According to the annual global report on holiday shopping and travel released by IBM’s Institute for Business Value (IBV), many global consumers are ready to celebrate the holiday season again and will shop earlier than in previous years. However, as a broader set of economic and political issues has taken center stage this past year, new risks and uncertainties loom over their plans.
The study found that 2022 shopping budgets are 8% higher than in 2021, and year-end travel budgets have increased by nearly 50%. However, factors such as inflation and rising prices have made economic concerns the main focus this holiday season. While 59% of surveyed consumers say they will be less worried about COVID-19, two out of 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 more difficult or expensive.
“According to the survey results, in 2022, consumers expect to resume the holiday traditions they had to alter over the past two years,” said Karl Haller, Partner, Consumer Center of Competency Leader, IBM Consulting. “They are starting their shopping and travel planning earlier, but they also want to protect themselves with options like free returns or cancellations. To adapt to these changes in consumer behavior, retailers will need better visibility and traceability in product inventories, order fulfillment, and returns. AI can help them understand, prioritize, and resolve critical issues in real time.”
Other notable findings include: Uncertainty around inflation, gas prices, and the supply chain is driving consumer plans: As concerns about the COVID-19 pandemic diminish for many consumers, worries are shifting to uncertain economic and supply chain conditions this holiday season.
Consumers are making travel and shopping plans earlier but want to keep their options open: Continuing the shift away from the traditional early start of the Black Friday shopping season, 58% of surveyed consumers plan to start their holiday shopping before November, compared to 44% last year. Nearly two out of three plan to place early orders this holiday season to receive their products on time at guaranteed prices.
Sustainability remains top of mind for most respondents despite economic hardships. According to last year’s report, sustainability continues to be a priority for surveyed consumers globally. “As more consumers align their purchases with their values, retailers and brands that can offer more environmentally friendly options may potentially capture a larger share of holiday spending,” said Haller.