As we approach the 2024 holiday shopping season, retailers and consumers are juggling technological advancements, economic pressures, and evolving consumer preferences. 

Customers value loyalty and sustainability, but they also need to deal with a cost of living crisis. Let’s look at four key trends for this year’s biggest shopping drive

2024 holiday season trends

From the rise of Temu and Shein to brands using AI for personalized online searches, the 2024 holiday shopping season is shaping up to be a wild ride of tech-savvy bargain hunting, loyalty perks, and shopping with a conscience.

Sustainability drives consumer choices

Despite economic pressures, sustainability remains a key concern for consumers. Many are willing to pay a premium for products that align with their environmental values.

New data from PwC show that consumers are willing to spend 9.7% more, on average, for sustainably produced or sourced goods. This despite 31% of consumers citing inflation as their top concern, and 62% expecting significant increases in grocery expenditures.

This presents both a challenge and an opportunity for retailers to meet consumer demands while managing costs.

AI and gift shopping

Artificial Intelligence (AI) is no longer just a buzzword. As generative AI becomes more mainstream, AI is now an integral part of the shopping experience. 

While retailers are using it to assist with client queries and tailored online search opinions, consumers are turning to AI for gift inspiration and to find the best deals.

According to the Salesforce Shopping Index, 53% of shoppers expressed interest in using generative AI to find the perfect present.

It’s all about loyalty and reward

As digital marketing costs soar, retailers are still focusing on expanding their client base, but the emphasis is now on engaging with their loyal customers. 

As such, loyalty programs are becoming a crucial tool. Earlier this year, Inside Retail predicted that the Asia Pacific (Apac) loyalty market would grow by 11% annually, and reach US$52.05 billion by December. 

Meanwhile, Salesforce data shows that 63% of shoppers are making more purchases from stores where they can earn and redeem loyalty points.

The rise of cheap shopping apps

With price sensitivity at an all-time high, it’s no wonder fast -fashion retailers like Shein and Temu are taking the global market by storm. 

These ‘cheap’ shopping apps are capturing the attention of cost-conscious consumers, particularly among younger demographics.

The Salesforce Shopping Index shows that Chinese shopping apps in particular as predicted to capture $160 billion in global e-commerce market share outside of China this holiday season.

As the 2024 holiday shopping season inches closer, retailers must adapt to this year’s trends. Their success will depend on meeting consumers where they are.

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