According to eBay UK, this year’s Christmas season for UK retailers will be a “tale of two Christmases” as the effects of the pandemic continue to impact consumer choices. The survey conducted by eBay, which included 2,000 Britons who celebrate Christmas, revealed that 26% of respondents have less disposable income compared to before the pandemic, while 19% claim to have more. However, a majority of Britons (55%) state that they have the same amount of disposable income as they did before the pandemic.
In light of these findings, eBay Ads UK is advising brands to approach targeting shoppers with mindfulness and consider the broad impact of the pandemic on consumers’ experiences and mindsets.
Not surprisingly, those consumers who have more disposable income are planning to spend more on Christmas and have larger celebrations. Approximately 24% of them plan to use their extra savings towards Christmas presents, and half of them intend to spend more on gifts and celebrations compared to last year when Covid largely canceled Christmas festivities. Moreover, 24% of this group expects Christmas to be a more significant celebration this year due to the limited family gatherings and lockdown restrictions that were imposed last year.
The research also suggests that brands should anticipate an increased interest in high-value items, as 19% of those with more disposable income plan to treat their loved ones to extravagant gifts.
On the other hand, consumers who have less disposable income are expected to have a more “considered” Christmas. Around 40% of them prefer a smaller and quieter Christmas, and this group of shoppers is more likely to be thoughtful about gifting as they strive to do more with less. Two-thirds (67%) of those with less disposable income prioritize finding gifts that offer good value, compared to 49% of those with more disposable income. Additionally, 58% of respondents with less disposable income consider spending time with loved ones as one of their top priorities this Christmas.
Harmony Murphy, GM Advertising UK at eBay, emphasized the importance of brands being mindful of consumers’ varying priorities and mindsets. It is crucial for brands to tailor their messaging and targeting accordingly in order to demonstrate care for customers during the festive season. With only 100 days left until Christmas, brands have a significant opportunity to engage with excited consumers. However, it is essential to consider the vastly different experiences people have had throughout the pandemic.
Useful links:
1. eBay UK
2. UK Government
