Shoppin’ for the Holidays … e-style.

There are large fears about holiday spending this year. Of course, HOW bad depends who you ask. The National Retail Federation (NRF) is fairly optimistic, suggesting a slight rise of just over 2% this holiday season. Other sources suggest that overall spending will actually “fall sharply.”

The fact is that consumer planned holiday spending is low. Neilsen reported that 35% of consumers plan to spend less this year than they did in 2007. No surprise here - the stock market is tanking, unemployment is on the rise, blah blah blah.

But the bottom line is this - people are going to shop; even if it’s less.  And they’ll have the same challenges as they always do when shopping in the masses: long lines, frustrated people, children crying on Santa’s lap, last minute shopping, etc.

HOW DO YOU BREAK THROUGH THIS MADNESS?  Online Shopping, of course.

Even with the economic crisis, industry sources are suggesting that online shopping will rise slightly, or even by as much as 10% over last year (eMarketer.com). So this is where retailers need to hit a homerun if that want to secure their piece of the pie this year.

Back in 2006, I actually wrote a blog post suggesting that online shopping was the reason holiday spending was lower than forecasted. I proposed that shopping online allowed consumers to cost compare, and value shop in a way that decreased their overall spending. Which dovetails nicely to a recent survey item from NRF that discusses the role of the Internet in holiday shopping this year:  

“…shoppers will rely on the Internet more than ever to browse for holiday gifts and research products. According to the survey, the Internet will influence 33.6 percent of holiday purchases, up from 30.2 percent last year and 28.9 percent in 2006.”

The moral of the story is - just because people are value e-shopping doesn’t mean you can’t reach them, and their wallets. You just have to understand this trend, and follow what comes from it. 

VALUE SHOPPING

Coupled with a value-mindset, consumers are also shifting their gift giving.  Nielsen reports that consumers are making practical decisions this year: gifts of necessity rather than indulgence. For example, cold weather clothing, gas and grocery gift cards, linens, fireplace accessories, etc.

My last blog posted talked about something that marries with this idea of practicality- consumers want to feel good about what they buy (for themselves or otherwise). The message this holiday season this could be about 1) making people feel smart about their gift giving selections. And 2) giving them the tools to find and make these choices.

Delivering this message should be done through a variety of digital channels for maximum reach. Not to state the obvious, but … please make these messages consistent. Too often I see marketers fail here. You have a spot-on direct mail postcard message, and fail to connect it to the online experience. Every piece of communication has to marry and extend your message. 

Also, strongly consider the role of online community. Looking to established groups is the best idea, no need to reinvent the wheel. Why is this important? Especially now, people want to reinforce their buying decisions. Consumers want ideas, support, more information … be that voice for your potential buyers. Or BE THERE when their exploring. Even make them an offer. We all know the power of the coupon. And this holiday season, that power translates to making people feel better about their purchase.

This entry was posted on Thursday, November 20th, 2008 at 3:17 pm and is filed under Digital. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.