Marketing In A Recession: Christmas Shopping Comes Early This Year
It might be hard to believe, but Christmas is just around the corner. And with the economy in recession, retailers are getting ready for a different kind of Christmas shopping season this year. In this article, we will be covering the shift in consumer behaviour this year as well as marketing tips for business marketing strategies.
Consumer Behaviour Trends
Christmas shopping seems to get earlier every year but particularly this year, shoppers are looking to get a jump start on their holiday shopping. The reason for this is that, due to the recession, many shoppers are worried about their finances and want to get their shopping done early so they can budget better.
According to PMW, this year, 29% of shoppers plan to start Christmas shopping by the end of August.
What else has changed?
- Shoppers will be extra focused on Black Friday and Cyber Monday deals this year, so don’t miss out on this period of discounts and high spending.
- There is also a trend of shoppers buying less expensive gifts this year and focusing on practicality over luxury. So, if your business sells products that are seen as a splurge, you might want to focus on how your product can be used in a practical way.
- 4 in 10 consumers want to be climate conscious in their shopping this year. Sustainable items, second-hand and vintage items will be the rising trend as shoppers look for guilt-free and economic gifts.
- 28% of shoppers plan to shop with local businesses this year to help boost the local economy after a hard two years.
So, what does this mean for businesses?
Here are some Christmas marketing ideas for 2022 to keep up your Christmas sales.
It’s important to start your holiday marketing campaigns early. If you wait until December to start promoting your Christmas products, you will likely be too late. Instead, start planning your campaigns earlier so that you can reach shoppers when they are starting to think about their Christmas shopping.
Provide Value & Demonstrate That Value To Customers
Because of the rise in the cost of living, people are looking for ways to save money and get more for their money. So, offer discounts and deals on your products and services. For example, you could offer a free gift with purchase or a discount if shoppers spend a certain amount of money. Showing that your product is worth spending money on will also be important.
Think about how you can package your products differently this year or what additional services you can offer to show customers the value of your product.
If you sell your products on either end of the price spectrum, it will be useful to learn how to segment your audiences based on income. If you sell budget items, target audiences with a lower income who may be tight on spending this year. Alternatively, if you sell luxury items, target audiences with a higher income whose spending habits won’t change dramatically this year. This will help narrow down your costs for your advertising budget. Market research will be key for this tip.
The Christmas shopping season is going to be different this year for the better and for the worse. Make changes early to your Christmas marketing campaign, and prepare your business for the change in consumer behaviour to ensure that you have a successful holiday season this year.
Read our previous article on marketing in a recession and general tips and advice for businesses here and follow our social media to keep up to date with the latest marketing and business insights for small businesses.
Regardless of the recession, we hope you have a fruitful festive season this year.