Earlier this week, we had the pleasure of attending Google’s Think Retail NYC, a major annual event held at the iconic St. John’s Terminal. As one of Google’s premier events, alongside Think Lead Gen and Google Marketing Live, it was packed with valuable insights to help retailers and marketers alike navigate the upcoming holiday season.
“Make Every Holiday Connection Count”
Jochen Heck, Vice President of Sales at Google, kicked off the event with a powerful keynote, emphasizing the importance of making every holiday connection count. This set the stage for a day full of strategic insights.
Session Highlights: “State of Retail: What to Expect This Holiday Season”
One of the most insightful sessions was the “State of Retail,” where economists discussed consumer sentiment and emerging trends. It was eye-opening to see how consumer behaviors are evolving, and these were the key takeaways:
- Shifting Holiday Timelines: In 2023, the breakdown of Q4 sales revealed some surprising shifts:
- 29% of sales occurred in the pre-holiday period (October).
- 22% of sales happened during the “Early Holiday” phase (November 1st through the day before Thanksgiving).
- Only 7% of sales were made during Cyber 5 (Thanksgiving through Cyber Monday).
- 36% of sales took place during the “Peak Holiday” period (Cyber Monday through Christmas Eve).
- 6% of sales happened in the “Post-Holiday” phase (Christmas through December 31st).
Looking ahead to 2024, three factors are likely to impact these trends:
- The Presidential Election: The U.S. election will likely lead to elevated media consumption and potentially distracted consumers.
- A Compressed Shopping Season: With five fewer shopping days post-Thanksgiving this year, the holiday season will be more compressed.
- Changing Shopping Behaviors: Every day counts more than ever. Data from the session highlighted that:
- During COVID, weekday sales outpaced weekend sales.
- In 2023, weekend sales rebounded, with consumers spending more on average during weekends.
- E-commerce is 1.4X more important during weekdays, accounting for 40% of sales on an average weekday, compared to 28% on an average weekend.
Key Takeaways
- Post-election, half of the country may have a negative outlook, impacting consumer sentiment.
- The shopping window is compressed, making every marketing effort count.
- E-commerce plays a crucial role, especially on weekdays.
“Mastering the Holiday Mindsets: Drive Relevance and Boost Confidence”
The second presentation focused on driving relevance and boosting confidence for holiday success by understanding shoppers’ mindsets.
- Generational Preferences: Shopping behaviors vary widely across generations. Gen Z and Millennials favor direct brand purchases, while Gen X leads in adopting new platforms like Temu. Boomers prefer department stores and discount retailers.
- Pricing and Promotions: This year, pricing and promotions are more critical than ever. Consumers value a combination of price and quality, with promotions being 5% more important compared to last year. Competitive pricing and convenient shipping options are key to capturing consumer interest.
The Four D’s of Holiday Shoppers
The second presentation focused on driving relevance and boosting confidence for holiday success by understanding shoppers’ mindsets.
- Deliberate Shoppers: These shoppers plan and seek clear product information. Early marketing and transparent communication are essential for capturing their attention.
- Deal-Seeking Shoppers: Focused on finding the best deals, these shoppers value both discounts and high-quality products.
- Determined Shoppers: This group is focused on making purchases and needs confidence in their choices. Early visibility and consistency throughout the season are crucial.
- Devoted Shoppers: Loyal to their preferred brands, these shoppers expect personalized communication and relevant product recommendations based on their browsing history.
Key Takeaways
The second presentation focused on driving relevance and boosting confidence for holiday success by understanding shoppers’ mindsets.
- Start Early: With a compressed shopping window, it’s important to begin marketing campaigns early and maintain visibility throughout the season.
- Focus on Value: Offer a mix of price and quality, which resonates well with value-seeking consumers.
- Personalize Experiences: Use consumer data to tailor communications and recommendations, fostering trust and relevance.
For the full data set and sources, please contact your Account Manager at Mason Interactive.