Fiverr has released new research showing that retailers are intensifying their focus on AI, social media, and discounts as they gear up for the 2024 holiday season. The study, conducted in partnership with Censuswide, surveyed over 2,500 consumers and more than 2,500 small-to-medium business (SMB) leaders globally. The findings highlight the strategies retailers are employing to attract Gen Z shoppers while navigating economic challenges such as inflation.
Gali Arnon, Chief Business Officer at Fiverr, emphasized the importance of early planning: “The holidays are often make-or-break for many small businesses, so it is critical to plan ahead, know where to place your focus, and ensure that your audience is getting the right message.” She noted that businesses are increasingly turning to social media campaigns and AI tools to meet rising consumer demands.
Key Findings
Retailers’ Digital Investment and Inflation Concerns
AI Integration: 70% of surveyed retailers are investing in AI to optimize operations.
Social Media Ads: 39% are enhancing their social media presence through paid advertising.
Influencer Marketing: 35% are turning to influencer campaigns to reach younger audiences.
Email Marketing: 33% are focusing on personalized email marketing strategies.
SEO: 29% are improving their product pages and SEO capabilities.
Inflation has emerged as the most significant concern for retailers, with 48% citing it as their primary challenge. However, 53% of smaller businesses are not viewing competition from large e-commerce brands like Amazon as a major threat this year.
Freelancer Hiring Amid Staffing Shortages A third of retailers are reporting staffing shortages ahead of the holiday season. Simultaneously, one-third of retail and e-commerce businesses are hiring freelancers to support their operations and maintain business continuity.
Consumer Trends Shaping the Holiday Season
Increased Spending from Gen Z
Gen Z Shoppers: 43% of Gen Z respondents plan to spend more this holiday season, outpacing millennials, 37% of whom plan to increase spending.
Discounts: More than 80% of businesses are offering discounts to attract deal-seeking consumers, up from 55% last year.
Shopping Preferences: 42% of consumers prioritize finding good deals, 32% value free shipping, and 30% focus on product quality.
Early shopping is becoming a significant trend, with 52% of consumers starting to buy presents in October and November. In contrast, 18% are capitalizing on summer sales to secure holiday gifts.
Social Media and Gen Z’s Holiday Shopping Habits Social media platforms, especially TikTok, are playing a crucial role in Gen Z’s holiday shopping. Among U.S. Gen Z shoppers:
TikTok Dominance: 54% use TikTok Shop to find gifts.
Social Media Influence: 34% of global Gen Z consumers use TikTok Shop, 25% rely on social media influencers for recommendations, and 14% turn to generative AI for gift ideas.
Retailers are responding to this by increasing their presence on social media platforms like Facebook and Instagram, where a third of U.S. Gen Z respondents plan to find gifts through ads, and 24% will look to influencers for recommendations.
Retailers’ AI Integration and Customization Efforts
As online shopping becomes more prevalent, nearly 68% of retailers surveyed are implementing AI in their operations, aiming to improve efficiency and offer personalized customer experiences. Specifically:
AI Tools: 41% of retailers plan to invest in AI tools to expedite work, while 35% want to incorporate AI throughout the customer journey using chatbots, personalized marketing, and customer engagement tools.
Gen Z’s AI Use: Over 54% of Gen Z consumers use AI to assist in their holiday shopping, including finding the best prices, generating new gift ideas, and even creating holiday presents.
The global survey conducted by Censuswide included 2,539 consumers and 2,508 business leaders across the USA, UK, Germany, France, and Australia. Data collection took place from July 26, 2024, to August 5, 2024. Censuswide adheres to the Market Research Society (MRS) code of conduct and ESOMAR principles.
Image: Envato
This article, “Retailers Increase Focus on AI, Social Media, and Discounts as Gen Z Plans to Spend More This Holiday Season” was first published on Small Business Trends