IBM flags shoppers re-embracing pre-Covid-19 holiday traditions

Many global consumers are ready to celebrate the holidays again and will be shopping earlier than in years past, according to research from IBM. However, as a wider set of economic and political issues took centre stage this past year, new risks, and uncertainty loom over their plans.

The company surveyed more than 12,000 adults across nine countries (Brazil, Canada, France, Germany, India, Mexico, Spain, United Kingdom, United States) in August.

It found that 2022 shopping budgets are up 8% over 2021, and holiday travel budgets are up by almost half.

Yet factors including inflation and price increases have made economic concerns top of mind this holiday season.

While 59% of consumers surveyed say they will be less concerned about Covid-19, two in three say they will be more concerned about the economy. 59% of respondents report worrying more about supply chain disruptions that could make holiday shopping harder or more expensive.

“According to the survey results, in 2022, consumers are hoping to re-embrace holiday traditions they’ve had to alter for the past two years,” says Karl Haller, Partner, Consumer Center of Competency Leader, IBM Consulting.

“They’re starting their shopping and travel planning earlier but also want to hedge their bets with options like free returns or cancellations.”

“To adapt to these changes in consumer behaviour, retailers will need better visibility and traceability across product inventory, fulfilment, and returns. AI can help them understand, prioritise, and resolve critical issues in real-time.”

Continuing the shift away from the traditional Black Friday start of the shopping season, 58% of consumers surveyed plan to start holiday shopping before November, compared to 44% last year.

Almost two in three plan to pre-order this holiday season to get their products on-time with guaranteed prices.

At the same time, consumers want to keep their options open. Nearly seven in ten respondents surveyed will opt for brands or retailers that offer free cancellations, order changes, and returns, as well as a Covid-19-safe environment.

The study findings seem to indicate these perks are often worth the price due to the continued worries around supply chain and product availability.

Consistent with last year’s report, sustainability remains top of mind for consumers surveyed globally.

“As more consumers align their purchases with their values, retailers and brands that can provide more environmentally-friendly options could potentially earn a greater share of holiday spend,” says Haller.

73% of respondents said they are considering sustainability when shopping for the holidays.

29% of those surveyed will bundle multiple orders to help reduce carbon emissions, while 38% will avoid single-use plastics, and two in five will choose to shop nearby, and buy products that are branded as being environmentally sustainable or socially responsible (41%).

Respondents surveyed are willing to pay an average premium of 41% for sustainable products, 34% for sustainable air travel, and 37% for sustainable lodging this holiday season.

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