Shopify research - Brits open to new experiences this Black Friday, Cyber Monday

The Shopify Black Friday Cyber Monday Report has revealed how consumers plan to buy differently this holiday season.

The study of more than 2,000 consumers and 1,000 SMBs in the UK - which is part of a global research programme surveying 24,000 consumers and 9,000 businesses in 12 countries -  shows a shift away from “stack them high, sell them cheap” towards high quality, durable products.

It also highlights how customers want to stay connected to the brands they love, even if they’re not currently in a position to buy.

42% of UK consumers are cautious about spending, driven by the cost-of-living crisis, the recent interest rate rise by the Bank of England, and expectations of a protracted recession.

As a result, 78% have reduced their disposable spending this holiday season - the third highest proportion globally - and 49% are putting more money aside this year than they have done previously (varying from 68% of Gen Z to just 30% of those aged over 65).

65% are more likely to do the majority of their holiday shopping during Black Friday/Cyber Monday to get more value for money

At the same time, however, shoppers want quality products built to last.

66% are looking to spend money on higher quality products that will last a long time and a further 35% are planning to spend on days out, such as to amusements or paid events.

UK consumers are open to new experiences, and are willing to shop via online and social platforms more than ever.

Nine in ten shoppers say they are just as likely or more likely to shop in an online store than a year ago, 88% are purchasing the same or more in-store and 72% are just as likely or more likely to discover new products to purchase when scrolling through social media than a year ago.

What’s more, they are receptive to direct contact from businesses.

66% say it’s important that brands communicate with them about Black Friday Cyber Monday offers. 72% (7% higher than the global average) are willing to buy a rival brand’s product to save money.

42% would do so for a superior product. A quarter of respondents would in order to get access to potential exclusive discounts, shows that regular communication is vital with British shoppers

Eva Sonaike of luxury interiors brand Eva Sonaike says: “We’ve seen a decrease in sales in the UK, particularly in the last five months. Interestingly, though, the decrease in sales has not meant a decrease in contact.”

“Instagram engagement particularly is at a high, as customers want to stay in touch with the brand - and specifically the people behind it - even if they can’t buy right now.”

“In straitened times, the tone of the sales season will be different this year. For us, that means any promotion we run will give something back, by partnering with a charity and giving them a share of any income from flash sales.”

Businesses are recognising this shift. 93% of businesses believe it’s paramount to build a direct relationship with customers.

45% in the UK say reaching consumers organically via word of mouth on social media is more important than ever and a third are investing in improvements in and implementation of digital infrastructure to do more online sales to ensure future resilience.

Shimona Mehta, Managing Director, EMEA at Shopify, says: “Since smartphones came into our hands, people don’t go shopping any more, we are shopping all of the time. The high street is also still critically important to consumers, with nine in ten planning to shop in-store.”

“The businesses that will be resilient for the long term are those that enable customers to shop from wherever they already are. We’re seeing brands like Gymshark open huge new flagship stores to serve customers online and on the high street.”

“This research shows that consumers want to spend but will research longer and take more consideration over where and how they spend. Brands should take note, and factor that into how they engage ahead of this key time.”