Prospects of consumption trends in the US back-to-school season: new brands, and 3C products may usher in a blowout consumption
It’s been a while since Prime Day ended, and another big promotion in the second half of the year, the back-to-school season, has begun.
This time, the back-to-school season is not in June, nor is it parallel to Prime Day. It returns to the practice of beginning in July and ending in September. Statista released survey data showing that since 2016, consumers have gradually developed the habit of spending ahead of time for the back-to-school season. August is still the “shopping season” in the back-to-school season. Consumer data for 2019 show that consumers paid more for back-to-school supplies in June than in September.
The 2022 back-to-school campaign will no longer overlap with Prime Day but will bump into a time when consumers are shopping for the end-of-year holiday. Citing a Salesforce survey, CNBC said that more than one-third of respondents said they would buy gifts for the year-end holidays in advance, and one-half said they were willing to try new brands to reduce overhead costs.
Back in December, Shopkick predicted that 45% of consumers would only spend more in 2022, driven by inflation, inventory shortages, and labor market shortages. With commodity prices soaring since 2021, most households expect to spend more this year than in 2021. According to Statista, consumers spend twice as much on electronics as on school supplies. Assuming Statista’s forecasts are pretty much the same, the average total spending per household would be just under $870.
Purchases of luxury goods such as high-end electronics and designer clothing will rise, according to KPMG data. This year, the consumption of brick-and-mortar stores has returned strongly, and the addition of about 1/3 of the respondents may reduce the overall consumption trend. It seems that life of the e-commerce industry is not easy. 77% of the parents surveyed said that when purchasing similar products, they would not choose the brands they bought in the past, and half of them would choose products with discounts.
Amazon may no longer account for 85 percent of online back-to-school shopping in the U.S., as Insider Intelligence estimated late last year.
Here are some consumer portraits for specific categories:
Luxury goods: designer clothing, and high-end electronics, mainly for men, Gen Z, and upper-middle-income earners;
Interest-related products: arts, crafts, musical instruments, books;
·Sustainable products: families with a good income will have this demand;
Gifts: Families on a tight budget may reduce back-to-school spending and focus on buying gifts;
White brand products: most parents will worry about out-of-stock;
The Most Popular Back-to-School Supplies on Amazon
Based on historical data, sales of the following products will increase significantly during the back-to-school season:
Beauty products: facial masks, nail polish, hair care products;
Fitness supplies: yoga mats, stretching equipment, water bottles;
Electronic products and accessories: laptops, cases, laptop covers;
Games: board games, puzzles, games;
Pet supplies: locator, decompression toys, pet hair brush;
Books: textbooks, children’s books, e-books;
