As we transition out of the holiday season and into the New Year, we can look at consumer spending trends and uncover how they can be integrated into your business or communication strategies. In this blog we will uncover the holiday spending trends that have emerged as the country comes out of a pandemic and spending tightens with the rise of inflation.  

Online shopping was already growing rapidly, but the pandemic forced a lot of slow adopters, generally older consumers, to have to use online services, due to safety concerns. 

Mindful spending has consumers being more selective about what they buy, focusing on thoughtfulness and quality rather than quantity. 

Experiential gifts are when consumers opt to give an experience to a friend or loved one, instead of giving material items. This could mean tickets to a concert or sporting event, a gift certificate for a spa day, or even a trip to a new destination. These types of gifts can be more meaningful and memorable than physical items, and they can also be more budget-friendly.

In this blog we will go into more detail about each trend and which you can use to improve your current business model for consumers.

Trend 1: continued shift to online shopping

The COVID-19 pandemic has had a profound impact on the way people shop for goods and services. In the past, retail transactions took place in brick-and-mortar stores where customers could browse products in person, try on clothing, and interact with store associates. While this was happening to an extent before the pandemic, the pace of change has accelerated since 2019.

As governments implemented measures to slow the spread of the virus, many stores were forced to close their doors or operate at reduced capacity. This made it difficult for customers to shop in person, and many turned to online shopping as an alternative. Online retailers, such as Amazon, Walmart, and Target, saw a surge in demand for their services. These companies were able to continue operating during the pandemic, and many even offered special services, such as contactless delivery and curbside pickup, to make shopping more convenient for customers.

As a result of the shift to online shopping, many brick-and-mortar retailers have struggled to stay afloat. It’s harder for smaller companies to build out and implement changes to their business models, because of a lack of resources and current staffing. However, some retailers have been able to adapt by offering their own online shopping services and enacting safety measures to protect customers and employees. 

The pandemic accelerated the trend toward online shopping, forcing slow adopters, generally older consumers to conform with this trend for health safety. These customers have discovered the convenience and safety of online shopping and will continue to do so even when it is safe to shop in person again. This has pushed an importance on businesses to improve their websites and make sure that their content is also optimized for mobile devices.

Trend 2: mindful spending

In the recent year, there has been a rise in mindful spending as customers have become more selective about the gifts they buy. Rather than buying a large quantity of low-quality items, people are increasingly choosing to purchase fewer gifts that are of higher quality and have a lower environmental impact.

One reason for this trend is the increased awareness of the impact that consumerism has on the environment. With concerns about climate change and waste, many people are looking for ways to reduce their carbon footprint and minimize their impact on the planet. Buying fewer, higher-quality gifts is one way to do this, as it reduces the amount of resources that are used in the production and transportation of goods.

Another factor is the growing emphasis on mindfulness and intentional living. Many people are looking to simplify their lives and focus on what truly matters to them, rather than getting caught up in the consumerist culture of constant spending and excess. By choosing to buy fewer gifts that are more carefully considered, people are able to prioritize their values and make deeper connections with the people they care about.

Additionally, the rise of mindful spending is also driven by a desire for more meaningful and thoughtful gift-giving. Rather than buying a bunch of generic items that will likely be forgotten or discarded, people are opting for gifts that are unique, personalized, and truly special. This allows them to show the recipient that they have put time, thought, and effort into the gift, making it more meaningful and valuable.

The increase of mindful spending reflects a shift in consumer attitudes towards buying gifts. Taking mindful spending by consumers into consideration, businesses should take small steps to develop products that are higher quality for longevity, have multiple applications to reduce the need for additional items, and unique to be more memorable. Make sure to highlight these product traits on your website and social media pushes.

Trend 3: experiential gifts

The growing rate of experiential gifts can be attributed to a shift in consumer behavior and values. Consumers have become more focused on creating meaningful experiences and memories, rather than just accumulating material possessions. As a result, experiential gifts, which provide the recipient with an unforgettable experience, have become increasingly desirable.

One of the main reasons for the increase in spending on experiential gifts is the increasing emphasis on mindfulness and the pursuit of personal growth. In today’s fast-paced world, people are looking for ways to disconnect from the constant distractions and stresses of everyday life. Experiential gifts provide a unique opportunity to do just that, allowing the recipient to fully immerse themselves in a new activity or experience and learn something new about themselves in the process.

Another reason for the rise in gifting of “experiences,” or experiential gifts, is the growing recognition of the value of social connections. In an increasingly-digital world, people are craving real-life interactions and explorations that they can share with others. Experiential gifts provide the perfect opportunity to strengthen social bonds, whether it’s through a shared adventure, a culinary experience, or a cultural outing.

Additionally, experiential gifts are often more sustainable and environmentally friendly than traditional material gifts. Rather than adding to the recipient’s collection of physical possessions, experiential gifts provide a unique opportunity to explore the world and discover new things, without adding to the clutter and waste of consumer culture.

As more and more people seek out ways to create lasting memories and have truly unique experiences, experiential gifts will continue to be a popular choice. As a business even if you do not provide a service experience, determine and highlight how your product can create a memorable experience and showcase that in your marketing and social posts.

How to implement these trends:

It’s important for organizations to understand this year’s holiday trends as they build their business plans for the upcoming year. Leverage these trends by:

• Focus on improving your website to engage and convert visitors
• Make sure your website is optimized for mobile users
• Develop products that have purpose and longevity
• Emphasis the experience your product or service creates 
• Leverage and share the experiences customers are having with your products in marketing and social media content