As the holiday season looms, Klaviyo’s 2024 Consumer Spending Report uncovers how global shoppers intend to maneuver their spending in the face of economic uncertainty. Drawing on insights from over 8,500 respondents worldwide, the report paints a vivid picture of the shifting holiday shopping landscape.
Consumers Are Cautious but Primed to Spend
Despite inflation and a tempered economic outlook, holiday spending is poised to thrive. A significant 61% of consumers plan to maintain last year’s spending levels, with 19% gearing up to splurge even more. Inflation may weigh heavily on minds, but shoppers are devising clever strategies to maximize their budgets through early deals and enticing discounts.
Early Shopping Gains Momentum
The trend of early-bird shopping is gathering speed. More than half of consumers are eager to shop before November, spreading out their spending and seizing year-round promotions. Brands that ignite their campaigns early stand to capture the interest of savvy shoppers, particularly those seeking to stretch their dollars further.
Inflation Won’t Dampen Holiday Sales
Inflation remains a focal concern for 88% of consumers, shaping their purchasing decisions. However, the holiday spirit refuses to fade. Shoppers are hunting down discounts, with price reigning supreme in their purchase choices, closely followed by quality. This season, the challenge for brands will be to deliver unmatched value while keeping prices competitive.
Omnichannel Shopping Flourishes
Nearly five years post-pandemic, omnichannel shopping continues to thrive. Consumers are splitting their time between in-store and online shopping, with browsing—both physically and virtually—emerging as the primary force guiding gift purchases. Younger generations gravitate toward online options, while older shoppers still treasure in-store experiences. For brands, crafting a fluid experience across both platforms will be critical to securing holiday sales.
Demographics Steer Spending Habits
Age, relationship status, and income heavily influence holiday spending trends. Gen Z and millennials are poised to increase their spending, while Boomers and Gen X may dial back slightly. Higher-income shoppers gravitate toward luxury gifts like jewelry, while lower-income groups focus on essentials. Partnered consumers and parents generally intend to outspend singles and non-parents.
Personalization and Loyalty Reign Supreme
To captivate shoppers this season, personalization and loyalty programs are essential. By segmenting audiences and customizing offers, brands can amplify conversion rates and nurture long-term relationships. Offering exclusive deals and early access to VIP customers can make a powerful impact, particularly in a season where shoppers are becoming more discerning.
Conclusion
The 2024 holiday season unfolds both challenges and opportunities for retailers. Inflation and economic unpredictability may shape shopper behavior, but holiday spending remains resilient. Brands that spotlight value, launch early promotions, and weave a seamless omnichannel experience will be well-equipped to thrive in this year’s holiday frenzy.
If you are interested in the details, read the full report.
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