One in five Australians to spend less on Christmas gifts | WARC | The Feed
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One in five Australians to spend less on Christmas gifts
As cost-of-living pressures crimp spending habits, 20% of Australian shoppers expect to purchase fewer gifts and spend less overall, while the majority expect to spend the same amount as in 2021, according to a *survey by software provider Sitecore.
Why it matters
Consumers are facing financial constraints due to inflation; brands that focus on delivering value and show empathy and understanding will come out ahead this holiday season.
Key takeaways
- Nearly two-thirds of retail spending will come from e-commerce, and brands need to deliver attractive pricing and buying terms.
- With the cost-of-living challenge biting this Christmas, low-cost shipping options are important (A$9 is considered the max price).
- Gen Z is feeling the pinch – one in three expects to use a BNPL (buy now pay later) service.
- Gen Z will also cut back on subscriptions, re-gift or sell personal possessions to afford this festive season.
- But one in three high-income Australians plans to spend more, even as most shoppers are likely to swing to more practical presents.
- Online commerce will continue to dominate, with only 35% planning to shop in-store more than online.
- While online shopping continues to dominate the travel category, in-person shopping remains strong in most categories, especially food and drink, beauty, and apparel.
Key quote
“There is a modest likelihood that 2022 will be the year of cheaper, functional gifts rather than luxury gifts for many. Those with higher income are most likely to plan to purchase luxury and experiential gifts but also functional gifts” – Sitecore
*Sitecore commissioned Advanis to conduct a survey in September 2022 among 1,000 Australian consumers reflecting on holiday shopping behaviours.
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