Reimagining Retail: How Retailers Can Capitalize on New Year’s Resolutions

Behind the Numbers: An eMarketer Podcast • December 4, 2024

Introduction

In the December 4, 2024 episode of Behind the Numbers: An eMarketer Podcast, host Sara Lebo delves into the strategic opportunities for retailers to leverage New Year’s resolutions to boost sales during the typically sluggish first quarter. Joined by analysts Sky Canaves and Jeremy Goldman, the discussion explores various industries poised to benefit, innovative marketing strategies, and real-world campaign examples that successfully engage consumers seeking self-improvement.

The Significance of New Year’s Resolutions for Retailers

Sara Lebo opens the conversation by highlighting the stark contrast between the robust Q4 holiday sales—forecasted to reach $1.4 trillion in the US—and the challenging Q1, often burdened by the "holiday hangover" and increased return rates. She posits that capitalizing on New Year’s resolutions presents a viable pathway to sustain sales momentum.

Industries Poised to Benefit

Sky Canaves emphasizes that beyond the traditional fitness and gym sectors, a wide array of categories can tap into the resolution trend. "It's critically important for certain categories of brands and retailers and service providers," Sky remarks at [01:24]. She identifies wellness products, including food items, supplements, vitamins, and extends the scope to home organization and booksellers. Personal anecdotes, such as her own resolution to read more and cook at home, underscore the diverse opportunities for retailers like cookware brands and kitchen appliance manufacturers.

Jeremy Goldman expands on this by noting, “There’s these core things that we really think about when it comes to betterment... it can obviously go beyond retail” ([02:26]). He cites examples such as beauty regimens, language learning apps, and financial investment platforms, illustrating the broad spectrum of consumer aspirations that retailers can address.

Emerging Trends: Dry January and Veganuary

Sara introduces the concept of Dry January, a burgeoning trend where consumers commit to abstaining from alcohol, noting, “we’ve seen zero proof cocktail drink brands also doing really well to capitalize on this sort of movement in January” ([03:43]). Jeremy suggests leveraging this trend through 31-day challenges to engage participants, while Sky adds insights into Veganuary, a UK-based trend encouraging veganism for the month. These movements represent consumers’ desires for resets and healthier lifestyles post-holidays, providing numerous touchpoints for retail engagement.

Strategic Marketing Approaches

The conversation transitions to marketing strategies that retailers can implement between December and January. Sara points out the dual nature of marketing messaging: shifting from indulgence during the holidays to self-care and improvement in the new year. She also highlights the rise of challenges and content creation, which overlap significantly with influencer and user-generated content (UGC).

Jeremy underscores the importance of building community through initiatives like live Q&A sessions with experts and accountability groups. “There are all these different interesting ideas as a brand you can try to take advantage of and in order to build... a more lasting relationship with your customers” ([05:38]).

Timing and Loyalty Programs

Sky suggests integrating New Year’s resolutions into loyalty programs. She references a Natural Grocers campaign that offered product discounts and sweepstakes tied to loyalty members, although it extended into mid-January when many resolutions had already waned ([06:43]). Sara and Sky discuss phenomena like "Quitters Day" on January 10th, when many consumers abandon their resolutions, highlighting the need for timing strategies that sustain engagement beyond the initial surge.

Case Studies: Successful Campaigns

Jeremy presents notable examples of effective resolution-based campaigns:

• Equinox: By adopting the slogan “We don’t speak January,” Equinox focuses on long-term wellness rather than transient resolutions, encouraging sustained engagement over the typical January frenzy ([09:57]).

• Tito’s Vodka: During Dry January, Tito’s introduced alternative uses for vodka, such as cooking or cleaning, using humor to keep the brand relevant and engaging during a period when alcohol consumption is reduced ([09:57]).

• Chipotle: Sky highlights Chipotle’s innovative approach, launching the Lifestyle Bowl in 2019 and later introducing an augmented reality (AR) lens on Snapchat tied to fitness and meditation activities. This campaign, coinciding with Quitters Day, effectively engaged younger demographics through trendy and interactive content ([11:07], [12:51]).

Leveraging Gift Card Redemptions

Another strategic angle discussed is the optimization of gift card redemptions. Jeremy suggests positioning gift cards as opportunities for self-pampering, thereby encouraging consumers to use them in alignment with their resolutions. “If you can position gift cards as permission to pamper yourself... it can be really impactful” ([13:18]).

Personal Insights and Brand Strategies

The panelists share their personal takes on New Year’s resolutions. Jeremy admits to regularly setting and likely failing resolutions, reflecting a realistic consumer mindset. Sky mentions her commitment to reading and cooking more, while Sara reveals her opposition to traditional resolutions, having joined a gym independently of such pressures. These personal anecdotes illuminate consumer behavior and potential marketing narratives.

Jeremy proposes that brands daring to counter mainstream resolution messaging might gain attention, though Sara expresses skepticism about this approach potentially conflicting with active indulgence during the holidays. Instead, practical strategies like grandfathering gym memberships before price hikes or subscription services maintaining current rates are recommended ([15:57]).

Conclusion

As the episode wraps up, Sara hints at the next topic—tariffs and their impact on the holiday sales season—signaling continuous exploration of pressing retail issues. The discussion effectively maps out a comprehensive strategy for retailers to navigate the post-holiday landscape by aligning with consumer resolutions, leveraging diverse marketing tactics, and implementing innovative campaigns that resonate with varied consumer segments.

Key Takeaways:

• Diverse Opportunities: Beyond fitness, sectors like wellness, home organization, and educational products can capitalize on New Year’s resolutions.

• Engaging Campaigns: Successful examples include Equinox’s long-term wellness focus, Tito’s Vodka’s humorous engagement during Dry January, and Chipotle’s interactive AR campaigns.

• Strategic Timing: Effective use of loyalty programs and timing promotions to sustain engagement beyond initial resolution phases.

• Community Building: Encouraging user-generated content and fostering community through challenges and accountability groups enhances brand-consumer relationships.

• Gift Card Utilization: Positioning gift cards as self-pampering tools can drive additional spending and align with consumer aspirations.

By thoughtfully integrating these strategies, retailers can transform the challenges of Q1 into opportunities for sustained growth and deeper customer connections.

Notable Quotes:

• Sky Canaves [01:24]: “It's critically important for certain categories of brands and retailers and service providers.”

• Jeremy Goldman [02:26]: “There are all these different ways you can go when you're thinking about what a New Year's resolution, it can mean something different to pretty much any consumer archetype.”

• Jeremy Goldman [05:38]: “It can be really good time where, yes, you're trying to get the sale, but also you're trying to build community and create more of a lasting relationship with your customers.”

• Jenny Goldman [09:57]: “Tito's Vodka had something demonstrating Alternative uses for vodka... took humor and really engaged people in the brand in an unexpected way.”

• Sky Canaves [11:07]: “One brand that I think has really leveraged the new year to its advantage is Chipotle.”

References:

• Quitters Day: Second Friday in January, January 10th for 2024.
• Equinox Campaign: “We don’t speak January.”
• Chipotle’s Lifestyle Bowl: Launched in 2019 and updated in 2023 with AR integration.

Note: This summary encapsulates key discussions, insights, and strategies from the podcast episode, providing a comprehensive overview for those who have not listened.