Seasonality of D2C – December Edition

‘Tis the season! With Christmas inching closer every day, and the New Year on the horizon, the season of consumerism is well underway, presenting many opportunities for e-commerce businesses to amplify their reach and increase their sales over the coming weeks. But what can we anticipate from consumer behaviour in December, and how can you tweak your Direct To Consumer marketing strategy to your benefit?

Christmas Panic Shop Mode

In December 2021, over 45 per cent of all non-food and beverage items were purchased via online or digital platforms as consumers geared up for Christmas and activated their ‘Christmas Panic Shop Mode’. Evidence suggests that Brits are shopping later than ever this year in the run-up to Christmas, despite our intentions to get organised earlier. Evidence also suggests that men will be more prone to experiencing ‘Christmas Panic Shop Mode’ as males are more likely to leave their festive shopping until later.

If you’re looking to target a specific age range or audience for your Direct To Consumer products this year and take advantage of the festive panic, we advise looking to the 45-54 year age range, as these are believed to be the most likely to shop online. Younger generations are more likely to order online and resort to Click and Collect services, making this demographic similarly valuable to target. However, those aged 55 and over are likely to adhere to their creature comforts and shop in-store.

A Rise In Expenditure

All forms of consumerism are boosted during December – whether it’s buying the perfect Christmas turkey, finding personalised decorations, or buying an array of gifts for friends, family and colleagues. The lack of tangibility provided by brick-and-mortar storefronts can result in over-expenditure on behalf of British e-commerce consumers during December, with the Bank of England noting that average expenditure increases on average by 29 per cent during this busy month. As the influence of the pandemic recedes, we can expect some customers to shift their Christmas shopping habits over to in-store purchasing as large shopping centres and department stores are not deemed a risk to public health anymore. However, some trepidation remains regarding the in-person shopping experience, and as online shopping became the ‘new normal’ during lockdown we can expect to see a surge in e-commerce in December as consumers avoid the hustle and bustle of physical retail outlets.

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What The Public Buy

Although the cost of living crisis is sure to have some form of impact on consumer spending habits in December, retailers needn’t panic – a recent research piece by PWC unveiled that those under 35’s are still spending more money on Christmas-related items and gifts than before the pandemic. Direct To Consumer businesses that specialise in video, music equipment and books look set to make the most distinct impact over the festive season, with the Bank Of England stating that sales quantities are set to so much as double in December alone for these items. The same upward trajectory can be seen in all sectors – health and beauty, food and beverages and clothing items all experienced a resurgence in December. Many businesses create value sets, limited-time deals and free wrapping services to exacerbate the public’s desire to spend on their products and to secure return custom from those who may have become familiar with their brand over Black Friday and Cyber Monday.

Post-Christmas Boom

Much of our attention on consumerism in December focuses on the pre-Christmas rush, but what of the days between Christmas and New Year? Many retailers are left with surplus Christmas stock that must be shifted soon or risk potential expiration, and many members of the public will have received gift vouchers for Christmas to sustain their online purchases. Over one-quarter of the British population is anticipated to purchase gift cards this December, and the best time to spend such vouchers may be at the very end of the festive month. With a looming recession and ongoing Cost of Living crisis still at large, purchasers will be on an eager lookout for the very best deals across all product types, making December a prime opportunity to boost your e-commerce sales and set yourself up for an astonishing 2023.

Are you ready for Christmas?

Here at Codestorm, we’re proud to be experts in everything e-commerce fulfilment. From helping you pick, pack and ship your products, to enhancing your Direct To Consumer strategy, we’re here to help you every step of the way. It’s no wonder industry-leading brands such as Tarquin’s Gin, Candy Kittens and WWF have put their faith in Codestorm to deliver the best e-commerce fulfilment service possible. For more information on how we can help your business expand sustainably, build lasting relationships with your customers, and amplify your growth, contact us via the form below.

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