by Emily Yarwood
The results are in. Our friends over at Klarna have compiled their research to show how the way consumers will shop has changed this peak. To some, it might still feel a bit early to mention the ‘C’ word. But Christmas is fast approaching and Klarna’s research proves that people are in the festive shopping spirit earlier than ever and plan to spend more.
Based on a comprehensive survey of over 8,000 UK shoppers and Klarna consumers, we present key insights into how shoppers are changing their consumer habits this peak and why it’s important to understand these changes.
what we’ll cover.
- when we begin shopping.
- how much we plan to spend.
- habits we can see.
- how we are choosing to shop.
- what discovery tools we are using to find gifts.
christmas has already begun.
Timing is everything, and families all over the world have begun to think about their plans for Christmas. It has been a tough couple of years, and many are hoping this Christmas will feel more normal now that we can reconnect with our nearest and dearest.
early birds.
Nearly 20 percent of the 8,000 people who took part in Klarna’s survey said they had already begun shopping, with another 23 percent planning to get started before Black Friday. The reason why? Most early-bird shoppers want to avoid any last-minute stress and ensure Christmas is well and truly wrapped up before Christmas Eve.
spending more.
It also turns out that those who plan on getting everything wrapped up early are planning to spend, on average, a staggering 32 percent more. It makes sense, whether it’s splurging on our loved ones or spoiling our lockdown pet, the great British public seems to have conclusively decided to make the most of this festive season.
Last year, many holiday shoppers revealed that their bulk of shopping was done over peak. Customers spent the most money on Black Friday (38 percent), Cyber Monday (24 percent) and Green Monday (12 percent) than any other days across the peak period.
blowing the budget.
It seems that many are going to be digging deep into their wallets this year, and they have every right to after last Christmas being almost unrecognisable to the masses. Almost a quarter of shoppers plan to spend more on gifts this season.
Many families have chosen to use the money they saved during lockdown from not going on holiday, commuting, seeing family, or going on days out to splurge this Christmas. This year, people are keen to get back to normality and are ready to spend big to make up for lost time.
Don’t underestimate the spending abilities of the younger generations too. This peak, Gen Z (40 percent) and Millennials (37 percent) are more likely than any other age category to expand their budgets. Younger shoppers are also more likely to seek out flexible payment plans like Klarna’s Pay in 3 solution this shopping season.
family is key.
But who are all these gifts for? 81 percent of shoppers will be buying for family, but nearly half (44 percent) will be purchasing gifts for friends too and just 34 percent will be purchasing something for their significant other. Perhaps young couples are choosing to spend less on each other and save up for those much-missed holidays or larger life purchases such as houses or cars?
As for our work friends, the relationships with our colleagues are clearly changing. Maybe even secret Santa has had its day. Gone are the days of spending more time with them than with your family as working environments and patterns have seen a significant shakeup.
Over the 17 months that we faced rolling lockdowns and various restrictions, many people started jobs and left old ones behind, some without even meeting their new colleagues face to face. This has contributed to an easy-come, easy-go attitude towards workplaces which created uncertainty in office relationships. So, there’s little surprise that only a mere 7 percent are expected to buy for a work colleague this Christmas.
You may be unsurprised to hear that given more than 3.2 million pets were bought over the lockdown period, a whopping 64 percent of shoppers intend to buy presents for their furry (or feathery) companions this peak.
As dogs, cats, rabbits and reptiles joined families throughout the pandemic, they quickly cemented their place in our hearts as a great source of happiness. Helping many people get through the difficulties of quarantine, our pets kept us company, kept us entertained and kept us fit with regular exercise – there’s no wonder they’re set to be well and truly spoilt this Christmas.
how we like to shop.
Every year, it feels like the festive season starts earlier and earlier. Maybe we’re all excited to find a good bargain, or we just can’t wait to give our loved ones a great gift. Whatever the reason, Klarna’s research shows that many are set to start shopping earlier this year with 46 percent of people stating they’ll have begun shopping before Black Friday.
in-store or online.
During the pandemic, many new consumers made the move to eCommerce to meet their shopping needs. It seems this move has stuck with Klarna reporting that 49 percent of shoppers will do the bulk of their Christmas shopping online.
What’s more, the report showed that the greatest growth in online shopping is from baby boomers and this demographic are expected to continue reaping the benefits of online shopping this peak.
As the majority look to online shopping, 1 in 8 (12 percent) shoppers do still plan to visit in-store locations. And what’s more, a huge 82 percent of shoppers expect a seamless, connected online and offline shopping experience no matter how they choose to make their Christmas purchases.
sustainable and eco-friendly for younger shoppers.
There’s not only been an ongoing global pandemic, but we’re also experiencing the influence of leading climate change activists which has sparked action from major companies to reconsider their impact.
With greater concern for our planet, there is a growing demand for sustainable eCommerce with many making their shopping choices based on the ethical mission and behaviour of a brand. This is particularly notable across Gen Z and Millennials who confirmed they are likely to shop from a brand with a charitable or ‘give-back mission’ compared to older generations.
When it comes to sustainability and ethics, 64 percent agreed they would opt-in for sustainable and eco-friendly gift-wrapping options.
the power of social media and your spending habits.
Social media has already made its mark on the digital world as a powerful tool and an important part of customer acquisition. However, social commerce is on the up with 63 percent of Gen Z and 59 percent of Millennials saying they have purchased a product after seeing it on social media.
This openness to finding new products online is only growing in popularity. Social interactions across different platforms can be used to create rich shopping experiences between your business and customers. Engaging with customers in a social commerce environment could be done through Q&A sessions, social posts, frequent stories and even live shopping events.
In fact, livestream shopping seems to be the highlight, at least among younger audiences. 54 percent of Gen Z and 59 percent of Millennials say they’re interested in checking out livestream shopping events this year where brands can promote products and engage with their audiences. The power of these social media platforms is only multiplying with older shoppers (33 percent of Gen Xers and 16 percent of Baby Boomers) being influenced by their feeds too.
In terms of channels, it was found that 75 percent of men are expected to turn to Facebook for gift inspiration this year in comparison to 58 percent of women, who will mostly rely on Instagram. This is due to the growing reliance on social media this past year. Many celebrities and social media influencers also offer brand deals and endorsements which they offer to customers.
These stats go to show that social commerce isn’t just for one generation or one gender. This form of shopping is cementing itself in our lives as a key channel that’s only set to increase in popularity.
statement and klarna.
Brands can expect online shopping to continue prevailing this year. With the likes of well-trusted payment providers like Klarna combined with the power of Shopify, you can focus on converting more shoppers on your store. We’ve implemented Klarna for many brands including Cloud Nine and Prestige to create smooth and stress-free shopping experiences for their customers.
After the recent years we’ve all been through, one thing is for certain: this Christmas will surely be spectacular. If you want to talk more about making the most out of this year’s peak season now and into next year, get in touch with our eCommerce experts.
