Connecticut-based Daymon recently conducted Daymon’s 2021 Consumer Holiday Study, research focused on top priorities for consumers as we near the 2021 holiday season. The survey provides an inside look into the minds of consumers, as well as emerging trends.

This study was a national survey completed in October 2021, comprised of data from 1,000 respondents.

Top-level findings of the study include:

The Power of Purchasing Influencers

As we approach this year’s holiday season, consumers plan to stick to gift-giving budgets despite rising prices, creating a tricky balancing act for retailers. While consumers are looking to get back to typical or pre-Covid holiday celebrations, budgeting is an increased concern, with almost half of consumers planning to stick to a budget. In fact, the survey found that 69% of consumers are looking for ways to save money this holiday season. However, with supply chain complications and inflation attributed to cost increases across categories, consumers may find it difficult to find the perfect gifts for their loved ones that fit within their holiday budgets. For retailers looking to capture consumers’ spending dollars this holiday season, this represents the perfect time to lean on their Private Brands.

Daymon’s research shows that last year 60% of consumers reported purchasing Private Brands to save money, with the second top reason for purchasing was that they fit their needs or lifestyle better. With 86% of consumers intending to purchase Private Brands for their holiday gifting needs this year, retailers need to have their Private Brand items front and center to support consumers during this difficult time.

Private Brand Strategies this Holiday Season

As consumers across ages and income levels purchase Private Brands, retailers need to lead their seasonal strategy with their Private Brands to capture maximum spending dollars and consumer loyalty. This includes meeting consumers where they shop. Consumers expect to take more of an omnichannel approach to holiday shopping this year, performing a higher combination of in-store and online purchases. Retailers need to be thinking about how their Private Brands are represented across channels to have consistent messaging and promote purchasing.

12 Days Weeks of Christmas

Consumers report an intention to shop for holiday gifts and decor early this year – and, by early, over a quarter say they already started shopping in October. A longer shopping timeframe does not necessarily equate to more spending per person though; in fact, over 70% percent of shoppers say they plan to spend the same or less than they did last year. Further, most report an interest in shopping in small increments over multiple weeks, and, unsurprisingly, the factor that has the biggest impact on spending is when the desired items go on sale. Retailers, therefore, have a unique challenge of incentivizing consumers to spend their set amount of budgeted money over a holiday shopping period of months, instead of weeks. Creating continual connection points – cadenced promotions, savings events, future redemption coupons – and promoting a retailer’s private brand offerings as a quality, value-oriented solution are two important ways that retailers can capture dollars early and drive repeat trips throughout the season.

Interest in Private Brands for Gifting

Last year during the holiday season, nearly 40% of consumers reported having purchased Private Brand gifts for themselves and/or others and these purchases were in a range of categories – from apparel to small appliances. From a retailer’s perspective this is encouraging, but what is even more exciting is the future potential of these Private Brand shoppers.

The survey found that shoppers who purchased Private Brand gifts last year are highly likely to purchase gifts again this year – and in more categories. 60% percent of those who purchased Private Brand gifts last year say they will “definitely” purchase Private Brand gifts again this holiday season and for each of the four areas surveyed – apparel, home goods & décor, skincare & makeup, and small appliances – there’s a higher percentage of people than last year who expect to make purchases in the category. This holiday season, retailers should be leading with Private Brands across categories to appeal to these demonstrated-loyal shoppers and, season after season, plan to expand Private Brand assortment breadth and depth to reflect how and where shoppers are willing to spend.