2020 Holiday Season Shopping Trends for Small Retailers
I don’t think it takes repeating, but I will for the sake of starting this blog…. 2020 has been a year unlike any other. In some cases it has completely changed the way we do business, and in others, it’s accelerated some trends we were already seeing enter the playing field.
Something on the minds of many retailers is the Holiday 2020 season, which believe it or not, we are already into. Amazon’s Prime Day, combined with sales from Target and Walmart on the same day, kicked off the shopping season, with many jumping on early sales instead of waiting for traditional Black Friday/Cyber Monday sales.
Throughout the pandemic, large retailers with robust e-commerce sites have actually fared really well. With people fearful (or not allowed) to leave the house, they’ve turned to getting their essentials digitally. The businesses that have struggled are the small retail stores, who couldn’t keep up with online technology, or whose products aren’t considered “essential”.
So, how can small businesses take advantage of this unique Holiday season, and gain some market share? Let’s look a little bit at some of the expected trends and how you can take advantage of them.
Many will be going light this year - With mass layoffs and furloughs, 58% of consumers have said they are planning on spending less money on holiday gifts this year and focusing more on the essentials. That means that in order to cut through the noise, retailers will have to pull out the extra special products and discounts. The key here is positioning your product (or products) as “essential” to your target. Whether it’s to relieve Covid stress, solve a new problem that has cropped up this year, or is on a special price discount, it’s all about making it as attractive as possible. In addition, things that previously were thought as daily commodities or “non-giftables”, are appearing on the top of many lists. Things like groceries, gas, household items, and beauty supplies that have become a struggle to keep up with, would be welcome relief for many. Consider how you can offer gift cards, packaging or unique combinations of everyday items to make them gift-worthy.
E-commerce will rule all… mostly - It comes as no surprise, but 67% of shoppers plan to complete most or all of their holiday shopping online. If you haven’t shifted your retail brand digitally yet, now is the time. Online shopping is expected to continue to dominate long into the future, so invest now to ensure your online shopping experience is seamless and attractive to consumers. In addition, offering low-touch pickups or free shipping options that reduce the cost for consumers can help give Amazon a run for their money. An interesting exception, however, is Gen Z. More than any other generation, they’re penchant for nostalgia has many seeking out opportunities for in-store shopping. Keeping your stores safe, easy to navigate and appealing to younger generations, can help you capture their attention.
Make an emotional connection - A shocking 83% of consumers said they were more likely to make a purchase from a brand they have an emotional connection with. Especially with younger Millennials and Gen Z shoppers, who find themselves drawn to supporting brands they can empathize with, and even have a new appreciation for supporting Small Businesses. This means retailers are going to have to learn how their products or services can appeal to their experiences, and create a special place in their lives. Here, small business have a unique advantage. Showcase the family or founder behind the brand, give everyone a peak inside the process, or be honest about the 2020 struggle. Video, blogs and social content are going to be your best friends this season.
Over communicate your timelines and sales - Despite known shipping delays due to Covid this season, 36% of consumers say they are waiting for a big sale to purchase holiday items. However, as we get closer and closer to D-Day, budgets will get squeezed even tighter, and worries about delivery delays will kick in. This means that as a small business owner, spend this season overly communicating about your plan for sales events and shipping times. Let your most loyal consumers know what to look out for, and give them plenty of warning about what is coming up. This allows them to plan ahead and save their shopping dollars instead of spending them prematurely. Make sure you inform your customers of restock dates and shipping times so there are no last minute surprises. In a year of the unexpected, consumers are craving the ability to organize and plan.
The retail world isn’t dead, even in the 2020 chaos. While it may look different this year, the 2020 Holiday season can bring some welcome peace, happiness and relief to many, even if only for a short time.