“New normal” creating new consumer types for the holiday season
The holidays have always been a time for friends and family to come together but the realities of a worldwide pandemic have affected shopping and other holiday activities, according to Nielsen. Nielsen predicts consumers will fall into one of five groups spanning the spectrum of existing financial and physical restrictions:
Basket Reset – Redefine What’s Festive: Holiday spending and gift etiquette will be redefined based on shifts in what and who will be considered essential to each consumer. To meet this shift, look at the broadened assortment of what consumers might consider “giftable” as an opportunity rather than a limitation.
Homebody Reset – Think Instant and Distant: Gatherings will be smaller, more intimate and many will be planned at the last minute, according to the latest local COVID-19 guidelines. The home will be central to many festive celebrations as a result. Constrained consumers will seek to limit their out-of-home expenses by relying on home cooking and homemade gifts where possible. On the other hand, insulated consumers will be looking for opportunities to splurge and treat themselves with premium product offerings and at-home dining experiences. Companies can cater to new needs for instant or distant gifting by innovating the ways in which a product or service can be shared from the comfort of the home. Offering the addition of personalized cards to electronic orders or being able to digitally send a product voucher to a loved one could serve as brand differentiators this year.
Rationale Reset – Engage With Empathy: Traditions are being rewritten, and in light of shifting holiday norms, consumers may choose to spend more on themselves this year. Consumers are reworking their budgets and adapting to changes in local living restrictions. In doing so, they are constantly adjusting the criteria for what makes it on their holiday shopping lists.
Affordability Reset – Convert Impulsivity: Online shopping will power more holiday consumer behaviors than ever before. It has already been a huge year for e-commerce growth, and even ahead of seasonal holiday demand, online buying behavior has continued to thrive in markets around the globe. Constrained consumers will be the most selective, using online shopping to search for the best prices without leaving home. Meanwhile, insulated consumers will rely on online sales events to provide maximized value for luxurious and indulgent festive purchases.