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Christmas
Gifting Season to Be Strongest in Years
New survey shows shoppers have spent more buying gifts
and bought more gifts for more people this year
Stevens, PA November 4, 2003 —Christmas 2003 will be one of the
strongest gift-giving seasons in recent memory, according to new research
on 'gifting' from Unity Marketing. "Gift shopping is the ultimate
in 'emotional consumerism,' since gift giving is about emotionally connecting
gift givers and gift recipients," says Pam Danziger, Unity's president
and author of Why People Buy Things They Don't Need.
"There's a flood of survey reports about what consumers plan to
spend this holiday season, but the Unity Marketing study takes a totally
different tactic," explains Danziger. "Ask shoppers how much
they plan to spend gift shopping for Christmas 2003 and the majority
will tell you about the same or less than last year, because that is
the 'rational, left-brain' answer."
"An examination of gift-giving behavior, which is not rational,
but emotional, shows that 87 percent of consumers have spent more (32
percent) or the same (55 percent) on gifts over the past year. Combine
this finding with the fact that 85 percent bought more or the same number
of gifts in the past year, and 89 percent are giving gifts to more or
the same number of people, and the coming Christmas gift shopping season
promises to be the best in years," Danziger predicts. "We
could see sales increases from 5 to 10 percent in November and December,
with only the potential for rampant discounting moderating results."
"Gifting prospects for 2004 also appear strong. The trend driving
the growing gifting market is consumers' need to connect in meaningful,
emotional ways with those they care about. After spending the past 20
years at home in their 'cocoons,' today's consumers are like butterflies
emerging to seek to reconnect with the outside world. They find new
meaning in relationships that is often expressed through gifting,"
Danziger explains.
Methodology - Gift buying throughout the year
Based upon a survey of 950 'serious' gift-givers, (people who spent
$250 or more buying gifts in the past year), the Unity survey is the
first to examine gift-giving and shopping behavior throughout the year.
Here are major findings of the gifting research survey:
- Gifting is a $253 billion market and represents about 10 percent
of the consumer economy
Buying gifts for their family and friends accounts for roughly 10 percent
of the nation's $2.7 trillion consumer retail economy. The trend will
continue as more spending is directed toward things to give away, rather
than things that fill their own home.
- Gifting is major reason to shop not just at Christmas but throughout
the year
With an average annual gift budget of $2,062, gift-giving represents
an important reason for consumers to shop, not just for the holiday
season but also throughout the year. Christmas gift-giving accounts
for about 40 percent of the serious gifters' annual budget, or $843.
Birthdays with an average annual budget of $349 represent 16 percent
of the total. Overall, holiday spending, i.e. Valentine's Day, Mother's
Day, Easter, Father's Day, etc., totals $1,089 (53 percent of annual
budget) and gifting occasions, including anniversaries, weddings, friendship,
new baby, housewarming, etc., accounts for 47 percent of spending or
$973.
- Majority of gifters shop for gifts regularly in discount department
stores, while traditional department stores are relied on next for
gifts
Discount department stores, including mass merchants, warehouse clubs
and dollar stores, are used regularly by 50 percent of gifters, who
turn next to traditional department stores. About one-third of gifters
regularly shop traditional department stores for gifts, while 47 percent
occasionally shop there.
- Finding good gifts at good prices is top criteria when selecting
stores for gift shopping
Good prices are the number one criteria for 65 percent of the gift
shoppers in selecting a store to shop for gifts. The next most important
criteria rated as "very important" are ability to find things
easily (54 percent); offers a wide selection of gifts (49 percent);
convenience (49 percent); and ease of return (47 percent).
- Gifters go shopping to find gift inspiration
When shopping, gifters look for something the recipient will like,
as well as one priced right. But they also want to find something
that the recipients are not likely to buy for themselves. They value
emotion in the gifting equation and want a gift that carries a surprise
factor, as well as emotional meaning. The serious gifter is always
on the lookout for a good gift. They are not last minute shoppers,
but buy things when they see it and store them to give at a later
date. The way the gift is presented is also very important, so they
buy cards and wrap the gift to make a good impression. They often
go to the store without a specific idea in mind, but look for inspiration
from the displays, often shopping in several stores to find the right
gift.
For more information about consumers' gift giving and shopping, visit
http://www.unitymarketingonline.com/reports2/gifting/. An executive
summary of the topline findings of Unity's new gifting consumer research
is available to the media by request to pam@unitymarketingonline.com.
The results of this study will be published in an upcoming Unity report
with the final results announced in presentations this January at the
GLM gift shows: Atlanta, 1/11/04; Los Angeles, 1/18/04; and New York
International Gift Fair, 2/2/04.
About Unity Marketing
Founded in 1992, Unity Marketing (www.unitymarketingonline.com) is a
marketing research and consulting firm that specializes in consumer
insights for luxury marketers. Using its proprietary "why people
buy" strategy, Pam Danziger, company founder and author of Why
People Buy Things They Don't Need (Ithaca, NY: Paramount Market Publishing,
2002), uncovers the motivations, desires and emotional needs that drive
consumers to buy. Unity also publishes market research studies on the
luxury market, art, jewelry, gifts and collectibles, home furnishings,
cosmetics and personal care markets, as well as the Luxury Business
newsletter. Pam is currently working on her next book, Let Them Eat
Cake: Marketing Luxury to the Masses (as well as the Classes), to be
published early in 2004.
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