packagelinkparcel shipping platform, and ship station, an e-commerce order management platform, conducted a year-end shopping forecast survey of 8,000 consumers in eight countries (France, UK, Germany, Italy, Spain, US, Canada and Australia). French consumers say they want to cut their non-essential Christmas and Black Friday spending by -11.5% compared to 2021, a loss of €2.1bn. A fall below the European average (-13.2%). “Rising inflation and the crisis are having a significant impact on the economy and this will not only affect consumption habits, but also the strategies of retailers trying to keep their costs down. The stakes are high as this is traditionally the biggest buying period of the year.”explains Roland Buquet, commercial director of Packlink.
In France, the categories most exposed to spending cuts are: clothing (29%), home furnishings (24.5%) and toys (21%). Spending on electronic devices is better preserved in France (only a 17% drop is expected, compared to 22% on average). Health and beauty products (18%) and DIY/gardening (16.5%) will be the least affected categories.
A negative impact on the business.
According to the study, nine out of ten companies in the markets surveyed expect to be negatively affected by these rising costs. Some of them are taking proactive steps like increasing shipping costs (35%), extending product receipt times (26%), increasing promotions (18%), or even eliminating free returns (10%). “It is essential that retailers anticipate the end of 2022 in a measured way. Consumers are aware of the looming recession and their spending will be much more considered than in previous years. Therefore, e-commerce will need to focus on the customer journey and take care of every step of the checkout process, including its delivery policy, if it wants to remain attractive to consumers.says Mélanie Albiger, France Country Manager for ShipStation. “The vendors that will do well will be those that have anticipated this fall, for example by relying on technological solutions”adds Roland Buquet.
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