2024 Holiday Trends
Jaya is an Insights Manager on our Business Services Industry team with experience in the field of market & academic research.
Emily DeSantis has been with KS&R for over 10 years. She is a subject matter expert in the Retail industry, with a particular focus in the consumer audiences. She has significant experience managing research projects across brand health, new product/service development, ad/messaging testing, and journey mapping. She is also a RIVA trained moderator with years of experience conducting qualitative research. Her experience spans across methodologies (video, phone, and in person research studies) for a wide range of target audiences and industries. Emily holds an MBA from LeMoyne College.
Outside of research, Emily loves spending time with her family and interior design. Most of her decorating ideas come from watching way too much HGTV!
For many, Thanksgiving marks the start of Holiday activities, from gathering with family to hunting for the perfect gifts. To inform this year’s shopping season, KS&R conducted an online survey with 519 U.S. consumers to better gauge their expectations and plans over the coming months, and the results paint a challenging environment for businesses across the board. Our findings revealed three key trends that will likely shape how people shop and spend this season:
1. Concerns about the economy continue to linger.
2. Shopping activities will look different in 2024.
3. Online shopping activity will continue to grow.
Understanding these trends is essential for brands, marketers, and retailers looking to connect with today’s consumer. So, what strategies can businesses implement to make the most of the holiday season?
Economic Uncertainty Shapes Consumer Caution
While inflation has returned to more typical levels, not all consumers are feeling the benefits. In fact, 59% of respondents expressed pessimism about the current economy, even with positive indicators like job growth and stock market gains. This lingering uncertainty has a cooling effect on holiday spending, as consumers remain cautious about non-essential purchases and consider multiple options for the spending that they do choose to incur.
So how will this economic uncertainty impact shopping behavior? Nearly 8-in-10 say the recent economic changes have impacted their spending habits, with some planning to reduce holidays shopping this year. This creates a more competitive environment, with brands vying for fewer customers with less spending power.
Online Shopping on the Rise Amid Economic Concerns
As expected, more consumers are turning to online shopping. In fact, 34% of survey respondents indicate they plan to shop more online for this year’s holiday season, compared to only 12% who indicate they will shop more in-store. For businesses, this shift underscores the importance of digital platforms and infrastructure that can serve up meaningful offers, guide customers through the buying journey, and provide standout service.
For many, online shopping is a way to stretch their budgets, enabling easy price comparisons and access to online-only discounts. Retailers will need to ensure their digital channels provide a smooth and engaging experience to meet the growing demand.
The 2024 Challenge: Strategies for Success
For brands, marketers, and retailers alike, strategies for the holiday season may need to be more creative than ever. Given the consumer’s cautious mindset, they seem to be ready for a more selective holiday season. Here’s how businesses across sectors can stand out:
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Communicate Value
Value may be the key word for this season. Speak directly to consumers looking to maximize every dollar. Highlight promotions, loyalty rewards, or bundled deals to attract budget-focused shoppers.
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Claim Uniqueness
Offering something fresh and unique can make a brand memorable. Feature exclusive holiday items, limited time offers, or personalized shopping experiences to help create that “something special.”
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Ensure Access
Strong digital presence is essential, especially as more people shop online. Make sure your online platforms, mobile experience, and in-store integration are smooth and accessible, with an emphasis on easy navigation and quick, reliable shipping.
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Optimize the Omnichannel Experience
Make it easy for customers to switch between online and in-store shopping. Real-time inventory updates, mobile optimization, and consistent branding across platforms will create a more unified experience.
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Leverage Chatbots & AI
Implement chatbots that can answer basic questions 24/7 and seamlessly direct complex queries to human agents. Chatbots can also offer product suggestions based on browsing history or previous purchases.
These insights provide valuable guidance for adapting to today’s consumer landscape, as shoppers become more selective and budget conscious. By aligning with current expectations, businesses can make the most of this holiday season and reach consumers looking for value, convenience, and memorable experiences.
Based on 519 online surveys with United States consumers conducted September 12 through 20 of 2024.
About KS&R
KS&R is a nationally recognized strategic consultancy and marketing research firm that provides clients with timely, fact-based insights and actionable solutions through industry-centered expertise. Specializing in Business Services, Telecom, Entertainment & Recreation, Healthcare, Retail & E-Commerce, Technology, and Transportation & Logistics verticals, KS&R empowers companies globally to make smarter business decisions. For more information, please visit www.ksrinc.com.
