The survey polled 5,000 consumers worldwide, including 1,000 from Germany. Bazaarvoice also analyzed data from its network.
UGC is crucial for the search for gifts
Half of consumers surveyed worldwide (49%) plan to buy Christmas gifts online more frequently than before the pandemic, with this figure standing at 32% in Germany. Price (37%) and price performance (20%) will be the most important factors for German consumers when it comes to Christmas shopping this year, although 27% admit that their planned spending has been affected by the Covid-19 pandemic.
According to the survey, 48 percent of consumers worldwide say that the chances of purchasing a product increase when companies respond to online reviews. "It is therefore important that retailers and brands consider their UGC strategy for the festive season in good time, as consumers rely on this information to make purchasing decisions. UGC is booming in times of lockdown and social distancing, but a similar trend was already evident last year in the run-up to Christmas. October 2019 alone recorded almost five percent more user-generated content compared to an average month. An even stronger increase in UGC is expected this year. This information is increasingly influencing customers' purchasing decisions," explains Tobias Stelzer, Head of Sales Central Europe at Bazaarvoice.
Amazon faces competition from social media
Amazon will once again be the first port of call for consumers this winter season. More than half of Germans (57%) use the platform as a starting point for their gift search and almost three quarters (71%) plan to buy from the world's largest online retailer. Among 18 to 24-year-olds, however, Amazon is increasingly facing competition from social networks: The marketplace is still the most important source of inspiration, but Instagram is already in second place among the young target group with 48 percent, followed by Pinterest (23 percent) and TikTok (20 percent) Overall, Facebook (20 percent) remains the most influential social media platform when it comes to buying gifts, followed by Instagram (17 percent) and Pinterest (13 percent).
The online boom, Prime Day and the Christmas business
With each month of lockdown, the Bazaarvoice network, which includes over 6,200 manufacturer and retailer websites, has seen a significant increase in page views and orders. In fact, 85 percent of retailers surveyed from the network believe that online sales in the 2020 holiday season will be higher than the previous year and 61 percent expect higher engagement via social networks.
This year's Prime Day takes place on October 13 and 14 and will herald the start of the Christmas season not only for Amazon, but also for all other companies. After all, 70% of Amazon customers bought at least one Christmas gift on Prime Day last year. According to data from the Bazaarvoice network, 27% more orders were placed outside of Amazon on July 15, 2019 than on an average day. And with consumers likely to be looking for more bargains this year, this date is all the more important.
"There is no doubt that this Christmas will be like no other, with more online shopping than ever before," adds Tobias Stelzer. "Retailers need to provide customers with quick answers to their questions through FAQs, customer reviews and responses from retailers. The effects are clear: we see that FAQs on product pages lead to an increase in sales of 120% per visitor and that customer reviews even lead to an increase of 159%. Amazon has become even more prominent during the pandemic and this scale gives the platform an almost unbeatable advantage. But where brands and retailers can win is in providing a better customer experience and tailored information. Younger generations identify more strongly with brands than older generations and use social media at every touchpoint. To differentiate themselves from Amazon, brands and retailers should therefore increasingly rely on social media to create an optimal shopping experience."