With so much riding on this year’s holiday sales, we take a quick look to see who’s on the receiving end. Understanding your customers’ gift lists could be just what you need to box up your offerings and ‘sleigh’ a seasonal high.
In the run-up to BFCM, we surveyed over 8,000 UK shoppers and Klarna consumers, this is what we discovered.
Brits are a generous lot and love to indulge in their nearest and dearest.
81% of shoppers buy for family, while nearly half purchase gifts for friends (44%) and a third (34%) will be seeking out the perfect pressie for their significant other.
For over-the-top generosity you can’t beat pet owners. Two thirds (64%) will buy presents for their furry companions with toys topping more practical items like beds and bowls.
Maybe it’s all the working from home, but only 7% expect to shop for work colleagues this year pushing novelty ‘secret Santa’ gifts to the bottom of their shopping lists.
Younger shoppers believe in self-love, selflessness and affordable luxury.
Gen Z are twice as likely to shop for their mates as Baby Boomers, 27% more than Gen X and 13% more than Millennials. Meanwhile 43% of Millennials and 38% of Gen Z will buy gifts for themselves, which makes it hard to resist a two for one offer that lets them keep one for themselves.
When it comes to indulgences, younger shoppers have their eyes on luxury purchases, and they don’t mind waiting to take the plunge. Millennials and Gen Z are twice as likely than Gen X and over three times more likely than Baby boomers to hold off till holiday season to grab a luxe bargain.
How much buyers spend is driven by how good the deal and how healthy their cashflow.
With so much emphasis on spending, consumers are eager to grab a bargain when they can. Three in four anticipate better deals pre-Christmas. And for those that like to splash out big, over a third will hold out on expensive items until after they receive their Christmas bonuses.
Meanwhile, the savviest buyers are using Klarna to indulge earlier and keep FOMO at bay.
Everyone loves sustainable Santa.
This year consumers want to be kind to the planet as well as themselves. The majority of Gen Z and Millennials will be looking to purchase from retailers with a charitable or give-back mission. They’re also paying more than lip service to sustainability and are actively seeking out brands with eco and ethical credentials.
The sentiment extends to packaging, with three quarters of Gen Z and Millennials preferring sustainable and eco-friendly gift-wrapping options. If you’ve been on the fence about incorporating less-traditional selling formats into your marketing mix, ‘tis the season to test ‘em out.
Here are our top five tips:
- Tap into niche segments like pet owners.
- Target young self-lovers with buy one get one free offers.
- Pull in younger audiences with great deals on premium products.
- Make everyone’s wish come true with Klarna flexible financing – instore and online.
- Highlight eco, ethical and charity initiatives across your channel comms.