New research has revealed a major cut-back in Christmas spending, with Australians planning to spend less on gifts, food, and social events this season.
The research out of market research firm Toluna also reveals 23 per cent of Australians are worried about being able to afford the Christmas season altogether.
Australians are feeling the pinch, with 44 per cent of respondents saying they’re financially worse off this year. Due to this, almost half (46 per cent) stating they plan to use credit to pay for their Christmas shopping.
Typically, 13 per cent of respondents would put their entire Christmas shop on credit, with 44 per cent would normally do a mix of both credit and savings.
Sej Patel, Country Director, Toluna, Australia & New Zealand said: “There’s no doubt Christmas 2020 is going to look very different than previous years. Shoppers are concerned about their personal finances, and as such, plan to spend less this Christmas. With price the key motivator, more shoppers will be looking for bargains and expect retailers to be offering great deals this year.
“Australians are savvy consumers and they’ve learned their lessons from the supermarket shortages earlier this year. They know there’s a real chance of stock running low, so they’re looking to get started on their Christmas shopping earlier and plan to do more of this shopping online. Retailers should take note of consumers’ willingness to get started on Christmas shopping now and know that they’re already looking for bargains. Additionally, retailers who offer flexible payment options, such as store credit, Afterpay and laybuy will likely have an advantage.
“Of course, consumer sentiment changes greatly as the pandemic progresses, so it’s important for businesses to monitor evolving consumer perceptions and habits and adjust their services accordingly.”
With 23 per cent of respondents concerned about whether they can even afford Christmas this year, Aussies are planning to cut back on spending over the festive season:
Compared with last year:
- 32 per cent plan to cut down the amount spent on gifts
- 35 per cent planning to spend less on Christmas social events
- 27 per cent plan to spend less on food for the Christmas holiday season
- 24 per cent looking to spend less during pre-season sales; and 29 per cent wanting to spend less on sales across the season
For those looking to spend less on gifts, exactly half (50 per cent) cited financial insecurity due to COVID-19 as the reason.
It’s the thought that counts
When it comes to gift shopping:
- 51 per cent base their gift choices on price or finding a good deal
- While only a quarter (26 per cent ) choose gifts based on sentimental reasons or finding ‘the perfect’ gift
- 13 per cent do their gift shopping based on convenience
Other changes to Christmas gift purchases this year include:
- A quarter (25 per cent ) are buying xmas gifts earlier this year
- 37 per cent plan to do their Christmas shopping in November; 12 per cent want it completed in October, while 28 per cent will wait till December (and 5 per cent expect to leave it to the last minute)
- 30 per cent are doing more of their gift shopping online this year
- 43 per cent are being more selective about who they buy gifts for this year
Australians can expect to see gift cards under the tree on Christmas day, with 44 per cent of Australians planning to buy gift cards for at least one of their loved ones. Other popular gift categories include:
- 31 per cent – fashion or clothing
- 24 per cent – fragrances
- 21 per cent – jewellery
- 21 per cent – cosmetics & beauty
- 18 per cent – gadgets (smartphones, smart watches, etc.)
Christmas in 2020 will be unlike no other, and shoppers expect to see changes in store this year:
- 38 per cent expect to see more deals and discounts; with 23 per cent expecting big discounts on electrical items
- 36 per cent expect to see fewer people shopping in store
- 29 per cent predict items will be sold out quicker due to more people shopping online
- 21 per cent are expecting to see more innovation from retailers, such as virtual shopping spaces and voice activated shopping
Marc Collister (pictured) of P2 Content Creators spills the beans on his 2024 predictions drawing from two decades of experience in the advertising, film and television industry. I’m certain it will come as no surprise that in 2024, we can expect our industry to move at breakneck speed again. With even more rapid shifts in […]
Reddit’s annual Recap report has revealed the issues and moments that captured Australia’s collective mind over 2023 with, naturally, the Matildas featuring high on the list. The inaugural Australia-hosted Women’s World Cup saw Aussies glued to the footy (or, indeed soccer) with one enterprising user capturing the moment that Cortnee Vine scored the winner against […]
Zeno Australia has announced expanded creative design capabilities and the appointment of Jim Michell (lead image) to its senior leadership team. The new moves support strong growth in the region. Zeno Australia’s clients, including Abano Healthcare, Motorola and Yorkshire Tea, can now tap into a suite of creative design services to augment the agency’s work […]
Spikes Asia, APAC’s most prestigious and sought-after Award for creativity and marketing effectiveness, has revealed its 2024 Jury line-up today. The 93 industry experts from across 18 markets represent APAC’s leading talent from a diverse range of disciplines. 2024 sees the highest representation from brands, including Budweiser, Procter & Gamble, Unilever and, for the first […]
Assembled Media, is drawing upon the creative power of TikTok Creator Marketplace to help generate unique, impactful content for iconic stationery brand, BIC. The social activation campaign titled ‘A Pen for Every Side of You’ promotes the flexibility of BIC’s 4 Colours pen and is active nationwide on the BIC Stationery TikTok account. The campaign […]
Pinterest reckons jellyfish & moody cowboys will be big in 2024. Refused to be drawn on the return of shoulder pads.
IAB Australia has launched ‘Evolution in Market Mix Modelling’, the fourth module in its Marketing Measurement Innovation Series, which has been developed by IAB Australia’s Ad Effectiveness Council. The module explores what is driving the increased use of MMM and how the technique is evolving with advances in computing power and machine learning to provide […]
Scope3, the collaborative sustainability platform leading the decarbonisation of media and advertising, announced the addition of digital out-of-home (DOOH) to its emissions measurement. With DOOH ad spending predicted to grow from $17B in 2023 to nearly $24B by 2028, measuring this channel brings us one step closer to understanding the total impact of digital advertising […]
NRF 2024: Retail’s Big Show Asia Pacific, is now open for online registrations for the main conference. Jointly organized by the National Retail Federation and Comexposium, Retail’s Big Show Asia Pacific will take place from 11 – 13 June, 2024 at the Sands Expo and Convention Centre in Singapore and is expected to draw thousands […]
Following a period of significant client growth, leading auto marketing agency, DBC2 has appointed Jason Fisher (lead image) to the newly created role of CEO. The appointment is part of DBC2’s long term growth strategy ahead of the agency announcing a brand refresh and expanded proposition in early-2024. As a new shareholder of the business, […]
Don’t treat regional media as a charity, but a real growth opportunity: That’s the message from Boomtown’s final masterclass of 2023, attended by almost 100 media industry representatives from across the nation. The masterclass was part of a series of educational sessions, delivered by Boomtown, the media collective championing advertising in regional Australia. The sessions […]