Consumers to Seek Apparel, Sustainable Products Online This Holiday Season, Per Report
Digital solutions provider Coveo has shared a new report that shows consumers are planning to shop online this holiday season.
Coveo’s 2022 Holiday Shopping Report: Spending Trends & Impact surveyed 4,000 consumers in the U.S. and U.K. consumers, and found that over half (51.2%) of respondents wanted personalized offers from retailers.
Of the categories shoppers plan to purchase online, apparel leads the way, followed by consumer electronics and grocery. One in two consumers in the U.S. and U.K. (50%) said they plan to buy fashion/apparel online, while only 15% of consumers will shop for luxury items online.
Sustainability is also playing a role in brand loyalty and selection this holiday season. Unsurprisingly, Gen Z and Millennial shoppers are most likely to seek out and purchase sustainable products, giving retailers an opportunity to craft sustainable private label assortments.
"Providing shoppers with hyper-personalization and the right motivators is important because you not only want them to buy, you want them to keep their purchases,” Brian McGlynn, general manager of commerce at Coveo, told Store Brands. Retailers often prefer to sell store brands because they can have better margins and create customer loyalty. If your store brands check the box on sustainability, play up that motivator. Gen Z (64%) and Millennial (57%) shoppers are more interested in sustainable products, but sustainability plays a role in shopping decisions for more than half (52%) of all consumers. What's more 43% of consumers think that sustainability is a brand bonus. With uncertainty in the economy, finding the right motivator to influence profitability and long-term customer brand loyalty is even more heightened for retailers."
The Coveo report also details that in addition to personalization, Gen Z shoppers are craving product reviews on sites that are easy to navigate. When asked what would make them leave a site without making a purchase, 36% cited limited/no reviews, and 32% said the same about a poor mobile experience. Well over half (68%) said they would leave a site if they can’t find what they’re looking for, and 51% said they would leave if the site isn’t easy to navigate.
“We believe brands must provide tailored offers, product reviews and personalized recommendations that interact with the instantaneous intent of the shopper,” McGlynn added. “Combining these strategies will enable retailers to guide shoppers to the products they really want, reducing the potential for returns, which continues to plague retailers and threatens their profitability by cutting into profit margins.”
The full report from Coveo can be found here.