Cyber Monday sales were record-breaking high in 2019, and they’re expected to continue to climb this year, especially as shoppers are still cautious about braving in-person crowds on Black Friday. Retailers and shoppers alike have adjusted to new ways of offering and purchasing goods, and holiday shopping trends this year will naturally be affected.
Last year, NPD conducted a study to find out exactly how shoppers planned to spend their dough during the holiday season. While overall holiday spend increased 7%, half of respondents said they’d rather plan an outing with loved ones than purchase an actual gift. However, as in-person travel has been trickier in 2020, we won’t be surprised if gifts are more material this year.
Digital shopping as a whole promises to be as popular as ever this holiday season. Recent research from daVinci payments shows that 71% of US consumers plan to do half or more of their holiday shopping online, following the popularity of eCommerce in the midst of this year’s global crisis. According to the NPD study, mobile holiday shopping rose 19% since 2017, and 20% of purchases last year followed the convenient BOPUS method of being bought online and picked up in-store. Salesforce recently reported that brick-and-mortar stores are expected to serve a similar role as order fulfillment centers this year.
2019 also shaped up to be a great holiday season for subscription services. More shoppers spent on recurring revenue services for gifts last year, the top industries being beauty and fashion. In 2020, we’re seeing an increase in apparel retailers embracing a subscription solution.
Brands like Banana Republic and Urban Outfitters recently launched rental subscription services, a perk for consumers who might not want to commit to owning new clothes every month but will invest in the occasional piece and can rent pricier one-time-wear pieces. Clothing rental subscriptions are an increasingly popular option as more consumers are concerned with sustainability and clothing waste, and services tend to let consumers rent two sizes of the same piece of clothing, an added bonus in the pandemic since some retailers are still taking the safety precaution of keeping their fitting rooms closed to shoppers. Rental clothing subscriptions are shaping up to be a popular gift option for those who want to treat themselves or a loved one after a hard year, and Cyber Monday sales will offer an enticing lower price to entry.
2020 has presented unexpected challenges for brands and retailers in every industry, and plenty of companies have had to come up with quick solutions and adapt to this largely online retail world. Despite economic setbacks, consumers are still projected to spend about $10 billion on Cyber Monday alone, and the increasing popularity of personalized subscription services offers a recurring gift option that shows that the sender really knows the recipient and cares about their continued wellbeing. Though the holidays will certainly look different this year, consumers can expect increasingly creative efforts from retailers looking to provide safe, convenient, and personal gift options.
Keep up with Ordergroove to learn how to provide a sticky recurring revenue program in today’s market and retain subscribers after the novelty of the holiday season wears off.