Free Shipping, Free Returns Beat Discounts And Promotions As Motivation For Vacation Spending, According To Consumer Analytics From January Digital and Coresight Research
The consumer survey reveals that health products are at the top of consumers’ shopping lists, that 59% of total consumer spending is expected to take place online, largely by those over 60, and gives a overview of where, when and how the purchases will take place.
DALLAS, October 19, 2021– (BUSINESS WIRE) – January Digital (JD), a strategic consulting and media firm, today released the results of the Coresight Research x January Digital 2021 US Holiday Insights Survey1 in the report titled “Where, What, and How Will U.S. Consumers Shop for the 2021 Holidays?” : Coresight Research x January Digital Analysis.“
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According to consumer information from January Digital and Coresight Research, health products, groceries and fashion will dominate their holiday shopping lists. (Graphic: January Digital in partnership with Coresight Research)
Created in partnership with Coresight Research, a retail and technology research and consultancy firm, the report reveals top consumer preferences for the 2021 holiday season, including the most popular product categories for consumers. planned spending, how consumers will find out about products, and the degree to which social media influence specific age groups.
“As of mid-October, we are already in an ultra-competitive holiday shopping season, with consumers recognizing the pressures of a broken supply chain and having higher expectations than ever for convenience,” said said Sarah Engel, Director of Marketing and CEO. Human Resources Manager, January Digital. “With this in mind, it is essential to understand how consumers feel and how they spend. They prioritize health products, and they expect fast, free delivery and easy, free returns. Consumers are also shopping on social media now more than ever, and they won’t show up empty-handed for the holidays if the product they want is stuck in port. “
“These results align with our broader perspective on the upcoming holiday season,” said Deborah Weinswig, CEO and Founder of Coresight Research. “We expect strong growth, with shoppers using both online and in-store channels. While we expect to outperform in apparel, especially formal wear, as well as toys and beauty, retailers will not have success on a plateau. They will need to granularly examine trends, generational differences and category spending plans, and execute their promotional strategies based on this manual, keeping a laser focus on inventory and changing demand. “
The main findings of the report include:
Consumers over 60 are driving e-commerce growth, 52% to 59% year-on-year, while consumers 30-44 will spend more in-store
On average, U.S. consumers expect 59% of their vacation spending to be online – up from 52% in 2020 – according to the survey. Additionally, the survey found that 56% of U.S. shoppers will discover new products while browsing online, making it the most popular option for product discovery among U.S. consumers. Word of mouth (52%) and physical store visitors (47%).
Consumers over 60 will drive much of the increase in e-commerce this holiday, which is a significant change from 2020, with 71% of consumers over 60 s ‘expecting to spend more than they did on online orders for door-to-door delivery this holiday season. Last year. In the same age group, 16% say they will spend more on BOPIS or take out orders on this holiday.
“The ways different generations of consumers view their purchases today are more nuanced than ever before, with our shoppers over 60 driving spend online and our shoppers under 44 not caring about discounts and promotions, ”Engel said. “Reaching, converting and bringing back buyers means brands need to have a much closer relationship with their customers, coupled with diverse marketing channels and messages to prioritize what really matters to each customer segment. “
A surprising finding from the report is that a third of shoppers aged 30 to 44 said they would spend more in-store than they did during the 2020 holiday season – a higher proportion than seen among other age groups who have a greater preference for online shopping. and BOPIS / curbside execution options.
56% of consumers say they will spend more on health products this holiday
The survey found that the main purchasing category this holiday season is health care, with 56% of consumers planning to purchase more health products in 2021 compared to 2020 (a 43% net gain year-on-year). annual in this category). More men (52% net more) than women (35% net more) expressed intention to purchase more health products during the holiday season, including vitamins, supplements and therapeutic devices , which is consistent for almost all age groups.
Groceries entered the second category of consumers planning to spend more this holiday season (22% net more yoy), followed by fashion (18% net more yoy), including items such as clothes, shoes and fashion accessories.
Free shipping and returns exceed discounts and promotions
When choosing a brand or retailer to shop with this holiday season, most U.S. consumers (57%) consider fast, free shipping for online orders to be one of the most important considerations. In addition to product price, which was the second main consideration, easy and free product returns for online orders are important for almost half of respondents (45%), completing the three most important factors among all respondents. Discounts and promotions ranked fifth in top considerations, showing shoppers prioritize convenience and value in the last mile over heavily discounted products this sale season.
Facebook leads consumers seeking to buy through social media
When it comes to social media shopping, 50% of those surveyed who said they would use social media for holiday shopping plan to use Facebook as their social shopping channel of choice, followed by YouTube (18 %) and Instagram (11%).
Additionally, the survey found that influencers will continue to be an important part of social commerce, with nearly one in 10 U.S. vacation shoppers responding that they discover products through influencers. Additionally, younger consumers believe social media posts from influencers or celebrities are more trusted than those from brand representatives and store associates – 18% of holiday shoppers aged 18-29 and 17 % of those aged 30 to 44 self-identifying as such (compared to less than 10% in older cohorts).
Most prefer to buy from a retailer rather than a manufacturer
When choosing to shop through the brand or manufacturer versus a retailer, 30% of respondents prefer to buy through a retailer. Consumers choose retailers for ease and convenience (59%), the ability to choose from other brands (45%), and a wider selection of products (38%). Only 19% of respondents prefer to buy directly through the manufacturer or brand, due to better product information (47%) and better customer service (39%).
Download a copy of the full report.
About January Digital:
We are January Digital, The Digital Leadership Company ™. We drive businesses to grow and adapt through strategic advice and digital media excellence. January Digital was founded with a mission to improve the lives of our employees, our customers and the world around us. We use data, technology, digital strategy, and media execution to solve the industry’s toughest business challenges. Our vertically integrated teams of experienced retailers, CPG leaders, technology builders and media innovators enable agile growth by combining our single source of data truth and strategic consulting mindset with flawless media execution. We work with leading global brands and digital disruptors such as The Honest Company, The Sak, David’s Bridal, and Peapod Digital Labs. Recognized as best in class more than 20 times in 2020 alone, our work has been celebrated by Digiday, Drum, Glossy and MediaPost, among others. January Digital is also proud to be named Best Place to Work by Inc. and Fortune and Best Place to Work in the Advertising Age for our commitment to the overall health of employees and impact on the community. The Rapid Growth of January Digital has been recognized as a Fastest Growing Company by Inc. Magazine for five consecutive years.
About Coresight Research:
Coresight Research is a retail and technology research and consulting firm. Founded in 2018 by Deborah Weinswig, Global Retail Analyst, the company is headquartered in New York with offices in London, Hong Kong, Shanghai and Mangalore (India). The company provides data-driven analytics and strategic advice to clients including retailers, brands, enterprise technology companies, accelerators, and more. In addition to being renowned for the breadth and depth of its research, Coresight Research is known for its expertise in the Chinese market, helping clients with their market entry and cross-border e-commerce strategies. Coresight Research is also known for its Innovator Intelligence platform, made up of a vast network of tech entrepreneurs that it actively cultivates through events, mentoring, and regularly updated report coverage. For more information, visit www.coresight.com.
1 The analysis presented in this report is based on the results of an online survey conducted by Coresight Research from August 2-9, 2021. Respondents totaled 1,000 US consumers aged 18 or older who said they intended to purchase for the 2021 holiday season.
See the source version on businesswire.com: https://www.businesswire.com/news/home/20211019005877/en/
Ketner Group Communications (for digital January)
Meir Kahtan Public Relations (for Coresight Research)