What Edgy Consumers Could Mean for Q4: Gartner
Consumer skepticism with in-store pricing may have ramifications for the Q4 holiday season.
Although interest with in-store shopping grew last year, respondents in a June Gartner survey cited such deterrents as higher prices (40%), inventory (28%), selection issues (18%), and security concerns (14%) as concerns, all of which increased vs. last year.
As part of this, respondents stated concern that in-store prices are not competitive with online prices, the research firm said, and one-fifth plan to increase online shopping this holiday season.
What’s Impacting Behavior
Most consumers (64%) in Gartner’s survey intend to maintain their holiday spend. Twenty-one percent will pull back, and 14% will increase.
For those who expect to spend more, it's not necessarily because of generosity: More than three-quarters of holiday shoppers report higher prices, not increased discretionary spending, are causing them to spend more for holiday gifts.
“The effects of high inflation and supply chain issues in the post-pandemic economy mean holiday shoppers are still on edge,” said Kassi Socha, director analyst in the Gartner marketing practice, in a statement.
What Consumers Want
Shoppers will continue to prioritize convenience over experiences this year. More than half (57%) plan to use one or more value-added services this season, including same-day delivery, expedited shipping, curbside pickup, or buy-online, pickup-in-store (BOPIS).
They also want the ability to return gifts “well outside” the standard 30- to 60-day window, said Socha.
“This is particularly true for younger shoppers, with over seven out of 10 reporting they would be at least a little persuaded to purchase if offered an extended holiday return policy,” she said.
How CPGs Can Respond
Almost one-third of consumers will begin holiday shopping before November, following the lead of brands that have pulled back marketing and promotions to late summer. And while holiday planning must start early, CPGs need to build in ample time to react to social-driven consumer trends.
Although CMOs should start holiday planning in Q1, they need to revisit their long-standing trade promotional and holiday plans throughout the year in order to effectively launch in the third quarter, noted Socha.
“This strategy allows marketing teams to take into account timely consumer insights and market analysis, and ensures the hypotheses they made earlier in the year will meet the expectations of their target consumers.”
Also critical: Promoting the aforementioned value-added services, as consumers are choosing convenience and money-saving over in-store experiences, per Socha.
