While consumers are minding their spending
this upcoming holiday season, many will splurge
SAN
ANTONIO, July 11, 2024 /PRNewswire/
-- Vericast's latest research indicates consumers are facing
an internal conflict between the desire to save money and the
temptation to splurge during the 2024 winter holiday season.
According to recent data of 1,000 U.S. adults and Vericast's
2024 Holiday Retail TrendWatch, 41% of consumers are planning to
splurge on gifts for themselves this holiday season, despite
tightening spending elsewhere. This trend is even more pronounced
among Gen Z (47%) and Millennials (56%). However, 46% of consumers
say they need to budget more and spend less overall on holiday
gifts this year.
The conflicted mentality on spending is even more apparent when
it comes to planning holiday parties and events, with hosts having
mixed feelings of spending more to make the event special (56%) and
looking for ways to save as much money as possible (66%). For
consumers willing to spend more, there were decreases since last
year – specifically, Millennials (64%, down 8 percentage points),
parents (65%, down 8 percentage points), and millennial parents
(69%, down 11 percentage points).
As for splurging on meals, 23% of consumers say they dine out
more often during the holiday season, especially Gen Z (34%),
Millennials (33%), and Millennial parents (42%). However, Gen X has
shifted from intending to dine out more (17%) to indicating they
will dine out less (44%), with a six-percentage point increase in
those dining out less compared to last year.
"Inflation has slowed, but that doesn't mean it has stopped
impacting wallets," said Chip West,
consumer behavior and retail category expert at Vericast.
"Consumers will always spend around the holidays, but rising costs
mean they are tightening their belts and putting more thought into
what, how, and when they will buy – from gift giving to dining out
during the season. Understanding how consumers are planning to shop
this year can help marketers capitalize on moments in time and
reach shoppers across channels."
Vericast's research offers additional insights to help marketers
strategize for the 2024 holiday season:
Consumers aren't shopping early – unless enticed to do
so. Compared to previous years, there's a shift toward later
shopping this holiday season. The primary reason for early shopping
is to save money through sales and discounts, followed by the need
to spread out expenses over a longer period.
- 44% of consumers plan to start shopping for the holidays in
October or earlier, down from 47% in 2023.
- 31% of parents, more likely than other consumer groups, do most
of their shopping in October or earlier.
- Most consumers (74%) plan to do most of their holiday shopping
in November (41%) and December (33%).
- Almost a third of consumers plan shopping days dedicated to
buying holiday gifts. Almost half (44%) of Gen Z respondents say
they do this.
- 50% say they buy gifts for people as they see them leading up
to the holidays. More than half of Millennial and Gen Z respondents
agree.
Deals will make the holiday season cheery for savvy
shoppers. Consumers are particular about the offers they want
to see from brands. They also have their go-to spots for finding
this information.
- 38% of respondents say they are most interested in receiving
deals and discounts that will make holiday shopping more
affordable. 56% say the holiday season is a great time of year to
make purchases because of sales and discounts.
- 27% want to hear from advertisers about where to shop to find
the best deals locally and 23% are interested in receiving
information about restaurant deals for busy days.
- When asked about the best ways to find out about promotions and
discounts from retailers during the holiday shopping season,
consumers noted top preferences as email (35%), coupons in the mail
or newspaper (33%), and online coupons or discounts (29%).
- Consumers also expect to feel the love this holiday season,
with 20% saying they shop with brands offering points or loyalty
rewards to find the best deals for holiday purchases, up from 16%
in 2023.
Limited time offers can capitalize on consumers' FOMO.
This year, consumers are looking for a sure thing when it comes to
holiday shopping. Expect impulse buying and a focus on physical
gifts vs. experiences.
- More than half say they purchase holiday gifts throughout the
year depending on when they see a good deal vs. waiting for the
holiday shopping season.
- 44% of respondents agree they would purchase an item
immediately for fear of not being able to find that item later in
the holiday shopping season.
- 74% say they prefer to give physical gifts for the holidays vs.
gifting an experience.
To learn more about key trends driving consumer preference and
spending during the 2024 holiday shopping season, read the 2024
Retail TrendWatch.
About Vericast
Vericast is a marketing technology
company that provides a data-rich approach to influence consumers
and drive meaningful commerce. We power smarter activations for
more than 15,000 clients in consumer packaged goods, financial,
grocery, restaurant, retail, and more. Our decades of experience,
advanced technologies, and broad solutions portfolio help companies
reach audiences with precision and scale.
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SOURCE Vericast