Ongoing cost-of-living concerns are driving shoppers globally to seek out more bargains as they try to make their disposable income stretch further, according to research.
Despite the increasing popularity of sales before, during and after the holiday season, there is a growing scepticism amongst consumers towards the real value of the discount or promotion on offer, according to the latest EY Holiday Shopping Survey.
Highlighting the continued squeeze on disposable incomes, 57 per cent are planning to participate in sales because of their financial situation. Interestingly however almost two-thirds (64 per cent) are sceptical of festive sales, questioning the real value of the discount/promotion. Furthermore, more than half (58 per cent) say that the actual items they want to buy are not part of the promotion.
The survey of 13,000 global consumers on their views and attitudes towards the Christmas and holiday shopping season revealed that almost half (45 per cent) of consumers surveyed are concerned about being able to pay for this festive season, rising to 49 per cent of Gen Z consumers (18–27-year-olds).
Globally, more than four in 10 (41 per cent) of those surveyed will be using loans or credit cards to fund their spending and buy-now-pay-later solutions will be an increasingly important way of deferring shopping costs, both online and in-store.
Maximising value
This festive season shoppers are being more intentional about if, when and how they spend. More consumers want to spend their money on items that promise value that lasts beyond the season, for example, more than a third (34 per cent) of respondents plan to spend more on technology.
On the other hand, consumers are choosing not to spend in certain categories, for example, more than half (58 per cent) plan to reuse last-year’s festive décor.
Colette Devey, EY Ireland consulting partner and consumer sector lead, said: "Similar to the consumers surveyed globally, Irish shoppers are on the hunt for the best value when it comes to festive purchases. To capitalise on this seasonal shopping period into the new year, it's imperative that Irish businesses fine-tune their promotions to deliver the consumer's perception of value for money. By offering promotions that are seen to deliver genuine value, companies will build brand loyalty with consumers long beyond this festive season."
Physical stores ahead of digital
The research reveals that physical stores are still where most consumers globally (68 per cent) plan to shop this festive season. Many consumers want to see, touch and physically experience a product before they commit to a purchase. In that regard, stores provide a level of confidence that is hard to replicate in the digital space.
However, the digital experience is evolving fast, and shrewd, savvy consumers will happily switch between channels to get the optimal deal. Social media platforms will be significant sales channels in their own right this season, with Chinese consumers leading the way – 50 per cent of Chinese consumer respondents plan to make purchases via shoppable social media, compared with 24 per cent in the US, and 17 per cent worldwide.
