One in five Australian consumers are going to buy cheaper and more practical gifts for their family and friends this Christmas, as cost of living pressures force them to be conservative in their spending habits, says a survey by digital experience provider Sitecore.
The 2022 Australia Holiday Report released today said 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.
Ecommerce will consist of nearly two-thirds of retail spending and brands will need to deliver attractive pricing and buying terms.
Sitecore CMO Paige O'Neill said: “Our survey shows that shoppers are deeply informed and looking for the best deals and online shopping experiences that brands can offer this Christmas.
“This season, shoppers will explore the best deals online and seek out brands that offer competitive pricing, buy-now-pay-later options and low-cost shipping.”
O’Neill: “Brands that empathise with consumers’ inflation-forced financial constraints and focus on meeting their needs by delivering content that focuses on value and shows empathy and understanding will come out ahead this holiday season.”
However, one in three high income Australians plan to spend more this season. Overall, the trend is likely to swing to more practical presents for the majority of Christmas shoppers.
”There is a modest likelihood that 2022 will be the year of cheaper, functional gifts rather than luxury gifts for many,” the survey of 1,000 Australian consumers said.
“Those with higher income are most likely to plan to purchase luxury and experiential gifts, but also functional gifts.”
The report also found that one in three from Gen Zexpect to use a BNPL (buy now pay later) service, cut back on subscriptions, regift or sell personal possessions to afford this festive season.
Despite no restrictions on in-person shopping, online commerce will continue to dominate with only 35% planning to shop in-store more than online. While online shopping continues to be prevalent for the travel category, in-person shopping remains strong in most categories, especially food & drink, beauty, and apparel.
Low-cost shipping offers are important to consumers in Australia, who believe A$9 is the maximum price they should pay, while higher-income shoppers are very likely to say that they will meet free-shipping minimums by adding to their cart, or will pay extra to guarantee delivery.
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.