Most Australians are about to enjoy their first Christmas that isn’t tainted by COVID since 2019, with many people already prepared, and thinking about sustainability.
Research conducted by the Monash Business School’s Australian Consumer and Retail Studies (ACRS) found 64 per cent of consumers are planning on giving money as a gift to adults and children and 41 per cent will be purchasing a gift card or voucher.
Speaking to The New Daily, Dr Eloise Zoppos the lead author on the new ACRS report, said: “It certainly seems to be quite popular this year, the idea of giving money or giving gift cards and vouchers.
“I think one of the reasons for that is because people are really becoming more mindful of what they’re gifting and also just what they’re buying and how they are living more generally.”
Dr Zoppos said research done back in September indicated people were increasingly more conscious of being more sustainable.
The survey also found that 55 per cent of Australian consumers like to get their Christmas shopping out of the way one or more months ahead of December 25.
The remaining 45 per cent like to get their shopping done in the four weeks leading up to Christmas.
However, just because 55 per cent of consumers have done their shopping, that doesn’t mean they’re more organised.
One of the reasons people like to get their shopping done early is to do with the sales, Dr Zoppos said.
Black Friday and Cyber Monday sales are around a month before Christmas, so plenty of people take advantage of them.
In the three years ACRS has conducted the survey around half, or just more than half, claim they do their shopping early.
Consumer habits have changed slightly, compared to last year. This year, the research suggests consumers are planning on buying fewer products across all categories.
Clothing, footwear and accessories are the most popular gifting categories, but they are trending downwards, from 58 per cent in 2021 to 47 per cent in 2022.
Cost of living to impact Christmas
While sustainability might be a reason people are opting to give cash or a voucher, or not buying as many presents, there are other pressures at work.
“We can’t get away from the fact that cost-of-living increases are going to have an impact on how people buy and what they spend in general, and that will also trickle down into what they’re giving for Christmas,” Dr Zoppos said.
“Cost-of-living increases, interest rate rises: All those sorts of things will also have an impact in how people are buying and [what] they will be giving this Christmas.”
A new Choice survey released on Monday found 59 per cent of people will be buying gifts this year and more than one-third of Australians will be spending less this Christmas, compared to last.
Of those who will be spending less this year, 60 per cent said that is due to them having less money to spend due to cost-of-living pressures.
“Although Christmas is typically depicted as a joyous time of year, it can also be a major source of financial stress for many people,” Choice editorial director, Marg Rafferty, said.
“The cost of presents and entertaining family and friends means many people struggle during the festive season.”
Australia’s largest national retail body, the Australian Retailers Association (ARA), expects Australians to spend $66 billion in the November to December trading period.
“These are great results, however, it’s important to acknowledge that price increases are a factor in these numbers and are also driving Australians to spend to get in ahead of inflation,” ARA CEO Paul Zahra said.
Food, household goods and clothes will be the three biggest categories, according to the ARA.
How to ease the financial burden this Christmas
It’s impossible to see everyone before Christmas, so if you’re catching up with people after December 25, there’s a way to save a bit of money.
“We’ve been hearing people are really going to be taking advantage of the Boxing Day sales this year,” Dr Zoppos said.
“So why not use that chance, either online or in a physical store to buy those Christmas presents for people that you might not be seeing until later in the new year?”
Ms Rafferty suggested to not only shop the specials but also swap to homebrand products. She said Choice’s testing has found homebrand products have improved in quality, so it’s worth giving them a shot.
Buy now, pay later schemes should also be avoided.
“These schemes can create potential debt traps for people who are already struggling financially,” Ms Rafferty said.
If all else fails, give something money can’t buy this Christmas, like teaching someone your favourite recipe or even making something to give to others.
