A growing nunber of consumers are using it
Major retailers have already rolled out significant deals on popular gift items well before Black Friday. But finding them could be a challenge.
An unexpected helper this year could be artificial intelligence (AI), which can scour the internet a lot easier than humans can. Apparently, a lot of shoppers have already figured that out.
A new survey by Boston Consulting Group (BCG) found that over a third of consumers 38% have either already utilized or plan to use generative AI in their shopping endeavors during these major sales events.
The technology's adoption is particularly pronounced among younger demographics, with 46% of millennials and 52% of Gen Z consumers engaging with GenAI to find the best deals, research products, and compare items. Among those who have experimented with GenAI, more than 80% agree that it enhances their shopping experience, and nearly 40% foresee increasing their use of the technology in future shopping activities.
The BCG survey analyzed the spending plans of over 10,000 consumers across nine markets, including Australia, Canada, Germany, France, Spain, Switzerland, Poland, the UK, and the US. Jessica Distler, a BCG managing director and co-author of the study, highlighted the impact of generative AI.
"As inflation squeezes household budgets, generative AI is empowering consumers to make fast, informed decisions about what and where they buy, Distler said. This Black Friday and beyond, GenAI-enabled consumers will push retailers to up their game."
Spending may be different this year
Despite concerns over rising prices and inflation, up to 75% still plan to participate in holiday sales events. Many have adjusted their spending habits, with 49% cutting back on nonessential purchases, 45% frequently comparing prices, and 41% opting for discounters or value retailers. Nevertheless, spending is expected to rise compared to 2023, particularly in Switzerland, the UK, and Australia, where double-digit increases are anticipated.
Consumers are leveraging these sales events to jumpstart holiday shopping and stock up on essentials, with 66% intending to purchase gifts and 59% planning to buy necessities. Adult clothing and consumer electronics remain the most sought-after categories.
How much of a price cut will it take to draw consumers attention? The consensus among those in the survey is a discount of at least 30%. Already, some holiday sales events have offered discounts higher than that.
Photo Credit: Consumer Affairs News Department Images
Posted: 2024-11-14 14:01:23