Cost of living crisis spurs global festive bargain hunting: EY
Shoppers are motivated to score bargains this holiday season as the global cost of living persists, a global EY report has found.
The latest EY Holiday Shopping Survey revealed consumers are seeking out more bargains during seasonal sales as they attempt to stretch disposable income further.
Despite a growing drive to land sale bargains, a level of mistrust was also found across global shoppers toward the real value of the discount or promotion offered.
The report was derived from the participation of 13,000 global consumers who shared their views and attitudes towards the upcoming holiday sale season.
Results revealed that 69 per cent said they enjoyed one-off sales such as Singles Day and Black Friday, while 64 per cent said they were sceptical of festive sales and questioned the real value.
The report also showed a growing level of concern regarding disposable income, as 45 per cent said they were worried about being unable to afford the upcoming festive season.
EY global and Americas consumer products leader, Rob Holston, said businesses must align with consumers’ wants and needs this holiday season.
“As we approach this festive season, consumer products companies are presented with a unique opportunity to expand their share of the consumer wallet,” Holston said.
“To truly capitalise on the signature sales events, it’s imperative that businesses actively fine-tune their promotions to resonate with the consumer’s evolving quest for value.”
“By tailoring promotions that not only attract but also rapidly grow their audience, companies can leverage these events to accelerate growth.”
According to the report, shoppers planned on being more intentional with spending this year, which reflected concerns about the cost of the season.
The majority of respondents said they were more interested in buying items that promised value lasting beyond the season.
Physical stores were set to be the preference for 68 per cent of respondents when purchasing in the upcoming season, as they wanted to “see, touch and physically experience a product” before they committed to a purchase.
However, savvy consumers said they would happily switch between purchasing channels to get the best deal and technology has evolved.
EY global and EMEIA retail leader Malin Andrée said it is not enough for businesses to have a presence in multiple channels as they should work seamlessly together.
“Retail companies must create digital ecosystems that allow for broader consumer insights to allow them to better understand and act faster,” Andrée said.
“They need to be closer to social media, both for its influential aspect but also for consumer and influencer insights.”
“The range of channels available to consumers might seem overwhelming, but EY data shows they are adept at selecting the right channel to meet different shopping needs. While it works for shoppers, for companies it only intensifies the ongoing challenge of channel fragmentation.”
The report revealed younger consumers such as Gen Z were likely to be the most active shoppers this season, as 40 per cent of Gen Z respondents said they planned to increase their spending across all categories.
EY said a major opportunity for companies was to meet Gen Z’s expectations for convenience in the upcoming season.
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