[DE] Christmas business

Christmas business in figures

The Christmas season: between the end of October and December is the strongest time of the year in terms of sales, and this applies equally to retail and online trade. Measured in hard figures, no other occasion can keep up with Christmas sales. While online retailers aim to counterbalance this with special promotional days and use various occasions throughout the year such as Valentine’s Day, Father’s and Mother’s Day, Easter, Pride Month, the back-to-school campaigns after the summer, Halloween and Singles Day in November to promote sales, it is also the classic “Black Friday” that all hopes are pinned on in terms of sales and that heralds the start of Christmas business.

Annual sales in retail vs. Christmas sales in retail

Source: ihk.de and HDE
*(effects of Covid19)

Sales at Christmas: This is the role of online sales

While growth rates in the retail sector as a whole have increased since 2018 compared to the previous year (with the exception of the lockdown year 2020), growth in online retail is weakening. We are no longer in the double-digit range here. Percentage growth in the online Christmas business was still 11.92% in 2019, only 5.7% in 2021 and just +1.42% in 2022.

Nevertheless, the online share of total Christmas sales in 2022 was 17.62% – a figure that has remained stable since the pandemic year 2020.

Forecasts for the current year: This is how the Christmas business will be in 2023

According to forecasts, around 20% of consumers want to spend less money on Christmas presents in 2023 than in the previous year, while 3% of respondents say they want to spend more. However, a demographic peculiarity is emerging: young shoppers between 18 and 29 are not planning to cut back, on the contrary: 11% of this population group plan to spend more money on Christmas gifts than in the previous year. The situation is similar for families with children, where the proportion of those planning to increase their spending is 6%.

Sales in the 2023 Christmas season

What will Germans spend per capita on Christmas gifts?

Source: https://www.acquisa.de/

How high is the online share of Christmas sales in 2023?

Has shopping behaviour changed? If you believe the mail order consultant, more people will want to shop online than in bricks-and-mortar stores for the first time in 2023. While the majority preferred to shop in bricks-and-mortar retail stores last year, 58% of consumers now say they would prefer to do their shopping online only, according to Versandhausberater. Surprising, given the developments in 2020, 2021 and 2022.

How many parcels will be sent at Christmas?

In 2022, around 415 million parcels were sent by retailers to private customers during the Christmas period. If you add the shipments from private individual to private individual, the industry estimates that a total of around 750 million parcels were sent during this period. This actually represents a slight decrease compared to the 2021 Christmas period (with 790 million parcels). The e-commerce magazine also cites declining figures: In 2022, a total of 4.2 billion parcels were sent, received and returned in Germany. This corresponds to a decrease of 313 million parcels compared to the previous year 2021.

It remains to be seen whether this decline can be considered a “trend”: According to statista’s forecasts for 2023 as a whole, 4.2 billion shipments are expected to be sent by courier, express and parcel services – a very significant proportion of which is due to the growth in online retail.

Christmas sales: When does it actually start?

From the consumer’s point of view:

The HDE designates the two months of November and December as the classic Christmas shopping period. According to surveys by statista, October is also part of the Christmas shopping season, especially for women.

From a business perspective:

For entrepreneurs, however, Christmas starts much earlier, in June or July. When the summer holidays are still to come, it is difficult to start thinking about the cold season. Often, the first chocolate Santas haven’t even found their way into the supermarkets yet – and yet this is exactly the right time for online retailers to prepare for the next shopping events.

More than ever, the right preparations for the Christmas business are essential.

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If you pay attention to the following points, you will have a more relaxed start to the Christmas shopping season…

Preparing for the Christmas business: What to consider

Christmas business online, Christmas business stationary or a “mixed form”? Most of the points relating to preparation are the same, albeit on a different scale.

Checklist for Christmas business

Many points need to be considered when preparing for the Christmas business. On the one hand, stock levels, capacities and delivery times. But also marketing measures, promotions and communication. This is time-consuming preparation that should ideally begin now! The following checklist contains the most important points and helps you to plan your Christmas business in good time.

1- Determine stock levels and trends

The summer slump is the ideal time to inventory inventory. Slow sellers and bestsellers can be identified. This allows you to deduce which products are offered at a special price during sales promotions such as the summer sales or Black Friday in order to create space in the warehouse – the products that are sold very little.
However, before stocking up, it is advisable to know the current trends. In addition to the bestsellers, it is important to know what will be given as gifts at Christmas. It is important to know the individual products offered in your own online shop. categories for the individual categories offered in your online shop.

2- Additional staff

The flood of parcels at Christmas poses problems for delivery services and online retailers alike. Based on previous experience and estimates, it is advisable to increase the number of staff depending on capacity. This also requires a short familiarisation period until all picking processes are routine and without any loss of time. However, employees and assistants can then work together as a well-coordinated team in the Christmas workshop to prepare the gifts for dispatch. Take care of finding suitable staff in good time. This way you can relax and rely on good people when the time comes – and while others are still looking, you can get started.

3- Selection of the parcel service

The selection of the parcel service is another success factor for the online shop. Postage costs, delivery times and the reliability of the parcel service are important criteria when choosing a delivery service. It is particularly important at Christmas that the gifts arrive on time. No customer wants to stand in front of the tree on Christmas Eve without a present.
The volume of parcels increases every year. Last year, 330 million parcels were sent for the festive season in Germany alone. A major logistical challenge, especially when you consider that the parcel services are still estimated to be short of thousands of delivery staff, despite additional personnel. Many parcel services therefore stop accepting new customers during the Christmas season. By coordinating with the current partner in good time, you can get another parcel service on board in good time so that the Christmas mail is delivered on time and ensures satisfied customers.

4- Customised packaging

Packaging is a big part of marketing: it has to match the product and communicate the brand identity. Personalised packaging works: Throughout the supply chain, the package draws attention to itself. Almost any item can now be personalised. Perhaps it could be a Christmas box that wishes the neighbour a Merry Christmas over the fence on delivery? There are many possibilities, but one thing is not possible: packaging without recognition value! The personalised printing of packaging materials can take as long as eight weeks from order to delivery.
It is therefore worth placing an order early on. A tip regarding postage costs and avoiding packaging waste: depending on the item size and order quantity, order boxes with the appropriate dimensions.

And this is what you need for a smooth process at the packing table:

An effective gift-wrapping process includes the following essential basics:

• a dispenser for wrapping paper and/or gift wrap
• a dispenser for wrapping tape orribbon
• an adhesive tape dispenser
• a good pair of scissors

Each “tool” must have its fixed place, and the arrangement of the individual work utensils also plays a role.

5- Customise website

The website or online shop is the shop window for customers and should be decorated for Christmas. Appropriate promotions can arouse consumers’ emotions and thus generate additional reach:

– Communication of delivery times: “To receive the order before 24 December, the item must be ordered by …”
– Free gifts from a certain order value
– Discount campaigns and vouchers
– Advent calendar
– Competitions

It’s not just the marketing perspective that plays a role on the website, performance and selection options during the ordering process are essential. Fast loading times and stable access under high load also contribute significantly to sales. Disconnections during the ordering process are annoying for the customer and damage trust in the consumer relationship.
In addition, the following options should definitely be offered during the checkout process:

– Different delivery address than billing address to send the gift directly
– Multiple options for payment method and voucher purchase
– Wrapping service to deliver the gift beautifully packaged
– Express delivery for last-minute buyers to shorten the delivery time
– Dispatch confirmation and tracking code so that the customer can track the parcel
– Gift tips and inspiration, e.g. “other users also bought” or “Christmas gift ideas for…”

A little digression: What else you need to effectively prepareyour workplace for Christmas

6-Returns after Christmas

Ideally, no items should be returned. However, this is wishful thinking. After Christmas Eve, online shop operators only have a short time to take a deep breath. That’s when the flood of returns starts. Preparing for increased returns helps with processing. The returned items are checked in a quality control process and, in the event of an exchange, a new and rapid delivery must be organised. Depending on how many vouchers were sold before Christmas, you should be prepared for a renewed peak in orders when redeeming them.

Timely preparation means less stress

The early bird catches the worm. This year, under the special circumstances, this applies more than ever. Something that has already become apparent over the last few weeks: Many orders are shifting from the big online generalists to smaller providers.

As recently as 2018, 72% of all gifts purchased online were bought via Amazon. This made Amazon the frontrunner among gift suppliers. The picture will be very different this year:

While online generalists have significantly longer delivery times than usual for some product groups, books, electronics and even household items – the classic Christmas gifts! – are already being ordered from other suppliers. Most of these providers have already optimised their online shops to this end in recent weeks. The Christmas business will be worthwhile for them. For everyone else:

Use the time now to organise, prepare and plan everything. If everything is completed early, you have the opportunity to stress test technical implementations and there is still time for optimisation. For example: Buy shipping boxes now!

An important aspect of preparation is to incorporate experience. If there have been difficulties with a parcel service in the past, look for an alternative. If there were too few Christmas boxes, order more. And if the packaging service was not used as expected, you will need less wrapping paperthis year…

Christmas business stationary: special features and opportunities

There is no denying that Christmas business offers certain opportunities and advantages for bricks-and-mortar retailers. In the run-up to Christmas, Christmas markets and the “magic of Advent” attract people to city centres. Once the customer is in the shop, their willingness to buy is probably higher than usual. The customer comes to stroll around and gather inspiration – and should then of course also buy.

The (blog) author Roman Kmenta therefore advises a 5-point strategy:

Christmas and retail: offer the best first!

According to Kmenta, this does not mean that the most expensive product will always be bought. But there is often a good alternative in the next lower price segment that appeals to the customer with the good feeling of having saved money.

Other strategies from Kmenta’s 5 top tips for more sales in the 2020 Christmas season include “classics” such as cross-selling or closing the sale through proactive dialogue (“What else do you need?”) as well as unusual gift wrapping.

Exceptional gift packaging

November and December are filling up the city centres. It can get stressful at the checkout and when wrapping presents. That’s why we’re giving you some tips here on how to wrap gifts quickly, beautifully and attractively even under stress. Good preparation can make all the difference

Whenever you have the necessary peace and quiet: Take your time when it comes to wrapping presents. Use the gift wrapping as an opportunity to deepen the conversation with the customer. Who is the gift for? Ideally, you should have a certain selection of wrapping paper in stock so that you can cater for different target groups. But you may also want to find out a little more about the recipient – so that you can then advise them with further gift ideas.

It’s obvious why gift packaging has a positive effect on the psyche, but also on your sales: high-quality packaging that someone has taken the time and effort to create signals to the recipient that someone has taken the time (for me). It’s actually the best gift you can get

One topic that is becoming even more of a focus in connection with gift wrapping this year due to the external circumstances: wrapping gifts sustainably! This doesn’t have to be at odds with the “longing” for elaborately and individually wrapped gifts. On the contrary! High-quality gift packaging is sustainable because it can be reused – either in its original context or in a different one. Good examples of this are sturdy gift boxes such as our practical gift box with lid or: cloth!

No matter what you ultimately decide on: Pack consciously and with appreciation. Because this year more than ever, your customers are making a conscious decision to buy from YOU. You should definitely honour and reflect this decision.

Christmas spirit

This is what customers are longing for: Christmas in retail, including the Christmas spirit. Music, scents, appropriate decorations and a few other tricks create a Christmas (market) atmosphere. In addition to good, personalised advice, this is the best way to get customers in the mood to buy.

Are vouchers an option?

Boutiques and shops often have a fairly loyal clientele and ideally a well-maintained customer database. November is the time for Christmas mail: write to your customers. Even those who can’t or don’t want to come to the shop in person to browse for gifts can give gift vouchers. Perhaps you can also accommodate your customers in the design of the vouchers and send them attractively designed and packaged by post?

Private shopping slots are another option. Arrange individual times with your regular customers at which they can look around the shop privately and undisturbed. The exclusive event conveys a VIP feeling and boosts sales figures.

At least one digital channel is mandatory

A webshop or at least a well-maintained social media presence should have been part of every retailer’s strategy since lockdown times at the latest. This channel must now be utilised. Make yourself useful to your customers by posting gift suggestions. Medium of choice: short videos. But image and text contributions are also suitable for bringing your own offer into play as a gift. We have found a nice example that also nicely picks up on the voucher idea:

Seen at: Müllers Hühnerglück

The voucher becomes a small event here: Müllers Hühnerglück offers, among other things, guided alpaca hikes, which have now been thematically packaged as vouchers for different target groups. In addition to the actual voucher, the “children’s package” includes an “alpaca tassel” keyring and the adult package includes insoles made from alpaca wool or alpaca soap. Similar nice little things can also be devised for the retail trade: In the cosmetics sector, for example, a small sample box can be put together for the respective target groups. A small “dress-up doll” made of paper could be transferred to the boutique: a selection of clothes to stick on can encourage people to play, try them on and look forward to their visit to the shop – here too, this can be designed for different “customer types” in a target group-specific way Christmas and retail work very well in this way.

Christmas e-commerce business: special features and opportunities

The figures at the beginning of the article show just how relevant online sales have become in the Christmas business – and anyone can get an approximate picture for themselves by questioning their own shopping behaviour. At 17.6%, just under a fifth of all Christmas gifts are bought online, and €21.2 billion was spent online in the November and December Christmas period in 2022. So without any help, the shopping mood is on the rise, even online. But if you want a slice of the action, you have to be aware of this: The advertising pressure from market competitors and thus the CPC is also increasing. It is no coincidence that the gross expenditure (in millions of euros) for mobile advertising is above average in the months of the traditional Christmas business, as this chart shows:

The Christmas season therefore offers certain opportunities, especially for online retailers, but also challenges due to the increasing advertising pressure. In our blog article Shop optimisation tips for the online shop you will find valuable tips that can help you and your online shop to increase sales all year round. These include detailed product information, good and relevant images of the product, the optimisation or expansion of payment options and a selection of delivery options. It can help to focus on these points, especially in the run-up to Christmas:

Address shopping basket abandoners

Find a way to contact so-called “shopping basket abandoners”. This could be an email, for example. The more personal, familiar and direct the approach, the more likely it is to be successful. Of course, a personal approach presupposes that you have already been able to collect data about the person. But:

Someone who has already engaged with your products to the extent that he or she has created a shopping basket is often just missing the final impulse or incentive. Discounts also promise great success here:

Hello [Philipp], we still have your [jumper]! We’d love it to make someone happy for Christmas! And that’s why we’re offering you another [10% extra discount] on your order today.

Of course, you can also reach potential customers via retargeting. The disadvantage: a good retargeting campaign can be expensive.

?- Shopping basket abandonment

“Shopping basket abandoner” is a term used in e-commerce and online shopping. It refers to a person who places products in the virtual shopping basket of an online shop but does not complete the purchase process by actually buying the products. In other words, a shopping cart abandoner is someone who fills the shopping cart but leaves the website without making the purchase. Almost there…: Shopping basket abandonment is a big issue for online retailers. There is great potential here: anyone who has already filled the shopping basket is seriously interested in my products. This potential customer does not have to be “won over” and advertised to first. If you succeed in identifying and eliminating the causes of abandonment, you can improve your conversion rate and generate sales. These measures help:

• Optimisation of the checkout process
• Adding security and trust signals
• Improving the user experience
• Implementation of remarketing strategies

?- Retargeting

“Retargeting”, also known as remarketing, is a marketing strategy in e-commerce and online marketing in which targeted advertising is played out to people who have previously visited a website but have not completed a desired action, such as a purchase or filling out a contact form.

?- Exit-intent pop-up

An “exit-intent popup” is a special type of popup window that appears on a website when the visitor shows the intention to leave the page. This intention is recognised based on the user’s mouse behaviour. If the visitor’s mouse pointer moves quickly in the direction of the browser tabs or close button, this often signals that the user wants to leave the website. At such a moment, the exit intent popup is triggered and displayed on the visitor’s screen.

Use exit-intent popups

There is special software that uses typical behavioural patterns to recognise when a prospective customer is about to leave the shopping cart or your site. So address your (potential) customers while they are still on your site with targeted offers or information. Works wonders 🙂

Send emails

Sure, everyone does it. But it is and remains a very cost-effective medium for reaching your (potential) customers. Offer your customers real added value in your e-mails instead of pure product advertising. For example, gift ideas, discounts (preferably limited in time), or special product bundles. Indispensable: the activating subject line. It must be immediately clear what the recipient can expect. If the subject is appealing, the email will be opened – otherwise not. By the way: As hackneyed as it may seem by now, emojis in the subject line are still an open rate booster 😉

Charity and sustainability

Customers are particularly receptive to such campaigns at Christmas time. This may sound reprehensible, but in the end it benefits everyone: It’s important to remember that we are in a privileged position, while many others are less fortunate. If you want to get involved in a social project, the Christmas period is the ideal time to do so and may be the decisive impetus as to why a prospective customer (all other things being equal) buys from you and not from the competition. The mechanism can vary: A donation of a certain amount per purchase, a donation of a certain percentage of the purchase price or a donation in kind per purchase – the only important thing is that the conditions are transparent and the campaign is communicated in a highly visible manner. A campaign like this benefits everyone involved: customers can do good with their planned purchase, you as an online retailer can increase sales and, last but not least, those who are supported by the donations benefit.

Christmas spirit, even online

Yes, you can 🙂 Redesign your online presence to match the season. Glitter, glamour and even music are also possible online. Special filters to quickly find the right gift or small, activating competitions on your site, such as the good old wheel of fortune, are also welcome: spin it virtually and win a certain percentage discount, a voucher code or other bonuses.

Whether online or in bricks-and-mortar retail: we wish everyone a relaxed yet busy pre-Christmas period 🙂