Christmas in Gotham: Trending Holiday Retail Categories
by Jasmine Glasheen on Dec 16, 2022 11:46:48 AM
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It’s beginning to look a lot like The Nightmare Before Christmas. With this year’s surreal cosmetic trends (foregoing eyebrows, anyone?) to Target rolling out a Goth Edit, holiday consumer trends for 2023 have never looked more dystopian. Holiday season shopping is about to cross over to the dark side. The Netflix show Wednesday topped the charts this year, and Balenciaga’s Mad Max-worthy “Made it out the mud” Spring show set a precedent for a spooky, otherworldly beginning to 2023. The retail industry is in for a hell of a ride.
There’s market share to be had for retailers that manage to master the dystopian trend. NRF predicts that holiday retail sales during November and December 2022 will grow between 6% and 8% over 2021 numbers, to an unprecedented number –– between $942.6 billion and $960.4 billion. So, how can mainstream retailers find dystopian products for their 2022 retail holiday inventory?
To chart a path forward, we first need to review what we know about holiday consumer trends for 2023. Let’s get into it.
Holiday cosmetics trends
Cosmetic trends in 2022 have taken us on a few unexpected twists and turns, as did the state of the cosmetic industry supply chain. Show customers you’re on their wavelength by being one of the first to offer these trending beauty products. This retail holiday season will see a return to red lips and old Hollywood glamour, with a dystopian or 90s twist. The bejeweled eyes popularized by hit show Euphoria –– and the 90s in its entirety –– will take a turn towards the exaggerated with supersized gemstones and neon greens.
Another creepy trend that’s catching on like wildfire? Consumers are starting to look a whole lot like Barbies and porcelain dolls. The glass skin look –– where skin is polished, moisturized and highlighted to a doll-like sheen –– will continue to take hold. Barbie pink lined eyes will follow suit. Oh, and there is zero chance that all of the “plum-lipped” references from the Netflix show Wednesday won’t influence consumers’ lip color selections in the coming months.
Holiday luxury retail trends
The roaring 20’s post lockdown holiday energy of 2021 is still present this holiday season. Consumers are ready to celebrate and live large. In a recent poll by Saks Luxury Pulse, the number of people that plan to dress up in formal apparel this holiday season (32%) doubled over last year (16%). The same poll found that 76% of consumers plan to spend more on holiday gifts this year, compared to last year’s spending.
If luxury retailers had one message for customers this holiday season, it would be: Larger than life is just the right size. Luxury retailer Bloomingdales’ went big in collaboration with Billy Porter on holiday windows this year. The larger than life trend also holds true in luxury fashion, with exclusivity driving demand for the 2022-2023 retail holiday season.
Yet the larger than life trend isn’t relegated to holiday windows. Spring runways at Loewe and Valentino featured supersized details. Loewe used supersized flora on apparel in honor of the anthurium flower, which was the inspiration for this year’s line. Apparel in Louis Vuitton’s spring show had giant zippers, buckles and clasps. Vuitton featured a pulsating, blood red “monster flower” at the center of the stage.
Holiday trends in CPG (consumer packaged goods)
The dystopian holiday trope continues in the CPG category. Consumer packaged goods are a point of contention this year. The reason? The average inflation rate on CPG is now up to 8%. Perspective matters, however. When polled, consumers said they feel like prices have risen by 18%. This tells us that holiday shoppers are feeling the crunch this season. While spending is high in other sectors, consumers are looking for deals to mitigate costs on their favorite holiday food, grocery, home cleaning and cosmetics products.
CPG wholesalers warn that the cost of raw materials is exceeding wholesale prices. In other words, we haven’t seen the last price hike in the CPG category. In light of skyrocketing prices, most consumers used Black Friday/Cyber Monday sales to purchase CPG essentials. They’re now scrambling to purchase gifts for loved ones. So, which CPG categories are the hottest this retail 2022 holiday season? Nielsen reports that the top five holiday trending categories for 2023 in CPG are: 1) beauty products, 2) pet care, 3) home cleaning supplies, 4) vitamins and supplements, and 5) oral care.
Holiday home furnishings trends
Most categories for the 2022 retail holiday season are dark and dystopian. So, holiday home furnishings trends are the outlier. Next year will be all about the home as an oasis with a focus on sensory experiences and natural elements. Organic elements of all kinds will reign. Wood decor, naturescapes, and brown furniture and linens will dominate in 2023. Indoor trees and stone sculptures are also making a comeback as customers strive to create spaces that inspire serenity.
Holiday consumer trends in 2023 home furnishings are more focused on functional decor objects than those made for visual enjoyment only. Think ornate candles, cutlery, fancy storage containers, and glasses and books on display, as well as useful pieces that elevate the look of day-to-day decor. Touchable, textured fabrics and deep, snuggly furniture will help customers turn their homes into personal havens this retail holiday season. Speaking of preparing for the retail holiday, here are 5 tips tips to eradicate bottlenecks in your home furnishings business.
Holiday fashion trends
Fashion’s goth moment isn’t relegated to the luxury sector. Remember when I was prattling on about the use of monster flowers? The flowers in mainstream fashion are, as usual, a skotch more on the traditional side. That’s right, I’m talking about the 2022 holiday fashion trend of rose embellishments. Whether we’re looking at full tops shaped like large roses, black roses, or rose breast cups, fashion is gearing up for la vie en rose this holiday season.
Black lace “naked dresses” are also a big one this 2022 retail holiday season. These sheer lace numbers look more like something out of the boudoir than cocktail hour, but they’re catching on like wildfire amongst next gens. Velvet dresses and ensembles with cutouts will stick around this holiday, too. But you can’t just stock up on red velvet and call it a day. Retailers and suppliers that find creative ways to utilize these 2023 fashion trends will be best positioned for success.
Holiday trends in consumer electronics
Consumer electronics have had a strong couple of years since the advent of the pandemic. Hopefully retailers took advantage of the sales surge over the last three years, since category sales are predicted to decline by 6% over last year’s numbers. eCommerce discounts will hit record highs on computers and consumer electronics throughout the 2022 retail holidays. Adobe predicts that discounts on computers will be as high as 32%, consumer electronics will see discounts of up to 27%, and TVs will be discounted by up to 19% this retail holiday season.
Sustainability-focused consumers will make their dollar make some noise this year, with smart home and energy saving products topping customers’ holiday shopping lists. With that said, holiday consumer electronics sales will have to compete with a surge of streaming services. Customers are planning to focus on digital gifting this year –– Netflix, Audible, Hulu, Showtime, Spotify and the like will see a major boost in market share.
Holiday trends in athletic equipment
Hey, second place isn’t all bad. Sporting goods sales were eclipsed by only one vertical this year: outdoor retailers, which were up +20.9% from the 2020 retail holiday. The sporting goods vertical has seen some exciting tech developments in recent years, which were accelerated by the pandemic. Home workouts skyrocketed and, as various COVID variants continue to assault the masses, investments in creative home workout offerings are on the rise.
Perhaps the most notable and futuristic tech investment is the rise of home fitness mirrors. athletic companies like Lululemon are doubling down on smart mirrors. Although Lululemon made a significant investment in smart fitness startup, Mirror, for $500 million in 2020, it’s not the only fitness company making a big investment in innovative tech. The global smart sports equipment market is anticipated to reach $5.44 Billion in 2030, with a revenue CAGR of 9.2% between 2020 and 2030. We’re living in an era of plagues… many fitness retailers will soon add creative livestream options to their offerings.
From plague doctors to giant flower adornments, holiday season shopping has never looked stranger. Stocking the right products to help consumers embrace their inner darkness can help keep your business in the black this retail 2022 holiday season. Know what else can help your retail profits skyrocket? A Unified Product Collaboration Platform that lets your team share data internally, and with external partners.
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The results? Up to 150% more revenue per employee and a 40% shorter product development cycle is just the beginning. Try our 10x ROI calculator to see your company’s potential profits. Or, skip the noise and book a custom demo with one of our unified product collaboration management experts today. The retail industry evolves quickly and has a lot of moving parts. We do all of the research, so you don’t have to. Stay ahead of market fluctuations, trends and new features by subscribing to our Unified Product Collaboration Management Blog.