Some of our team members recently attended Google’s recent "Retail-Ready" event to gather key insights and practical strategies for brands to stay competitive during this critical period. In this article, we'll explore some of the key takeaway's from Google + economic factors, shifting consumer priorities, and how AI and omni-channel tactics can help brands thrive in Q4 2024. Read on to discover how your brand can stand out, adapt to market dynamics, and make the most of the shortened shopping season.
Understanding the Economic Challenges in Q4 2024
While there is some good news on the economic front, with slight GDP growth and a decrease in inflation, the shadow of financial stress from previous years still looms large. This lingering stress is likely to impact consumer spending habits, making shoppers more cautious and value-driven.
Additionally, the 2024 holiday shopping season is set to be one of the shortest in recent years, with five fewer shopping days in November compared to 2023.
This truncated season will intensify competition, with brands vying for consumer attention and dollars in a shorter timeframe. Planning and executing timely campaigns will be essential for brands to make the most of this compressed shopping period.
Consumer Behaviour: Value and Personalisation Take Center Stage
Consumers are increasingly prioritising value and personalised experiences in their shopping journeys. With advancements in AI driving more product-focused and question-based search queries, brands must ensure they’re visible during key moments of discovery.
Flexible payment solutions, such as subscription models and buy-now-pay-later options, are gaining traction and should be incorporated into offerings to meet evolving consumer expectations.
Brands that can effectively reach new consumers through innovative discovery strategies are poised to capture a larger market share. The rise of generic searches over branded ones in Q4 underlines the importance of being visible to consumers who may not yet be familiar with your brand but are actively looking for the right product.
December Shopping Surge and What to Expect in 2025
With November 2024 being the shortest shopping season since 2019 (as Black Friday will fall on November 30th), the bulk of holiday spending is expected to shift to December. Brands that stand out with a strong, differentiated approach will have the opportunity to capture consumer interest during this concentrated spending period.
January 2025 is also expected to be a strong month for remarketing efforts. As consumers continue shopping in the post-holiday period, brands that invest in remarketing strategies will have the chance to extend their holiday gains into the new year. Disruptor brands are capitalising on this dynamic, capturing market share by staying agile and responsive to emerging trends.
Timing is Key for Luxury and Beauty Brands
In the luxury and beauty sectors, timing is everything when it comes to maximising sales. Understanding the peak shopping times for different product categories will help brands better plan their marketing and inventory strategies.
Here’s what to expect for specific luxury products:
- Handbags: October
- Watches: October
- Shirts and Polos: Mid-November
- Scarves and Wallets: December
- Perfumes: December
- Jewellery: December
- Dresses: January
Brand desirability remains a critical factor driving luxury purchases, with household income continuing to play a key role in influencing click share. Despite economic challenges, gifting behaviour in the luxury market is expected to remain strong.
Brands that position their products as the perfect holiday gifts will be well-placed to capitalise on this trend.
Strategies for Brands to Succeed in a Shorter Shopping Season
To win during the holiday season, brands need to differentiate themselves and stay ahead of the competition. Here’s how:
- Differentiate Beyond Promotions
In a crowded market, brands need to focus on unique value propositions and curated experiences, rather than relying solely on discounts. - Leverage AI and Data Analytics
Optimising marketing strategies through AI and data analytics can help brands gain a competitive edge by better understanding consumer behaviour and predicting trends. - Embrace Omni-channel
Providing a seamless shopping experience across all channels is essential for capturing and retaining customers in today’s market. - Prioritise Discovery
With generic searches on the rise, ensuring your brand is discoverable to new consumers is crucial. Tailored content and targeted advertising will help reach potential customers. - Adapt to Changing Consumer Preferences
Address the value-driven demands of today’s consumers by offering flexible payment options and emphasising the long-term value of your products. - Leverage Luxury Insights
Use insights on peak shopping times for specific product categories to optimise your marketing and inventory planning. - Stay Ahead of Trends
Monitoring emerging trends and adjusting your strategies in real-time will be key to maintaining a competitive edge.
A Shifting Holiday Landscape
One trend that stands out for 2024 is the anticipated rise in Christmas shopping compared to Black Friday. While the shorter November shopping period is one factor, we’re also seeing a shift in consumer behaviour, with more shoppers waiting until December to make their purchases.
The festive atmosphere of Christmas shopping appears to be winning over the rush of Black Friday, a trend that was also observed last year.
For brands, this means reallocating resources and marketing efforts to focus more on the December shopping period. Being agile and responsive will be key in capitalising on this shift.
Conclusion
Q4 2024 presents both challenges and opportunities for luxury and beauty brands. By staying on top of the latest trends, leveraging technology, and focusing on evolving consumer needs, brands can navigate this competitive landscape and succeed.
With the holiday season fast approaching, agility and a consumer-first approach will be critical for capturing market share and driving growth.
