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The biggest shopping season of the year is coming up quickly, and retailers are creating their holiday 2022 marketing strategies. In the most recent CommerceNext Webinar, executives from Michael Kors, Kendra Scott, David Yurman, GiftNow and Coresight Research discussed new consumer research and what retailers should expect (and prepare for) to have a successful Holiday 2022.
What We Learned:
- Inflation and other macro uncertainties are projected to affect holiday shoppers’ behavior.
- Shoppers are putting more emphasis on the value of the brand, its products and prices.
- There are a variety of ways retailers can attract holiday shoppers aside from traditional promotions.
- Steven Winnick, Senior Analyst at Coresight Research
- Ann Marie Ippoliti, VP, NA Digital Commerce at Michael Kors
- Chris Hardisty, SVP Ecommerce (Interim) at Kendra Scott
- Rachel Goldflam, VP Marketing and Communications at David Yurman
- John Grech, Chief Commercial Officer at GiftNow
- Moderated by Allan Dick, Co-Founder at CommerceNext
Read on to explore the webinar’s key insights.
Understanding Current Macro Uncertainties
The current state of the U.S. economy has retailers and shoppers worried about Holiday 2022. According to the newest Coresight Research holiday survey, inflation and overall macro uncertainty will impact the majority of holiday shoppers’ budgets. This does not mean shoppers won’t be making purchases, but it does mean that they will be deal hunting with stricter budgets than we’ve seen in previous years.
Because shoppers are searching for promotions with less flexible budgets, the window of holiday shopping is projected to be much larger in 2022. Michael Kors understands this extended holiday shopping season is upon us and explained how they are laser-focused on establishing themselves early in the season as “the gifting place for all customers.”
In addition, to reach existing clients as well as attract new ones, David Yurman is focusing on using its marketing messaging to promote its wide range of products in all budgets. They believe it is crucial to market your brand as a place for all holiday shoppers, despite how high or low their budget may be.
Emphasize Your Value
During the webinar, Coresight Research shared another finding from their 2022 holiday shopping survey that predicted shoppers are showing increased “valued shopping behaviors.” Essentially, this means consumers are searching for products and prices that bring actual value to their lives and the lives of those they are shopping for.
Michael Kors plans to capitalize on this data by creating more visibility of its connection with customer values. For example, Michael Kors’ marketing messaging this holiday season will hone in on the brand’s sustainability efforts because they have found that it is something its target consumers value most. This strategy will help the brand build connections and overall customer loyalty.
In addition, Kendra Scott is emphasizing its personal value this holiday season by highlighting one of its main core values: philanthropy. The brand has a collection of initiatives that work to build deep relationships with consumers beyond their transactions. For example, Kendra Scott plans on amplifying the “Kendra Gives Back” program in its holiday 2022 marketing efforts. “Kendra Gives Back” is the brand’s community-giving program that allows community members to host in-store events for causes and organizations that work to improve various sectors of the community.
Think Outside The “Holiday Promotions” Box
Coresight Research also shared that a large portion of retailers expect their stores to be more promotional this year. However, no brand wants its customers to only associate shopping the brand with discounted products.
In order to get around this brand-to-discounted shopping correlation, it is essential to implement creative promotional tactics outside of the traditional “sale” shopping. For example, GiftNow shared the idea of running promotions via gift cards. Basically, this means instead of lowering the price of your merchandise, you give customers a gift card for “X” amount with their purchase. This, in turn, gives an illusion of extra shopping power to your consumers without having to put a sale sticker on your products.
David Yurman also shared another creative alternative to traditional holiday promotions: special holiday services and experiences. Instead of giving their customers discounted prices, they provide other valuable benefits while shopping like free overnight shipping, extended returns and 1:1 video shopping appointments. In addition, the brand tries to host special activations in stores to create excitement and fun around holiday shopping like an in-store illustrator.
While Holiday 2022 is going to bring various challenges to retailers, it is also projected to be a very successful shopping season. Understanding what to expect and prepare for is crucial to help ensure high sales during this busy quarter.
Also, if you are looking for some more holiday marketing tips, make sure to register for our next webinar on September 28th to learn the best practices for getting ready for the peak holiday season.