Amidst rising energy prices, a looming recession and households struggling to meet their monthly bills, new data suggests retailers will be in for a starker Christmas as consumers will be looking for value this holiday season.
Research from eBay Ads UK Christmas Spend Trends finds that the impact of inflation means consumers will be prioritising value for money and thoughtful gifting this festive season, and are planning to be more organised. Many are planning to spend less in comparison to last year.
In a survey of 2,010 UK consumers who celebrate Christmas, the report finds 32 percent of consumers are planning to start their Christmas shopping earlier than last year, with 29 percent of shoppers planning to start before the end of August. Such appetite to get going is unsurprising given the current context, states the report, as almost a 30 percent credit an early start to the impact of inflation on Christmas shopping.
Gifts that add value
56 percent of shoppers plan to buy thoughtful gifts while 30 percent say they plan to buy functional gifts. 25 percent of shoppers said they will buy only essential items for presents, suggesting a preference for purchasing gifts that are useful at a time when many Brits are struggling to afford everyday items.
As inflation prompts people to tighten their purse strings, 60 percent report that good value for money is the most important factor when it comes to shopping for Christmas goods this year, while 29 percent said they are planning to spend less on Christmas this year and 31 percent stating they plan to buy fewer gifts this year compared to last.
50 percent of consumers say they plan to take advantage of offers and deals like Black Friday to save money on gifts.
Upasana Gupta, GM, eBay ads UK, commented: “Christmas is approaching and although it’s undeniably set to be a tricky time for many consumers and businesses alike, there’s also still plenty of opportunities for brands and sellers across categories – especially those that are prepared to start engaging shoppers early on in the season. Indeed, traditional retail moments such as Black Friday remain important, businesses must be ready to reach people as they start to shop - with some starting as early as August.
“With many Brits more stressed and worried about their finances this Christmas, it’s clear that businesses need to be particularly sensitive to their moods and needs and adapt strategies accordingly. As well as appealing to their desire for good value, this means supporting shoppers in their quest to find the most special, meaningful or functional products that will help make this Christmas a merry one.”