20 Holiday Shopping Trends For Smart Brands To Dominate This Festive Season

The festive season is the most critical time of the year for brands across all verticals, globally, with up to 40% of annual sales happening within these few months. Our guide breaks down the latest holiday shopping trends across key markets like the USA, UK, Southeast Asia, and India to help your brand fine-tune its festive ad strategy.‍

Holiday shopping habits in the USA

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1) Early Shopping and Year-Round Deals: 65% of US holiday shoppers are planning ahead, by shopping early to avoid potential shipping delays and stock shortages. Additionally, 58% are spreading their purchases across the year, taking advantage of deals for a more efficient shopping experience.

2) Mixed Spending Outlook: 64% of US shoppers anticipate higher holiday spending due to inflation pushing prices up. However, 42% expect to cut back, driven by concerns about the economy, election outcomes, and financial uncertainty.

3) Influence of Ads and Social Media: Social media and online ads will heavily influence holiday gift choices, especially among Gen Z and Millennials. Traditional TV and CTV ads still play a role for Millennials and Gen X, though only 10% of shoppers plan to buy directly from ads.
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4) Online Shopping Dominance: Most holiday shoppers, particularly Millennials and Gen Z will go online, with 72% using laptops, 34% shopping on mobile browsers, and 40% through apps. Despite this, the older generations of Gen X and Baby Boomers, still value the in-store shopping experience, creating a strong need for omnichannel presence.

5) Black Friday and Cyber Monday Relevance: While over half of holiday shoppers feel that Black Friday and Cyber Monday are no longer crucial for finding deals, 52% still plan to take advantage of these sales events. Others remain undecided, reflecting a shift in consumer behavior with deals available all season long.

6) Ethical Shopping Choices: Consumers are increasingly driven by ethical considerations, with 61% preferring to shop from local or small businesses. Additionally, 45% seek out sustainable brands, and 43% avoid retailers that don’t align with their personal values.

7) Focus on Deals, Savings, and Loyalty Programs: Amid rising prices, 53% of holiday shoppers will prioritize free shipping offers when choosing gifts. Meanwhile, 51% are swayed by sales events, and 26% base their retailer choice on loyalty and rewards programs, underscoring the importance of customer incentives.
(sources: Holiday Shopping Trends Report 2024 - Basis Technologies)
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Christmas consumer trends in the UK & EU region

8) Pre-Christmas Footfall Surge: The final week before Christmas usually witnesses a footfall rise by +11.2%, with retail parks leading at +17.2%, shopping centres at +16.4%, and high streets seeing a +5.8% increase. This surge reflects increased consumer activity leading right up to the holidays.
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9) Shopping Timelines and Early Birds: About one-third of UK & EU shoppers plan to continue their holiday shopping into December, while 43% aim to finish before Black Friday. Parents tend to shop earlier, while younger shoppers will likely leverage Black Friday deals.

10) Emerging Brands and Practical Gifts: Younger consumers, especially those aged 18-34, are more open to trying new brands and prefer practical gifts over luxury items. Older generations show less interest in exploring new brands and choosing essential gifts.

11) Holiday Spending Breakdown: The average British consumer is set to spend nearly £600 on Christmas shopping, with 55% of the budget going towards gifts, followed by 18% on food and beverages. The remainder will cover travel, self-gifting, socializing, and decorations.

12) Last-Minute and Boxing Day Shoppers: Christmas Eve footfall rises by +5%, driven by last-minute shopping, especially in retail parks where footfall jumped by +20.9% before noon. Boxing Day witnesses a +4% increase, with Central London up +10.6% compared to previous years.

13) Green Fatigue and the Rise of Recommerce in Europe: Sustainability is no longer the top priority for many European consumers, with green fatigue setting in. Sustainable purchases have dropped, particularly among Gen Z (-9%) and baby boomers (-5%) from 2020 to 2024.

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Recommerce, or second-hand shopping, is gaining traction as a cost-effective, sustainable option. Gen Z leads this trend, with 31% planning to increase second-hand purchases, while second-hand buying has also risen among Gen X (23%) and baby boomers (16%) since 2020.

(sources: IPA UK the-2024-christmas-consumer; MRI software UK footfall-performance-review; euromonitor top-consumer-trends-2024)
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The Southeast Asia holiday shopper impact

With a projected 402 MN digital customers by 2027, e-commerce in Southeast Asia is set for unprecedented growth. Indonesia leads the region with 168 MN digital users, while Thailand, Malaysia, and Vietnam show steady gains in customer expansion.

14) Robust Market Growth: The Southeast Asian e-commerce market is expected to reach USD 211 billion by 2025, with GMV forecasted to hit $280 billion by 2027. Holiday shopping spikes will be most notable in the beauty (+15%), home furniture (+6%), and home appliances (+5%) sectors.

15) Planned Shopping Habits: 88% of Southeast Asian shoppers plan their purchases in advance during double-day sales events. Promotions are a key driver, with 75% of consumers watching for deals throughout the festive season, and 67% of Indonesian shoppers preparing ahead of Ramadan.

16) Importance of Delivery Dates: Accurate delivery dates are critical, with 87% of Southeast Asian shoppers more likely to purchase if given a precise expected delivery date (EDD). Delays exceeding 3-4 days post-EDD are generally intolerable across the region.

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17) Preference for Home Deliveries: Consumers across Southeast Asia prioritize home deliveries, with 89% in Indonesia and over 80% in Malaysia, Singapore, and Thailand favoring doorstep services. Parcel lockers are growing in popularity, especially in Thailand.
(sources: thinkwithgoogle APAC consumer-insights-trends holiday-sales-season; Parcel Monitor SEA eCommerce market report 2024)

The great Indian festive sales season

18) Significant Festive Sales Contribution: Up to 40% of annual sales for brands in India will be generated during the August-December festive season, highlighting its critical importance for retailers. 87% of metro consumers and 86% from Tier 2 cities prefer online shopping during festive occasions, underscoring the digital shift in consumer behavior.

19) Rising Festive Spends Across Verticals: Festive ad spends will see a 20-25% rise across sectors, with the automotive industry alone witnessing a 25-30% increase. Retailers anticipate a 10-12% growth in sales during the 2024 festive season, driven by heightened consumer spending sentiment. E-commerce platforms expect a minimum 20% sales volume growth from September to December 2024, surpassing last year's 13% sales growth.

20) Spike in E-Comm Order Volumes: Online order volumes increase by 37% during key festival periods, driving substantial growth in the e-commerce sector. Within only the first week of festive season in past years, e-comm platforms achieved $5.7 billion in sales, with 65% of shoppers from Tier 2 cities and beyond.
(sources: Shiprocket; Redseer report: festive 2024; Business Quora; Nielsen Media study; WARC)‍

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Holiday ad insights for every brand marketer

As holiday shopping behaviors evolve globally, brands must focus on: 

-- early shopping trends, 
-- omnichannel solutions, and 
-- data-driven targeting. 

Brands should prioritize fast delivery, high-value discounts & offers, and loyalty programs to meet consumer expectations. By aligning advertising strategies to regional behavior — social media purchases in the US, mobile-first shopping in Southeast Asia, and ethical trends in the UK & EU region — brands need to capture holiday demand and maximize year-end sales to make a higher impact.

To maximize the holiday ad trends above, brand marketers should leverage AI-driven insights to predict purchasing behavior and adapt campaigns in real time. Urgency created with FOMO tactics like limited-time offers and flash sales can drive site/ app conversions or increase in-store footfalls during the season.

And finally, brands should craft attention-grabbing ads including immersive, gamified or shoppable ads to break through the holiday clutter and engage (especially) Gen Z and millennials with interactive ads across smart devices, to ace this festive season.