With Gen Z Planning to Spend More This Holiday Season, Retailers Intensify Focus on AI, Social Media, and Deep Discounts
August 28 2024 - 8:00AM
Fiverr International Ltd. (NYSE: FVRR), the company that is
changing how the world works together, today released research
exploring retailers' readiness for the upcoming holiday season.
Fiverr conducted a global survey of over 2,500 consumers and over
2,500 small-to-medium business leaders (excluding sole traders) in
partnership with Censuswide. The findings reveal a more strategic
approach to how businesses manage marketing efforts, freelance
talent, and AI technologies as they look to level the playing field
against larger e-commerce brands while also capturing Gen-Zers’
shopping habits and grappling with the economic hurdles like
inflation.
"The holidays are often make-or-break for many small businesses,
so it is critical to plan ahead, know where to place your focus and
ensure that your audience is getting the right message,” said Gali
Arnon, Chief Business Officer at Fiverr. “This data shows that
retail and e-commerce businesses are doubling down on social media
campaigns to reach new markets and embracing AI to streamline their
daily operations as more and more consumers are looking to buy the
perfect gift as far ahead of the holiday season as possible. With
inflation, competition, and staffing shortages intensifying both
online and in stores, the insights from our latest research
underscore the type of expertise businesses need to stay ahead.
Demand is up for experts with AI skills, digital marketing, and
social media to maintain loyal customers and reach new audiences
near and far.”
Several trends that emerged from the data include:
Smaller retailers have found their place among larger
companies like Amazon and Temu with 53% of surveyed businesses not
considering competition from larger e-commerce brands as a
challenge this year
- Inflation becomes the predominant concern for businesses, with
48% of global respondents citing it as their primary challenge
- A third of retailers surveyed cite staffing shortages ahead of
the holiday season, simultaneously, a third of retail and ecommerce
businesses are now hiring freelancers to support their
operations
Surveyed retailers are investing in various strategies
to reach new audiences – ranging from increased social media
presences to steep discounts – and to satisfy evolving customer
attitudes
- Compared to last year (55%) over 80% of businesses are now
offering discounts on their products to satisfy the
deal-hunters
- Customers are continuing to prioritize good deals (42%), free
shipping (32%), and high-quality products (30%)
- Last minute shopping remains a priority as well, with 18% of
global respondents focusing on fast shipping times
- 52% of people surveyed will start buying presents in October
and November while 18% are hitting the summer sales to find
gifts
Digital marketing remains the key to success for
retailers and ecommerce brands this holiday season, as more and
more Gen-Zers are willing to spend more on gifts they find
online
- 43% of Gen-Zers are planning to spend more this holiday season,
compared to the 37% of millennials that plan to do to same
- 57% of U.S. retailers surveyed are investing in social media
ads to reach their target audiences
- Global surveyed retailers are investing in: 39% social media
ads, 35% in influencer marketing campaigns, 33% email marketing,
29% updated product pages and improved SEO functionalities
Social media remains the go-to place for Gen-Zers
looking for the perfect gift this holiday season
- Amongst Gen-Zers: 34% use TikTok shop; 25% get their gift ideas
through social media influencers’ recommendations; and 14% use
generative AI search to help with gift buying
- In the U.S., TikTok shop continues its dominance – nearly 54%
of Gen-Zers find their gifts on this platform alone
- Surveyed U.S. Gen-Zers also cite social media as a major
influence in their holiday shopping – a third of respondents plan
to find gifts via Facebook and Instagram ads, and nearly a quarter
(24%) through influencer recommendations
With shopping increasingly moving online, nearly 7 in 10
retailers (68%) surveyed are now implementing AI throughout their
operations this holiday season – and they want Gen Z to take
notice
- 41% of retailers surveyed planning to invest in AI tools to
expedite work, and 35% who want to embed AI throughout the entire
customer journey with chatbots, customer personalization, or
customized marketing campaigns
- AI is already becoming second nature for Gen Z, over 54% of
Gen-Zers use AI to assist in their holiday shopping – whether it be
to find the best prices (17%), find new gift ideas (22%), or to
even create holiday presents themselves (18%)
MethodologyGlobal Consumer
Research: The research was conducted by Censuswide, among
a sample of 2,539 nationally representative consumers across the
USA, UK, Germany, France, and Australia. The data was collected
between 26.07.2024 – 30.07.2024. Censuswide abides by and employs
members of the Market Research Society and follows the MRS code of
conduct which is based on the ESOMAR principles.
Global Business Research: The research was
conducted by Censuswide, among a sample of 2,508 SME owners/leaders
(aged 18+) in Retail or E-commerce across the USA, UK, France,
Germany and Australia (excluding sole traders). The data was
collected between 27.07.2024 – 05.08.2024. Censuswide abides by and
employs members of the Market Research Society and follows the MRS
code of conduct which is based on the ESOMAR principles.
About FiverrFiverr’s mission is to change how
the world works together. We exist to democratize access to talent
and to provide talent with access to opportunities so anyone can
grow their business, brand, or dreams. From small businesses to
Fortune 500, around 4 million customers worldwide worked with
freelance talent on Fiverr in the past year, ensuring their
workforces remain flexible, adaptive, and agile. With Fiverr
Business Solutions, large companies can find the right talent and
tools, tailored to their needs to help them thrive and grow. On
Fiverr, you can find over 700 skills, ranging from programming to
3D design, digital marketing to content creation, from video
animation to architecture.
Don’t get left behind - come be a part of the future of work by
visiting fiverr.com, read our blog, and follow us on X, Instagram,
and Facebook.
Media Contact: Jenny ChangTommy
Leepress@fiverr.com
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/fb1f4f0f-5513-48ea-a609-c5e2c1663338
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