Holidays and shopping seasons have long been an important tool for retailers to drive traffic and sales and work to increase market share. Most retailers use holidays to drive sales; the best retailers use holidays to advance their strategic agenda. New holiday types, such as retailer-created holidays such as Prime Day and 11.11 Global Shopping Festival, have emerged in recent years, presenting new questions about how to use holidays to retailers’ advantage.
Holidays and shopping seasons have long been an important tool for retailers to drive traffic and sales and work to increase market share. A successful holiday campaign requires all functions of a retailer to work together, and often to executive partnerships with suppliers.
Because consumers are accustomed to shopping holidays and many, such as the “back to school” shopping season, correspond to times when consumers plan to make purchases, holidays are an occasion for retailers to take advantage of greater shopper attention to showcase their value proposition. Most retailers use holidays to drive sales; the best retailers use holidays to advance their strategic agenda.
Shopping holidays with a tie-in to a broader cultural or religious occasion are well established. Over the last decade, however, new types of shopping holidays have become prominent. Examples include a growing number of retailer-created holidays, such as 11.11 Global Shopping Festival and Prime Day, as well as sector-created holidays, such as the Hot Sale in Mexico and Click Frenzy in Australia.
As the number of holidays increases in many markets, retailers will need to take care to prevent their most important occasions from losing value in the eyes of consumers. Retailers that participate in many holidays may find the discounts must be diluted to maintain margins overall, frustrating consumers. Consumers who are exposed to too many holidays may also build a habit of postponing purchases until a future holiday. Many retailers may find it is most effective to participate in fewer holiday discounts but provide steeper discounts on those occasions.
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