Australia – Despite the Christmas festivities getting nearer, around 20% of Aussie 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. This is according to the latest data from digital experience provider Sitecore.
The data notes that one in five Australian shoppers expect to purchase fewer gifts and spend less overall, while the majority expect to spend the same amount as in 2021.
Despite this, one in three high-income Australians plans to spend more this season. Overall, the trend is likely to swing to more practical presents for the majority of Christmas shoppers.
The report also found that Gen Z is feeling the pinch – one in three expect 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.
In addition, low-cost shipping offers are important to consumers in Australia, who believe A$9 is the maximum price they should pay. 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, two things that lower-income shoppers cannot afford to do.
Paige O’Neill, chief marketing officer at Sitecore, 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.”
He added, “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.”