Fiverr has launched new analysis displaying that retailers are intensifying their give attention to AI, social media, and reductions as they gear up for the 2024 vacation season. The research, performed in partnership with Censuswide, surveyed over 2,500 customers and greater than 2,500 small-to-medium enterprise (SMB) leaders globally. The findings spotlight the methods retailers are using to draw Gen Z consumers whereas navigating financial challenges reminiscent of inflation.
Gali Arnon, Chief Enterprise Officer at Fiverr, emphasised the significance of early planning: “The vacations are sometimes make-or-break for a lot of small companies, so it’s vital to plan forward, know the place to position your focus, and be certain that your viewers is getting the best message.” She famous that companies are more and more turning to social media campaigns and AI instruments to fulfill rising client calls for.
Key Findings
Retailers’ Digital Funding and Inflation Issues
- AI Integration: 70% of surveyed retailers are investing in AI to optimize operations.
- Social Media Advertisements: 39% are enhancing their social media presence via paid promoting.
- Influencer Advertising and marketing: 35% are turning to influencer campaigns to achieve youthful audiences.
- E mail Advertising and marketing: 33% are specializing in customized e mail advertising methods.
- search engine optimization: 29% are enhancing their product pages and search engine optimization capabilities.
Inflation has emerged as essentially the most vital concern for retailers, with 48% citing it as their main problem. Nonetheless, 53% of smaller companies aren’t viewing competitors from massive e-commerce manufacturers like Amazon as a serious risk this yr.
Freelancer Hiring Amid Staffing Shortages A 3rd of shops are reporting staffing shortages forward of the vacation season. Concurrently, one-third of retail and e-commerce companies are hiring freelancers to assist their operations and keep enterprise continuity.
Shopper Developments Shaping the Vacation Season
Elevated Spending from Gen Z
- Gen Z Consumers: 43% of Gen Z respondents plan to spend extra this vacation season, outpacing millennials, 37% of whom plan to extend spending.
- Reductions: Greater than 80% of companies are providing reductions to draw deal-seeking customers, up from 55% final yr.
- Purchasing Preferences: 42% of customers prioritize discovering good offers, 32% worth free transport, and 30% give attention to product high quality.
Early purchasing is turning into a major pattern, with 52% of customers beginning to purchase presents in October and November. In distinction, 18% are capitalizing on summer season gross sales to safe vacation presents.
Social Media and Gen Z’s Vacation Purchasing Habits Social media platforms, particularly TikTok, are enjoying an important position in Gen Z’s vacation purchasing. Amongst U.S. Gen Z consumers:
- TikTok Dominance: 54% use TikTok Store to search out presents.
- Social Media Affect: 34% of world Gen Z customers use TikTok Store, 25% depend on social media influencers for suggestions, and 14% flip to generative AI for present concepts.
Retailers are responding to this by rising their presence on social media platforms like Fb and Instagram, the place a 3rd of U.S. Gen Z respondents plan to search out presents via adverts, and 24% will look to influencers for suggestions.
Retailers’ AI Integration and Customization Efforts
As on-line purchasing turns into extra prevalent, almost 68% of shops surveyed are implementing AI of their operations, aiming to enhance effectivity and supply customized buyer experiences. Particularly:
- AI Instruments: 41% of shops plan to put money into AI instruments to expedite work, whereas 35% need to incorporate AI all through the client journey utilizing chatbots, customized advertising, and buyer engagement instruments.
- Gen Z’s AI Use: Over 54% of Gen Z customers use AI to help of their vacation purchasing, together with discovering the very best costs, producing new present concepts, and even creating vacation presents.
The worldwide survey performed by Censuswide included 2,539 customers and a pair of,508 enterprise leaders throughout the USA, UK, Germany, France, and Australia. Knowledge assortment befell from July 26, 2024, to August 5, 2024. Censuswide adheres to the Market Analysis Society (MRS) code of conduct and ESOMAR rules.
Picture: Envato