Online sales grew by 6.3% in holiday season, 5 key payment trends for 2024, and more | D2C Digest

Hey there, great people of the D2C community who are building fantastic things! This is your host Berkay writing.

Hope everyone had a wonderful holiday 🙂 

Now it is back to business time! So take a 5 mins break and dive into D2C Digest for a quick overview of what’s happening in the D2C market!

📊 Notable consumer trends from Mastercard’s holiday season report

According to Mastercard's SpendingPulse report, U.S. retail sales, excluding automotive, saw a growth of 3.1% year over year during the holiday season from November 1 through December 24, 2023.

This data, reflecting both in-store and online retail sales across various payment forms, demonstrates notable consumer trends and economic conditions.

Several key trends emerged:

1. Online and In-store Shopping: Online sales grew by 6.3% year over year, outpacing in-store sales, which saw a more modest 2.2% increase. Despite the faster growth of online shopping, in-store purchases still account for a larger share of total retail spending.

2. Apparel Sales: The apparel sector, fueled by consumers shopping for new outfits and holiday celebrations, experienced a 2.4% year-over-year increase.

3. Food and Restaurant Spending: The holiday season also boosted the restaurant sector, with a 7.8% year-over-year growth. Grocery sales similarly saw an uptick, rising by 2.1%.

Michelle Meyer, Chief Economist at Mastercard Economics Institute, highlighted the positive economic environment characterized by robust job creation and easing inflation pressures, which enabled consumers to pursue valued goods and experiences. Steve Sadove, Senior Advisor for Mastercard and former CEO and Chairman of Saks Incorporated noted the trend of early promotions by retailers, facilitating consumer access to deals and echoing pre-pandemic spending patterns​.

For DTC entrepreneurs, these insights suggest a continued opportunity in the online retail space, with a growing consumer preference for e-commerce.

The apparel sector's performance indicates a strong consumer interest in fashion and personal style, presenting potential for niche and specialty clothing brands.

Additionally, the rise in restaurant and grocery spending points to opportunities in the food and culinary sectors, possibly through gourmet products or food-related experiences.

💰 5 key payment trends for 2024

According to ModernRetail, here are five key payment trends to watch:

1. Further Adoption of Tap-to-Pay and Digital Wallets: With over half of consumers using contactless payments, such as tap-to-pay credit cards and mobile wallets like Apple Pay, this trend is expected to see mainstream adoption in 2024.

2. Stabilization and Expansion of BNPL and Financing Options: The 'Buy Now, Pay Later' (BNPL) services, once a Gen Z phenomenon, are now attracting a broader audience for various purchases, including groceries and travel. These services are expected to introduce new categories and financial products, with a significant portion of transactions made from phone purchases​.

3. More Loyalty and Rewards at Checkout: Loyalty programs and rewards are becoming integral for both large and small retailers. These programs, often integrated through apps at checkout, are driving business by encouraging larger cart sizes and customer loyalty​.

4. Scan-Free Checkouts: The move towards scan-free checkouts, like RFID checkout systems and AI-powered "smart carts", is gaining traction. This trend is especially notable in quick-serve environments and is being driven by 'bring-your-own-device' type technologies.

5. Mobile Point-of-Sale (POS): Mobile POS, allowing retailers to take checkout with them, is seeing increased adoption across various industries. This system enables more personal and efficient customer service, moving away from traditional checkout counters​.

What other trends are you observing?

👨‍💻 Zero-volume keywords

One of the most discussed topics of late 2024 in the digital marketing field was whether it’s worth it to create content for zero-volume keywords. According to SearchEngineJournal, content on such keywords may be beneficial for several reasons:

1. Site Structure: Enhances website structure and helps visitors find solutions.

2. Customer Queries: Reflects actual customer questions, indicating high search intent.

3. Remarketing Efficiency: Enables cheaper remarketing than bidding on high-volume keywords.

4. Visibility in Related Searches: Content can appear in related searches or "People Also Ask" sections, driving traffic from higher-volume phrases.

This strategy is effective for DTC entrepreneurs, focusing on customer needs and creating targeted content, rather than only high-volume keywords.

Soo, maybe just go and write a blog for that silly and long keyword!

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