UPBEAT CONSUMERS TURN TO AMAZON AND TIKTOK EVEN AS INFLATION CONCERNS LINGER
Inflation is slowing down and student loan repayments are kicking off once again, making for yet another holiday shopping season unlike the last. To get a sense for how consumers expect to meet a new set of conditions coloring the backdrop to holiday shopping, Tinuiti surveyed 1,000 US holiday shoppers to better understand how, where, and to what extent they’ll shop on key days and platforms this winter.
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Holiday Shoppers are Ready to Ramp Up Spending This Year
Compared to last year, how much do you plan to spend on holiday gifts?
When asked how much they plan to spend on holiday gifts in 2023 compared to 2022, 37% of respondents said they intend to spend more, while only 25% expect to spend less, with the remainder saying they anticipate spending similar amounts. In 2022, slightly more respondents said they intended to spend less on holiday gifts than spend more.
Share of each generation planning to spend more on holiday gifts this year.
As more members of Gen Z reach adulthood, they are the most likely generation to increase their holiday spending, with 46% planning to do so in 2023. Just 19% of baby boomers expect to increase their spending this year, while 31% of boomers plan to spend less.
What is your budget for holiday gifts this year?
Over half of all holiday shoppers studied expect to spend at least $250, with 11% saying they’ll put more than $1,000 toward holiday gifts this year. Millennials expect to have the deepest pockets with 62% saying they will spend at least $250. Only 33% of Gen Z said the same.
Millennials expect to have the deepest pockets with 62% saying they will spend at least $250. Only 33% of Gen Z said the same.
Brands Should Start Holiday Messaging Before Thanksgiving to Get in Front of Early-Bird Shoppers
When do you plan to start shopping for holiday gifts this year?
Over half of respondents expect to start shopping for gifts before Thanksgiving, with nearly 30% kicking off holiday purchases in October or earlier. That rate jumps to 38% for baby boomers and 42% among those with a budget of more than $1000.
42% of holiday shoppers with a budget of more than $1000 will start shopping in October or earlier.
How much of your holiday shopping do you intend to do over the period from Thanksgiving through the following Monday (Cyber Monday)?
While many shoppers expect to start their shopping early, the period between Thanksgiving and Cyber Monday, also known as the Cyber Five, is still a critical stretch for many. More than 40% of respondents said they’d do most or all of their holiday shopping over the course of these five days.
Share of each generation planning to do half or more of their holiday shopping from Thanksgiving through Cyber Monday.
Baby boomers were a notable exception, with just 26% expecting to do most or all of their holiday shopping during the Cyber Five period. While Gen Z was most likely to put off the start of their holiday shopping until after Cyber Monday, they were also the most likely to take advantage of Cyber Five deals, with over 61% planning to do half or more of their shopping over that period.
Over ¾ of Holiday Shoppers Expect to Do at Least Half of Their Shopping Online
Where do you plan to shop for holiday gifts this year?
When asked where they plan to shop for holiday gifts this year, respondents were most likely to say they intend to shop online and in-store equally, with 37% selecting this option, up from 24% last year.
Combined with the 31% of shoppers who say they’ll do most of their shopping online, and the 9% who will shop exclusively online, 77% of respondents intend to do at least half of their holiday shopping online.
However, 60% of respondents also expect to do at least half of their shopping in stores this winter, up from 47% last year, and marketers will need to to ensure they’re tracking the offline spillover of online interactions to properly value digital campaigns.
77% of respondents intend to do at least half of their holiday shopping online. However, 60% of respondents also expect to do at least half of their shopping in stores...
What devices will you use to shop for holiday gifts online this year? Select all that apply.
Asked which devices they’ll use for online shopping, phones had the highest share at 67% of respondents, but the share intending to use voice-enabled devices like Amazon Echo or Google Home rose from 8% in 2022 to 14% in 2023.
Amazon Tops Online Shopping Destinations, but International Contenders Emerge
If you are shopping online for holiday gifts, what websites do you plan to use? Select all that apply.
More than 80% of respondents said they’ll be shopping online at Amazon this holiday shopping season, the highest share of any website, followed by Walmart at 58%. Target was next on the list, but did particularly well among Gen Z and millennials with 50% of those generations planning to use it this year.
Traditional search engines are set to play a pivotal role in the online shopping journey, with 36% of respondents indicating they’ll turn to Google to shop online for holiday gifts. Google scored higher among men than women, with 45% of men planning to use Google for holiday shopping compared to just 30% of women.
45% of men planning to use Google for holiday shopping compared to just 30% of women.
Share planning to shop on Shein or Temu for holiday gifts this year.
Chinese-founded sites Temu and Shein are gaining traction, with 20% and 16% of respondents saying they’ll use these websites, respectively. Among Gen Z women those numbers are roughly twice as high, with 42% planning to use Shein for holiday shopping and 35% planning to use Temu.
Many Holiday Shoppers Intend to Travel More in 2023
Relative to 2022, how do you plan to adjust the amount you travel this holiday shopping season?
More than 40% of respondents say they’ll do more traveling this year than in 2022, while less than 20% expect to do less. Among Gen Z, 47% of respondents plan to do more traveling this holiday season.
Relative to 2022, how do you plan to adjust the amount of in-store shopping you do this holiday shopping season?
The increased proclivity for travel may be at play in how shoppers plan to adjust where they’ll make holiday purchases, as 35% expect to do more in-store shopping this year compared to 23% who expect to do less.
Relative to 2022, how do you plan to adjust the amount of buy online, pickup in store shopping you do this holiday shopping season?
Shoppers also expect to increasingly buy online and pick up in stores, with 37% expecting to do this more and 25% expecting to do less. Younger shoppers were most likely to say they will be placing more BOPIS orders, including 44% of Gen Z.
Younger shoppers were most likely to say they will be placing more BOPIS orders, including 44% of Gen Z.
Social Media Dominates Holiday Gift Product Discovery
Where do you recall seeing or hearing about a new product that you later went on to purchase as a holiday gift last year? Select all that apply.
50% of respondents recalled first seeing or hearing about a new product they later went on to purchase as a holiday gift through social media, far outpacing the second-most popular answer, television.
Which social media platforms do you look to for inspiration during your holiday shopping? Select all that apply.
When asked which social platforms they look to for holiday shopping inspiration, over half of respondents said they look to Facebook, the most popular answer. The share who selected TikTok stood at 38%, a meaningful jump from 29% in 2022.
Share of each generation that look to TikTok for inspiration during their holiday shopping.
TikTok’s popularity increased sharply from each generation to the next with just 7% of baby boomers turning to it for shopping inspiration, but with 62% of Gen Z doing the same. Compared to 2022, the biggest decline in popularity for a social platform was an 11-point drop for X/Twitter among members of Gen Z.
Share of each generation that has purchased a holiday gift after seeing a social media influencer endorse/use it.
Influencers are a key part of social product discovery, with more than half of respondents saying they’ve purchased a holiday gift after seeing a social media influencer use or endorse it. Influencers are much more important to younger generations with 65% of Gen Z crediting an influencer for a holiday purchase, compared to just 28% for boomers.
Despite Upbeat Spending Expectations, Inflation Still on Consumers’ Minds
How will product price inflation affect the amount you plan to spend on holiday gifts this year?
More than 60% of respondents said that product price inflation would impact the amount they plan to spend on holiday gifts this year at least somewhat negatively. Another 25% are planning to bite the bullet and spend more on holiday gifts due to higher prices. Just 14% of respondents don’t think inflation will impact their holiday spending.
How will stock market valuations affect the amount you plan to spend on holiday gifts this year?
While stock market valuations have largely improved over the past year, half of respondents say that development will have no impact on the amount they plan to spend on holiday gifts. Among the other half of respondents, the expected impact of stock prices remained mixed, with many still expecting it to be negative.
Share of each generation that believe the resumption of student loan repayments will negatively affect their holiday spending.
The resumption of student loan repayments also stands to affect some holiday shoppers, with nearly 20% saying it will impact the amount they plan to spend very negatively. The impacts will likely be harshest for members of Gen Z with 36% expecting student loan repayments to somewhat or very negatively impact their holiday spending. For boomers, that rate drops to 16%.
How will any changes to your employment or wages affect the amount you plan to spend on holiday gifts this year?
Across the economic factors Tinuiti asked about, respondents had the most positive outlook regarding the impact that changes to their employment or wages would have on their holiday spending, with 63% saying it would be neutral to very positive. Among Gen Z and millennials, 21% expected employment changes to very positively affect their holiday spending. Just 11% of Gen X and baby boomers said the same.
Among Gen Z and millennials, 21% expected employment changes to very positively affect their holiday spending. Just 11% of Gen X and baby boomers said the same.
Reliable Websites Play Huge Role in Last-Minute Shopping
How does your shopping behavior change when you get down to the last minute? Select all that apply.
When asked how they change their shopping behavior for last minute purchases, 43% say they turn to physical stores for purchases, while 33% say they purchase more gift cards.
For shoppers still placing orders online, reliability becomes an important factor, with 30% of respondents saying they narrow online shopping to websites known for faster fulfillment.
To make sure orders get to them in time, 25% will pay more to get faster shipping, and 25% also say they’ll buy online and pick up in store. Gen Z was most likely to pay more for faster shipping, with 31% saying they do so when they get down to the last minute.