Top 6 Holiday Shopping Trends for 2024
As the 2024 holiday season approaches, consumers are embracing a new era of smart and intentional spending. Despite economic pressures, shoppers are looking to make smarter, budget-conscious choices to ensure a festive and joyful season with minimal financial strain. They are starting their shopping earlier, setting detailed budgets, and opting for thoughtful gifts that bring meaningful experiences.
Based on data from Afterpay’s Festive Forecast, discover how consumers are navigating the holiday season with creativity and financial savviness despite inflationary pressures.
1. Consumer state: Shoppers are adapting to economic pressures
This year, consumers are approaching the 2024 holiday season with a blend of excitement and a keen sense of financial awareness. While economic factors like inflation are on their minds, consumers are adopting smart strategies ahead of the holidays.
Data shows that 38% of shoppers feel some stress about holiday shopping, with 60% citing inflation as a contributing factor. This varies across generations: Millennials and Gen X are more stressed, while Boomers and Gen Z are more relaxed.
In response, consumers are taking proactive steps to manage their holiday budgets. A significant 40% plan to be more mindful of their spending, 38% are getting a head start on shopping to spread out costs, and 37% are creating budgets. Additionally, 36% are saving in advance, demonstrating a thoughtful approach to holiday spending.
2. The shopping timeline: Christmas in Fall
Holiday shoppers are increasingly choosing to finish their purchases well before the traditional shopping rush. This year, 10% of consumers started their holiday shopping in the summer months. An additional 41% plan to do their holiday shopping by early fall, with another 34% planning to finish by late fall. Only 15% of shoppers intend to wait until early to mid-December to complete their holiday purchases.
Most consumers are choosing to get a head start to avoid the hectic environments typically associated with last-minute holiday shopping. Financial considerations also play a significant role; shoppers are spreading their expenses over several months to manage their budgets better and take advantage of early discounts. A male Gen X shopper summed it up, saying, "We have decided to shop as early as possible to give us time to find the best deal." Similarly, a Millennial female shopper expressed her desire to avoid the stress of chaotic shopping environments, highlighting the peace of mind that comes with early planning.
A male Gen X shopper summed it up saying, "We have decided to shop as early as possible to give us time to find the best deal."
3. Omnichannel shopping reigns supreme
As more shoppers seek convenience and value, omnichannel shopping has surged in popularity, with 58% of the general population now engaging in this approach. Shoppers are blending online and in-store experiences to maximize their holiday shopping efficiency. Top online channels include mobile devices, favored by 68% of online shoppers, and desktop/laptop computers, used by 37% of online shoppers. Nearly half of all shoppers are strategically choosing to purchase only from stores offering free shipping to further reduce costs.
To capitalize on this trend, retailers should have a balanced approach between in-store and online, ensuring their online stores are optimized for mobile use. Additionally, sellers can consider expanding their presence on popular marketplaces like Afterpay. These platforms are particularly appealing to younger shoppers, who are increasingly looking for inspiration and the convenience of shopping all in one place.
Sellers can consider expanding their presence on popular marketplaces like Afterpay. These platforms are particularly appealing to younger shoppers, who are increasingly looking for inspiration and the convenience of shopping all in one place.
4. Top gifts among Gen Z and Millennials
The gift preferences of Gen Z and Millennials are significantly influencing the holiday market. Among these younger consumers, fashion items such as clothing, shoes, and jewelry are the most desired gifts, with an average 48.5% of Gen Z and Millennials preferring these items. Electronics also hold a strong appeal, with an average 32.5% of Gen Z and Millennials listing them as top choices. Health and beauty products, along with video games, are equally popular, each attracting an average 30.5% of these age groups.
5. The rise of experiential gifting
Experiential gifts are gaining traction, particularly among younger generations who are more likely to value unique and memorable experiences compared to their older counterparts. For Gen Z and Millennials, vacation and travel experiences are among the top choices of their wish lists at 21%, followed closely by event tickets at 19.5%, dining-related experiences at 15%, and subscriptions at 13.5%. Activities and classes attract 8% of these younger consumers. Generally, 24% of all shoppers plan to make travel-related purchases this holiday season, reflecting a broader trend towards valuing experiences over tangible goods.
Retailers can take advantage of this shift by creating an experiential holiday moment to encourage customers to shop for gifts in-stores. For example, if you’re a homegoods store, consider offering a cooking class bundled with the purchase of kitchenware or provide exclusive event access with the purchase of a ticketed item.
By integrating experiences with physical gifts, retailers can cater to the growing demand for meaningful and memorable gift-giving.
6. BNPL goes mainstream
Buy Now, Pay Later (BNPL) services, such as Afterpay, are becoming essential financial tools for holiday shoppers. Nearly a third of shoppers (30%) are considering using BNPL for their holiday shopping this year. Among those who plan to use BNPL services this year, 57% plan to increase their usage this holiday season, highlighting the growing reliance on these financial tools. Gen Z and Millennial parents are particularly inclined to use BNPL, with 21% of Gen Z and 27% of Millennial parents being likely to consider using Afterpay to help manage their holiday budgets.
For retailers, the growing popularity of BNPL presents a valuable opportunity to drive higher sales and larger basket sizes this holiday season. Afterpay users, in particular, are more likely to stretch their budgets this holiday season than the average shopper. By prominently offering BNPL options like Afterpay, merchants can adopt on-site messaging in addition to leveraging marketing assets to attract budget-conscious shoppers, leading to increased customer satisfaction this holiday season.
By prominently offering BNPL options like Afterpay, merchants can adopt on-site messaging in addition to leveraging marketing assets to attract budget-conscious shoppers, leading to increased customer satisfaction this holiday season.
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