Salesforce, the global leader in CRM, announced new consumer insights and predictions for the 2021 holiday shopping season. Digital sales are expected to again top $1 trillion globally and consumer prices are projected to rise.
Sales and costs up
The report announced that global online sales are predicted to grow by 7% compared to last year, with total sales reaching USD1.2 trillion globally. Cyber Monday sales are expected to continue to rise in popularity. Consumer prices are projected to rise by up to 20% this holiday season despite fewer global sales (-2%). Packages are 94% less likely to be delayed due to improved logistics and curbside pickup options.
“While last holiday was defined by the last mile, this year is expected to be dominated by the first mile,” said Rob Garf, VP and GM of Retail, Salesforce. “With persistent global supply chain disruptions, retailers must draw consumers to their online and physical stores early in the season to fulfil demand and capture holiday spending.”
Widespread impact
The report lists a series of impacts:
Retailers, suppliers, and consumers will bear the burden of rising costs due to increased manufacturing capacity, logistics costs, and the labour shortage. Consumers will see lower inventory levels and higher retail prices due to increased costs.
Consumers are placing larger, but fewer, orders. Packages are less likely to be delayed, but shipping issues and soaring costs mean that products might not be available to purchase. Consumers are predicted to make early purchases to avoid disappointment.
Tracking user activity through third-party data is predicted to become more expensive, meaning that companies that use their own customers’ data are more likely to succeed in their marketing efforts. Salesforce projects 30% growth in ecommerce traffic from social referrals and an 18% rise in email marketing across November and December.
More than six in ten global online orders are predicted to be influenced by brick-and-mortar locations — either by helping to place an online order or by fulfilling it via curbside pickup options. As labour shortages are wreaking havoc in the lead up to the holidays, it is critical for store associates to meet rising consumer expectations.
Visit Salesforce’s 2021 Holiday Insights hub and initial 2021 Holiday Predictions blog post for more information.
