ECNETNews has uncovered new insights revealing that retailers are significantly ramping up their focus on AI, social media, and discounts as they prepare for the highly anticipated 2024 holiday season. This research highlights how retailers are strategizing to attract Gen Z consumers while navigating ongoing economic challenges, particularly inflation.
The need for early preparation is underscored by industry experts, with the message that effective planning is vital for small businesses, especially during the critical holiday shopping period. Businesses are increasingly leveraging social media and AI tools to meet the rising demands of consumers.
Key Findings
Retailers’ Digital Investment and Inflation Concerns
- AI Integration: 70% of retailers are investing in AI to enhance operational efficiency.
- Social Media Ads: 39% are boosting their presence through paid social media advertising.
- Influencer Marketing: 35% are tapping into influencer marketing to connect with younger demographics.
- Email Marketing: 33% are enhancing personalized email marketing to engage customers.
- SEO Improvements: 29% are focusing on optimizing product pages and SEO strategies.
Inflation remains a top concern for retailers, with nearly half identifying it as the most pressing issue. Interestingly, many smaller businesses do not perceive competition from large e-commerce corporations as a significant threat this season.
Freelancer Hiring Amid Staffing Shortages
As retailers face staffing shortages, one-third are planning to hire freelancers to help maintain operations and ensure business continuity during the busy holiday season.
Consumer Trends Shaping the Holiday Season
Increased Spending from Gen Z
- Gen Z Shoppers: 43% of Gen Z consumers intend to increase their holiday spending, surpassing the 37% of millennials with similar plans.
- Discounts: Over 80% of retailers are offering discounts this season, a significant rise from 55% the previous year.
- Shopping Priorities: Consumers are focused on securing good deals (42%), free shipping (32%), and product quality (30%).
Early shopping trends have emerged, with 52% of consumers beginning their holiday purchases in October and November, while 18% are utilizing summer sales for gift buying.
Social Media’s Impact on Gen Z Holiday Shopping
Social media, particularly TikTok, is pivotal in shaping Gen Z’s shopping habits:
- TikTok Usage: 54% of U.S. Gen Z shoppers utilize TikTok Shop for gift searches.
- Social Media Recommendations: 34% of global Gen Z consumers look to TikTok Shop, while 25% rely on influencers and 14% on generative AI for gift suggestions.
Retailers are responding by enhancing their activity on platforms like Facebook and Instagram, with a significant portion of U.S. Gen Z consumers planning to find gifts through social media ads and influencer recommendations.
Retailers’ AI Integration and Customization Efforts
As e-commerce continues to evolve, nearly 68% of surveyed retailers are adopting AI technologies to streamline their operations and deliver personalized shopping experiences. Specifically:
- Investing in AI Tools: 41% of retailers aim to leverage AI tools for increased efficiency, while 35% are looking to integrate AI throughout the customer journey with chatbots and personalized marketing strategies.
- Gen Z’s AI Engagement: Over 54% of Gen Z consumers are employing AI tools to enhance their holiday shopping experience, from comparing prices to brainstorming gift ideas.
This research offers a comprehensive understanding of the trends influencing the 2024 holiday shopping landscape, revealing how retailers are adapting to meet the changing needs of consumers in an increasingly digital marketplace.
