A different holiday season this year
If you are a small business owner who makes the majority of their revenue in Q4 with holiday sales, this post is for you.
The economy and consumer spending is seeing interesting trends you need to know about.
Consumer credit card debt is at an all time high (up almost 20% from a year ago, according to a quarterly credit industry insights report from TransUnion)
Local makers markets are seeing a dramatic decrease in foot traffic (in Portland).
Product sales might slow, but services sales are up! Why? People spent BIG on goods during COVID and are now pivoting to experiences and services.
If Gen Z and Millennials are your target market, you are in luck! Studies show that these generations are willing to splurge on fashion, with 61 percent of both age groups saying they intend to treat themselves by buying apparel, footwear, and accessories.
We are seeing a surge in out-of-home entertainment and travel. AKA experiences!
love this illustration from Sujin Kim
Now I know this is a lot to digest, but I am actually really hopeful about these changes. What this means is there is absolutely space for growth for values driven, authentic brands who care about what they make! (aka my amazing clients and friends like REIFhaus, Nightwork Candle, wovenearth ceramics, Modern Macrame, and more!)
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NOW HERE’S WHAT YOU CAN DO ABOUT IT!
Make shopping with you a whole EXPERIENCE. How can you add personal touches, intimate experiences or special bonuses to what you already offer? People are hungry for connection. How can you provide that for them? Bonus points if it is IN PERSON!
Consider an influencer. Brand loyalty has moved into an even deeper connection with PEOPLE. We are seeing this in influencer marketing. Large companies can’t infiltrate TikTok, but when our favorite influencer is pumping their brand, we pay attention.
Could you do a collaboration? Collaboration is a great way to cross expose to different audiences. And you get to tap into the brand loyalty of each brand! A win-win.
REALLY lean in to your own personality and point of view on social media. They are buying because of YOU! How can you open up even more?
Know your margins and where you are willing to flex for holiday discounts. Price IS driving buying, but don’t discount too much! Knowing your numbers and margins is KEY for making smart financial decisions. If this freaks you out, consider getting an expert opinion on your pricing and numbers. (This is what I do for many of my clients, so feel free to tap me if needed!)
Use it as an opportunity to move inventory. Inventory is cash doing nothing. Look carefully at your dead inventory with fresh eyes to get some more flexibility on your balance sheet. Can you add it on as a bonus when they purchase 2 or more? Can you do mystery bags? Custom bundles of goods? Reframe it as a fun experience and its a win-win.
AND MOST IMPORTANTLY, Go into the season with a PLAN and strategy. We are trying to avoid burnout and willy nilly decision making. Please please please do not “throw spaghetti at the wall” in hopes of something sticking. Be intentional with your energy. Enlist a growth strategist if necessary. You are not alone! With thoughtful action, you will make it through this Q4 with flying colors. I truly believe in you!
