Klarna details the strategies retailers should put in place to make the most of festive season shopping.
The busiest retail period of the year is approaching fast.
Things like Christmas gifting, Black Friday sales and Cyber Monday restocking are more complicated this year than they have been in the past and retailers and consumers alike are hustling to get ready for the rush.
For many consumers, the shopping season is the most stressful time of the year and for most retailers, it’s their busiest and most competitive period.
This season has changed dramatically, both in terms of what people want and need, but also how people are shopping.
Many Australians have not been able to visit a store for many months, which has had a huge impact on their shopping behaviours.
Retailers have had to re-think and re-think again what shoppers are really looking for and how to best service their needs.
Agility, flexibility and creativity have become and remain more important now than ever.
Over the last 18 months the shift from in-store to online shopping has accelerated dramatically and with that, retailers face new levels of shipping and fulfilment challenges.
Brands must now work to create a holiday shopping experience that caters to all the ways consumers can and want to shop - in-store or online along with click-and-collect and curbside pick ups.
Retailers need to ensure a consistent brand experience throughout the shopping journey - regardless of the path a shopper takes - if they want to see shoppers convert and return post-holiday.
So, how can you best prepare for what the upcoming season has in store?
Well, it’s comforting to hear that many shoppers are already on it.
In fact, in a recent survey* by the shopping app and Buy Now, Pay Later (BNPL) company Klarna, found that 19% of consumers in Australia and New Zealand had already begun their holiday shopping in September, and 29% will start their holiday shopping earlier this year than they did last year.
If you haven’t kicked off your holiday campaign yet, fear not.
Klarna also found that holiday shopping budgets are expanding in 2021, and Black Friday sales are on the rise.
63% of shoppers say they’ll be making the majority of their purchases online during Black Friday this year, and over 19% of shoppers plan to spend more on holiday gifts this year than they did last year, with younger shoppers leading the way.
Although shoppers seem to have mapped out when they will shop, retail competition will be fierce this year.
The past few months of lockdown has seen shoppers, retailers and influencers get creative, with things like live stream shopping on the rise.
54% of Millennials and 54% of Gen Z say that they’re interested in checking out livestream shopping events, and the vast majority of younger shoppers – 86% of Gen Z and 89% of Millenials – say that they have purchased a product after seeing it on social media.
So what are shoppers buying? If you’re a small business owner it’s time to celebrate.
We've seen a small business boom this year with 29% of shoppers agreeing that small businesses are the place to shop this holiday season!
Check out how Klarna previously worked with small businesses during their Big love for small business campaign.
Don’t forget to prepare your marketing resources for the busy period.
Get set up to automate and utilise tech that’s available to you, so you can focus on what you love.
Whether it’s AI powered dynamic ads, social shopping feeds or virtual personal shoppers, there are new platforms and technologies available which go above and beyond the traditional playbook when it comes to reaching customers and increasing conversions.
If you’re still looking for a campaign buddy, Klarna is here to help you out.
Their internal marketing teams help businesses of all sizes get fit for the shopping season while their suite of marketing tools and services helps retailers of all sizes connect with and convert customers.
Make the most out of this season, get more insights from Klarna and learn how to become a partner here.
*Source: Klarna, The State of Smoooth: 2021 Holiday Spending Season (2021)