It looks like Christmas may have come early for retailers with the news that Aussies are budgeting $80 more this year for gifts.
Research by Pureprofile shows that total gift budgets for 2024 average $468, up from $388 in 2023.
There is high positivity towards the festive season in Australia, with 60 per cent feeling emotionally positive as inflationary pressure eases. This is a marked increase from previous years (54 per cent in 2023, 57 per cent in 2022 and 56 per cent in 2021), according to Martin Filz, CEO of Pureprofile.
“This is the first time in five years that we’ve seen a loosening of the Australian purse strings and a noticeable uplift in holiday spirit,” he comments.
“This shift is remarkable and suggests we may be emerging from the long shadow of cost-of-living concerns. However, a cautious sentiment persists, with shoppers actively seeking savings and bargains. Retailers should take note that Australians are inclined to shop in-store, making it essential to offer more substantial in-store discounts to drive foot traffic.”
Indeed, despite higher spending intentions, many Australians will still be on the lookout for bargains, with 67 per cent looking to save on Christmas expenses this year. Almost half of Australians (45 per cent) also expect to take advantage of Black Friday and Cyber Monday deals. Other money-saving tactics include buying fewer presents (41 per cent).
For Australians, practical gifts that may help relieve the household budget are prioritised with gift cards (46 per cent vs 44 per cent in 2023) and money (41 per cent vs 36 per cent in 2023) topping the wish list. Other gifts include clothes or shoes (33 per cent vs 28 per cent in 2023), food or drinks (30 per cent vs 27 per cent in 2023) and skincare and cosmetics (28 per cent vs 22 per cent in 2023).
Over two-thirds (70 per cent) of Aussie shoppers plan to start in November or earlier (up from 67 per cent in 2023), while few (nine per cent) plan to leave it until the middle of December.
Aussies are also embracing the in-store experience this year (59 per cent), but a large portion still prefers online shopping (41 per cent), with very few (seven per cent) using AI to help them with Christmas plans or gifts.
“Interestingly, despite the prevalence of AI, only seven per cent of Australians plan to use it for holiday planning this year. It seems that some aspects of Christmas cheer remain untouched by technology, proving that perhaps not everything can be enhanced by ChatGPT except maybe tackling that endless list of Christmas cards.”
Most Australians are price-conscious this year (80 per cent), ranking it higher than quality (68 per cent) with regard to Christmas purchasing decisions. Factors such as brand reputation (26 per cent) and recommendations or reviews (20 per cent) also had less impact. Shoppers report that retailers offering a promotion with a percentage off (50 per cent) held significantly more appeal than free shipping (17 per cent) or buy one get one free offers (12 per cent).
