11.23.21
Nearly half of Gen Z consumers plan to buy beauty and personal care products this holiday season. But fewer are planning to buy on Black Friday and Cyber Monday, according to Accenture's annual Holiday Shopping Survey. According to survey respondents, 22% of consumers plan to do a lot of their holiday shopping on Black Friday or Cyber Monday, continuing the theme observed last year when 62% told Accenture they were less inclined to shop on these days. Their decision is sure to disappoint the 42% of retail executives who, in a parallel survey of more than 120 retail executives in the US, said they expect consumers to do most of their holiday shopping on those two days. On the bright side, consumers plan to spend $598 this holiday season, on average, compared to $539 last year. Most (71%) said they intend to spend as much or more than they did last year. According to Accenture, there is a generation gap when it comes to spending. Older Millennials (32-39 years) anticipate spending $705, on average, the highest among any age group. In an about face, 70% of Gen Z consumers plan to do most of their holiday shopping in-store this season, while 54% of Baby Boomers anticipate doing most of their shopping online.
“With many people still working from home, the ability to browse and shop online, as well as pick and choose how to obtain items, is much easier for consumers and makes it that much tougher for retailers,” said Jill Standish, global lead of Accenture's Retail industry group. “The declining popularity of Black Friday, coupled with consumers starting their holiday shopping early, means that retailers and brands need to engage consumers throughout the season.”
At the same time, survey respondents are in a festive mood—and that bodes well for beauty and personal care sales. Over half (51%) of people, rising to 59% of consumers under 32 years old, intend to go to parties or to meals out. Four in 10 (44%) plan to head out to festive events with others. Six in 10 (59%) hoping to visit friends and family at home. Best of all, a quarter (26%) of people overall, and 42% of Gen Z consumers plan to buy beauty and personal care products because they want to dress up and socialize this holiday season. The desire to look and feel good is likely to continue beyond the holidays, with a third (32%) of people, rising to 48% of young millennials (25-31 years old), expect to buy cosmetics and personal care products during the next six months.
What beauty products are on their shopping lists? Almost 4 in 10 (39%) of consumers say that they will opt for cruelty free beauty and personal care this year as they wish for their choices to cause no harm – compared to 35% who say that price, and 35% who say that attractive product packaging would definitely make them to buy beauty or personal care items. A quarter (25%) of consumers say that they are worried about climate change and will opt for sustainable beauty and personal care products this year. That percentage rises to a third (33%) of Gen Z consumers (18-24 years old).
Primping and pampering can boost sales. A quarter (24%) of consumers overall, and 41% of young Millennials, said that services to make the most of the shopping experience, such as salon for beauty treatments could entice them to shop in-store with one retailer over another.
That's all good news, but supply chain worries are a concern for consumers and retailers. According to Accenture, one-third (34%) of consumers overall, and 52% of younger millennials, are worried about stock availability and not being able to buy what they want and need for the holidays. More than one-third (36%) of consumers said that they have noticed empty shelves when shopping in-store. A quarter (26%) said they have noticed more out of stocks this year when shopping online. What makes them happy? Delivery. More than four in 10 (43%) of consumers expect fast and fee delivery on online orders (up from 40% last year). Seven in 10 (70%) of consumers say they could be enticed to shop in-store with one retailer over another if they were able to choose and pay for items in store but have items delivered to their homes.
“This year, more than ever, having a handle on inventory and the surety of supply will matter to both the consumer and the retailer,” noted Standish. “In many ways the pandemic, coupled with supply and labor market challenges, has trained consumers to be prepared for delays in receiving purchases. We can expect to see some go in-store for reassurance that they can see and buy what they need for the holidays.
It will be interesting to see if some retailers move items to physical stores and encourage consumer to shop in-store or order online and pick up instead of depending on direct-to-consumer e-commerce shipments.”
Consumers aren't the only ones losing sleep over supply chain issues. A parallel survey of more than 120 US retail executives found that they re taking steps to address the ongoing disruption caused by the pandemic and events such as the Suez Canal blockage. Almost all (99%) said that they have done something differently this year to ensure supply of stock and 52% said they’ve taken extraordinary steps to do so.
Other research findings point to glad tidings for retailers in general and the beauty industry in particular. According to NPD’s 2021 Holiday Purchase Intentions Report, beauty ranks among the top 10 physical gifts US consumers plan to purchase this holiday season. Among US consumers, 29% plan to spend more on holiday shopping than they did last year. More than half plan to start their holiday shopping before Thanksgiving Day.
The National Retail Federation NRF is forecasting another record-setting holiday season, with sales forecast to grow between 8.5-10.5% over 2020. While the NRF forecast defines the holiday season as November 1 through December 31, a record 49% of consumers surveyed this fall planned to begin their holiday shopping before November, with 36% doing so to avoid missing out on key holiday items.
For the first 10 months of the year, sales as calculated by NRF were up 14.1% over the same period in 2020. That is consistent with NRF’s forecast that retail sales for the full year should grow between 10.5-13.5% over 2020 to between $4.44 trillion and $4.56 trillion.
“With many people still working from home, the ability to browse and shop online, as well as pick and choose how to obtain items, is much easier for consumers and makes it that much tougher for retailers,” said Jill Standish, global lead of Accenture's Retail industry group. “The declining popularity of Black Friday, coupled with consumers starting their holiday shopping early, means that retailers and brands need to engage consumers throughout the season.”
At the same time, survey respondents are in a festive mood—and that bodes well for beauty and personal care sales. Over half (51%) of people, rising to 59% of consumers under 32 years old, intend to go to parties or to meals out. Four in 10 (44%) plan to head out to festive events with others. Six in 10 (59%) hoping to visit friends and family at home. Best of all, a quarter (26%) of people overall, and 42% of Gen Z consumers plan to buy beauty and personal care products because they want to dress up and socialize this holiday season. The desire to look and feel good is likely to continue beyond the holidays, with a third (32%) of people, rising to 48% of young millennials (25-31 years old), expect to buy cosmetics and personal care products during the next six months.
What beauty products are on their shopping lists? Almost 4 in 10 (39%) of consumers say that they will opt for cruelty free beauty and personal care this year as they wish for their choices to cause no harm – compared to 35% who say that price, and 35% who say that attractive product packaging would definitely make them to buy beauty or personal care items. A quarter (25%) of consumers say that they are worried about climate change and will opt for sustainable beauty and personal care products this year. That percentage rises to a third (33%) of Gen Z consumers (18-24 years old).
Primping and pampering can boost sales. A quarter (24%) of consumers overall, and 41% of young Millennials, said that services to make the most of the shopping experience, such as salon for beauty treatments could entice them to shop in-store with one retailer over another.
That's all good news, but supply chain worries are a concern for consumers and retailers. According to Accenture, one-third (34%) of consumers overall, and 52% of younger millennials, are worried about stock availability and not being able to buy what they want and need for the holidays. More than one-third (36%) of consumers said that they have noticed empty shelves when shopping in-store. A quarter (26%) said they have noticed more out of stocks this year when shopping online. What makes them happy? Delivery. More than four in 10 (43%) of consumers expect fast and fee delivery on online orders (up from 40% last year). Seven in 10 (70%) of consumers say they could be enticed to shop in-store with one retailer over another if they were able to choose and pay for items in store but have items delivered to their homes.
“This year, more than ever, having a handle on inventory and the surety of supply will matter to both the consumer and the retailer,” noted Standish. “In many ways the pandemic, coupled with supply and labor market challenges, has trained consumers to be prepared for delays in receiving purchases. We can expect to see some go in-store for reassurance that they can see and buy what they need for the holidays.
It will be interesting to see if some retailers move items to physical stores and encourage consumer to shop in-store or order online and pick up instead of depending on direct-to-consumer e-commerce shipments.”
Consumers aren't the only ones losing sleep over supply chain issues. A parallel survey of more than 120 US retail executives found that they re taking steps to address the ongoing disruption caused by the pandemic and events such as the Suez Canal blockage. Almost all (99%) said that they have done something differently this year to ensure supply of stock and 52% said they’ve taken extraordinary steps to do so.
Other research findings point to glad tidings for retailers in general and the beauty industry in particular. According to NPD’s 2021 Holiday Purchase Intentions Report, beauty ranks among the top 10 physical gifts US consumers plan to purchase this holiday season. Among US consumers, 29% plan to spend more on holiday shopping than they did last year. More than half plan to start their holiday shopping before Thanksgiving Day.
The National Retail Federation NRF is forecasting another record-setting holiday season, with sales forecast to grow between 8.5-10.5% over 2020. While the NRF forecast defines the holiday season as November 1 through December 31, a record 49% of consumers surveyed this fall planned to begin their holiday shopping before November, with 36% doing so to avoid missing out on key holiday items.
For the first 10 months of the year, sales as calculated by NRF were up 14.1% over the same period in 2020. That is consistent with NRF’s forecast that retail sales for the full year should grow between 10.5-13.5% over 2020 to between $4.44 trillion and $4.56 trillion.