Holiday season 2020: Expected consumer spend

70% are not planning to decrease their holiday spend, but prioritising who they shop for

It is no secret anymore that the eCommerce industry has been among the profiteers of the corona crisis. Most of the global top players have seen their sales explode in the wake of the pandemic: ecommerceDB already picked up the quarterly figures of some of the top stores like Amazon, Zooplus, or Nike, which reported outstanding online sales rises in the past months thanks to a surge in online demand during COVID-19 lockdowns. Now that the situation around the global spread of the disease has settled and most of the western world has succeeded in keeping the numbers of new infections under control – at least for the time being – it might be worth a thought to find out how consumers currently plan to spend their money in the near future. Will the trend towards more online purchases continue through the fourth quarter of 2020? What about the amount of money consumers are going to spend during this year’s holiday season? What are people planning to do in case of a second lockdown, will it have an effect on their online/offline shopping behavior? These are questions that a recent study by Rakuten Advertising, conducted online among more than 8,500 adults around the world1 in June and July 2020, found answers for.

Some good news first: According to the study, 70% of consumers worldwide are currently not planning on spending less during this year’s holiday season compared to last year. Even in case of another lockdown, 55% would not decrease their spending. Even better news for eCommerce: With 73%, an overwhelming majority of consumers are planning to do their holiday shopping primarily online. Although most people are not going to decrease their holiday spending, they are indeed planning to distribute their budget differently: 41% each plan to spend less for friends and other people like coworkers, while 31% are going to increase their spending for the close family, and 23% state that they are planning to spend more on things they buy for themselves. 36%, however, also plan to spend less on products for their own use, while 40% are not going to change the amount. Only 26% plan to spend less for their immediate family. With 48%, 49%, and 51%, respectively, around half of consumers do not plan to change their amounts of spending for extended family, charity, and other purposes, compared to last year’s peak shopping season. If the “corona year” 2020 will bring along the familiar online sales records during holiday season, however, remains to be seen.

 

1: UK, France, Germany, Brazil, Australia, Canada, China, Hong Kong, New Zealand, Singapore, South Korea, United States

 

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October 2020