ClickZ Gifting Newsletter - 12.5.2024

PLUS: Unlock $989B in holiday spending with key consumer insights

Author

Priscilla Soedarpo
December 05, 2024 • Estimated Reading Time: 7 minutes

Welcome to ClickZ Gifting, your essential newsletter for gifting e-commerce professionals. As the holiday season approaches, we're here to help your campaigns sparkle and your sales shine!

Top Shelf 🛒

With BFCM wrapped up, marketers are shifting gears to plan for 2025. To help you start strong, here are three essential tips to set your brand up for growth:

1️⃣ Get the Right Measurement in Place: You can’t plan for next year without accurate measurement. Yet, many brands stick with the devil they know—Last Click— despite its fundamental flaws.

With BFCM in the bag, now’s the perfect time to adopt effective full-funnel measurement. Plus, Fospha delivers YoY metrics from the start, so you can dive into budget planning ASAP.

2️⃣ Consider Adjusting Your Channel Mix: What worked last year might not work now. Successful brands adapt by altering their channel mix and ad spend as they scale. We find that as brands mature, they have to focus on expanding their upper funnel spend to create more demand to capture.

3️⃣ Reflect on Peak Performance: Before diving into next year, take time to assess your BFCM performance. Benchmarking data is your compass and gives you data-backed edge for 2025 planning.

For free BFCM 2024 benchmarking data, sign up for priority access to our BFCM 2024 Report here.

Sector Spotlight 🎥

Armani

The holiday season presents an opportune moment for e-commerce professionals in the fragrance sector, propelled by dynamic product launches and curated gift sets. According to the 2024 Circa U.S. Holiday Purchase Intentions Report, increasing consumer inclination towards both gift-giving and self-gifting heralds promising growth in the fragrance market—this year's top-performing category. Notably, fragrance outpaces other beauty items, with a significant 18 percent of consumers choosing it for holiday gifts, marking its rise in consumer preference.

E-commerce strategists should note Gen Z and Gen Alpha’s influence in this space, as their preference for affordable body sprays and mini fragrances aligns with platforms like PerfumeTok, closing the gap between engagement and sales. While mass-market outlets face unit sale challenges, the prestige market thrives, with the fourth quarter shouldering over 40 percent of yearly revenue.

The prestige fragrance domain capitalizes on digital finesse, capturing small luxury indulgences to maintain robust market momentum. This insightful trajectory predicts sustained growth, offering e-commerce marketers strategic avenues to exploit through personalized experiences and targeted promotions. With consumers increasingly seeking new aromatic experiences, the climate is ripe for marketers to craft campaigns that emphasize fragrance's emotional allure, harnessing it to drive retail success this festive season. Aligning with consumer sentiment and industry trends, the stage is set for e-commerce leaders to optimize their approach and maximize impact in this evolving market.

The NRF's survey highlights key insights for e-commerce marketing: $902 average holiday spending indicates strong purchasing power, with apparel, gift cards, and toys leading categories. Online platforms dominate gift inspiration. Digital wallets are on the rise, presenting strategic opportunities. Anticipate up to $989 billion in spending, underscoring economic resilience and market potential.

RetailNext's analysis reveals a decline in Black Friday foot traffic, yet conversion rates and transaction values are up, suggesting strategic buying behavior shifts. The emphasis on integrating online-offline experiences creates opportunities for value capture, with notable traffic spikes in footwear, apparel, and jewelry sectors, showcasing transformative trends in e-commerce strategies.

The Gift of the Year Awards 2025 deadline, now moved to December 9, presents a strategic platform for brands to showcase their innovation and gain significant exposure. Entrants can leverage this event to connect with a wide network of judges and buyers, providing a prime opportunity to enhance e-commerce strategies and industry positioning.

Fuzzballs

Fanattik's partnership with Fuzzballs, facilitating a gift-focused product line, offers e-commerce marketers actionable insights into cross-industry collaborations. Product launches at UK and Germany trade fairs reveal Fanattik's strategic innovation, highlighting opportunities for diversification. E-commerce professionals can leverage this model to explore similar partnerships within the consumer electronics or retail fashion sectors.

Influencer Corner 📣

Sarah Levinger on LinkedIn: The reason you're not scaling isn't because your ads are "bad"...

You’re stuck because you don’t understand the humans you sell to:

→ What drives their decisions.
→ What emotions they need to feel.
→ What keeps them from buying.

Fix that, the ads will fix themselves.

Optimization Hub ⚙️

Extended Black Friday and Cyber Monday sales challenge e-commerce marketers, requiring strategic creativity in promotions to maintain profitability, especially for smaller brands. Early sales from major retailers like Amazon emphasize the importance of proactive planning to stay competitive.

Strategically allocate 7-12% of revenue for eCommerce marketing; startups might invest 15-20% for initial growth. Focus on customer acquisition while prioritizing high-return channels and tracking ROI. Assess customer lifetime value for sustainable tactics. Challenge your eCommerce methods by embracing adaptability and regular evaluations to maximize long-term market gains.

BNPL is reshaping holiday marketing strategies by integrating 0% financing with promotions, appealing to budget-savvy shoppers. This strategic approach not only differentiates brands but also offers a creative edge in managing consumer spending. Embrace these insights to enhance your strategic planning in the competitive e-commerce landscape, aligning with evolving consumer expectations.

Customer Relations

📍 London, UK

Marketing & Comms

📍 Austin, TX, USA

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