According to Forbes, the holiday shopping season in 2022 will be unlike any other. With the uncertainty of the current economic state and the escalating inclination among shoppers toward e-commerce, the retail projections for the nearing season are far from certain.
In addition, shoppers are on the hunt for brands that offer personalized and convenient solutions to simplify their everyday lives; not looking for mere products, but rather tapping into the experience economy. A development expedited by the isolation and lack of experience that the COVID-19 pandemic has brought on.
Customers' preferences are everchanging - and in order for brands to stay ahead of shifting retail trends, understanding customers' demands is integral. What are the prevalent developments within the retail industry for the 2022 holiday season?
- Spending is down
With inflation through the roof and prices skyrocketing for basic goods, the discouraging state of the economy implies that consumers most likely won’t be spending as much during this holiday season. In the US, spending is expected to drop by $30 billion as 58% of customers cut back on non-food spending during the holiday season. Even if the retail predictions for the holiday season are far from stellar, many retailers are still optimistic that customers will be back to spend for the Christmas season. Where the notion of flexibility and being able to match consumer demands will be integral in order for retailers to attract customers in changing economic times.
In an experience economy, customers are shifting away from the appeal of flashy items, and retailers can seize this shift and opt for providing a great experience surrounding their offering and turning everyday items into something special. Through pop-up activations brand are able to tap into the opportunities of omnichannel presence, and create attention-grabbing and immersive customer experiences that go beyond their physical offering.
We teamed up with the AI perfume brand No Ordinary Scent to create an experiential scent showroom where customers got to create their personalized scents and labels in an interactive space. Check out this interview with the brand’s founder, Sandra Kinnmark to get the insider on the reasoning behind the activation and her experience of going physical.
- The shopping season is prolonged
In times of financial strain, customers are more likely to better plan their Christmas shopping expenses. Where the timely arrival of Black Friday and Cyber Monday has served as a perfect opportunity to secure your holiday gifts at a favorable price point. A number of retailers are faced with overflowing stocks of inventory and are slashing prices to clear out their stockpiles in time for the holidays - which further incentivizes a drawn-out holiday season.
Brands are opting for their e-commerce channels when pushing their discounted offerings - however, seasonal sample sales have been proven as a beneficial strategic route for this purpose. Both in order to push discounted products in a physical setting, but furthermore to entice new customer segments through the buzz that physical sample sales generate.
- Customers crave human touch
In a retail landscape that rapidly is digitalising, the benefits of e-commerce are apparent. Being able to access all your favourite brand from the comfort of your home, having last-mile delivery options that enables you to get the product right to your door and the opportunity to try new retail brands with swift return-policies is obviously something that lures customers in.
However, human encounters are a vital part of the retail experience. A TCN customer survey found that 66% of customers are likely to abandon a brand after a poor customer service experience, and furthermore that 49% prefers speaking to a live agent in how they communicate with a brand. With pop-up retail strategy you can satiate the craving of a human touch within the holiday from shopping experience, and ensure great customer service and in-store upselling.
With a better understanding of the shifting retail landscape that brands are operating in, there is an apparent need for taking strategic consideration of how to best interact and engage with your customers throughout the holiday season. xNomad offers the end-to-end solution for pop-up activations and fast-tracks the process for brands to tap into omnichannel presence and create memorable holiday shopping experiences.
Get going with your activation today, check out or platform and find your retail space.