The Shopify Black Friday Cyber Monday Report has revealed how consumers plan to purchase otherwise this holiday season.
The study of greater than 2,000 consumers and 1,000 SMBs within the UK – which is an element of a worldwide research programme surveying 24,000 consumers and 9,000 businesses in 12 countries – shows a shift away from “stack them high, sell them cheap” towards top quality, durable products.
It also highlights how customers need to stay connected to the brands they love, even in the event that they’re not currently ready to purchase.
42% of UK consumers are cautious about spending, driven by the cost-of-living crisis, the recent rate of interest rise by the Bank of England, and expectations of a protracted recession.
Consequently, 78% have reduced their disposable spending this holiday season – the third highest proportion globally – and 49% are putting more cash aside this yr than they’ve done previously (various from 68% of Gen Z to only 30% of those aged over 65).
65% usually tend to do the vast majority of their holiday shopping during Black Friday/Cyber Monday to get more value for money
At the identical time, nonetheless, shoppers want quality products built to last.
66% wish to spend money on higher quality products that may last a protracted time and an extra 35% are planning to spend on days out, resembling to amusements or paid events.
UK consumers are open to recent experiences, and are willing to buy via online and social platforms greater than ever.
Nine in ten shoppers say they are only as likely or more prone to shop in an internet store than a yr ago, 88% are purchasing the identical or more in-store and 72% are only as likely or more prone to discover recent products to buy when scrolling through social media than a yr ago.
What’s more, they’re receptive to direct contact from businesses.
66% say it’s necessary that brands communicate with them about Black Friday Cyber Monday offers. 72% (7% higher than the worldwide average) are willing to purchase a rival brand’s product to get monetary savings.
42% would achieve this for a superior product. 1 / 4 of respondents would in an effort to get access to potential exclusive discounts, shows that regular communication is important with British shoppers
Eva Sonaike of luxury interiors brand Eva Sonaike says: “We’ve seen a decrease in sales in the UK, particularly in the last five months. Interestingly, though, the decrease in sales has not meant a decrease in contact.”
“Instagram engagement particularly is at a high, as customers want to stay in touch with the brand – and specifically the people behind it – even if they can’t buy right now.”
“In straitened times, the tone of the sales season will be different this year. For us, that means any promotion we run will give something back, by partnering with a charity and giving them a share of any income from flash sales.”
Businesses are recognising this shift. 93% of companies imagine it’s paramount to construct a direct relationship with customers.
45% within the UK say reaching consumers organically via word of mouth on social media is more necessary than ever and a 3rd are investing in improvements in and implementation of digital infrastructure to do more online sales to make sure future resilience.
Shimona Mehta, Managing Director, EMEA at Shopify, says: “Since smartphones came into our hands, people don’t go shopping any more, we are shopping all of the time. The high street is also still critically important to consumers, with nine in ten planning to shop in-store.”
“The businesses that will be resilient for the long term are those that enable customers to shop from wherever they already are. We’re seeing brands like Gymshark open huge new flagship stores to serve customers online and on the high street.”
“This research shows that consumers want to spend but will research longer and take more consideration over where and how they spend. Brands should take note, and factor that into how they engage ahead of this key time.”