Holiday Shopping Trends 2024: How AI, Mobile Commerce, and Sustainability Are Shaping Retail

The holiday shopping season has always been a significant period for retailers. However, as we approach the last quarter of 2024, evolving technologies, shifting consumer behaviors, and increasing awareness of sustainability are fundamentally changing how consumers shop and retailers sell. The retail action plan for this year’s holiday season will be defined by AI (Artificial Intelligence), mobile commerce, and sustainability, offering both opportunities and challenges for businesses.

This infographic delves into the key trends shaping the 2024 holiday shopping season and how retailers can adapt to meet new consumer expectations, leveraging the power of artificial intelligence (AI), mobile commerce, and sustainable practices.

1. The Shift to Mobile Commerce: Shopping Anytime, Anywhere

One of the most notable changes in recent years is the rise of mobile commerce (m-commerce). The increasing reliance on smartphones for holiday shopping has transformed consumer behavior, making it imperative for retailers to optimize for mobile.

• 91% of consumers now shop using their smartphones, a figure that is expected to continue growing as mobile devices become central to consumers’ shopping experiences. The convenience of browsing, purchasing, and interacting with brands directly from handheld devices is reshaping retail strategies.
• 40.4% of 2024’s e-commerce sales are expected to come from mobile commerce, emphasizing the need for retailers to ensure their websites and apps are mobile-friendly. Customers expect seamless experiences, with fast-loading pages, easy navigation, and simple checkout processes. For businesses, optimizing for smartphones is a necessity now.
• The 2024 holiday shopping season is expected to start earlier than ever before, as 50% of consumers plan to start holiday shopping before November. This early start is driven by mobile shopping, as consumers can easily browse and purchase items on the go.

Retailer Takeaways:

• Mobile optimization is essential: Ensure that your website and online store are fully responsive, mobile-friendly, and provide a seamless user experience.
• Early deals and promotions: Capture the attention of early shoppers by offering promotions well before the traditional holiday season kicks off.

2. The Role of AI in Personalizing the Shopping Experience

Artificial intelligence (AI) has moved beyond being a buzzword in the retail industry. As retailers shift to high gear to manage the holiday shopping season, AI will play an even more critical role in driving holiday sales by providing personalized shopping experiences, improving customer engagement, and increasing loyalty.

• 60% of consumers become repeat buyers after personalized shopping experiences. AI allows retailers to understand customer behavior, preferences, and shopping habits, enabling them to deliver tailored recommendations that enhance the shopping journey.
• 41% of consumers expect AI to suggest relevant products, reflecting the growing demand for intelligent, data-driven personalization. AI-powered algorithms can analyze purchase history, browsing data, and social media interactions to predict what customers are most likely to buy.
• Transparency in discounts and promotions remains key, with 60% of consumers preferring clear discounts over flash sales. AI can help retailers optimize their pricing strategies, offering personalized promotions that align with individual shopper preferences while maintaining transparency.

Retailer Takeaways:

• Invest in AI-driven personalization: Use AI tools to offer tailored recommendations, personalized discounts, and targeted promotions that resonate with customers.
• Focus on customer loyalty: AI can help businesses create meaningful customer experiences that drive repeat purchases and long-term loyalty.

3. Social Commerce, E-commerce and the Power of Mobile Integration

Social media platforms are becoming powerful shopping tools, with many consumers discovering products and making purchases directly through platforms like Instagram, and Facebook. This rise of E-commerce via social media has significant implications for the 2024 holiday shopping season.

• 60% of Gen Z and 56% of Millennials use social media for holiday shopping, highlighting the importance of having a strong social media presence. Retailers can leverage social media platforms to showcase their products, run targeted ads, and offer direct shopping experiences without requiring customers to leave the app.
• The integration of click-to-WhatsApp ads (CTWA) is another innovative tool helping retailers connect with customers more personally and immediately. Consumers can interact with brands through messaging apps, asking questions, seeking recommendations, and completing purchases—all within a single conversation.
• 28% of e-commerce holiday sales are expected to be driven by mobile commerce, with brands expected to increase their holiday ad spending by 50-55%. The competition for consumer attention will be fierce, but those who can engage shoppers through seamless mobile and social experiences will have the upper hand.

Retailer Takeaways:

• Utilize social commerce tools: Platforms like Instagram offer direct-to-consumer shopping features. Retailers should focus on building a strong social media strategy to reach their target audience.
• Integrate mobile messaging apps: CTWA ads and similar tools allow for instant communication and purchasing, creating a more personalized experience.

4. Omnichannel Shopping: Seamlessly Integrating Online and In-Store Experiences

Today’s consumers expect a smooth, integrated experience between online and in-store shopping. In fact, 89% of shoppers prefer businesses that offer omnichannel experiences, meaning they want the flexibility to browse online and complete their purchases in-store, or vice versa.

• 49% of consumers prefer a blend of online and in-store shopping, emphasizing the need for retailers to create a consistent brand experience across all channels. This may include options like buy-online-pickup-in-store (BOPIS), in-store kiosks that allow shoppers to browse online inventory, or digital customer service that supports both online and physical stores.
• The holiday season will see an increased emphasis on omnichannel shopping as consumers look for convenience, flexibility, and a frictionless shopping journey. Retailers who can offer a unified shopping experience across mobile, web, and physical locations will retain customer loyalty and increase sales.

Retailer Takeaways:

• Focus on omnichannel integration: Ensure that your online and offline experiences are fully integrated, allowing customers to transition between channels smoothly.
• Offer flexible fulfillment options: Provide BOPIS, curbside pickup, and other services that give customers the flexibility to shop in the way that suits them best.

5. The Importance of Sustainability in Holiday Shopping

As environmental awareness grows, sustainability is becoming a major purchasing factor for consumers. Brands that prioritize eco-friendly practices are likely to attract more shoppers during the holiday season.

• 69% of consumers prefer to buy from brands committed to sustainability, and 40% of consumers consider sustainability a key purchase factor. This trend reflects the increasing importance of ethical sourcing, eco-friendly packaging, and responsible manufacturing.
• Retailers that focus on sustainability are likely to stand out in a crowded market, especially among younger consumers who are more eco-conscious. Highlighting green initiatives—such as reducing waste, offering carbon-neutral shipping, or donating a portion of sales to environmental causes—can help brands build trust and loyalty.
• In the lead-up to the holiday season, more consumers will be looking for sustainable gift options. Retailers who align their marketing efforts with these values will attract conscious shoppers who are willing to spend more on eco-friendly products.

Retailer Takeaways:

• Emphasize sustainable practices: Make sustainability a core part of your brand messaging, from sourcing materials to packaging and shipping.
• Highlight eco-friendly products: Promote sustainable options to appeal to environmentally conscious shoppers, offering them a guilt-free holiday shopping experience.

6. Leveraging AI and Mobile to Drive Sustainability Initiatives

The convergence of conversational AI and mobile commerce is also helping retailers meet sustainability goals. AI can help businesses optimize supply chains, reduce waste, and improve energy efficiency, while mobile apps can offer consumers real-time insights into the sustainability of the products they are purchasing.

• Retailers can use AI to predict demand more accurately, reducing overproduction and excess inventory that often lead to waste. AI-driven analytics can also identify opportunities for more sustainable packaging and shipping practices.
• Mobile apps can inform consumers about the environmental impact of their purchases, offering transparency about product sourcing, materials, and carbon footprints. This kind of transparency not only builds trust but also helps shoppers make informed, eco-friendly choices.

Retailer Takeaways:

• Use AI to enhance sustainability: Leverage AI to optimize your supply chain, reduce waste, and make your business more environmentally friendly.
• Promote sustainable practices through mobile: Use mobile apps and platforms to communicate your sustainability efforts and provide consumers with the information they need to make eco-conscious decisions.

Conclusion: Preparing for the 2024 Holiday Season

As the 2024 holiday season approaches, retailers must adapt to the changing landscape shaped by AI, mobile commerce, and sustainability. By optimizing mobile experiences, leveraging AI for personalization, embracing social commerce, and prioritizing sustainability, retailers can meet consumer demands and thrive during the holiday shopping rush.

In an increasingly competitive market, those who can offer personalized, seamless, and sustainable shopping experiences will emerge as leaders in the retail space. Retailers who invest in these trends now will be well-positioned to capture customer attention, build loyalty, and drive sales throughout the 2024 holiday season and beyond.

Key Takeaways:

• Engage early with mobile-optimized promotions.
• Leverage AI for personalized shopping experiences and sustainability.
• Embrace omnichannel retail to provide seamless online and in-store integration.
• Highlight sustainability to appeal to eco-conscious consumers.

With these strategies in place, your brand can make the most of the 2024 holiday season, delivering exceptional experiences that keep customers coming back long after the holidays are over.

Get started with Gupshup today and discover how you can enhance your customer engagement, drive conversions, and meet the demands of the 2024 holiday season with ease. Let’s make this holiday season your most successful one yet!