Spotlight on IPA's 'Christmas Amidst the Crunch'

The IPA has taken a look at festive intentions and expectations; what do they mean for you?

According to the latest IPA data, there is an ultra-prepared 4% of the population sitting with their Christmas shopping ticked off. Unphased by the possibility that their gifts may well have jumped the proverbial shark come Christmas, they are a cohort who have most likely prioritised a spreading of costs, and a limitation of stress come winter. We salute them. 

As part of their ‘Christmas amidst the crunch’ research piece, the IPA has broken down the population’s intentions for gift shopping. This is their first year collecting such data, and so we can’t draw too many conclusions as to how behaviour is shifting in light of financial pressures, however it does provide a snapshot of mood and intention as we move into key shopping months. 

We’ve taken a look at 3 key takeouts - and what they might mean for you.

1 | Businesses who kickstart their festive messaging to coincide with Black Friday should know that 40% of the population plan to get the bulk of their shopping before mid-November. 

It’s safe to say that the intention is to shop earlier than perhaps businesses assume. A fifth of the population plan to shop between July and October, and a further 19% plan to get shopping done in early November, before Black Friday hits.

Given the cost-of-living crisis, consumers are expected to seek out deals, and be mindful of pacing. We can expect more to plan ahead, at an earlier time, in a bid to wrap up shopping before further hits to disposable income. 

With more expected to spread their shopping out, help them make sure they never make a wasted trip. This might mean making consumers aware of stock levels, both on and offline, to help customers prioritise spending over the period and reduce the last-minute rush. 

With IPA findings indicating that four in ten will split their shopping online and offline, and a further quarter reporting that they will be doing most of it online, businesses need to think about how they can deliver smooth omnichannel experiences. Consider how you allow people to save and reserve items on one platform, so that they can covert on another.

Implication; Brands need to mirror consumer expectation and set their stall out relatively early. Consider ways in which you can deliver value-for-money to consumers beyond discounting, to help protect profit margins whilst championing the customer. Tesco went live with an ad in July, highlighting their Clubcard Savers scheme – how can you help your customer spread the cost or get more for their money? 

2 |Those whose family has told them that ‘they don’t need presents – they just want to spend time together’ will be hoping that they meant it. 

1 in 5 say they may cut back on gifts for the family this year. However, double that say that they will be spending more time with family and friends than they usually do. Indeed, in the list of cutbacks that can be made in a winter of belt-tightening, festive experiences sit bottom of the list. 

After a tumultuous 2022 news cycle, many expect their festive cheer to come diluted by stress. Over 50% of us expect a stressful Christmas thanks to financial hardship, 37% expect the war in Ukraine to drive anxiety, and 42% are worried about covid cancellations rearing their head once more. In addition, lockdowns and mandated ‘bubble’ sizes are still fresh in our memory. So perhaps that’s why people are prioritising time spent with loved ones this Christmas. 

Who can forget Kevin McCallister’s epiphany? “Instead of presents this year, I just want my family back”. 

Implication; What does your offering bring to family life and friendships? Think about how you can reposition the experience of your offering, to prove to wary consumers that you can help them make memories, rather than fill their attics. 

As a brand, can you help people express their inner Kevin, without breaking the bank? Every year, many make special trips to see the Christmas lights switched on near them. What can you offer as an instore experience, or as a guide to events nearby, to help them spend time together this Christmas?

3 | At a time when spending on the ‘unnecessary-and-not-necessarily-wanted’ seems frivolous, some are forgoing the sentimental and considering cash gifts. 

Each year the colossal amount spent on festive gifting inevitably leads to waste, as people receive items that they’d never have parted cash for themselves. Yes, for many that’s the idea. However, in a year where the Citizens Advice are reporting that a quarter of the population simply won’t be able to afford their energy bills come October, this type of gifting feels counter-intuitive, foolish even. 

23% plan to give cash this Christmas, with a further 46% considering it. A whopping 71% would be happy to receive it – perhaps an indictment on our performance as gift givers. In a stark reminder of the choices many of us will face as prices soar, some will resort to swapping cash come Christmas. 

Implication; Pay heed to the fact that gifting behaviours may well shift, reflecting the fact that many are struggling with the essentials. Some will agree to forego gifts this year, others may enforce a monetary limit or consider cash before goods. 

This may mean that financial institutions have a role to play this Christmas. Can you bring festive cheer to the act of giving money? How do you make money unwrappable? Other brands might want to increase their voucher options, as people opt for what’s seen as the more considerate version of gifting cash. 

Gifts may well be better considered and researched than ever before. Think about how you can prove your products fit the bill, to make a more selective shortlist. To do so, lean on your understanding of people; gift-givers need to know their choices will be well received, so do their research for them. Can you provide tools to help them match your stock to the perfect recipient?

Finally, spare a thought for the 4%, sitting with their Christmas shopping done when this year’s must-have gift hits the market. May they hold steady against pester power – and may I find it in me to join their ranks this time next year. 

After more of our thinking on Christmas 2022? Look no further.