Brits gear up to spend more on small businesses this festive season
Brits are embracing shopping small, with shoppers willing to pay more to prioritise purchases from small businesses over larger competitors this holiday season, reveals new research from GoDaddy.
Over half (54%) of shoppers aim to have their gift shopping for the festive season completed ahead of December, with seven in 10 reporting that, despite cost-of-living pressures, they’re willing to spend more with smaller retailers over large corporations.
The desire to prioritise shopping small chimes with insight from GoDaddy over previous festive seasons, which typically sees a boom in small business launches as Brits seek to capitalise on the increase in consumer spending on gifts.
Seasonal shopping competition hotting up
Competition for consumer spending is hotting up, in particular around the key sales dates in the festive calendar. One in 10 consumers do the bulk of their gift buying on Black Friday, rising to nearly a quarter (23%) amongst 18-24 year olds.
With a fifth of Brits (20%) now buying gifts for between six and 10 friends and family members each Christmas, four in 10 are finding out about the best shopping deals through social media ads. Online cut-through is key for retailers targeting sales-savvy shoppers, with nearly two-thirds of those under 24 (62%) and over half of millennials (52%) finding their best festive shopping deals online.
This chimes with the challenges and focus of small business owners. Over a tenth (13%) of entrepreneurs said that marketing was one of the biggest challenges when setting up their business. Meanwhile, nearly a fifth (18%) of microbusiness owners have prioritised investment into social media, ads and promotion in recent months.
Competing for customers is also one of the biggest sources of stress for small business owners, with a fifth (21%) of entrepreneurs saying that remaining competitive on pricing, marketing and attracting customers is one of their biggest headaches.
It’s beginning to look a lot like ChristmAIs
However, it has never been cheaper or easier to set up your own business. Nearly a third (32%) of small business owners in the UK reported needing less than £1,000 to get their companies up and running. This ease of access was reflected in 2023 data, where two-fifths (41%) of Brits planned to launch a festive side hustle as a means of drawing in extra income during the holiday season.
Importantly, small businesses don’t have to go it alone. AI is one of the tools increasingly helping in a competitive market, with just shy of three in 10 UK entrepreneurs using AI to support their small business.
AI has the potential to help entrepreneurs get online quickly and easily, lowering the barriers to entry. However, it is also helping with the sticky points around marketing and attracting customers. Three quarters (76%) of entrepreneurs are using Gen AI for marketing, using tools to help with content creation for social media posts, with a further 45% tapping in to help with marketing, and one in 10 (13%) using it to boost sales.
GoDaddy’s AI-powered, customisable experience, Airo, can help young entrepreneurs enhance their online presence by finding your perfect domain name, building a website in just a few clicks, and designing a business logo.
Andrew Gradon, head of GoDaddy UK & Ireland, said: “The festive season has long become synonymous with gift giving, and we’re seeing that despite the cost-of-living pressures, Brits are happy to carry on with festive gift buying. With consumers increasingly making purchasing decisions based on what they see on their daily scroll of social media, it’s never been more important for small businesses to be front of mind and top of the screen.
“A small business doesn’t mean small ambitions. We know that marketing and content creation can be a challenge, and at GoDaddy, we are proud to support these ambitions through tools and online resources that simplify making your business known, from the start-up process through to customer attraction. With these factors in place, we’re keen to help make this the ‘smallest’ Black Friday of all time, with microbusinesses at the epicentre of festive shopping.
“Times are changing and it is now easier than ever for businesses to put their best foot forward. Our AI-powered experience, Airo, not only significantly lowers barriers to entry for aspiring entrepreneurs, but it helps enhance their online presence, helping them stand out in a crowded marketplace.”
