The Christmas shopping season is upon us, and so too is a plethora of consumer research reports highlighting this year’s spending trends. While SMEs shouldn’t expect a Christmas miracle, there are some promising takeaways from the latest reports in terms of brick-and-mortar popularity and loyalty to local businesses.
Here are some takeaways:
Many Aussies have already done their Christmas shopping
The majority of research has found that Australians are relying on sales to do their shopping these holidays, and have already taken advantage of the November sales period to do so.
A recent ShopFully report found that affordable pricing was Australian consumers’ top motivator (77 per cent) for buying gifts this year. To save money on Christmas gifts, the majority of shoppers (53 per cent) surveyed said they would take advantage of the end-of-year sales.
It’s no wonder, then, that the recent Black Friday/Cyber Monday weekend has set records for another year, according to a December whitepaper by Shippit.
“More recent consumer research suggests that the vast majority (65 per cent) of consumers now plan to do their Christmas shopping exclusively during sales Periods,” said Rob Hango-Zada, Co-Founder and Joint CEO of Shippit.
Business services company MYOB recently found that 58 per cent of Australians are concerned about their Christmas budgets. One third (34 per cent) of consumers said they were relying on their credit cards for Christmas shopping, while a quarter (24 per cent) were going to cut back on festive spending.
Aussies prefer in-store shopping, prioritise homegrown products
While Australians are staying thrifty again this year, it’s not all doom and gloom for small businesses this Christmas.
A recent ShopFully survey of Australian customers brings good news for the 88 per cent of small businesses who haven’t yet established an online retail channel. Namely, 92 per cent of customers say they are planning to shop in-store for their Christmas gifts. Of these, 58 per cent say they will shop exclusively offline.
The reason for brick-and-mortar’s appeal? Being able to physically touch products in person and finding in-store shopping enjoyable, according to the survey.
Australians are also more interested in supporting local businesses, according to MYOB. The majority (61 per cent) of shoppers that the business services company surveyed said they were willing to pay more for Australian-made products.
“This year’s Christmas season isn’t just about tightening belts, it’s about redefining value and community,” said Dean Chadwick, Chief Customer Officer for MYOB.
“While many Australians have taken advantage of the Black Friday sales and gotten ahead with their Christmas shopping in November, there’s still plenty of opportunity in December for local retailers that focus on value, creativity and their homegrown products, to stay relevant to emerging consumer preferences.”
Experts warn against holding out for a Christmas miracle
Ashley Leslie is a Restructuring & Recovery Director at professional services firm Vincents. She has handled hundreds of small business insolvency cases in Queensland, and warns SMEs not to rely too heavily on Christmas sales.
“If your business is already struggling and in debt, it’s incredibly risky to rely on the holidays to boost profits,” Leslie says. “It could just be prolonging the process and adding to your debt.”
