This upcoming holiday season, as inflation continues to stretch consumer wallets, remaining competitive requires staying one step ahead. Those small businesses that pay attention to retail trends may have a better chance of a profitable holiday season.
“Companies that successfully navigate the ever-changing retail landscape will be well-positioned for success this holiday season,” says Brian Lim, CEO and founder of INTO THE AM, which specializes in curating all-over print clothing. “We’ve found that staying up-to-date on the latest trends and investing in the right technology helps us create a seamless shopping experience that meets the needs of today’s discerning holiday shoppers.”
Retail Trends to Embrace This Holiday Season
“The holiday season is an exciting time for small-business owners,” says Sophia Jones, who owns a business consulting firm focused on retail shop owners and is a financial analyst for the personal finance information site PiggyBank.
“The influx of holiday shoppers and prospect of higher sales are great motivators to stay on top of your game this time of year,” says Jones. “As you prepare for the holiday rush, it's important to keep an eye on emerging trends in retail.”
Focusing on the following five mission-critical retail trends ahead of the holiday season may provide the boost your company needs to tap opportunities for growth.
1. Announce supply chain shortages.
“Consumers are extra sensitive to supply shortages right now,” says entrepreneur and author Mindy Weinstein, founder of the digital marketing firm Market MindShift.
“Before fall 2022 began, major news outlets were already reporting on possible product shortages and urging people to shop early,” says Weinstein, who is author of the book The Power of Scarcity: Leveraging Urgency and Demand to Influence Customer Decisions. “Based on psychological research, we know that messages about shortages heighten the fear of missing out, causing consumers to act by shopping early.”
Weinstein advises informing customers ahead of the holidays about potential sellouts.
“Determine which products might be in higher demand than others or are in short supply for other reasons and clearly communicate that to customers,” she says. “Announcing which products are best-sellers can also be helpful, because that alerts shoppers that these items are going fast. This acts as social proof of high demand.”
In addition to creating a sense of urgency to buy, alerting customers of potential sellouts may build relationships with them, believes Weinstein. “Customers view these messages as helpful and informational. Identifying items that have been restocked can have a similar impact.”
2. Focus on mobile marketing and sales.
Shoppers are increasingly using mobile devices to shop online, and that trend is expected to continue, notes Cynthia Asije, CEO of Craftmerce, a collaborative, online wholesale marketplace connecting African brands and products to retail partners. “Our company has prioritized mobile design and development in our e-commerce strategy, which will help drive sales this holiday season.”
Think mobile first, agrees Lim. “Today’s shoppers narrow down their searches before going in-store, and many use their phones while already in-store to compare products. This holiday season, make sure your website is optimized for mobile and that your staff is prepared to answer any questions that shoppers may have about your merchandise via their smartphones.”
Additionally, ensure that your company provides seamless mobile sales on social media. “To meet our customers where they already are, we have expanded our Shopify Plus store onto Instagram directly,” says Lim. “Shoppers are now able to see our products on IG and checkout directly without leaving the app. We see this trend getting stronger over the next few years.”
3. Achieve omnichannel consistency.
Omnichannel marketing that allows customers to have the same experience with your company throughout every touchpoint, including online, in-store, on the phone, on social media or elsewhere, is an emerging trend that looks as if it's becoming a necessity.
“If customers don't receive the seamless experience throughout their customer journey that they anticipate, they will depart,” says Asije. “Our team takes a holistic approach that results in a tailored strategy offering integrated solutions across all channels—from e-commerce websites, mobile apps, and social media pages, through to branded marketing campaigns and email marketing services.”
One key with omnichannel marketing is that customers are keenly aware throughout their entire shopping experience that they’re being well-served by your company.
“We ensure there is a consistent message across all touchpoints throughout the process so that customers feel like they are being looked after at every stage of their purchase journey,” says Asije.
4. Take advantage of customer analytics.
Using customer analytics data to identify what customers want and how they use products is a growing trend that can lead to increased business.
“Our company has invested in customer analytics so that we can better understand our customers and their shopping habits,” says Lim. “This holiday season, those analytics will help us predict holiday shopping behavior and improve the customer experience.”
Obtaining accurate information about your customers and their buying habits will help you stand out in a crowded marketplace, adds Kate Smith, an entrepreneur and content marketer for the e-commerce leather fashion site ZippiLeather.com.
“This holiday season, we’re focusing on using data and analytics to gain insights into customer behavior and preferences,” says Smith. “This will allow us to create more personalized marketing and promotions through targeted emails, customized coupons, and recommendations based on past purchase history.”
5. Offer curbside pickup and BOPIS.
Made popular during the pandemic, curbside pickup and buy online, pick up in-store (BOPIS) continues to trend. If you run a brick-and-mortar store, providing this convenience to your customers is expected. According to Statista, click-and-collect sales in the U.S. are forecasted to grow 19.4 percent in 2022 compared to 2021.
Curbside pickup and BOPIS works so well because customers desire convenience, notes Asije. “Consumers don't want to spend too much time thinking about how they'll purchase something. They just want it done quickly and easily.”
