The 2020 holiday season is fast approaching, and this year, brands, retailers and consumers are preparing for major changes related to holiday celebrations, spending and gifting, according to “The 2020 Challenge: Keeping Spirits Bright This Holiday Season,” a new report by Advantage Sales, a division of Advantage Solutions.
Nearly nine in 10 consumers cited that COVID-19 has impacted their holiday plans, according to the report, which is based on the responses of 1,027 adults, each of whom typically participates in at least one of the major winter holidays, including Black Friday and Cyber Monday. Participant responses were fielded between September 16 and September 22, 2020 by Advantage Sales’ SMARTeam.
Read More : M-Files Partners with Adobe to Provide Easy and Secure Document E-Signatures
“Communities across the nation are seeing a holiday season like never before,” said Kimberly Senter, executive vice president, analytics, insights and intelligence at Advantage Sales. “As the winter holidays are projected to be impacted by changes in consumer demand and sentiment, Advantage’s research outlines where retailers and brands can find new ways to bring the holiday spirit to Americans who are, more than ever, craving connection.”
Holiday Plans Change Due to Financial Constraints
Consumers are planning to turn to e-commerce alternatives for holiday shopping vs. brick-and-mortar locations as concerns over safety and economic stress caused by the COVID-19 pandemic affect holiday spending plans. Nearly four in 10 households said their finances were worse because of the pandemic, and of this group, 30% plan to buy cheaper brands, compared to 21% of the total respondents.
Read More : SalesTechStar Interview with Sam Zayed, Chief Revenue Officer at Conga
While 35% of consumers expect to attend fewer celebrations overall this year, households that have been financially impacted by the pandemic show outsized declines in holiday participation with an outlook generally more negative than the average. Overall, Thanksgiving is projected to experience the steepest decline in participation, with a roughly 30-percentage-point drop. Thanksgiving, coupled with New Year’s Eve (27-point decrease), Christmas (23-point decrease) and Black Friday (18-point decrease), total the top four hardest-hit holidays amid the 2020 season.
Reinventing Smaller Gatherings
For consumers who are planning to celebrate the holidays, 40% are planning to attend smaller, more intimate gatherings. This change in gatherings signals the need for brands to adjust to people buying smaller-sized holiday dishes with a range of traditional and nontraditional foods. Prepared meal kits, smaller turkey and ham meals, and personal-size pies and desserts should be in high demand throughout the season.
Read More : How The Covid-19 Pandemic Accelerated Enterprise Investment in NLP
