A new report conducted by eBay Ads UK has revealed that British consumers are adopting a cautious mindset when it comes to their Christmas spending this year. With inflation rates on the rise, shoppers are placing a greater importance on value for money and thoughtful gift-giving. Unfortunately for retailers, 29% of consumers are planning to reduce their spending on Christmas, with the purchase of gifts being the most impacted. In fact, 31% of respondents have stated that they plan to buy fewer gifts this year compared to last.
Given the current economic climate, it is no surprise that half of those who celebrate Christmas are worried about affording gifts and hosting celebrations. Consequently, consumers are prioritizing value, thoughtfulness, and organization. Interestingly, 32% of consumers intend to start their Christmas shopping earlier than in previous years, with a significant 29% planning to commence before the end of August. This early start is largely attributed to the impact of inflation on Christmas shopping, as 30% of consumers believe it is the reason for their eagerness to get ahead.
In terms of gift choices, a majority of consumers (56%) are planning to purchase thoughtful presents for their loved ones, while 30% aim to buy functional gifts. Additionally, 23% of consumers plan to opt for essential items as gifts, reflecting a desire for practicality during a period when many Britons are struggling to afford everyday necessities.
With tighter budgets due to inflation, 60% of consumers consider good value for money the most important factor when shopping for Christmas goods this year. As concerns regarding the cost of living continue to grow, 20% of consumers anticipate feeling stressed during the holiday season, showcasing an increase from last year’s figure of 14%.
However, despite the challenges, there remains a sense of hope. Fifty-two percent of consumers are optimistic that they will still be able to celebrate Christmas as usual this year, with 27% eagerly looking forward to an exciting and joyful occasion. Furthermore, 50% of consumers are planning to take advantage of offers and deals on Black Friday to save money on their gift purchases.
Upasana Gupta, the General Manager of eBay Ads UK, provides valuable insights regarding the upcoming Christmas season. She acknowledges that it will undoubtedly be a challenging time for both consumers and businesses alike. Nevertheless, Gupta believes that there are still opportunities for brands and sellers across various categories, particularly those who engage with shoppers early on in the season. Gupta emphasizes the significance of traditional retail events such as Black Friday and suggests that businesses must be prepared to connect and engage with shoppers as early as August.
In conclusion, this report sheds light on the cautious approach of British consumers towards their Christmas spending. With inflation adversely affecting budgets, shoppers are placing greater emphasis on value and meaningful gifting. While there are undoubtedly challenges ahead, there remains a sense of optimism and opportunities for businesses to meet the evolving needs of consumers during this festive season.
Useful Links:
– eBay UK
– BBC Business – Retail
