5 WAYS MARKETERS CAN DRIVE BRAND RELEVANCE AMONG DIVERSE CONSUMERS DURING THE HOLIDAY GIFTING SEASON
In the midst of end of year sales goals, My Code researched how diverse consumers are approaching gift shopping this holiday season and beyond. Our research identifies opportunities for retailers and brands to better connect with new customers during this crucial acquisition period. The biggest hurdle for brands is to understand the nuances in how people think about and plan to shop this season, because a one-size-fits all approach for this diverse consumer base doesn’t work.
Intelligence Center from My Code™ developed the 2023 Holiday Gifting report to highlight how retailers and brands can deepen revenue-driving relationships with multicultural gift shoppers through nuanced consumer understanding. Diverse consumers are year-round gift givers who want to see advertising created with them in mind. These insights can help you drive further growth, while enriching your view of the multicultural & diverse consumer landscape.
GIFT GIVING LANDSCAPE
Gift-giving is a year-round occasion, and 83% of U.S. adults have already purchased (or have plans to purchase) gifts this year. The majority of gifting occasions across the total market are culture-agnostic, but even in these moments, diverse customers are often more likely to be in market than the average U.S. shopper. 4 of the top 5 gifting occasions also celebrate personal relationships, where custom messaging matters most, with Mother’s Day and Christmas at the top of the list when it comes to purchasing intent.
Despite the current challenging economic climate, most U.S. adults plan to spend the same amount of money or more on holiday gift shopping this year than they did last year. Openly LGBTQIA+ are the most likely to plan on spending more this year (71%) and, along with Hispanic adults, are the most active gift givers throughout the year. AANHPI holiday gift shoppers are the least likely to have elasticity in their budgets – just over half plan to spend the same amount as they did in 2023.
“UNDERSTANDING” AS A MOTIVATOR
Consumers feel “understood” by a brand when that brand mindfully represents their lived experiences and creates advertising with them in mind. In fact, creative work that includes physical, contextual, and emotional representation has the greatest behavior impact potential on consumers. Diverse shoppers are more motivated to purchase when they feel retail brands understand them – just over 6-in-10 multicultural adults and 7-in-10 openly LGBTQIA+ adults are more likely to consider shopping at retailers when they feel understood by brands.
The large majority of diverse consumers want more retail advertising to be created with them in mind, including the following communities:
- 76% AANHPI
- 83% Black
- 80% Hispanic
- 82% Multicultural Women
- 83% Openly LGBTQIA+
Diverse consumers want brands to do a better job of representing their lives in advertising, but there are some steps that should be taken in order for brands to do this effectively.
RECOMMENDATIONS TO INCREASE RELEVANCE AMONG MULTICULTURAL & DIVERSE GIFTERS
- Make your media plan work smarter for you
Show up in the channels where diverse shoppers are consuming gifting content (Social media, influencers, brand/retailer websites, etc.)
- Feature Categories That Align With Your Audiences’ Preferences
Clothing, Gift Cards, and Food are the most common gifts across the total market, but nuanced gifting preferences emerge when you analyze the data by community
- Demonstrate A Nuanced Understanding Of Your Audience
Relatability and steering clear of clichés or tropes make all diverse consumers feel understood.
- Create Content That Puts Consumers In A Receptive Mindset
Eliciting the right emotions can help retail brands bolster consumer understanding perceptions.
WRAPPING THINGS UP
Multicultural & diverse consumers aren’t just gift givers during the holiday season, but all year round. While many diverse consumer gifting occasions overlap with general market trends, our findings reveal the potential impact that authentic and culturally aligned strategies can deliver.
Retailers and brands must dig deeper in order to meaningfully reach and inspire multicultural & diverse consumers to shop with them this winter holiday gifting season. Download the full 2023 Holiday Gifting Report now to learn more about diverse consumers’ holiday shopping habits, and bolster your business goals.
