Consumer Preference Shifts Towards Small Businesses This Holiday
Consumer Preferences Leaning Towards Supporting Local Businesses
As the holiday season approaches, a recent GoDaddy survey reveals a significant shift in consumer shopping behavior. A remarkable 71% of U.S. shoppers are prepared to spend more to support small businesses during Black Friday and beyond, with 53% indicating they would pay up to 10% more to ensure their local economies thrive.
The Impact of Inflation Doesn’t Deter Shopping Habits
Despite 65% of survey respondents acknowledging that inflation could influence their purchasing decisions this holiday season, their enthusiasm for supporting small businesses remains unwavering. In fact, 78% of respondents are as likely or even more inclined to shop at small businesses this year compared to previous years. This trend is particularly evident among younger consumers, with 85% of Gen Z and 83% of Millennials expressing a commitment to shopping small.
Reasons for Supporting Small Businesses
When asked about their motivations, 30% of consumers cited the desire to support their community as a primary factor for choosing small businesses. Additionally, 18% mentioned that shopping local often leads to enhanced customer service, while 13% appreciate the unique, handmade products these businesses offer.
The Significance of the Holiday Shopping Season
GoDaddy's survey underscores the importance of the holiday shopping season for small businesses. Approximately 40% of consumers plan to conduct most of their holiday shopping within the next month, with nearly one in five preferring to complete their shopping on Black Friday itself. This indicates not just a willingness to shop small, but also a proactive approach to holiday gifting.
Black Friday Highlights and Consumer Insights
"Traditionally, Black Friday has been regarded as the peak shopping day for major retailers, yet GoDaddy's research indicates that consumers are eager to redefine this day by supporting smaller retailers instead," said Amy Jennette, a Small Business Trends Expert at GoDaddy. Despite economic hurdles, consumers demonstrate a strong commitment to uplifting local businesses.
Understanding Consumer Spending Patterns
The survey also illustrated that consumers are embracing the spirit of generosity this season. Nearly one-third of shoppers intend to purchase gifts for six or more individuals, with 10% planning to gift to more than ten people. This year, many are ready to spend significantly on each gift, with 22% of respondents typically allocating over $100 per person for holiday gifts.
Increased Self-Indulgence Among Consumers
Moreover, the holiday season is not solely about giving; two-thirds of respondents also plan to treat themselves. Notably, 83% of Gen Z consumers intend to indulge in personal gifts or experiences, showcasing a trend towards self-appreciation amidst holiday shopping.
Valuable Resources for Small Businesses
For small business owners eager to capitalize on this potential surge in patronage, GoDaddy provides comprehensive resources. Their Ultimate Guide to Holiday Campaign Planning offers insights into effective holiday marketing strategies, promotional tips, and tailored advice to help businesses maximize their sales during this critical period.
Technological Innovations Driving Business Success
Furthermore, GoDaddy's AI-powered tools are designed to streamline operations for small businesses, helping them manage their online presence more efficiently. This innovative approach has been labeled a significant advantage for those looking to enhance their customer outreach while saving time and resources.
Methodology and Data Collection
The insights presented are drawn from two surveys conducted among U.S. consumers regarding their holiday shopping habits. The initial survey was carried out with 1,247 respondents in October, followed by a second survey involving 1,520 participants in September.
About GoDaddy
GoDaddy (NYSE: GDDY) plays a pivotal role in enabling entrepreneurs across the globe to start, grow, and manage their businesses. Through user-friendly tools, budding business owners can establish their online presence, attract customers, and manage various aspects of their operations seamlessly. For more information, explore their detailed offerings online.
Frequently Asked Questions
1. What does the survey say about consumer spending this holiday season?
The survey indicates that a significant majority of consumers are willing to spend more on gifts, with many planning to buy for multiple people, reflecting a generous holiday spirit.
2. How much more are consumers ready to spend at small businesses?
Approximately 71% of consumers expressed readiness to pay more to support small businesses, with 53% willing to spend up to 10% more.
3. What influence does inflation have on holiday shopping?
While many consumers acknowledged inflation may affect their shopping choices, it has not diminished their motivation to shop at small businesses.
4. How are younger consumers contributing to this trend?
Younger demographics, particularly Gen Z and Millennials, are leading the charge in supporting small businesses, with over 80% expressing their intent to shop small this season.
5. What resources does GoDaddy offer to small businesses?
GoDaddy provides various resources, including the Ultimate Guide to Holiday Campaign Planning, designed to help small businesses navigate and optimize their holiday sales strategies.
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