Data reveals that 1 in 10 consumers plan to spend more than $1,000, with Gen X shoppers driving sales growth
New York, NY — September 25, 2019 — Despite trade wars, tariffs and dire warnings of a looming recession, new research from Tinuiti suggests that consumers are bullish on holiday spending this year – with Gen X in particular planning to spend big. Tinuiti asked 2,003 consumers aged 18-65 about their shopping plans for the busiest shopping season of the year — including what drives their purchasing decisions, and when, where and how they plan to spend. The 2019 Holiday Shopping Predictions and Behaviors report, released today, provides data and actionable insights to help brands and retailers hone their holiday strategies and maximize the potential for peak fourth-quarter revenue results.
More than a quarter of shoppers (26.8%) say they’ll spend more than $500 on holiday gifts in 2019, a jump of 10% compared to the same study from 2018. And 1 in 10 consumers estimates they’ll spend more than $1,000—double the percentage from 2018. In 2019, the low end of the spending scale is shrinking, too: 43.3% of shoppers say they’ll spend $250 or less in 2019, a 7.8% drop compared with 2018.
“What’s interesting is that despite looming economic concerns, our findings show that consumers are confident they will spend more than ever this holiday season. The biggest spenders will shop both online and in-store, highlighting the opportunity for brands and retailers to engage their customers across physical stores, Amazon, social networks, search, and email,” said Dalton Dorné, CMO, Tinuiti
Image from the 2019 Holiday Shopping Predictions and Behaviors report, courtesy of Tinuiti. For details visit https://tinuiti.com/
Tinuiti’s report reveals that Generation X shoppers plan to buy the most this holiday season, with 36.3% of those ages 35 to 44 and 28.6% of those 45 to 54 saying they expect to spend more than $500 this holiday season—not surprising, given that these midlife consumers have higher incomes, and likely have both children and parents on their gift lists.
Overall, men tend to splurge more than women, with 31.6% of men planning to spend more than $500, compared with 23% of women. By contrast, more than 45% of women are budgeting $250 or less for gifts.
Other key findings from the report include:
Online is king: 72% of shoppers begin their search for gifts online, with Amazon outranking Google, big-box retailers, and brand manufacturer sites as the preferred first stop for product research
Email is effective: 58.5% of shoppers said they sometimes or often make purchases because of email promotions during the holidays, whereas only a third say social media is somewhat or very influential
Brick-and-Mortar to make a strong showing: 53.7% of top spenders, driven by the men in the cohort, say they plan to use BOPIS (Buy Online Pickup In-Store) services
Holiday returns are the new normal: 48% of top spenders reported that they returned at least one gift they bought or received in 2018.
What can brands learn from this research? The holiday season represents both challenge and opportunity as retailers go head-to-head with Amazon and other mass merchants in an attempt to win sales. Omnichannel prowess and a wide presence across shopping touchpoints—from social media to Amazon’s marketplace—are now essential to connect with holiday shoppers and meet their rising expectations and budgets.
For access to a full report on the study’s methodology and findings, along with an analysis of the results that drill down by gender and age group, please visit: https://tinuiti.com/content/guides/2019-holiday-shopping-predictions-and-behaviors/
Tinuiti is the new name for Elite SEM and its recently acquired agencies CPC Strategy, Email Aptitude and OrionCKB. Tinuiti is a performance and data-driven digital marketing leader that helps clients Identify, Acquire, and Engage customers across the digital media ecosystem while their post-click solutions Retain and Reactivate consumers as they continue their digital journey. With expertise in Search, Social, Amazon & Marketplaces, Mobile Apps, Email Marketing and more, every solution is built on best-in-class data and analytics, brought to life by brilliant creative execution, and powered by exceptional strategists. Clients include Bombas, BB&T, Eddie Bauer, Ethan Allen, Etsy, Jet.com, Rite Aid, Seventh Generation, The Honest Company, Tommy Bahama, Terminix, Vitamin Shoppe.
Tinuiti has won several prestigious industry awards and accolades for both culture and performance, including #1 on Ad Age’s Best Places to Work, Digiday Worklife Awards, and the Google Premier Partner Award for Video Excellence. Tinuiti’s commitment to people and performance has cemented their position as one of the top digital marketing agencies in North America.