Experts are predicting a record-breaking holiday season this year, with brick-and-mortar and online retailers poised to bring in significant revenue from high-spending shoppers.
Since nearly three in four purchases decisions still take place in-store, brick-and-mortar retailers are highly competitive. But, unsurprisingly, this holiday season, all signs point to online shopping – and increasingly mobile shopping – as key drivers for retail success.
This puts brands like Winmark’s Music Go Round® – which has both a strong online and in-store resale presence – in a solid position to capture wallet share of mobile, price-conscious shoppers.
Here are a few factors driving this year’s holiday sales spike, and how brands like Music Go Round continue to deliver to convenience-minded and budget-conscious consumers:
Growing Disposable Income Rates Spark Holiday Sales
With climbing rates of disposable income boosted by tax cuts, shoppers have spent more and more each holiday season since 2005. But, this year consumers are expected to spend more than $120 billion on online holiday sales – that’s almost 15 percent higher than last year.
Online shopping isn’t the only area expected to see gains, however. Sales in traditional brick-and-mortar stores are also increasing, but the big winners are stores that have a physical presence in addition to an online storefront. These brands see a conversion rate that’s 28 percent higher than those that are solely online.
Shoppers Want to Test out Products in Person
What’s the driving force behind the marked discrepancy between solely online retailers and those with both an online and physical presence?
While consumers have been increasingly making online and mobile purchases, they still regularly visit brick-and-mortar locations. Even if they don’t make an in-store purchase, shoppers appreciate the opportunity to try out a product before committing to an item – especially among key consumer group Generation Z.
Gen Z, worth $44 billion and on pace to outnumber millennials within a year, is price-conscious and value-oriented. They are a generation that hasn’t lived without a cell phone, yet 77 percent of them would prefer to make a purchase in stores. And, even if they choose to make an online purchase, nearly half of them will check out the product in the store beforehand.
Easy-to-Use E-Commerce Sites Make Shopping Convenient
While shoppers like to test out products in person, they continue to do a great deal of research online. They value the convenience that comes with the option to buy in-store or online, and they utilize e-commerce sites throughout the holiday season.
Nearly half of consumers say usability and responsiveness are the most important elements of an e-commerce website. When it comes to online shopping, consumers expect e-commerce sites to be fast, intuitive and work seamlessly across all devices.
Fortunately for Music Go Round customers, our e-commerce site is organized, easy-to-use, mobile-friendly and fast. Customers can filter results based on every product detail, including:
- Minimum and maximum price
- Discounts and new vs. used instruments
- Product category and subcategory
- Color, age, size and finish
- Key features and included accessories
- Construction material and style
Customers who prefer to look up the products online and purchase or pick up in-store can also filter results by location or enter their zip code and search radius.
Our e-commerce site offers franchisees the opportunity to reach and sell to online consumers while freeing up the franchisee’s time to focus on in-store sales and creating a customer-friendly environment in the physical location.
And, with so much demand from consumers, the e-commerce site is just as valuable for Music Go Round franchisees’ profitability as it is for shoppers’ convenience.
Music: The Gift That Keeps Giving
The favorable economy and popularity of the bricks-and-clicks shopping model position Music Go Round franchisees for a successful holiday sales surge. But, even more, Music Go Round products sell themselves, especially during the gift-giving season.
Music gear and instruments are the perfect gifts for the musician in everyone’s life, and music lessons are a safe bet for almost anyone – even the person who seems to have everything. More than half of all households have a member who plays an instrument, and of those who don’t currently play an instrument, 85 percent said they’d like to learn how.
For current musicians, consumables like music sheets or guitar picks are ideal stocking stuffers, and they’re almost always looking for a new instrument to add to their collection. For aspiring musicians, an instrument paired with music lessons is a unique gift they’ll undeniably appreciate. And, with the numerous mental health benefits that coincide with playing music, it’ll be the gift that keeps on giving for years.
The growing rate of consumers’ spending money, paired with the bricks-and-clicks shopping model and strong product line Music Go Round offers shoppers, put Music Go Round franchisees in a solid position to succeed in the highest-grossing holiday season to date.
If you’d like to learn more about franchise opportunities with Winmark brands, start by filling out the Winmark franchise form.