The survey, commissioned by the IPA and carried out by Opinium, was put to 2000 UK adults to understand attitudes to spending in what is for many UK brands the most important commercial season.
Why it matters
Britain is no longer a monolithically religious country, but it does love Christmas. For brands and agencies, it’s a vital period even in leaner economic times – these IPA figures indicate where and how consumers are planning to navigate the season.
Spending cuts
64% of all UK adults will be cutting back their spending versus last year, due to the ongoing pressures of the cost of living.
The young are planning to trim their Christmas budgets even further with 82% of 18-24s on track to spend less than last year.
What will drive spending
Before the savings, the opportunities:
Sustainability is increasingly important to younger consumers (18-34) as 51% will aim for brands and retailers that prioritise sustainability.
What people want from Christmas ads: 46% of respondents wanted to be reminded of better times, otherwise people want their yuletide advertising to be:
- Festive (37%)
- Funny (21%)
- Nostalgic (20%)
How people are saving
- Sales and shopping holidays are set to be crucial: 55% of respondents plan to spend during Black Friday; 79% of 18-24s plan to buy during the shopping holiday.
- Just under half (48%) plan to use savings to fund Christmas spending, which rises to 58% of 18-24s.
- While a minority (13%) of all adults plan to use credit, a further 10% plan on using ‘Buy Now, Pay Later’ platforms – these are far more popular (19%) among 25-34s.
Sector impact
- Hospitality spending appears to be the first thing to go in an expensive time, with 24% of respondents planning to spend less on meals out and 19% reducing their visits to bars and clubs.
- Important minorities are planning to spend less on branded products like clothing (23%), and premium groceries (20%).
Pre-loved Christmas
Around half of respondents would consider giving a second hand or refurbished gift to an adult (49%) or child (51%). Affordability is the most prominent reason (47%), with sustainability (33%) and a good cause for the proceeds (31%) also important reasons.
Sourced from the IPA
Source: warc.com
