The Goods UK – 06 November 2024
Welcome back to The Goods UK. This week, we’re chatting about the impact of the Budget, getting into the festive spirit with Christmas ads and embracing the romance of luxury train travel.
As Donald Trump declares victory in the U.S. Presidential elections, did you know George Washington is the only U.S. President not to be formally associated with a political party? It was only during Washington’s second term that two distinct views of how the country should be governed began to emerge.
What’s in: this week’s trends
- Reels of festive feels: As the annual deluge of festive adverts kicks off, retailers are shaking up their launch strategies to ensure they meet younger viewers where they scroll. With less than half of 16-24-years-olds watching live TV in 2023, the likes of John Lewis and Sainsbury now serve up their ads across TikTok and Instagram before they hit our living rooms. Despite the channel shift, companies remain loyal to feel-good formulas, creating content designed to unite audiences of all ages – and ultimately drive people to spend their Yuletide cash.
- Budget bedlam: Following Rachel Reeves’ first Budget last week, companies are grappling with some taxing changes – quite literally. It’s been claimed that National Insurance contributions could lead to higher food costs and new inheritance tax policies have riled farmers into warning of potential food shortages. Whatever you make of it, at least there’s 1p off booze.
- Vegan victories: The National Trust has voted through a vegan overhaul of its cafes in a bid to support its net zero efforts. While the move has divided members – with some highlighting that the charity should be supporting its livestock farming tenants instead – it is not the only organisation doubling down on its plant-based offerings. Lidl is relaunching its popular vegan own-brand line after seeing a 12% rise in sales of meat-free food this past year.
Cash or card: shopper behaviour
What’s in and out of our baskets right now? Points mean prizes for younger travellers, we might be ditching Klarna for an American alternative and why our love for shopping hauls is putting a strain on retailers.
- Return to sender: For anyone plugged into the world of social media influencing, shopping hauls will be a familiar concept. However, this hallmark of modern-day shopping behaviour has led to a surge in online returns which are now calculated to cost £6.6 billion a year. To combat the prevalence of serial returners, retailers have begun updating their Fair Use policies, stopping free returns for ‘select customers’ unless £40 or more of their orders are kept. The jury is out on whether these changes will help companies protect margins while still maintaining a customer-friendly returns experience.
- The joy-als of being loyal: IAG’s loyalty business has grown 38% in the last three years, as younger travellers look to pick up points for spending. Frequent flyer programmes are often more profitable than the airlines to which they are attached, and travel-related rewards remain the most popular amongst shoppers. With their ability to drive customer retention in a crowded market, there’s no slowing down in the wider loyalty programme lane either – Shake Shack, Sephora and Expedia have all launched their own schemes in the past few months.
- Klarna gets competition: US Buy Now Pay Later (BNPL) giant Affirm has announced its debut across this side of the pond. With UK transactions using BNPL expected to reach $34.28 billion in 2024, up 15% on last year, there’s much to play for. Yet it’s not all smooth sailing for the category, as the Government is expected to bring BNPL under the supervision of the FCA and Consumer Spending Act in 2026.
Making moves: industry changes & innovation
ICYMI, even industry icons need to reinvigorate their brand presence through unique and creative ways. Here are some movers and shakers that you should know about:
- Retail therapy gets a makeover: The retail industry is on the brink of transformation, according to Forbes’ analysts who have released their predicted trends for 2025. From generative customer experience and AI-driven hyper-personalisation, to the rise of “second-hand” as a luxury strategy, the landscape is “being shaped by a perfect storm of tech innovation, changing shopper values and evolving business models”.
- Just add hot water: This month, fashion brand N Brown is turning the tide on traditional packaging by beginning to ship its own-brand garments in dissolvable bags. Yes, you read that right – bags that will disappear. As well as reducing the company’s plastic use by 44%, N Brown claims the packaging will leave no harmful microplastics behind when dissolved in hot water. According to Plastics Europe, the amount of Polyethylene plastic produced hits 110 million tonnes globally per year.
- Full steam ahead: As the demand for ‘slow travel grows’, luxury train travel companies are taking full advantage of the moment. Belmond will launch a new rail experience set to traverse Italy in 2025, while Golden Eagle Luxury Trains will debut a new route along the legendary Silk Road. With a 43% increase in the sector this year versus 2023, the popularity has been attributed to a “sense of specialness, exclusivity and rarity” that comes with spending time on such luxurious rails.
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