As we enter the final quarter of 2024, the retail industry is gearing up for what promises to be a record-breaking holiday season since 2020. According to recent forecasts, consumer spending is set to reach unprecedented levels, despite ongoing economic pressures. This is particularly encouraging for our industry, as holiday shopping trends tend to drive significant sales in our sector.
Record-High Holiday Spending Forecast
Retail forecasts in North America paint a bright picture for the 2024 holiday season. Adobe predicts that U.S. consumers will spend an astounding $241 billion online during the holiday period, marking an 8.4% increase from 2023. Meanwhile, in Canada, online holiday sales are expected to grow by 6.7%, reaching approximately $20 billion, driven by increased consumer confidence and the convenience of e-commerce.
The Retail Council of Canada (RCC) anticipates that total holiday retail sales will see a rise of 3% to 4% across the country, with a particular focus on luxury goods such as jewellery and watches. This robust growth, despite inflation and other economic pressures, reflects a resilient consumer base eager to celebrate the season in style. The National Retail Federation (NRF) echoes this optimism for North America, forecasting a holiday sales increase between 2.5% and 3.5% compared to last year.
For the jewellery and watch industry, which thrives on gift-giving occasions, these numbers bode well. Historically, the final quarter of the year accounts for a substantial portion of annual sales for luxury goods like fine jewellery and high-end watches. As holiday shoppers open their wallets, jewellers across Canada can expect a surge in both foot traffic and online sales, driven by the demand for timeless gifts.
Changing Consumer Behaviours and Shopping Trends
Several evolving consumer behaviours are set to shape the 2024 holiday shopping landscape. One notable trend is the earlier start to holiday shopping. With only 27 days between U.S. Thanksgiving and Christmas, many consumers are planning to get a head start on their gift-buying. In fact, nearly 60% of Canadian shoppers will begin their holiday shopping in November, according to a recent survey by the Retail Council of Canada. This extended shopping window gives retailers more opportunities to engage with consumers and drive sales throughout the season.
Mobile commerce will also play a pivotal role this year. In Canada, mobile shopping is expected to account for over 50% of all online holiday purchases, aligning with the North American trend of mobile commerce taking centre stage. For jewellers, optimizing mobile shopping experiences is crucial, as more consumers browse and buy high-value items like watches and jewellery via their smartphones. You should ensure that your websites are mobile-friendly, offer seamless payment options, and provide an immersive, visually appealing shopping experience to capture this growing market.
Another key trend is the rising popularity of Buy Now, Pay Later (BNPL) options, especially for big-ticket items like luxury watches and diamond jewellery. BNPL spending is expected to peak on Cyber Monday, reaching nearly $1 billion in North America, with Canadian retailers experiencing a notable share of this. This trend is particularly beneficial for the jewellery industry, as it lowers the financial barrier for consumers who want to invest in high-quality pieces but may prefer to spread out payments. Offering flexible payment options can help Canadian jewellers attract more customers and close more sales during this critical period.
Consumers Prioritizing Self-Gifting and Impulse Buys
In 2024, self-gifting is particularly prominent among millennials and Gen Z shoppers. According to surveys, 61% of Canadian holiday shoppers plan to buy gifts for themselves while shopping for others. For jewellers, this presents an opportunity to market pieces not just as gifts for loved ones, but as personal indulgences or rewards for shoppers themselves. Highlighting everyday luxury items—such as stackable rings, minimalist gold chains, or sleek watches—can appeal to this growing segment of self-gifters.
Moreover, impulse buying remains a powerful force in holiday retail. A staggering 85% of Canadian online shoppers admit to making impulse purchases, especially in categories like fashion, jewellery, and accessories. Retailers can capitalize on this by using strategies such as limited-time offers, discounts, and personalized recommendations to encourage spontaneous purchases. Jewellery stores that leverage these tactics both in-store and online are likely to see an uptick in sales.
Navigating Economic Pressures with Value-Driven Marketing
While consumers are eager to spend, many are doing so with caution due to the current economic climate. Inflation and rising living costs have prompted 59% of Canadian shoppers to cut back on everyday purchases to expand their holiday gift budgets. This presents an opportunity for you to emphasize value, craftsmanship, and longevity in your marketing campaigns. Highlighting the long-term value of investing in quality jewellery and watches—versus more disposable, trend-based gifts—can resonate with value-conscious consumers.
How Jewellers Can Prepare
To make the most of the 2024 holiday shopping season, Canadian jewellers should focus on a few key strategies:
Leverage AI for Personalization: With 31% of shoppers planning to use AI-powered tools to find gifts, retailers should invest in AI-driven product recommendations to enhance the shopping experience. Personalized suggestions can help guide customers towards items they might not have considered, increasing the chances of a purchase.
Optimize for Mobile: Given the dominance of mobile commerce, ensuring that your online store is fully optimized for mobile users is critical. Fast load times, easy navigation, and secure mobile payment options are all essential.
Start Promotions Early: With many shoppers beginning their holiday shopping in October, launching promotions and deals early can help capture the attention of eager buyers.
Offer Flexible Payment Options: BNPL has become a key trend, and offering this option can help make high-ticket items more accessible to a broader audience.
Despite the challenges posed by economic pressures, the 2024 holiday season presents a wealth of opportunities for the jewellery and watch industry. Canadian jewellers who adapt to evolving consumer behaviours, leverage mobile commerce, and provide flexible payment options are well-positioned to capitalize on this year’s holiday shopping spree. With careful planning and targeted marketing, retailers can make the most of what is shaping up to be a record-breaking year for holiday retail sales.
