Digiday+ Analysis’s just lately launched vacation advertising and marketing report examines which commerce channels are dominating entrepreneurs’ 2025 vacation methods. It additionally appears to be like on the reductions manufacturers and retailers are providing and the income expectations which might be guiding their advertising and marketing selections through the important fourth quarter.
To collect this data, Digiday surveyed model and retailer professionals and interviewed advertising and marketing executives. Amy Kapolnek, founding father of the Fwrd Group, a progress consulting agency for impartial manufacturers, spoke with us at size. On this Q&A, she sheds gentle on the advertising and marketing methods she advises purchasers to make use of for the 2025 vacation season.
Digiday’s survey discovered that many manufacturers and retailers have a conservative outlook on 2025 vacation income. Do you anticipate income from the upcoming vacation season to be higher or worse than it was 2024? What’s driving that perspective?
My take is that income will probably be flat to barely up compared to 2024 — low single-digit progress at max. 2024 was up 4% from projections, which stunned everybody within the magnificence business and throughout CPG usually. Nevertheless, with rising prices of dwelling and tariffs — which is able to begin to trickle all the way down to the buyer proper in time for the vacation season — customers have much less disposable earnings to spend, and so they’re making extraordinarily acutely aware selections about the place to spend that.
Will you be primarily focusing on new or current prospects through the vacation season? And is that totally different out of your regular method?
Truthfully, it’s each. However through the holidays I all the time tilt heavier towards new prospects in comparison with the remainder of the yr. Vacation is likely one of the uncommon moments the place shopper habits naturally shifts — persons are searching, sampling and buying exterior of their regular go-to manufacturers. That inevitably creates a chance to drive trial [testing] at scale. For brand spanking new prospects, vacation is the proper entry level. They’re both shopping for a present and discovering the model within the course of, or they’re treating and stocking up for themselves, whereas looking for others.
The play for current prospects appears to be like slightly totally different than for brand new prospects. I’m cautious to not simply push extra reductions at them as a result of they’d probably purchase anyway. As a substitute, I feel by way of value-adds — VIP early entry, limited-edition kits or shades, expedited transport or promos like “purchase for your self, present one.” These sorts of performs reward loyalty, however additionally they create new acquisition as a result of loyal prospects turn out to be those introducing the model to others.
For brand spanking new prospects, there’s a complete playbook we make use of. I put loads of vitality into constructing strategic partnerships, each with influencers and with complementary manufacturers, as a result of these collaborations give attain and credibility with out burning via funds. I additionally prioritize giftable units and bundles on Amazon and DTC, that are big for discovery and trial, particularly in skincare the place folks may not purchase a full-size product however will buy a discovery package or starter bundle.
What vacation methods are you utilizing this yr?
For the previous few years, I’ve launched a pre-holiday sale on the finish of September or early October to seize extra income fairly than solely counting on Black Friday, Cyber Monday. For BFCM, we sometimes launch campaigns for per week, fairly than a day or perhaps a few days. Generally they’re the week of Thanksgiving and Black Friday. Different instances, they’re the week earlier than, with one thing of a smaller scale on Cyber Monday. There’s a lot noise throughout this time, but additionally customers are extraordinarily busy. It sometimes takes per week to achieve the eye of consumers and have them purchase in.
The underside line for the technique portion is that we’re very disciplined about our promotional calendar. We don’t wish to give away the horse and the cart, or dilute the model worth, by discounting it on a regular basis. If manufacturers chase “race-to-the-bottom” reductions, they’ll develop top-line income, however fully destroy their model picture and general model fairness. We all the time play the worth story, not simply the share off [discount].
Which vacation methods have traditionally carried out the very best for gross sales vs. model consciousness?
If a model has retail doorways, in-store activations with retail companions will be extremely efficient in driving gross sales. For sure manufacturers, we’ve additionally used off-price or discovery-driven channels like TJ Maxx, QVC and FabFitFun very strategically — not simply to maneuver quantity, however to elicit trial and consciousness that may then ladder up right into a brand-owned channel like DTC, and even Amazon.
If a model has the funds, we lean into full-funnel paid media throughout social, Google and Amazon, in addition to bodily activations. Paid media is extraordinarily costly and it solely kicks up extra through the holidays. Each model is all the time actively making an attempt to lower CAC [customer acquisition cost] and improve LTV [lifetime value], and paid media can do the alternative.
I’m an enormous advocate for model activations as a result of it permits the buyer to step into the model — really feel it in a means that cabinets or screens can’t — whereas additionally presumably assembly them the place they’re, fairly than counting on social media to seek out them. This connection and memorable expertise from model activations is what drives conversion and long-term loyalty.
After which, after all, there’s digital touchpoints: sturdy social media presence with seasonal storytelling; influencer content material that frames merchandise as vacation or gift-worthy; and e-mail campaigns and flows that seize each gifting and self-purchase habits. E-commerce performs an enormous position right here too — from optimized merchandising and providing bundles to seamless checkout, quick achievement and clear last-ship cutoffs.
I’ll add that customer support turns into an actual differentiator. Fast response instances, straightforward returns and considerate touches like present receipts or handwritten notes can flip a one-time purchaser right into a loyal buyer.
Digiday’s survey outcomes discovered that some manufacturers and retailers are transferring away from Amazon. Is that this one thing you’re seeing as properly?
I’m truly seeing the alternative. For my particular class, indie manufacturers are actually leaning in. And wonder, usually, on Amazon retains increasing. From a class progress perspective, Amazon U.S. skincare income grew 21% yr over yr in 2024.
I’m not seeing an exodus. I’m seeing manufacturers make the most of Amazon in a a lot smarter means for starters, with an precise technique, however extra tangibly by providing unique merchandise, bundles and units, and integrating Amazon into their retail technique that drives prospects again to DTC.
What major gross sales channels are you utilizing through the 2025 vacation season, and the way does the utilization differ from a non-holiday time interval?
For vacation, the gross sales channels themselves don’t actually change. We’re nonetheless leaning on DTC, Amazon and retail companions. What shifts is the funnel to channel, and the degrees that we use them.
The opposite shift is operational. In Q2 or Q3, you may not fear about issues like achievement speeds or return insurance policies, however through the holidays they will make or break the client expertise. We all know how inundated carriers get through the holidays. Usually, there’s nothing the model can do. However, usually talking, a delayed order or difficult return is a misplaced buyer for all times. On the alternative hand, a seamless course of with a pleasant contact — like a present receipt or a simple trade — could make that seasonal shopper right into a loyal buyer.
