Victor Tam, CEO of Monos, a company that creates premium travel products, said that during the difficult macroeconomic situation, which so far shows no signs of improvement in the foreseeable future, many consumers refuse to make large purchases in the e-commerce space, preferring shopping during holiday sales.
During a conversation with journalists, Victor Tam noted that the Travel and Luggage directly to the consumer (D2C) site, which is expanding to the scope of activities of traditional stores, indicates changes in consumer behavior. According to him, there is currently an increase in buyer awareness about when their activity in the e-commerce space is the most profitable.
He noted that the consumer tactic of waiting for sales in honor of the holidays to make purchases has been formed and established as a common practice. In his opinion, the seasonality of purchases is not a new phenomenon and characterizes the behavior of consumers for many years, but currently, a large degree of involvement of people in this format of commercial actions is being recorded. In addition, the value of seasonal sales for buyers is growing.
Macroeconomic problems are currently a factor determining the behavior of buyers and the circumstance that dominates their minds when making purchasing decisions. Last month, a survey of more than 2,200 local consumers was conducted in the United States, which resulted in fixed an 11% decrease in purchasing power compared to two years ago level.
Victor Tam says that the formation of the concept of conditional commercial seasonality in consumer consciousness as a factor determining their behavior is a favorable trend from the point of view of the interests of brands with a stable positive reputation. These companies belonging to the category of profitable, in the context of changing buyer preferences in terms of ways of making purchases, gain a competitive advantage.
Victor Tam argues that brands that are reliable use the seasonal sales period as something like a weapon because someone who has a great product and believes in its value a benefit from the stable value of the goods, which does not show growth during the sales period. The habit of consumers making purchases according to the principle of seasonality allows these firms to earn on a surge of activity in the market.
Currently, the field of e-commerce is expanding. According to the results of a survey of 3 thousand American consumers, it was revealed that a trend has formed within which the share of retail spending on shopping in stores will decrease in the next few years. Almost a third of the participants in this survey expect that in the second half of 2023, they will be more active in the format of digital commercial channels.
Another industry study, which involved more than 2,800 American consumers, testified that 34% of respondents are aware of the functions of digital purchases and are eager to use them. Among the representatives of Generation Z, this share is 39%, and among millennials – 43%.
Victor Tam predicts significant changes in the landscape of D2C brands. According to him, sustainable growth requires time and knowledge. He is convinced that digital brands will draw conclusions from current trends in the commercial space. In the future, a new generation of companies may appear in terms of the concept of their activities.
As we have reported earlier, BNPL to Account for 4.1% of APAC E-Commerce Payments.
