National Retail Federation just released the Top Ten Holiday Trends for 2010 - A guide for retailers on trends for the upcoming holiday season and what to expect.
Here are the highlights:
1. Americans (still) aren’t ready to declare the end of the recession
Unfortunately, there’s been no magical turnaround in consumer sentiment, meaning the trend is still sticking around. According to the survey, 61.7% of holiday shoppers say the economy will impact their spending plans this year. (That is down from 65.3% last year, which is certainly a good sign.) Most people who are impacted say they will just spend less, use coupons, or compensate by shopping sales more.
2. The glimmer of hope
The pendulum is swinging back, albeit slowly. Retailers may have a bit of breathing room this year to focus on factors other than price and promote items other than the basic necessities.
3. Fundamentals are out. Fun is in
Shoppers are taking necessities off their wish lists and instead adding items like jewelry, personal care and beauty items.
4. There’s still room for service with a smile
When Americans were asked what factor influences buyer behavior by determining where to shop for the holiday season. It’s no surprise that, during a recession, sales or discounts and everyday low prices. While sales or price discounts are still chosen by the majority of survey respondents (41.8%) as the most important contributer to buying behavior, that number dropped from last year’s all-time high of 43.3%. What’s taking its place on the list of priorities? According to the survey, customer service (at 5.3%, the highest percentage since we began the survey in 2002) and merchandise quality (12.7%).
5. Forget price. It’s all about value
Of course retailers know they need to focus on sales and promotions to bring in shoppers. And of course price is a factor for just about everyone. But unlike in past years – price is not the only factor shoppers will consider when making buying decisions. Instead shoppers are looking at the big picture. They want to shop at retailers that have competitive prices but where they can get the “biggest bang for their buck.”
6. Kids today are a walking contradiction
The Gen Y group is a touch crowd to figure for retailers. Gen Y doesn't’t shop early, but they usually have an ambitious list of stores they are planning on make purchases. Well, like most of us, plans change and they usually will end up going to a catch-all store and take care of their list all at once (department store). They’re spending pennies on the holiday season compared to other adults ($469.32 for young adults 18-24 vs. $688.87 average) but they’re among the first to head out and make “non-gift” purchases for themselves.
7. It’s all about me. Again
The number of people who will take advantage of holiday sales to make non-gift purchases for themselves is up eight percent this year (52.9% in ’09 vs. 57.1% this year), and the average person will spend about $108 on these “just for me” purchases.
8. Men are from Mars. Women are from Venus
It’s always interesting to see the difference between men’s and women’s shopping habits. I’m sure it comes as no surprise to those of us in retail that far fewer men will start their holiday shopping before Halloween. But here’s something that might surprise you: men will also spend about $20 more than women on holiday purchases and are more likely to shop at department stores than their female counterparts.
9. The biggest spenders are just one click away
Gone are the days when online shoppers were simply bargain hunters who only wanted the lowest prices and free shipping. While those factors are still important, online shoppers have much deeper pockets this year. Discounts are not the only reason to shop online anymore. Shoppers are looking for convenience and a faster more targeted shopping experience. To get your shoppers what they want to shop for using buying behavior intelligence combined with product recommendations. iGoDigital can guide your shopper to the right product they were looking for.
10. Can you hear me now? Good
Don’t forget about mobile shoppers this holiday season. More than 1/4th of Americans who have smart phones will use their mobile device to shop for gifts, compare prices and research products (read reviews, buy merchandise or find a nearby store).
So there you have it. NRF’s Top Ten Holiday Trends for 2010. Provide us feedback over the next few months on whether you believe these trends are right on the money or not. Looking forward to your feedback.
Tagged in: IndustryNews
Tagged in: IndustryNews