- 66% of consumers surveyed say they'll
be more concerned about the economy this holiday season.
- 58% plan to start holiday shopping
before November.
- 73% said they are considering
sustainability when shopping for the holidays.
ARMONK, N.Y.,
Oct. 17,
2022 /PRNewswire/ -- According to the annual global
holiday shopping and travel report released by IBM's (NYSE: IBM)
Institute for Business Value (IBV) today, many global consumers are
ready to celebrate the holidays again and will be shopping earlier
than in years past. However, as a wider set of economic and
political issues took center stage this past year, new risks, and
uncertainty loom over their plans.
The study found that 2022 shopping budgets are up 8% over
2021—in line with Bain's economic forecast—and holiday travel
budgets are up by almost half. However, 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," said 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 behavior,
retailers will need better visibility and traceability across
product inventory, fulfillment, and returns. AI can help them
understand, prioritize, and resolve critical issues in real
time."
Other noteworthy findings include:
Uncertainty around inflation, gas prices, and supply chain is
driving consumer plans
As COVID-19 pandemic concerns abate for many consumers, worries
are shifting towards uncertain economic and supply chain conditions
this holiday season.
- Nearly half of consumers surveyed will spend less if
inflation continues to drive price increases. If they're forced to
cut their holiday shopping budget, over 60% will cut the
non-essential categories like apparel, footwear, jewelry, and
accessories.
- If goods are not available due to supply chain
issues, 41% of respondents say they will spend less – but 30% will
spend more if they can find substitutions easily.
-
If gas prices go down, 35% of consumers surveyed will do more
in-store shopping.
Consumers are making travel and shopping plans earlier but
they want to keep their options open
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 this holiday
season. The study findings seem to indicate these perks are often
worth the price due to the continued worries around supply chain
and product availability this season.
Travel is also an area where consumers are looking to get back
to normal, while still mitigating any risk associated with
potential price changes due to inflation and fluctuating gas
prices. The study found that average travel demand will go up by 9%
during the holiday season and 78% of consumers surveyed are
planning to purchase their airfare before October (61%) or in
October (17%).
Sustainability remains top-of-mind for majority of
respondents despite economic hardships
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," said Haller.
Three fourths (73%) of respondents said they are considering
sustainability when shopping for the holidays. Twenty-nine percent
of consumers 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 (42%), and buy products that are
branded as being environmentally sustainable or socially
responsible (41%). Notably, 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.
IBV Study Methodology
To better understand consumer perspectives, as well as their plans
to shop and travel this holiday season, the IBM Institute for
Business Value (IBV) surveyed more than 12,000 adults across nine
countries (Brazil, Canada, France, Germany, India, Mexico, Spain, United
Kingdom, United States) in
August 2022.
The full study is available
at: https://www.ibm.com/thought-leadership/institute-business-value/report/2022-holiday-shopping-travel
About the IBM Institute for Business Value
For two decades, the IBM Institute for Business Value has served as
the thought leadership think tank for IBM. What inspires us is
producing research-backed, technology-informed strategic insights
that help leaders make smarter business decisions. From our unique
position at the intersection of business, technology, and society,
we survey, interview, and engage with thousands of executives,
consumers, and experts each year, synthesizing their perspectives
into credible, inspiring, and actionable insights. To stay
connected and informed, sign up to receive IBV's email newsletter
at ibm.com/ibv. You can also follow @IBMIBV on Twitter or find
us on LinkedIn
at https://www.linkedin.com/showcase/ibm-institute-for-business-value/
MEDIA CONTACT:
Charlotte Bergmann
IBM
Communications
charlotte.bergmann@ibm.com
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SOURCE IBM