2022 Holiday Shopping Trends

As we have seen since the 2020 holiday season, this year will continue to look different from previous years. Consumer behaviors are changing and evolving, leaving brands constantly adjusting their strategies to stay relevant, and in front of their customers. What can brands expect this holiday shopping season?

Consumers will start holiday shopping earlier

This year is a continuation of what we have seen the past few years with consumers starting their holiday shopping earlier each year. Higher prices have encouraged consumers to begin their shopping earlier to make the most of discounts and spread their spending over more months.

• Amazon hosted its first Prime Day in July and another one in October. 
  • Of those who shopped during Amazon’s October sales, 31% said they purchased holiday gifts.
• Insider Intelligence reported that in August. 22% of consumers had already started shopping for the holidays.
• Black Friday and Cyber Monday will play an even bigger role for brands this year as consumers are forced to search for the best deals, due to rising prices.
  • Last year, 54% made a purchase during Black Friday or Cyber Monday in the US according to Meta. 
  • Amazon announced that it will allow customers to make payments through Venmo on its platform. This option will roll out to all US-based users on the Amazon site and mobile app by Black Friday in November. Offering consumers convenient, easy to use, and secure payment options is a way of promoting sales. 

The return of Brick-and-Mortar

In-person shopping in retail stores has made a strong comeback over the past year as pandemic worries fade and shoppers revert to pre-COVID habits. Inflation is changing the way consumers shop because many are choosing to shop in-person to avoid potentially costly shipping and return fees.

• Almost two-thirds (63%) plan to shop in person this year, up from 58% last year, per JLL’s Retail Holiday Survey 2022.
• About one-third (32.7%) are shopping in-store to avoid shipping costs and delays.
• A survey by NPD found that spending is shifting in favor of brick-and-mortar with the proportion of consumers planning to shop online this holiday season falling to 80%, compared with 85% in 2021.

Online research is more important than ever

The full effect inflation will have on holiday spending remains undetermined, but according to eMarketer, 38% of US Consumers have indicated they plan to spend less this holiday season. 

• As consumers become more price conscious, online research during instore shopping is likely to increase, as is the selection of cheaper alternative items.
• Price checking is important for online shoppers. About 83% of consumers usually compare prices before making a purchase. 
• More than half of consumers (51%) plan to buy fewer holiday gifts this year per a Salesforce report. 
• Two-thirds (67%) say they’ve already reduced spending on non-essential items, according to a Digital River survey conducted by Opinium. 
• When it comes to holiday research and purchasing, Amazon is the primary channel in the US, followed by Google searches, and then other online marketplaces or retailer websites (e.g. eBay, Walmart, Target). While Amazon is the dominant channel, research on brand websites is lowest. 

Impact of social media influencers on holiday purchases

Influencers will continue to drive purchases this holiday season. Consumers are always actively looking for shopping inspiration, and are turning to social media to find new ideas. 

• Social media’s mix of branded content, ads, and creators is informing shoppers’ behaviors. 
• According to McKinsey, 58% of consumers agree that social media influences their holiday purchase decisions. 
• People are more likely to look to their favorite social media creators for product recommendations. Data from Meta shows that 29% of US consumers say influencers help them discover gifts during the holiday season. In addition, 25% of US shoppers say they are likely to buy a product faster if promoted by an influencer. 

Impact of social commerce on holiday shopping

Social commerce is growing in popularity as a new and convenient way to shop, making it a trend to watch this holiday season. 

• In 2022, more than half of all US adults will make a purchase using social media.
• YouTube was voted the number 1 most trusted platform for social commerce.
• Instagram has launched an in-app checkout so users can buy products. 

Brand loyalty is less important as a purchase driver

Due to the rise in inflation, shoppers are becoming less brand loyal and more likely to switch to other brands. 

• After two years of price and supply issues, consumers are more likely to try different brands that are cheaper, including more store brands. 
  • At the beginning of 2022, 41% of shoppers said they were purchasing more store brands than they had before the pandemic. More than 75% of those now reaching for in-house options said they expected to step up those purchases in the future, according to a survey from FMI, The Food Industry Association.
• 57% of customers are looking for sales, deals and coupons more often as prices increase.

This holiday season, plan your marketing strategy to align with your customer’s behaviors, make shopping easier for them, and ultimately drive brand loyalty.