How can retailers best serve Irish consumers this festive season

Discover how retailers can effectively serve Irish consumers this festive season by understanding their shopping preferences, from free shipping strategies to sustainability trends.

In brief

• Irish consumers prefer adding items to their cart to achieve free shipping, with 52% selecting additional items and 21% opting for self-gifting.
• Cost-saving and sustainability are key trends, with 47% minimising food waste and 23% buying low-cost food and alcohol.
• A shift towards online shopping is evident, with 54% preferring online retailers, highlighting the need for an omnichannel approach.

As the holiday season approaches, retailers and consumer marketeers are in the midst of one of the most critical trading periods of the year. The ability to understand and anticipate consumer behaviour and preferences during this time is essential for crafting effective strategies that resonate with shoppers. Recent data from Irish consumers, gathered from some recent LinkedIn polls, and EY’s global consumer findings sheds light on several intriguing aspects of this year’s festive season sales and shopping events, offering valuable insights for businesses looking to maximise their impact.

Embracing Free Shipping Strategies

One of the key insights from Irish consumers, through our LinkedIn polls revolves around their approach to achieving a retailer’s free shipping threshold. A significant 52% of Irish shoppers prefer to select an additional item to buy, rather than paying for shipping. Additionally, 21% of Irish consumers will opt to buy that additional something for themselves to meet the spend level for free shipping. This combined behaviour indicates a strategic mindset where consumers are looking to maximise value by adding more items to their cart, whether for themselves or as gifts. These consumers are likely value-driven and prefer to get the most out of their spending, making them more inclined to look for additional purchases that justify the cost of shipping.

Interestingly, 17% of consumers are willing to pay for shipping, indicating a smaller group that prioritises convenience over total cost of purchase. This group may consist of time-sensitive shoppers who prefer to avoid the hassle of finding extra items or may reflect the more conscious consumers who will limit their purchases to only what they require.

How to Serve This Customer:

• Value-Driven Shoppers and Self-Gifters: Offer bundled deals and suggest complementary products to encourage additional purchases. Promote self-gifting options and personalised recommendations.
• Convenience Seekers: Provide clear and transparent shipping options, including the benefits of paying for shipping for next day delivery services.
• Practical Shoppers: Highlight the versatility and benefits of gift cards as a practical solution to obtaining free shipping.

Cost-Saving and Sustainability Trends

According to our LinkedIn polls, Irish consumers are also demonstrating a strong inclination towards cost-saving measures and sustainability during this festive season. With 47% planning to minimise food waste, it is clear that there is a significant focus on responsible consumption. These consumers are likely environmentally conscious and typically seek to reduce their ecological footprint during the holidays.

Additionally, 23% of Irish shoppers intend to buy low-cost food and alcohol, highlighting a pragmatic approach to festive spending. This group is likely budget-conscious and looks for ways to celebrate without overspending.

Meanwhile, 20% plan to purchase fewer decorations, and 10% aim to use fewer lights to save on electricity. These behaviours reflect a growing awareness of sustainability and a desire to make environmentally conscious choices, whilst also saving money. By aligning their offerings with these consumer values, businesses can build stronger connections with their target consumers and enhance brand loyalty.

How to Serve This Customer:

• Environmentally Conscious Shoppers: Offer sustainable products and promote eco-friendly practices.
• Budget-Conscious Consumers: Provide affordable festive bundles and discounts on essential items.
• Sustainability Advocates: Highlight energy-efficient products and sustainable holiday decor options.

Shifting Preferences in Purchasing Channels

The LinkedIn data shows a shift in purchasing channels among Irish consumers, with 54% preferring online shopping retailers and 44% favouring physical stores. This highlights the need for an omnichannel approach, ensuring seamless integration between online and offline channels for a consistent shopping experience.

The preference for online shopping is driven by convenience and easy price/product comparison, appealing to tech-savvy consumers. Retailers can enhance their online presence by optimising e-commerce platforms, offering exclusive deals, and ensuring a smooth user experience.

Interestingly, none of the Irish LinkedIn poll respondents indicated a preference for shoppable social media content, despite anecdotal evidence of its use. In contrast, 50% of Chinese consumers, 24% in the US, and 17% worldwide plan to use shoppable social media. This may reflect China's advanced social commerce capabilities, where features like TikTok’s in-stream shopping have been available for many years.

The apparent low adoption rate in Ireland may be due to a lack of trust in digital platforms, a preference for traditional e-commerce websites, or a desire for a more comprehensive shopping experience. While social media is effective for brand awareness in Ireland, it is not the primary channel for direct sales. However, the June 2024 Future Consumer Index shows that social media influencers significantly impact Irish consumer behaviour, with 39% interacting with them, 67% trusting them, and 58% making purchases based on their recommendations.

How to Serve This Customer:

• Online Shoppers: Optimise e-commerce platforms, offer exclusive online deals, and ensure a smooth user experience.
• In-Store Shoppers: Enhance the in-store experience with personalised service and convenient shopping options.
• Omnichannel Consumers: Provide a seamless integration between online and offline channels for a consistent shopping experience.

Addressing Global Consumer Insights

According to the latest EY Consumer findings, a significant majority of global consumers (69%) enjoy sales events and look forward to them, indicating a strong enthusiasm for festive discounts. However, this excitement is tempered by a notable scepticism, with 64% of shoppers questioning the real value of these discounts. Retailers must ensure transparency and authenticity in their promotional offers to build trust and credibility with their customers.

The ongoing cost of living concern is driving shoppers globally to seek out more bargains as they try to stretch their disposable income further. Despite the increasing popularity of sales, almost half (45%) of consumers are concerned about being able to pay for this festive season.

Financial motivations also play a crucial role in festive shopping, with 57% of global respondents motivated to engage more in sales events for financial reasons. This shows that while consumers are looking for ways to save money, the allure of discounts can lead to increased spending. Retailers can leverage this by offering attractive discounts and promotions that encourage higher spending while ensuring that the perceived value of the deals remains high.

How to Serve This Customer:

• Discount Enthusiasts: Offer transparent and authentic promotional offers to build trust.
• Financially Motivated Shoppers: Provide attractive discounts and promotions that encourage higher spending.