Savvy retailers know there are lots of ways their customers will “feel the love” on Valentine’s Day. Even in this down economy, the National Retail Federation noted that consumers spent almost $18 billion last year on Valentine’s Day. This year, consumers will spend an average of $134 each. Despite consumer income and sentiment remaining below pre-recession levels, industry researcher IBISWorld expects total revenues for the holiday to grow 3.2 percent from 2012 figures.
Chad Blodgett, Vice President of Business Development at Rakuten MediaForge, says retailers need to zero in on the most common types of Valentine’s Day shoppers. The top six include:
Engaging the Engaged. A 2012 American Express survey revealed that nearly four million people got engaged last February 14th. This year, just as many are likely to pop the question. To gear up for those shopping for marital bliss, retailers should know that online jewelry purchases are up and that most of these shoppers do their homework before buying “the ring.” To assuage these shoppers, you'll have to be specific about return policies, insurance, shipping, and your reputation as a quality purveyor of jewels. Consumers will also want to know if the diamond is conflict-free.
Renewing Commitments. These buyers are already happily married or in stable monogamous relationships. Here’s where you’ll have to break out your consumer by age and specific interests. They’re looking for something new and exciting to re-kindle the fire. So think beyond flowers and chocolates. Unique jewelry, memory items, personalized gifts, and things that say, “I love you” after all these years. You must think beyond the traditional to make this a memorable Valentine’s Day gift.
New Love: Newly formed relationships in the early stages of romance. While these couples will want to say something special on Valentine’s Day, they’ll want to tread lightly and not come on too strong. Looking to celebrate their first Valentine’s Day, they'll want to spend on the lower end of the spectrum.
Secret Admirers: Valentine’s Day is one day secret admirers can be a bit more open about their feelings. The hope is that the appropriate gift will cause the recipient to acknowledge their interest and reciprocate. Gifts must be subtle and not overpowering. When choosing flowers, you’ll need to help this buyer understand the meaning behind different types and colors. It also helps to educate these consumers about the many other symbolic Valentine’s Day gifts.
Re-Aiming Cupid’s Arrow: These consumes want to reignite the flame that may be flickering in their relationship. The emphasis here will clearly be romantic gifts, getaways and meaningful “memento” gifts that remind these lost lovebirds of the passion and love they once shared.
Gifts of Appreciation: Besides romance, Valentine’s Day also acknowledges the dedication of teachers and moms with gifts of appreciation. Here’s where you’ll sell tons of cards, small boxes of chocolates, necklaces and bracelets. So have plenty in stock.
If you’re in retailing, you need to be aware of these different Valentine’s Day market segments. Understanding what each type of customer is looking for can mean the difference between “feeling the love” this Valentine’s Day or feeling left out.
Image courtesy of Grant Cochrane/FreeDigitalPhotos.net
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