Research released by Blackhawk Network (BHN) reveals trends towards self-gifting, technology-driven shopping solutions as UK consumers hit the shops for the festive season.
The research surveyed 9,507 consumers across EMEA and reveals vital insights for retailers as they look to shape their Christmas strategies for 2024.
All I want for Christmas is… to choose our own gifts?
Christmas gifting is turning inward this festive season. 22 per cent of respondents are planning to buy themselves Christmas gifts this year – a figure that climbs to 31 per cent among Gen Z and just 8 per cent among Boomers. The trend points to evolving consumer behaviours in an era of increased personalisation and self-care. Gen Z stands out once again as a generation dissatisfied with presents, with a staggering 56 per cent admitting to receiving at least one bad gift each year.
AI makes its presence felt
It has been impossible to escape the impact of AI in 2024, and the prevalence of this technology is making its way into gifting too. Nearly half (47 per cent) of consumers plan to use AI to help them purchase gifts this year. Respondents cited reasons such as creativity, and personalised gift ideas, but the strongest reason once again points to budget. Most shoppers will, however, turn to AI this Christmas to help find the best prices (16 per cent).
Shopping habits wrapped up in concerns about the economy
38 per cent of shoppers expect to have Christmas shopping sorted in November. And 17 per cent of people are planning on shopping earlier this year than last year, with 34 per cent of people who are planning on shopping earlier doing so for budget reasons rather than to find the right gift.
As such, the state of the economy still weighs heavily on consumers’ minds, with 21 per cent intending to change the way they shop because of economic concerns. This includes 57 per cent who are planning to buy less expensive brands or own-brand products.
The biggest cost concerns for UK consumers are utilities (65 per cent), inflation (60 per cent), food costs (60 per cent) and job security (28 per cent).
UK consumers weigh up cash versus credit cards
Despite such concerns, 40 per cent of the UK plan to rely on credit cards to purchase gifts this festive season, compared to 44 per cent last year. 38 per cent do however plan to use cash, with the most popular reason being cash helps towards budgeting (53 per cent).
Despite all the efforts to budget, almost a third (30 per cent) of people have no idea what they spent on Christmas shopping last year.
The perfect gift is a gift card?
Gift cards remain a popular choice for gifting, with 62 per cent of UK consumers stating they have bought a gift card in the last 12 months. In 2023, 50 per cent of UK consumers bought a gift card for a loved one’s favourite brand, and 33 per cent opted for multi brand gift cards as choices for gifts. This year, 42 per cent of consumers intend on purchasing a multi-use gift card as a present. It therefore is no surprise that this Christmas, there remains a significant opportunity for retailers when developing their seasonal gift card strategy.
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