Coresight Research Reveals Digital Gift Buying Challenges and Untapped Opportunities for Retailers and Brands

Americans’ shopping habits continue to be influenced by COVID-19 this holiday season. Consumers remain cautious about seeking gifts in malls, with data from Coresight Research showing that 64% of US shoppers have moved some gift purchases online due to the pandemic. Online channels accounted for 20% of holiday sales in 2020, with e-commerce sales jumping 32.5% year-over-year, according to Coresight Research analysis of US Census Bureau data.

Retailers should note that shoppers also expect a more connected and seamless digital gifting experience when taking their gift lists online. This trend is significant because the gift buying journey is distinct from that experienced when shopping for oneself. The majority of shoppers believe that innovations in digital gifts, such as the ability for the recipient to acknowledge receipt of the gift (cited by 76% of respondents), enter their delivery preferences (74%) and even to select or personalize their gifts before sending them (71%). percent) – would improve the overall giving experience. Additionally, buyers expect a seamless experience even after placing the order, such as readily available and updated delivery tracking details.

“COVID-19 has changed shoppers’ behavior, preferences and propensity to spend, and online is clearly the destination of choice for gifts in 2021 and beyond,” said Deborah Weinswig, CEO and Founder of Coresight Research. “We expect online sales to represent approximately 21% of total sales in the fourth quarter of 2021. However, innovation in digital gift cards and personalization and personalization options for the recipient has yet to accelerate and have the potential to improve the online gift – substantial shopping experience.”

Americans are shopping earlier and more often this holiday season. Coresight Research’s study found that nearly 50% of shoppers began their holiday shopping in October, which represents a shift from the traditional start of the holiday season: Black Friday and Cyber ​​Monday. Some retailers launched holiday shopping promotions as early as October. Additionally, nearly 60% of holiday shoppers expect to continue shopping through December, demonstrating the opportunity for last-minute gifts and shoppers’ increased appetite for bargains. Retailers can benefit from first-time buyers continuing to make impulse purchases or being lured with offers throughout the holiday season, even after purchasing their planned gifts.

Physical gift cards top the list of gifts shoppers would love to receive this holiday season. Plus, improving the digital delivery of gift cards — an everlasting favorite for the holidays — with digital gift wrap and personalized videos and messages helps retailers better serve last-minute shoppers. Digital gift cards also offer a possible solution to shipping delays and inventory availability issues. This may become even more critical as we move forward into the holiday season, given supply chain challenges and the increased frequency of out-of-stock items.

“Retailers and consumers are realizing that empowering the gift shopper in the gift selection and delivery process can be a critical step in the digital gifting experience,” said Raccah bet, Managing Director of GiftNow at Synchrony. “GiftNow enables retailers to better tap into this growing online market, with innovative personalization options that also help retailers limit costly shipping and returns while making it easier to gift in categories such as apparel. , footwear and personal care. A win-win for the giver, recipient and retailer.”

Other findings from the Coresight Research study include the following:

  • The demand for gifts will be high. Half of survey respondents plan to buy at least nine gifts, and more than seven in ten plan to spend at least $300 on holiday gifts.
  • Online giveaways aren’t going away: 90% expect to buy the same or more gifts online in 2022 compared to this year.
  • Shopping priorities post-pandemic include value and convenience. Shoppers have new expectations, with shipping cost high on the list of what shoppers consider more or much more important since COVID-19, along with free or flexible return policies and the ability to track delivery. dispatch and receipt of gifts.

To get a copy of Unwrapping Holiday Gifts: Buyer Plans and Retail Opportunitiesplease email [email protected].

GiftNow, a holistic gift experience management (GXM) solution is well positioned to help retailers capitalize on opportunities in the gift market. Using GiftNow’s purpose-built GXM platform, givers can send personalized digital gifts and gift cards in seconds and recipients can exchange or edit their items before they ship, benefiting gift givers, recipients, corporate gift programs and retailers. GiftNow is used by specialty retailers and large premium retailers across the United States

Coresight Research Study Methodology
This study is based on analysis of data from an online survey of 298 U.S. consumers (aged 18+) who typically shop for holiday gifts and plan to do so this year . Coresight Research only surveyed omnichannel shoppers (respondents who plan to buy Christmas gifts in-store and online).

About Coresight Research
Coresight Research is a research and consulting firm specializing in retail and technology. Founded in 2018 by a leading global retail analyst Deborah Weinswigthe company is headquartered at New Yorkwith offices at London, Lagos, hong kong, Shanghai and Mangalore (India). The company provides data-driven analytics and strategic advice to clients including retailers, brands, technology companies, accelerators, and more. In addition to being recognized for the breadth and depth of its research, Coresight Research is known for its expertise in China market, helping customers enter the market and build cross-border e-commerce strategies. Coresight Research is also known for its Innovator Intelligence Platform, comprised of an extensive network of tech entrepreneurs that it actively cultivates through events, mentorship, and regularly updated reporting coverage. For more information, visit www.coresight.com.

About synchronization
Synchrony (NYSE: SYF) is a leading consumer financial services company. We offer a wide range of specialized financing programs, as well as innovative consumer banking products, in key sectors such as digital, retail, home, automotive, travel, health and pets of company. Synchrony enables our partners to increase sales and retain consumers. We are one of the largest private label credit card issuers in United States; we also offer co-branded products, installment loans and consumer finance products for small and medium-sized businesses, as well as healthcare providers.

Synchrony changes what is possible through our digital capabilities, deep industry expertise, actionable data insights, seamless customer experience, and customized financing solutions.

For more information, visit www.synchrony.com and Twitter: @Synchronie.

Media contacts:
Erin Hanson
The Harris Agency for GiftNow
[email protected]

Hanna Kaul
Coresight Research
[email protected]

SOURCE Synchrony Financial

Related links

www.synchrony.com