Holiday Budgets to Increase Overall, But High Prices on Essentials Still Drive Spending Cutbacks, According to Nearly Half of Shoppers
ESW’s Holiday Spending Survey Finds Consumers Value Quality and Price Over Brand Names
Holiday budgets are increasing overall, yet half of all consumers who say they are cutting back this year will do so due to the high cost of essentials, according to a new survey from ESW, the worldwide leader in direct-to-consumer (DTC) ecommerce. Sixty-one percent of consumers said they would spend more than $600 this year, compared to 48% last year. However, among consumers who said they will reduce spending, 47% cited high prices on everyday items such as groceries and gasoline as the reason they will spend less for the 2024 holiday season.
“Forty-three percent of consumers say that they plan to shop more online this holiday season giving global DTC ecommerce retailers a greater opportunity to capture a bigger share–and consumers an opportunity to find better prices–in what looks to be a very competitive holiday shopping season.”
“Even though global inflation is coming down, many consumers are still feeling stretched due to high essentials costs. One way retailers can weather the variables of this coming holiday season can be with a robust global commerce platform,” said Martim Avillez Oliveira, ESW’s Chief Revenue Officer. “Forty-three percent of consumers say that they plan to shop more online this holiday season giving global DTC ecommerce retailers a greater opportunity to capture a bigger share–and consumers an opportunity to find better prices–in what looks to be a very competitive holiday shopping season.”
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With shoppers paying more attention to their holiday spending this season, quality and price were the most important consideration for 66% of shoppers. Only 13% of shoppers agree that brand name is most important when purchasing gifts.
The survey also finds:
- Turning to TikTok for holiday inspiration: Just over half (51%) of all consumers say that they will not use TikTok for holiday shopping; however, when broken down by age demographics, 65% of millennials and Gen Z combined will use TikTok for inspiration.
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- The most popular deal days: Black Friday (35%) and Amazon Big Deals Day (24%) are most popular days that consumers plan to shop for holiday sales, outshining Cyber Monday (15%) and Columbus Day (7%).
- Majority start shopping for gifts in September: 37% of shoppers have already started their holiday shopping. Twenty five percent indicate that they will start in October, and 30% say November. Just 8% will start in December.
- Free shipping sways shoppers: Nearly half (49%) of shoppers will only purchase items that they can return for free. 38% of shoppers will pay between $1 and $9 for expedited shipping, while 31% say they will not pay for expedited shipping. For free shipping, 41% of shoppers will wait 4-7 days for their packages to arrive, and 27% will wait 8-10 days.
