The ongoing cost-of-living concerns are driving shoppers, globally, to seek more bargains, the latest EY Holiday Shopping Survey has found.
Consumers are trying to make their disposable incomes stretch, it noted.
However, despite the increasing popularity of sales before, during and after the holiday season, there is growing scepticism from consumers about the real value of the discount or promotion on offer, according to the survey.
Highlighting the continued squeeze on disposable incomes, some 57% of respondents said that they are planning to participate in sales due to their financial situation.
Yet almost two thirds (64%) are sceptical of festive sales, questioning the real value of a discount or promotion.
Furthermore, more than half (58%) say that the actual items that they want to buy are not part of promotions.
Survey
The survey of 13,000 global consumers on their views and attitudes towards the Christmas and holiday shopping season revealed that some 45% are concerned about being able to pay for this festive season.
This figure rises in the Gen Z category (18- to 27-year-olds), to 49%.
Some 41% of respondents will be using loans or credit cards to fund their spending, and buy-now-pay-later solutions will become increasingly common.
More consumers want to purchase items that promise value and last beyond the season, as shoppers grow more conscious of spending.
For example, more than a third (34%) of respondents plan to spend more on technology this year, while, alternatively, consumers are choosing not to spend in certain categories, with more than half (58%) planning to reuse last year’s festive decor.
‘Fine-Tune Promotions’
Speaking about the findings, EY Ireland consulting partner and consumer sector lead Colette Devey said, “Similar to the consumers surveyed globally, Irish shoppers are on the hunt for the best value when it comes to festive purchases.
“To capitalise on this seasonal shopping period into the new year, it is imperative that Irish businesses fine-tune their promotions to deliver the consumer’s perception of value for money.
“By offering promotions that are seen to deliver genuine value, companies will build brand loyalty with consumers long beyond this festive season.”
On drawing in shoppers, Devey said, “As shoppers diversify the ways in which they make purchases, managing the complexity this creates for retailers requires a comprehensive view across all sales channels.
“It’s not enough to just have a presence in multiple sales channels – they must be integrated and work seamlessly together.
“Retail companies must also create digital ecosystems that allow for broader consumer insights, to allow them to better understand and act faster.
“They need to be closer to social media – both for its influential aspect, but also for consumer and influencer insights.
“While social media is effective for brand awareness in Ireland, it is not the primary channel for direct sales.
“However, as our recent Future Consumer Index shows, social-media influencers significantly impact Irish consumer behaviour, with 39% interacting with them, 67% trusting them, and 58% making purchases based on their recommendations.”
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