Global study: Consumers will support home-grown retailers this holiday season
51% of holiday shoppers plan to shop with local businesses during the 2020 holiday period, with 48% turning to marketplaces for inspiration.
The research, from Rakuten Advertising, was conducted among 8,673 adults across the globe.
It found that consumers have turned to home-grown brands and close-by stores in recent months, with one in ten (11%) British consumers increasing their purchases from local businesses due to the COVID-19 pandemic.
Rakuten Advertising’s Road to Recovery: Shopping Peaks Reimagined report finds:
• Local spend: 55% of UK households have increased their spending with local businesses since the start of the pandemic • Demand for multi-channel: Only 21% of Brits think it’s unlikely they will hit the high street for gift shopping this year and 51% have indicated a desire to shop both online and in-store, with a third (36%) likely to opt for click and collect options • Marketplace inspiration: Marketplaces like Amazon are the primary source of inspiration for 48% of shoppers during peak shopping, with Amazon reviews are also hugely influential for over a quarter of consumers (28%) • Facebook reigns supreme: Social media platforms remain important destinations for holiday shopping, with Facebook the most predominant (38%) followed by Whatsapp (35%) Instagram (31%) and YouTube (27%)
The upcoming holiday season will be important for businesses to drive online purchases as well as encourage consumers back to the high street, and shows the significance of investing in innovative online-to-offline (O2O) strategies to help improve footfall and sales.
Bridging the gap between online and offline
In the run up to Christmas this year, almost half of British consumers plan to predominately shop from domestic brands (43%), with 55% of UK households increasing spend with local businesses since the start of the pandemic.
With social distancing restrictions still in place, over half of UK consumers have indicated a desire to shop both online and in-store (51%) this holiday season, with a third (36%) likely to opt for click and collect options.
Just 21% of consumers feel it is unlikely they will venture onto the high street for gift shopping this year, and a third (32%) of Britons are willing to change when they shop in physical stores to ensure they stay safe and avoid large crowds.
As shoppers plan to return to the high street, O2O technology enables progressive retailers to bridge the gap between online and offline sales.
Anthony Capano, Managing Director, International, at Rakuten Advertising comments, “Consumers have indicated a desire to combine visiting the high street with shopping online this year, meaning connecting the online and offline experience will be key for the success of retailers. Retailers should view online and in-store as one entity, and leverage data insights from one to fuel the other. They can also drive visits to the high street using online advertising. One way brands can do this is through the use of hyper-targeted display campaigns. These campaigns can be used to update consumers on local store information and emphasise how they are keeping people safe.”
Marketplaces dominate influence
Consumers are increasingly turning to marketplaces to search for gifts, with 48% of shoppers now using online marketplaces such as Amazon as the primary source of inspiration during peak shopping. Referrals from friends and family (46%) and Amazon reviews (28%) are also hugely influential throughout the journey to purchase.
Capano comments, “The success of marketplaces can be put down to accessibility, curation, community and efficiency. Consumers are using marketplaces as a way to search and locate what they need instantly and conveniently. For retailers to be successful they need to drive consumers to their own e-commerce environment, and retailers can leverage many of the marketplace aspects to do this via their publisher partners.
Capano continues, “Publishers support the discovery phase in many ways, whether it be the curation of gift guides or reward and loyalty sites that enable consumers to search by product or category. For retailers, having their brand and products visible on publisher sites that allow consumers to easily find them will be key to driving discovery over the holidays. Publishers can work with local retailers to provide an opportunity to reach new markets beyond the high street store, as well as connect with customers online who are researching gifts before buying.”
Social game plan
Whilst the influence of recommendations across social media has taken a backseat to marketplaces for gift inspiration in the lead up to the 2020 holiday season, social media platforms are still important destinations for holiday shopping, with Facebook the most predominant (38%) followed by Whatsapp (35%) Instagram (31%) and YouTube (27%).
Capano concludes, “We expect the majority of online purchases to take place on mobile this holiday season, and social media remains an important place for brands to reach consumers. Investing in low-risk upper funnel strategies, with platforms that align with they own brand values, is an effective way for brands to reach and engage consumers with relevant and timely ads.
For more information on how consumers and retailers are set to react to shopping peaks in 202 please download Rakuten Advertising’s report “The Road to Recovery: 2020 Shopping Peaks re-imagined” here.
Rakuten Advertising conducted an online survey, via Qualtrics platform, of 8,673 adults (18+) across the globe in each of UK (1015 total), France (1025 total), Germany (1,011 total), Brazil (1016), Australia (511), Canada (516), China (508). Hong Kong (532). New Zealand (509). Singapore (508), South Korea (507), United States (1,015). The survey was carried out in June/July 2020.