Retail trends: The most connected holiday shopping season – ever
Retail trends: Shopping decisions are made faster and in more places than ever before. The way consumers inform purchases is changing dramatically- with a new shopping journey to “I want to buy” moments. People now increasingly turn to mobile devises, search and YouTube rather than rely on daylong trips to the mall. Consumer expectations have also changed rapidly since last year, so retailers need to understand new shopping patterns.
Executive summary on retail trends:
- Every day is a shopping day. The prominence of big shopping days is diminishing. 66% will start researching purchases well before thanksgiving- up 28% from last year. Almost three-quarters of holidays shoppers say that they plan to shop on their smartphones in spare moments while commuting, walking or at work. Rather than shop on a single day, people have started shopping well before Halloween and nearly half will have done most of their shopping on or prior to Cyber Monday.
- Mobile is the new front door to the store. Consumers are using mobiles in all parts of the shopping prices- inspiration, research and purchase. These are short bursts of activity with quick decisions with people spending less time per session yet smart phone shares of online purchases have gone up 64% over the last year.
- Digital will dominate big shopping day decisions. Another retail trends, 45% of holiday shopping will take place online, dominated by electronics and apparel. Arcus projects $310 billion of shopping will be done through digital in Canada this year vs. $2.75 trillion in the US. A third of all online purchases will be made on mobile. Moreover, a third of all retail sales- $95 billion- will be influenced by shopping related mobile searches.
- Micro-moments are dominating shopping decisions. The days of look-on-mobile and buy-on-laptop or instore are changing. A third of instore sales are influenced by mobile devices used before or during shopping trips.
- Omni channel shoppers are the most valuable shoppers. They want infinite choice- in where, how and when they shop and the product and price options available to them. They are most likely to research a product on their mobile when in a store. Most companies have not invested omni-channel integration.
- The new frontier of influence: “unboxing videos”. Shoppers are increasingly turning to YouTube for videos of shoppers who open product packaging online and share their experiences with others with a projection of 7 million hours and 140 million views of “unboxing videos” on digital media such as YouTube.
The most connected holiday shopping season – ever
Key Trends and projections by Arcus for this holiday season in Canada
- Micro-moments are changing how we shop and days of look-on-mobile and buy-on-laptop or instore are changing.
- Micro-moments are short bursts of activity with quick decisions with people spending less time per session yet smart phone shares of online purchases have gone up 72% over the last year.
- 36% of all online shopping purchases now happen on mobile phones. And 33% of instore sales are influenced by mobile devices used before or during shopping trips.
- The way consumers inform purchases is changing dramatically. People now increasingly turn to mobile devises, search and YouTube rather than rely on daylong trips to the mall.
- 65% of holidays shoppers say that they plan to shop on their smartphones in spare moments while commuting, walking or at work.
MICRO-MOMENTS
High intent and engagement shopping: The New Shopping Journey to “I want to buy” moments
1. Every day is a shopping day: The prominence of big shopping days is diminishing
- No more shopping marathons. 66% will start researching purchases well before thanksgiving- up 28% from last year.
- While researching happens earlier, shoppers are in no hurry to actually buy.
2. Consumers are using mobile in all parts of the shopping prices- inspiration, research and purchase. Mobile is the new front door to the store.
- Shoppers are using their phones for research before visiting a store. Target says three-quarters of their customers start their experience on a mobile phone.
- 91% will search on their mobile while in a store. Shoppers are searching 44% more this year while at a department store.
- A third will use online video more this year prior to a purchase.
3. Omni channel shoppers are the most valuable shoppers driving the new trend of “unboxing videos”- 7 million hours and 140 million views
- Omni-channel shoppers are 8 times more valuable than single channel shoppers.
- Omni-channel shoppers are more likely to have micro-moments for inspiration and search product reviews online. Shoppers are spending 250% more time watching electronics, apparel and fashion videos this year.
An example of omni channel integration is the one-click order trend. Dominos Pizza’s Bluetooth button to instantly order pizza through mobile Bluetooth with a one click order launched this week. When you sign up, you can create your favourite order to store behind the button. Amazon has a similar system in place that enables customers to order more groceries and everyday essentials using a single button for each product.
Source: Dominos Pizza
4. Shoppers reported spending more time researching and purchasing online than they did in years past.
- Over 80% used the internet for holiday research last year vs. only a third relied on friend’s relatives or colleagues
- 45% of holiday shopping will occur online in Canada this year.
5. People will search and purchase on their smartphones in many “I want to buy” moments throughout the day and night
- $95 billion – a third of all retail sales were influenced by shopping related mobile searches
- Over half of those who shop online will use smartphones or tablets, up from about 45% in the previous year
6. Holiday shopping began long before black Friday
- Rather than shop on a single day, people have started shopping well before Halloween and nearly half will have done most of their shopping on or prior to Cyber Monday.
- Almost half of holiday shoppers say would have done a majority of shopping on or before cyber Monday, up 55% this year.
7. Brand loyalties are up for grabs
- “What’s new” will resonate much more this year. Consumers are very open to change, making a concerted effort to look for new offerings from new stores and brands for their holiday purchases
- Over half of shoppers are open to buying from a new retailer
- Almost half will purchase from a new retailer compared to last year.
8. Holiday shoppers will turn to online video such as YouTube
- Peers- “people like me”- are the biggest influencers of digital shoppers when it relates to video. Shoppers have a lot more respect for peer reviews than the opinions of shoppers.
- Over three-quarters of Shoppers watch product reviews and ratings to inform their purchase decisions.