5 forecasts for the Christmas business 2022

Salesforce believes that the modest growth in sales during the Christmas holiday 2021 may provide a foretaste of what is to come this year. The CRM platform’s purchasing index shows which developments retailers can count on.

It is essential that the Christmas industry this year is strongly affected by inflation. Salesforce believes that the modest growth in sales during the Christmas holiday 2021 may provide a foretaste of what is to come this year. The data from the Salesforce Shopping Index should confirm this trend: in the second quarter of 2022, they showed a decrease in global digital sales of six percent compared to the previous year. In Germany it was even 24 percent.

In addition, prices have been increasing since the beginning of 2021. Consumers worldwide ordered 12 percent less online than in the same period in 2021. This process has now accelerated since spring 2022. Salesforce sees more competition between brands as consumers will buy fewer items from fewer online retailers.

These are the forecasts for this year’s Christmas business:

Prediction 1: Christmas shopping starts earlier

Consumers will shop for their Christmas presents earlier in 2022 to avoid price increases due to inflation, the forecast reads. According to the Shopping Index, 42 percent more consumers worldwide plan to buy gifts well before November. They hope to get their hands on their gifts before prices rise too much.

Prediction 2: Customer loyalty will become more difficult to achieve

In 2020 and 2021, customer loyalty shifted sharply towards convenience and security as consumers wanted a hassle-free shopping experience. Now that inflation is rising, customer loyalty is shifting again – this time towards value or “what’s my bang for the buck?”.

According to Salesforce research, half of all consumers will switch brands this year due to rising prices. This means that 2.5 billion customers worldwide may abandon their brand in favor of a cheaper competitor. The customer experience, online and offline, will be critical to success.

Prediction 3: The physical store will drive growth across all channels

Over the past year, brick-and-mortar retail has had a significant impact on digital sales, as store associates have excelled in their roles as fulfillment experts, consultants, social influencers and digital stylists. In fact, brick-and-mortar commerce now affects 60 percent of digital orders. This year, when the stores are in full operation again, consumers are expected to flock to the stores in even greater numbers.

The most important thing for them is the personal experience they missed during the pandemic. Businesses that sell both brick-and-mortar and online have the opportunity to grow faster than pure e-commerce providers. The merging of digital and physical stores increases the value of each channel. Salesforce predicts that companies with brick-and-mortar stores will grow their online sales 1.5 times faster than those without.

Prediction 4: Consumers buy sustainably

In the last two years, trust in a company and environmentally friendly production have become more important. In its latest State of the Connected Customer Report, Salesforce found that 88 percent of consumers expect brands and retailers to be clear about their values. 64 percent of respondents turn away from a brand if the company’s values ​​do not match their own.

This is especially true when it comes to the environment: According to Salesforce research, 83 percent of consumers worldwide will look for sustainable brands and products this year.

In fact, a company’s environmental practices are the most important factor in purchasing decisions after how it treats customers and employees, with sustainability initiatives ranking ahead of diversity and economic justice.

Prediction 5: Traders will test NFT drops

There are “It” gifts every Christmas season. This season’s trending collectibles come straight out of the Metaverse: In fact, 46 percent of consumers in the survey said they are considering buying NFTs (Non Fungible Tokens) — digital assets that represent something unique or rare and are on a blockchain being stored . This can be a virtual version of a real object or a digital collectible. Younger consumers in particular are planning to buy NFTs. Gen Z are four times more likely than Gen X to purchase a physical product paired with a digital version this year.

NFT buying is still in the exploratory phase. Salesforce expects approximately half a million NFTs to be purchased by retailers and manufacturers between November and December, with a potential total market value of $54 million.

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