As the holiday season approaches, rising consumer confidence signals a more optimistic outlook for brands. After a few out-of-the-ordinary holiday seasons, shoppers are adapting, blending tradition with new outlooks and habits. To stay relevant, brands must balance value-driven offers with inclusive, relatable experiences, both online and in-store.
A more confident holiday season
Consumer confidence is slowly rising, up point by point over recent months, and considerably versus last year. This is not a sign that households are suddenly feeling better off (unfortunately), but rather that we have adapted. Value-seeking behaviours therefore persist, with more shoppers capitalising on Black Friday deals (up 4 percentage points to 53% in 2023), using "buy now, pay later" options (up 12% in 2023), or trimming down the gift recipient list (Mintel, UK Christmas Gift Buying Market Report 2024).
Research from Mail Metro Media reminds us that economic experiences vary: 20% of households feel financially healthy, 34% are struggling, and 46% fall somewhere in between. Brands must, as always, consider what "value" means to their audience to stay on this year’s wish lists.
Blending Old and New Traditions
Festive cues rooted in nostalgia, like decorating trees and watching Christmas movies, remain important, topping the IPA’s list of ways to get into the festive spirit. Yet, with 3 in 4 noting that their Christmas has changed dramatically over the last five years (Mumsnet, Let’s Talk Christmas), there’s room to deviate from tradition. This might mean reflecting a more down-to-earth view of the season, mirroring how many are looking to relieve the pressure of perfection, or making efforts to present a more inclusive holiday experience.
Brands would benefit from aligning with traditional cues, while making efforts to connect more broadly, finding the relatable and universal themes in diverse holiday experiences.
SantaGPT vs. the High Street
In 2023, 18% used AI for gift ideas (Mintel), and research suggests that this year more may follow suit. Rather than marking a fundamental shift in how we shop, this represents a streamlining of the more tedious elements, leaving more time for the bits we enjoy. So while more of us are shopping online than ever before, and brands will be scrutinising every element of their e-commerce performance, they should not lose sight of the in-store experience. 71% of shoppers even see the shopping trip itself as the key to getting into the festive spirit. Whether purchases are made from shop windows or browser windows, creating a memorable connection remains crucial during the holiday season.
