Up to two-thirds of consumers are set to cut back on their Christmas spending this year due to the ongoing cost-of-living crisis, an IPA survey has revealed.
Carried out by Opinimum, the survey of 2,000 UK adults found that 64% of respondents indicated that they would be cutting back on Christmas spending this year due to economic pressures, with this figure rising to a sobering 82% of 18-24 year olds.
The hospitality sector is set to be particularly badly hit by these cutbacks, with almost a quarter (24%) saying that they will be reducing spending on meals out and 19% reducing their visits to bars and clubs.
Due to the unprecedented squeeze on wages owing to inflation over the past 18 months, close to half (48%) of all respondents said that they would need to rely on their savings to fund their Christmas purchases this year, rising to 58% for 18-24 year olds.
Subscribe to Marketing Beat for free
Sign up here to get the latest marketing news sent straight to your inbox each morning
“This survey reveals the true impact that the prolonged cost-of-living crisis, coupled with rising interest rates, is having on consumers’ spending plans. It is particularly significant here given that the Christmas season is known to be the season for giving,” IPA senior insight manager, Jamie Britton said.
“To navigate this tough environment, brands must pay attention to these consumer intentions and ensure they are gauging and appealing to the mood of the nation in both their advertising and their seasonal offerings.”
A further emerging trend that is set to become increasingly popular is the proliferation of second-hand items as an acceptable gifting method that offers shoppers more financial bandwidth, with two-thirds (67%) of adults now saying that they would be happy to receive such gifts.
Notably, a growing number of customers are influenced by a brand’s sustainability credentials when deciding purchases, with almost a third (31%) of respondents saying that they would prioritise such brands, rising to 51% for 18-24 years olds.
