#94: Is it time to discuss holiday shopping (already?!) 🤔

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This week, we’re looking at research into how generative AI will enhance overall shopping experiences in the future, and it’s already(!) time to discuss research about holiday season shopping, with a huge increase in a ‘treat yourself’ mindset in consumers.

More Than 70% of Consumers are Expecting Generative AI to Enhance Their Online Shopping Experience 

Coveo  released its fourth annual Coveo Commerce Industry Report, based on a survey of 4,000 shoppers, equally divided between the U.S. and the U.K. The report, “With Overwhelming Choice, What Really Drives Shopper Purchase Decisions?,” conducted in partnership with Arlington Research, examines shopper preferences, expectations, and frustrations at a transformative time in the retail industry. 

Meanwhile, shopper willingness to exchange personal data for deals is on the rise, along with their concerns over its use. The growing influence of social commerce is also a notable trend, particularly for Gen Z shoppers who often discover products on social media platforms, though only 14% said they hit the “buy” button on that channel.

All this reveals how ingrained digital interactions have become within the retail customer journey. In fact, Coveo’s survey confirms that 94% prefer to either start or end their shopping experiences online.

Findings in the latest instalment of Coveo’s 2024 Report include: 

GenAI has shifted shopper expectations, particularly pre-purchase decision-making.

72% expect their online shopping experiences to evolve with GenAI while 37% expect pre-purchase education on products and attributes, and 31% expect a virtual assistant to help guide them on product selection.

High expectations persist for online shopping. 

91% expect their online shopping satisfaction to match or surpass in-store experiences, yet 49% of shoppers state they still encounter problems online.

Social media piques consumer interest but retail websites are a critical means of conversion. 

Around two-fifths (39%) stated that they often/always come across products that catch their interest when browsing social media platforms, a figure that increases to over half (55%) for Gen Z. However, only 14% of shoppers said they complete their purchase through that same channel. 

73% of Millennials Plan to Indulge in Self-Gifting This Holiday Season   

Salsify released its inaugural 2024 Consumer Holiday Shopping Report, offering crucial insights and trends shaping this year’s holiday shopping landscape. Despite inflation and the high cost of living, 65% of holiday shoppers plan to maintain their spending levels from the previous year, while an additional 15% anticipate increasing their holiday spending. This consistency presents an opportunity for retailers to reflect on past performance to optimize strategies for the upcoming season. Additionally, the report unveils a significant behavior — the self-treating trend — with 61% of shoppers (the majority of whom are millennials) indulging in personal purchases while holiday shopping.

The Salsify 2024 Consumer Holiday Shopping Report offers a benchmark analysis drawn from insights gathered from 1,026 shoppers across the US and UK. The report equips retailers and brands with invaluable insights into consumer behaviors, preferences, and trends, empowering informed decision-making within the dynamic landscape of the retail industry.

3 key trend insights revealed in Salsify’s 2024 Holiday Shopping Report show:

The ‘treat yourself’ phenomenon hints of a holiday season of self-love. 

2024 reveals a prominent ‘Treat Yourself’ trend: A striking revelation from the report is the significant portion of holiday shoppers indulging in self-gifting. More than half (61%) of shoppers, particularly millennials (73%) and Gen Z (68%), are inclined to purchase items for themselves while engaging in holiday shopping. 

In the shopping channel showdown, Gen Z and Gen X skip online, while millennials and boomers opt for Prime. 

Salsify’s holiday report reveals intriguing insights into top gift discovery channels across generations. Surprisingly, physical retail stores emerged as Gen Z’s top choice (58%), surpassing Amazon (55%) and TikTok and Instagram (54%), mirroring Gen X’s preference, with 62% turning to stores for holiday gift inspiration. However, Amazon remains the go-to for other demographics, with 53% of Millennials and 54% of Baby Boomers relying on online marketplaces.

October signals the start of holiday shopping bounty. 

When it comes to holiday gift purchases this year, October emerges as the launchpad month, with 27% of all shoppers making their first moves, led by Gen X (30%) and followed closely by Millennials (29%). As November approaches, 26% of shoppers will join the fray, with Gen Z (32%) and Millennials (29%) taking the lead. Cyber Week is anticipating to capture 19% of shoppers, while 16% plan to wait until December. Interestingly, 7% are adopting a year-round approach. 

Commentary news share: AI is making us go extinct…

OpenAI workers have warned that AI could cause ‘human extinction’.

“Recent warnings from AI experts about potential existential threats posed by AI have driven a lot of headlines and captured the public’s attention; and while it’s important to acknowledge the significance of the potential pitfalls, suggesting human extinction is a bit extreme. History shows that with the introduction of any transformative technology, from the steam engine to the internet, there has always been a blend of enthusiasm and caution.

“Many markets have already introduced legislation to safeguard society (e.g. EU AI Act), setting guidelines for how organisations should be using and innovating with AI. While safe AI development and use is a never-ending journey that requires constant review and updating, this type of legislation will ensure we harness the potential of AI for good whether it be for medical, defence, business or other purposes. The bottom line is, the potential benefits of AI drastically outweigh the risks.”

– Flavia Colombo, VP EMEA at HubSpot

• For the first time in a decade, advertising is no longer the least trusted industry in the UK, according to new researchfrom the Advertising Association. Surpassed by the media and government, some 30% of consumers surveyed say they trust advertising, an increase of 7% since 2022. One marketing consultant on LinkedIn attributes this shift to a more honest and transparent approach in advertising, highlighting the growing importance of authenticity.
• As inflation approaches the targets set by central banks across the continent, European business momentum is picking up. Inflationary pressures eased across the eurozone, although input costs and output prices remained elevated compared to pre-pandemic levels.
• Swedish furniture maker IKEA has launched a store on Roblox, the digital universe, following a trend embraced by several other global brands. This collaboration, titled “Careers Done Different,” aims to merge virtual gaming with real-world employment opportunities in the UK by hiring paid co-worker roles within the virtual space, according to Marketing Week.
• Coldplay has said it reduced its carbon footprint on the first two years of its current tour by 59% compared to its previous world tour. The lead singer, Chris Martin said he would not tour again unless it could be done sustainably, and two years after the band pledged to lower its tour emissions by at least 50%. This definitely sets an example for businesses and other performers all over the world.

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