This festive season, quality is trumping quantity as many cost and climate-conscious consumers choose to invest in higher-quality goods, even if that means purchasing fewer items overall.
That’s according to new research of more than 2,000 UK consumers and over 500 UK high end merchants conducted by Tink, a payment services and open banking platform.
The findings reveal that 60 per cent of consumers would rather opt for higher-quality but fewer items, rather than many lower-quality items. Additionally, 43 per cent of consumers surveyed who shop for high ticket and luxury goods say they are doing so more frequently now compared to this time last year.
This trend is giving high-end merchants cause for cautious optimism, with three-quarters (75 per cent) of those surveyed expecting to maintain or improve profit margins over the festive period compared to last year.
Conscious consumerism on the rise: budget and sustainability drive peak season shopping behaviours
Shoppers’ focus on quality is reflected in their festive spending, as over a third (37 per cent) of respondents say they would rather give fewer but nicer gifts to family and friends this festive season, and 40 per cent say they would rather receive one nice, quality gift than several cheaper items.
However, high end merchants cannot afford to rest on their laurels this festive season, as Tink’s research also suggests a shift to ‘conscious consumerism’ is leading shoppers to be more cautious and considered when buying higher end items.
Budget remains a key consideration when shopping for higher ticket items – with 70 per cent of consumers surveyed saying cost of living concerns mean they are very selective when buying high ticket and luxury goods.
Similarly, many consumers are conscious of the environmental impact of the festive season – with over a third (36 per cent) of respondents saying that Christmas brings an excess of low-quality, unnecessary gifts that often go to waste. This comes as one in four consumers (25 per cent) say they want to be more sustainable this Christmas by buying better-quality, but overall fewer, items. Merchants themselves recognise this trend – nearly three-quarters (71 per cent) of those surveyed believe that consumers are more conscious about sustainability when they’re buying during peak season.
Payment experience: a make-or-break factor in today’s competitive market
Yet despite signs of growing demand for higher ticket and luxury goods, competition for share of wallet remains fierce – with 81 per cent of merchants surveyed saying competition in their sector is higher than ever.
Customer expectations are also at an all-time high, and payments remain a sticking point. Among consumers who purchase high ticket or luxury goods, an estimated 58 per cent worry about payment security, while 31 per cent of high-end merchants say the high cost of managing fraud is a key challenge.
A poor payment experience can also impact conversion rates. Among consumers surveyed who purchase high end and luxury goods, 18 per cent said they get frustrated and concerned when having to enter lots of payment details manually at checkout. These concerns would lead four in ten (41 per cent) to abandon the transaction altogether.
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