Christmas 2021: 3 key consumer behaviours set to shape the season
Will Christmas come early? What will holiday celebrations look like in 2021? Will consumers revenge spend or be frugal? How will they shop and what will they buy? We answer all these questions and more in our Christmas 2021 report. Below, a sneak peek into the insights we’ve uncovered, the trends that will drive consumer behaviour, and what it all means for brands.
Cautious consumers will spend carefully
The budgeting mindset persists. Our research shows that 43% of global consumers are planning to carefully budget their household spending over the next 12 months and will be keeping a tight rein on it as uncertainty continues.
“Revenge spenders” splash out on experiences. Nearly half of GB and US consumers had saved more than usual during the pandemic – at 48% and 47% respectively – and most of this group planned to spend their extra savings rather than save it. Going on holiday is the most common choice of spend, but if travel isn’t possible, there’s a good chance consumers will funnel this into other purchases such as OOH activities or physical gifts.
Savers want to spend their cash on something meaningful. Holiday gatherings were all but cancelled across the world in 2020, meaning much gift-giving was done from afar. In this context, hamper deliveries and gift cards reigned supreme. But this year, we expect consumers will want to spend their savings on something more meaningful and personal.
New COVID-era hobbies will inspire wish lists
Creative hobbies and group activities carry into the new year. Globally, 22% of consumers expect to do more craft activities, such as sewing, knitting and painting, in the 12 months from March 2021. That rises to 30% among Gen Z, providing a glimpse into the kinds of gifts that will likely be on teens’ wishlists.
Classic toys allow for communal play. Last year, puzzles, board games and Lego were in high demand, providing a dose of nostalgia for parents and allowing them to play alongside their kids. UK retailer John Lewis expects to see more of the same this year. Toys with an eco slant will also win big, allowing Millennial parents especially to impart their values on their Gen Alpha children.
The reign of video games is unstoppable. With numerous big-name games set to be released in late Autumn — from FIFA 22 to Forza Horizon 5 and Call of Duty: Black Ops Cold War — there’s little doubt what many kids will be angling for. A quarter of 12- to 19-year-olds globally say that gaming/technology is their number one interest, and gaming filled a critical gap for kids during the pandemic, allowing them to socialise and stave off boredom.
Health, indulgence and creativity will strike a balance in the kitchen
COVID has pushed health to the forefront. And amid the stress of the pandemic, functional and immunity-boosting foods have given people a sense of control. As consumers prep for holiday meals and celebratory gatherings, nutrition will stay top of mind. Globally, 43% of consumers agree that they’re trying to eat less meat, and 32% say they eat low-calorie or low-fat food to maintain a healthy lifestyle.
But holiday indulgence will still factor in. Many consumers will feel they deserve a treat after a long period of self-restraint and sacrifice. Keen to combine healthfulness and comfort, they may well reach for healthy alternatives, but temptation will be hard to shake for the 60% of global consumers who say they’re more likely to eat indulgently when socialising with friends and family.
Consumers will embrace culinary creativity. Scratch cooking grew during lockdowns, giving consumers a chance to learn new skills, stay on budget, get creative, and destress. As families are reunited during the holidays, cooking together will also help them rekindle relationships.
About E. J. McKay
E.J.McKay is a Shanghai-headquartered investment bank with a special focus on mergers & acquisitions. We are one of the most long standing independent investment banks in China, with core business of mergers & acquisitions and financing advisory.