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Press Release
Holiday Decorations’ Spending Expected to Hold Steady this Season
With little new in the holiday decorating aisles to tempt them, holiday decorators expected to spend about the same this year as last
Stevens, PA December 6, 2005 — The way people decorate their homes for Christmas this year will look a lot like last year, according to research from Unity Marketing. With decorations manufacturers and retailers showing very little new or innovative, shoppers have little reason to shop for Christmas decorations this holiday season.
“Last year Americans spent about $8 billion on Christmas and Hanukah decorations and they are expected to spend about the same this year,” says Pam Danziger, president of Unity Marketing and author of Let Them Eat Cake: Marketing Luxury to the Masses — as well as the Classes. “The reason why spending will be flat this year is simply because manufacturers have given shoppers little reason to update their decorations collections. This year there are no new ideas in the stores like we had last year with outdoor inflatables. It is new products that drive people into the stores to shop for decorations.”
While the overall Christmas decorations market is not expected to grow this year, about two-thirds of American households will still buy decorations and spend about $100 on average before the season is out. Party decorations, tabletop centerpieces and candles will be popular decorations purchases this year.
“Top of people’s decorating list this year will be new ornaments to decorate one of their multiple Christmas trees. More Americans are setting up two or more trees with an old-fashioned family tree in the den, but more fashion-forward decorative trees in the living room, dining room, foyer, and other public spaces.
“When it is time to replace a dowdy old artificial tree, people are trading up to pre-lighted trees that cost two-to-three times more than an ordinary faux tree, but which come with pre-strung lights that look better than the ones you do yourself,” Danziger continues. “Their higher cost and the need to replace an artificial tree only once every ten years puts a damper on sales of the more luxurious pre-lighted trees.”
Ultimately there is only one reason why people decorate their home for the holidays: Decorations gives an emotional lift and stimulate a mood for celebration. Danziger explains, “People today are expressing a growing desire to use seasonal decorations to create a mood to enhance their enjoyment of different holidays. This represents a bright marketing opportunity for companies that bring innovation and creativity to enhance people’s holiday celebrations.”
About Gift Tracker Survey
To learn more about consumers’ passion for decorations and how marketers and retailers can maximize their opportunities to sell to this market, Unity Marketing conducted a survey among 600 U.S. households at the end of the third quarter including questions about their planned purchase of Christmas decorations. After the holidays in January 2006, Unity Marketing, on the forefront of market research on the gifting market, will conduct a follow up survey to track actual holiday gift and decorations purchases. This will provide context for marketers and retailers to plan for next year based upon real, not planned purchase data.
Every quarter Unity tracks what gifts people bought during the past quarter, what gift occasions and holidays stimulated those purchases, how much they spent per holiday and occasion, where they bought gifts, the store and product brands they relied upon for gifts and their expectations for future purchases of gifts. The next Gift Tracker survey will be fielded end of December/early January 2006 when post-holiday gift results will be measured. For more information on Gift Tracker, visit http://www.unitymarketingonline.com/reports2/gifting/gifttracker.html
About Pam Danziger and Unity Marketing
Pamela N. Danziger is a nationally recognized expert specializing in consumer insights for luxury marketers, whether they sell luxury to the masses or the ‘classes.’ She is president of Unity Marketing, a marketing consulting firm she founded in 1992.
Advising such clients as Lenox, Cartier, Herend, Rémy Amerique, Stearns & Foster, Prudential Fine Homes, Baccarat, The World Gold Council, The Conference Board and American Express, Danziger taps consumer psychology to help clients navigate and master the changing luxury marketplace. Her latest book, Let Them Eat Cake: Marketing Luxury to the Masses—as well as the Classes, (Dearborn Trade Publishing, $27, hardcover) is in book stores now. She is the author of the recent book, Why People Buy Things They Don't Need: Understanding and Predicting Consumer Behavior (Chicago: Dearborn Trade Publishing, 2004).
She has appeared on CNN’s In the Money, NBC’s Today Show, CNBC, CNN International, CNNfn, CBS News Sunday Morning, Fox News’ Your World with Neil Cavuto, ABC News Now, NPR’s Marketplace and is frequently called upon by the Wall Street Journal, New York Times, American Demographics, Women’s Wear Daily, Forbes, USA Today, Associated Press, Los Angeles Times, Chicago Tribune for commentary and insight.
For media, Unity Marketing can make tables, charts and graphs available about the luxury market upon request.
Contact: Pam Danziger, 717-336-1600 | 
