Global Consumer Trends for the 2024 Holiday Season 

The 2024 holiday season is fast approaching, bringing significant shifts in consumer behavior and retail strategies. The Salsify 2024 Holiday Consumer Research Report highlights key trends essential for retailers to maximize this peak period. The UAE market is also undergoing transformative changes driven by digital innovation and evolving consumer preferences. This market update provides crucial insights to help retailers navigate and thrive this holiday season. 

Increased Ecommerce Spending

In 2023, global ecommerce spending during the holiday season reached a staggering $1.17 trillion (source: Salesforce). This substantial amount underscores the dominance of online shopping in the retail landscape. Cyber Week alone, defined as the week starting the Tuesday before Thanksgiving and ending on Cyber Monday, accounted for 25.47% of this total spending, highlighting the critical importance of this period.  

Year-over-year sales growth during Cyber Week showed a 6% increase from 2022 to 2023. Brands must be ready to meet shoppers during Cyber Week by optimizing their marketing efforts, promotions, and inventory management well ahead of the holiday season. 

Steady Holiday Spending

Despite economic uncertainties,  

65% of holiday shoppers plan to spend about the same as last year on holiday gifts 

This trend is consistent across different generations, with Gen Zer’s (22%) and millennials (17%) more likely to spend more, while 26% of Gen Zer’s and 21% of baby boomers plan to cut back.  

The holiday season remains a unique outlier where consumers maintain their spending habits, even as they focus on budget-friendly options for day-to-day shopping. 

Diverse Shopper Styles

Understanding the various shopper styles is crucial for brands aiming to meet consumer demands effectively. According to the report,  

• 36% of shoppers identify as The Bargain Hunter, who prioritizes deals and discounts.  

• Another 32% are The Research Maven, who thoroughly researches products to ensure they get the best quality.  

• Other notable shopper styles include The Brand Loyalist, The Swayable Shopper, The Luxury Lover, and The Impulse Buyer.  

Each group values different aspects of the shopping experience, from product quality and brand trust to instant gratification and novelty. Brands must tailor their strategies to address these diverse values and preferences. 

Self-Gifting Trend

A significant trend observed is the tendency of shoppers to treat themselves while shopping for holiday gifts. According to the report,  

61% of shoppers buy something for themselves during the holiday season  

This behavior is particularly prevalent among millennials (73%) and Gen Zer’s (68%), while baby boomers (53%) are less likely to engage in self-spending.  

To capitalize on this trend, brands can offer specific promotions and discounts, such as Buy One, Get One Free (BOGO) deals, bundle offers, or free gifts for spending a select amount. 

Early Holiday Shopping

Holiday shopping timelines show that 27% of shoppers start buying gifts as early as October, with some even shopping year-round. For example, 30% of Gen Xers and 24% of baby boomers plan to start in October, while 29% of millennials and 32% of Gen Zer’s plan to start in November. This diversity in planning styles means brands must be prepared to meet shoppers’ needs well before the traditional holiday season, ensuring they capture early sales.  

Importance of Black Friday and Cyber Monday

Black Friday and Cyber Monday continue to be significant shopping events, with 62% of shoppers planning to participate in Black Friday 2024. The enthusiasm is highest among Gen Zer’s (75%) and millennials (69%), while 44% of baby boomers have no plans to shop during any holiday shopping events. Cyber Monday also sees strong participation across generation groups, with 53% of Gen Zer’s, 49% of millennials, 45% of Gen Xers, and 33% of baby boomers planning to shop on that day.  

Brands must prepare early and offer great shopping experiences and deals to meet this strong demand. 

Popular Gift Verticals

Holiday shoppers spend across various product categories, and brands must provide engaging, detailed product information to help them make informed choices. The most popular gift verticals include  

• Fashion And Apparel (57%) 

• Personal Care and Beauty (53%)  

• Electronics (49%) 

• Food And Beverage (44%) 

Other notable categories are alcohol (37%), toy and baby (33%), sports and outdoor (28%), and furniture and home goods (25%). Providing high-quality product content is essential to influence purchasing decisions and enhance the overall shopping experience. 

Omnichannel Shopping Experience

With the rise of the digital shelf, the lines between online and in-store shopping experiences have blurred. According to the report,  

49% of shoppers prefer a mix of online and in-store shopping 

Consumers now treat these experiences as part of the same buying journey, finding inspiration and making purchases seamlessly across both channels. 

 To meet these demands, brands must ensure that product content is consistent, accurate, and high-quality everywhere a shopper interacts with the brand, whether in a physical store, on social media, or across online marketplaces. 

By understanding and adapting to these integrated shopping habits, retailers can enhance customer satisfaction and drive sales growth. 

Insights of Impact on UAE Market

In the UAE, the retail landscape is witnessing significant transformations driven by digital innovation and evolving consumer behaviors: 

Surge in Online Shopping

The UAE has experienced a 140 percent increase in monthly online shopping       (source: Arabian Business) 

This surge is attributed to the widespread adoption of digital payment solutions, improved logistics infrastructure, and a growing preference for the convenience of online shopping. 

Increased Consumer Spending

UAE consumers are projected to spend 5 percent more in 2024 (source: Gulf News)  

This increase in spending is fueled by rising consumer confidence, economic stability, and a growing middle class with higher disposable incomes. 

Adoption of Advanced Technologies

Retailers in the UAE are increasingly adopting advanced technologies such as AI, AR/VR, and big data analytics to enhance the shopping experience. These technologies enable personalized marketing, efficient inventory management, and immersive shopping experiences that cater to the tech-savvy consumer base. 

Sustainability and Ethical Shopping

Similar to global trends, UAE consumers are becoming more conscious of sustainability and ethical practices. Brands that emphasize their commitment to environmental and social responsibility are likely to resonate well with this audience. 

Expansion of E-commerce Platforms 

The UAE’s e-commerce market is expanding rapidly, with new platforms emerging and existing ones scaling up their operations. This growth is supported by favorable government policies, investments in digital infrastructure, and collaborations with international e-commerce giants. 

Conclusion

The 2024 holiday season promises to be dynamic for both global and UAE markets. Retailers must adapt to changing consumer preferences by embracing digital transformation, prioritizing sustainability, and offering personalized and omnichannel experiences. By leveraging these trends, businesses can drive growth and customer loyalty. In the UAE, rapid changes in online shopping, increased consumer spending, and advanced technologies are reshaping the retail sector. Understanding and responding to these trends will be key to success in the competitive retail landscape. 

nsumer spending, and advanced technologies are reshaping the retail sector. Understanding and responding to these trends will be key to success in the competitive retail landscape.