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Silly Season Spending

Posted by suzanne.rolfe | 01 October

It’s that time of year again, the family starts to plan the Christmas feast and you start to think of potential gifts for friends, family and the list keeps going. You grab your phone and start searching for gift ideas trying to find the most competitive deal. But do you follow through and purchase that online basket OR is it best to wait for the in-store Christmas promotions and sales? Sound familiar?

Despite most of our pre Christmas planning, a Commonwealth Bank survey (2013) found that the majority of us actually buy our gifts last minute on either Saturday 14th December or Sunday 15th December. This seemed to be the trend with Aussie shoppers in 2013 and is predicted to repeat this year. According to Pocketbook Data, during the silly season Australians spent $65 on the average gift, with consumers doubling their discretionary spending.  Spending 60% of our income on ‘non-essential’ purchases over the holidays - although most of us convince ourselves these purchases are indeed essential. 

Consumers are spending more on experiences like holidays, entertainment with friends and family, a spending trend predicted to see increases of $600 million year-on-year. In terms of products, 2013 saw a 37% increase in books, tech and gadgets, a 29% increase on clothing, 21% on beverages and a 16% increase in spending on movies*.

Christmas Day comes to a close, but you still have time to score a bargain.Do you head to David Jones or go online to ASOS for those Boxing Day sales? To wager in on the ‘online-offline’ debate, 2013 saw offline bricks and mortar locations leading the way with daily transactions after December 27th up 32% at David Jones and 28% at Myer – in stark contrast to a 16% reduction for online agent ASOS*.

It would seem that after Christmas, Australian shoppers prefer getting the best bargains from physical stores. It may be attributed to our last-minute shopping habits or our enjoyment of the physical shopping experience, but it seems that during the silly season, Australians enjoy shopping for and comparing products online but when it comes to point of purchase, we prefer hitting the shops to get the best bargain possible.  

So how does your brand stand out and maximize your share of the cake?  Within a crowded competitive market full of discounts and price cutting, TLC Marketing offers brands a rich call to action while protecting the integrity of the price point of products. Last year TLC Marketing worked with Sony Mobile Communications to say thanks to customers, while boosting sales by offering free tickets to a local gig of the consumers’ choice, along with the chance to win a trip to one of the largest music festivals in the world, an incentive that resonates with their Gen Y target audience.


*Pocketbook Data, 2013