Consumer shopping trends
142 million shoppers expected for super Saturday
According to a joint survey by the National Retail Federation and Prosper Insights & Analytics, approximately 142 million consumers are expected to indulge in a shopping spree on the last Saturday before Christmas. With 70% planning to shop in the week following December 25th, retailers are poised for a prolonged holiday shopping season. The top gifts consumers have purchased include clothing (50%), toys (34%), gift cards (27%), books and other media (24%), and personal care or beauty items (23%).
Holiday shopping will continue through the end of December and into early January. Most consumers (70%) say they plan to shop in the week following Dec. 25. The top reasons consumers shop then are to take advantage of holiday sales and promotions (48%), use gift cards (26%), and return or exchange unwanted gifts and holiday items (16%).
American online shopping exceeds pandemic peaks
The resurgence of online shopping in the U.S. has outpaced the heights of the pandemic era. A CNBC survey reveals that 57% of Americans prefer online shopping for Christmas gifts, with the average spend per person estimated at $1,300. Amazon remains the top choice for American consumers, solidifying its six-year dominance in the e-commerce sector. The only other competitor, Walmart, has made some modest gains, rising to 16% from 12% last year and from just 4% in 2017. Specialty goods stores, like Etsy and local store websites, also gained from 8% to 14%.
TikTok: A rising force in e-commerce
TikTok Shop’s weekly sales surge
TikTok Shop has witnessed a staggering increase in its weekly Gross Merchandise Volume (GMV), reaching over $85 million in a week, driven by categories like beauty, women’s clothing, electronics, and sports. The pre-Christmas shopping frenzy, accentuated by inflation and earlier holiday shopping trends, has significantly boosted sales.
TikTok’s ambitious e-commerce goal for 2024
TikTok E-commerce has set an ambitious target of $50 billion GMV for 2024, more than doubling this year’s goal of $20 billion. With impressive growth in Southeast Asian markets and a daily GMV in the U.S. exceeding $14 million, TikTok is rapidly expanding its e-commerce presence globally.
Amazon: Innovating and facing challenges
Amazon’s AI review summaries face backlash
Amazon’s newly launched AI-generated product review summaries, intended to concisely highlight key features and customer opinions, have drawn criticism from sellers and consumers alike. Issues of inaccuracy and overemphasis on negative reviews have raised concerns, especially during the critical Black Friday sales period. Amazon has responded by committing to refine this technology based on feedback.
