Consumers Likely To Increase Holiday Spending

Furniture World Magazine

Before the election, consumers were expected to increase their holiday gift spending by a modest 4.5 percent.  But a survey conducted by Unity Marketing (www.unitymarketingonline.com) post election points to an even more positive outlook. “The re-election of President Bush will be very good for gift shopping this year.  Consumers overall are likely to increase their holiday gift spending by 5.6 percent, from $648 last year to $678 this year,” explains Pam Danziger, president of Unity Marketing and author of Why People Buy Things They Don’t Need. “Shoppers’ psychology got a boost once the campaign was over.  Consumers feel better than they did a month ago thanks to the closure of knowing who our president is for the next four years. “That will translate into more generous gift-giving this holiday season, especially among consumers Unity identifies as ‘serious’ gifters (i.e. one who spent $250 or more through October on gifts).  That highly-involved gift shopper, who comprises about 60 percent of the total gifting market, will spend 6.3 percent more this year, up from $843 in 2003 to $896 this year,” Danziger explains.  The ‘serious’ gifter is most likely to be a woman, aged 25-to-54 years old, with a household income averaging over $50,000.   Entertainment Tops Gifters’ List, but Store Gift Certificates Will See Greatest Boost in Giving Shoppers are going to turn first to entertainment and/or recreational goods as gifts this year.  Hot items will include electronic entertainment equipment (i.e. hardware) and  entertainment media (i.e. software), as well as photographic equipment and back-to-basic toys.  Next on shoppers’ gift lists will be clothing, fashion accessories and jewelry and watches.  Shoppers this year will be drawn to more luxurious costume and ‘faux’ jewelry that makes a strong fashion statement for under $100. An increasingly popular gifting alternative this year will be store gift certificates. Last year about 53 percent of gifters gave a store gift certificate, while 63 percent this year say they are very or somewhat likely to choose this gift.  Retailers are beginning to get smart about this most profitable gift offering and are combining token gift items like chocolates with a gift card, thus vastly increasing the gifting pleasure on Christmas morning. A traditionally popular gift category that may get less attention this year is home furnishings.  While 48 percent of gifters chose a home gift last year, only 40 percent say they are likely to give something for the home this Christmas.  With people fighting to eliminate household clutter, many gift recipients will get greater satisfaction from a gift that they can enjoy, like gourmet food, wine, or candy or something more personal such as perfumes and bath products. Only beginning to rise on the gift-givers’ radar screen are gifts of experience, such as a day at the spa, a fine dining experience, a ticket to the opera or a favorite jazz club.  Nearly one-third of the ‘serious’ gifters plan on making an experiential gift this Christmas. New Gifting Report, 2004 Update Available The results of this year’s Christmas holiday gifting survey updates Unity Marketing’s Gifting Report, 2004 Update:  The Who, What, Where, How Much and Why of Gift Giving and Shopping.  This consumer insight study of gifting combines qualitative and quantitative research among gift givers.  It reveals gift giving incidence and spending by holiday and occasion, including seven major gifting holidays and 12 gifting occasions, such as birthdays, anniversaries, weddings, friendship.  The key attributes of a good gift are presented, as are the types of stores where gifters prefer to shop.  How people choose across the range of gifting options is explored.  Finally the personalities of three different types of gift givers with different gifting motivations are explored. For more information about the study, use this link http://www.unitymarketingonline.com/reports2/gifting/gifting.html