns to capitalize on peak shopping momentum.
2. Shopping Destinations: Online Dominance, In-Store Appeal
Online shopping leads across all demographics, with 47% of respondents favoring online marketplaces. However, in-store experiences remain relevant, particularly among Baby Boomers and Millennials, with 33% opting for malls, department stores, and large retail chains.
- Gen Z: Prefers brand-specific stores for exclusivity.
- Millennials and Baby Boomers: Value small businesses and thrift shops for personalized, nostalgic shopping.
Retailer Tip: Balance your strategy by ensuring robust online shopping options while curating engaging in-store experiences to attract a broad audience.
3. What’s on the Wishlist?
Shoppers are prioritizing a mix of indulgent and practical items this year. Food, beverages, apparel, and electronics dominate holiday lists, with generational preferences shaping spending patterns:
- Gen Z: Focus on apparel and beauty products as part of self-expression.
- Millennials: Prioritize experiences over material gifts.
- Gen X: Emphasize home decor and personalized touches.
- Baby Boomers: Seek out technology and wellness products for thoughtful investments.
Retailer Tip: Stock trendy winter apparel, gadgets, and festive food baskets, tailoring product bundles to regional and generational preferences.
4. Purchase Motivators: Discounts, Quality, and Convenience
While discounts are the leading motivator, shoppers also value product quality and seamless checkout experiences. Security is critical, with 62% prioritizing secure transactions, even if it means slower checkout times.
Retailer Tip: Emphasize quality in product offerings, ensure secure payment systems, and streamline both online and in-store shopping experiences.
Preparing Small Businesses for the Holiday Season
Here’s a look at what small business retailers can do knowing these holiday shopping trends in 2024.
Inventory Management
With 42% of businesses identifying inventory as their top concern, planning ahead is essential. AI-driven tools can help predict demand and align stock levels with customer preferences, minimizing shortages and reducing overstock.
Actionable Steps:
- Collaborate with local suppliers for reliable restocking.
- Offer digital products or experiences to diversify inventory.
Marketing and Promotions
Shoppers rely heavily on online marketplaces (26%) and search engine ads (15%) to discover deals. Word-of-mouth recommendations also retain importance, capturing 8% of shopper attention.
Actionable Steps:
- Highlight promotions on online platforms and social media.
- Develop in-store events or collaborations to enhance word-of-mouth appeal.
AI and Customer Engagement
While AI helps with personalization and demand forecasting, only 9% of shoppers fully trust AI-driven recommendations, indicating the importance of balancing automation with human interaction.
Actionable Steps:
- Use AI for basic support tasks and inventory optimization.
- Retain human representatives for complex customer service needs to build trust and empathy.
In-Store and Online Synergy
Shoppers value the convenience of online platforms and the immersive experience of physical stores. Creating a seamless omnichannel experience is critical to capturing both audiences.
Actionable Steps:
- Ensure all inventory is available online with accurate descriptions.
- Curate inviting in-store displays that highlight popular and exclusive items.
The 2024 holiday shopping landscape is dynamic, blending traditional habits with modern conveniences. To succeed, small businesses must stay ahead by anticipating customer needs, optimizing inventory, and creating memorable shopping experiences both online and in-store.
By implementing early marketing strategies, leveraging AI for efficiency, and delivering high-quality, personalized customer service, retailers can navigate the season with confidence and build lasting customer loyalty.
Images: Zoho
