During 2020, customers cut back drastically on shopping and travel. Many worked in home offices in comfortable clothing like sweatpants, hoodies, and t-shirts. Few took vacations. And the majority of shopping done was utilitarian – ranging from toilet paper and food staples to basic clothing items.
But now that people are getting vaccinated and lockdowns are lifting, that’s changing. Consumers are actively looking for ways to make up for lost time – and one of the ways they’re doing that is via revenge shopping.
In this post, we’ll explain what revenge shopping is and give you some tips to prepare for the expected surge in the U.S. Let’s get started.
What is Revenge Shopping?
Revenge shopping is a type of splurge shopping that occurs after a frugal spending period. When customers participate in revenge shopping, they choose to spend exorbitantly on luxury items, rather than purchasing mid-tier or bargain products, to make up for the “lack of luxury” they’ve experienced recently.
Today, customers all over the world are opting to buy luxury products from brands like Gucci, Hermès, and Chanel and plan expensive vacations to Europe or the Caribbean, because they’ve been unable to do either over the last 12 months, due to the pandemic, lockdowns, and business closures.
How to Prepare for the “Revenge Shopping” Trend
While revenge shopping hasn’t quite taken off in the U.S. yet, the recent surge in China suggests that the trend will take off here soon. Here’s how you can prepare for it.
Get Your Inventory Prepped
First and foremost, you need to get the right products added to your inventory. This includes items from luxury suppliers and products made of higher quality materials like merino wool and silk.
At the same time, you need to make sure these products are available across all of your sales channels and can be fulfilled in a variety of methods. Otherwise, you can wind up losing significant segments of your customers to backorders, stockouts, and unideal fulfillment options.
By moving your inventory into an omnichannel order management system (OMS), you can increase your available inventory for every order, exponentially. Online orders can be sourced from stores and fulfillment centers, and items can be delivered directly to customers or picked up at the curb. And because all of your inventory can be used to fulfill these online orders, it’s also less likely to deplete the inventory on your store shelves.
Strengthen Fraud Detection
Fraudsters go where the opportunity is. And now that online shopping is booming, they’ve turned their attention to several types of eCommerce fraud. This is already financially damaging to retail businesses, as every dollar lost to fraud costs the business $3.13. But when expensive products are the target, the overall impact of fraud is much greater.
One way you can prepare is by updating your fraud detection and prevention methods to incorporate AI. With artificial intelligence, your human employees can detect strange behavior faster and more accurately. This ensures that fewer fraudsters slip through the cracks, and less legitimate shoppers are turned away. Many algorithms even leverage machine learning technology to continuously adapt to new fraud techniques.
In essence, with artificial intelligence, your fraud detection is better and fraud protection is stronger.
Embrace Customized Packaging
Luxury isn’t just confined to a product. After all, you don’t see a Rolex sealed in a clear plastic bag and stuffed in a brown cardboard box. Everything from the packaging to the marketing inserts and filler material are well-matched to the product.
So naturally, elevating your packaging to a more luxurious level for your luxury products is a must. Not only does it help you stay consistent, but it also delivers the experience your customers expect. Here are some things you can do (or ask your fulfillment provider to do) to create a package that will impress your shoppers:
- Emboss the box the product comes in with your brand name
- Design sleek boxes and bags that look classier than the standard shipping boxes
- Create personalized inserts on high-quality materials
- Be strategic with your filler choices
Customers in the United States haven’t quite started revenge shopping yet, but the trend is rapidly growing across the world. As a result, retailers and eCommerce businesses should take proactive steps to prepare. Prepping your inventory, updating your fraud prevention, and designing gorgeous packaging is a great way to start.