A new report uncovers exactly how Australians will approach the festive period and how rising inflation will impact their shopping plans.
‘Tis the season to be jolly… but with interest rates rising and inflation soaring, many retailers may be wondering just how jolly this festive period will be.
The good news, according to Afterpay’s new Festive Forecast report, is that while Aussies are undoubtedly being impacted by inflation, most shoppers plan to spend the same, if not more, as last year during the festive period.
Afterpay’s Festive Forecast surveyed 1500 Australians about their Christmas shopping plans and uncovered a wealth of information about how and when shoppers will spend, and what they’ll buy.
The report also confirmed that although the challenges this holiday season are real, the opportunities are vast, as long as retailers understand the shopper mindset.
The Festive Forecast confirmed that Australians are feeling the impact of rising rates and inflation, and found that more than a third are cutting back on general purchases (38%) or stopping certain activities (24%) such as subscriptions, while many reducing the amount they’re saving.
But few plan to cut back on festive shopping. In fact, the majority will be spending the same – or more – than last year, with 49 per cent spending the same as last year, 20 per cent spending slightly more and 5 per cent spending significantly more.
When it comes to gift ideas, family and friends are the top source of inspiration (49%) along with simply being in-store or at a shopping centre (49%). Social media is another important influence (42%).
Another important shopping cue is discounts, with 56 per cent of consumers saying that noticing an item is on sale would prompt them to purchase.
The appeal of sales, together with the challenging financial climate, suggest that Black Friday Cyber Monday (BFCM) is poised to be a major opportunity for retailers this year, particularly among younger shoppers.
Gift cards are once again the most popular gift idea among shoppers, followed by clothing and accessories and children’s toys. Gift cards are especially popular for older shoppers, while clothing is more likely to be gifted by Gen Z.
One in six Australians plans to use a BNPL service to budget for larger purchases. So it pays to ensure that Afterpay is clearly displayed and promoted, whether you run an e-commerce or brick-and-mortar store.
For more insights into consumer behaviour during the festive period, you can read the full report here.
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