7
The Critical Consumer 2024
The holiday shopping season is well under way,
and consumers face a heavy price pinch this year -
inflation remains elevated and they are adjusting
holiday spend accordingly.
We see a similar trend across the Atlantic where,
according to our US Holiday Outlook Survey, 26% of
consumers plan to spend less this holiday season than
last, and 24% will reduce spend on self-gifting.
In China, Singles' Day shoppers are still willing to reward
themselves with discretionary purchases - but these will
be prudent as opposed to extravagant or indulgent gifts.
With an eye on the leisure aspects of the upcoming festive period, we see similar
decreases in spending across Europe:
• 25% of consumers plan to spend less this year on holiday events and celebrations than
last year (only 8% plan to increase), while 23% plan to spend less on holiday travel and
vacations (9% plan to increase).
Trading down - whereby consumers choose more affordable brands as a saving
mechanism - will proliferate this holiday season and into 2024 in retail. American
consumers, per our Holiday Outlook Survey, are doing the same - 33% say they will trade
down to more affordable brands and private labels.
To meet this need, retailers and consumer products companies must ensure their
products are "value-right," providing strong value-for-money in categories where
consumers are targeting cutbacks.
SPENDING
INTENTIONS1 IN-DEPTH INSIGHTS
Compared to last year (2022), how do you plan to spend during Christmas holiday period this year?
2023 SPEND DURING THE HOLIDAY PERIOD IN EUROPE (VS. 2022)
Subscription
services for
myself
Gifts for
myself
Services for
myself
Christmas
holiday travel
and vacation
Gifts for
others
Christmas
holiday
decorations
Christmas
holiday meals
Christmas
holiday events/
celebrations
22.70%
32.49%
37.16%
7.66%
23.02%
25.30%
43.41%
8.27%
10.12%
21.20%
56.85%
11.83%
38.92%
22.55%
29.04%
9.49%
29.40%
28.44%
34.25%
7.91%
7.48%
26.54%
55.04%
10.93% 21.47%
24.24%
47.62%
6.67%
36.43%
23.19%
35.33%
5.04%
Less than last year Same as last year More than last year I don't spend in this category (excludes Saudi Arabia, UAE)
27%
of all consumers
surveyed expect to
spend less on holiday
gifts for others this
year, while only 11%
expect to spend more.