Wunderkind unveiled its 2023 Holiday Shopping Trends report to help brands optimize revenue for Black Friday and Cyber Week.
For the Holiday Shopping report, Wunderkind analyzed historical data from 2018-2022, during which the company drove billions of dollars in revenue for brands including JLo Beauty, Uniqlo, and Clarks. Here are the top trends Wunderkind expects to see in 2023:
Gen Z Is Ready To Shop Til They Drop
While economic concerns have been a massive theme this year, 63% of consumers say they aren’t planning on cutting back on essentials. Among them, 78% of Gen Z will not reduce discretionary spending. And with Gen Z accounting for an estimated $360 billion in spending power, they will be a driving force for consumer spending in the upcoming 2023 shopping season.
Cyber Week Will Peak On Black Friday
Cyber Week alone can generate anywhere between 6-9% of annual revenue for brands, and consumers seem to be getting in the “shopping mood” earlier and earlier. In 2022, July accounted for 7.4% of annual revenue thanks to Amazon’s Prime Day, and back-to-school shopping helped August drive 8.5%. The trend continued in September (7.5%) and October (7.7%), with a substantial leap in November (12.3%) and December (10.3%).
Cart Abandonment Skyrockets During Cyber Weekend
Despite lifts in conversion rate, major traffic influxes mean that abandoned carts hit their peak across the weekend. Cart abandonment is highest on Black Friday–over 100% higher than other days in November–and followed closely by Cyber Monday. Prioritizing list growth ahead of the holiday season will help you identify more of your site traffic. Utilizing Identification Technology, such as Wunderkind, will ensure your email and text abandonment programs deliver higher revenue.
Catering To Customers Will Lead To Bigger Average Order Value
According to Wunderkind data, the median average order value (AOV) during Cyber Week increased by 26% from 2018 to 2022, reaching $144 in median AOV last year. This positive trend is expected to continue in 2023 and beyond. In order to stand out from competitors and drive increased levels of spend, it’s important to leverage personalized messaging at scale to deliver tailored recommendations, exclusive offers, and discounts.
Mobile Commerce Conversions Are On The Rise
In 2021, mobile commerce outperformed desktop for the first time, accounting for 49.7% of conversions compared to 48.6% of desktop sales. Last year, mobile expanded its lead, accounting for 53.4% of conversions, 8% higher than desktop. For brands, it’s important to cater to these shopping behaviors and make use of channels such as text, so customers can convert directly on their phones.
Email vs. Text
Since 2018, text conversions have grown more than 4x, accounting for 5.5% of total conversions in 2022. Last year, email still held strong with 19.2% of total conversions, but is down from 22.5% in 2018, so it’s essential brands continue to extend consumer conversations across emerging channels.
“This year, overall retail spending for the holiday shopping season is projected to grow by 4.5%, reaching a staggering $1.3 trillion,” said Amandine Servain, VP of Marketing at Wunderkind. “By pinpointing when and where customers are converting and delivering personalized offers, brands can reduce cart abandonment and maximize revenue potential while ensuring a better experience that keeps customers coming back for years to come.”
To download the full 2023 Holiday Shopping report click HERE.
For more information on Wuderkind, visit the website HERE.