Holiday season 2020 – Consumers planning to spend less money on gifts and celebration; focusing on healthy, local, durable and quality items

My social media feeds are full of people getting started on their Christmas decorations. For some, it is something to do in the face of additional lockdowns or movement restrictions. For others, it is part of the desire to see the end of 2020, and usher in a new (hopefully, better) year.

Earlier in the summer, Brandwatch’s consumer research report indicated that consumers were feeling cautious about the Holiday season. With the exception of Germany and France, consumers were expecting to spend less money on gifts and celebrations. As the authors stated: “These stats don’t tell the future. What they do show is confidence in the future, from consumers’ current standpoint.” (page 10), and these numbers paint a circumspect attitude.

Source: https://www.brandwatch.com/wp-content/uploads/2020/05/Graph-3-EN.svg

If consumers are planning on spending less money, and being more intentional with their budget, then it becomes even more important to understand consumers’ evolving preferences and attitudes.

According to the Brandwatch report, when we do spend money, most of us think that it should be on something healthy (and 36% of consumers think that this is now more important than before Covid19). Moreover, 33% of consumers think it’s now more important than before to spend money locally; 30% are placing more emphasis on the durability and the quality of the products.

Source: https://www.brandwatch.com/wp-content/uploads/2020/05/Graph-4-EN.svg

Though, the report also shows a high propensity to continue shopping online. So, this intent to buy local may not materialise.

Source: https://www.brandwatch.com/wp-content/uploads/2020/05/Graph-6-EN.svg

I am thinking that we may see a reversal of the recent trend for gifting experiences, and a move towards physical gifts, given the movement limitations and the uncertainty regarding terms of service – especially those experiences to do with travelling, indoor events (e.g., concert tickets), and services (e.g., beauty treatments). Alas, I shall be holding off on the Christmas decorations until December!

What about you? How will the holiday season (Divali, Hanukkah, Christmas…) be different for you this year?

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s