Changing Consumer Habits: How Discount Shopping Events Impact Holiday Purchases
The Impact of Discount Shopping Events on Holiday Purchases
A recent study conducted by Ernst & Young reveals a significant shift in consumer spending habits during the holiday season. The report highlights that nearly three quarters of consumers are delaying their holiday purchases for discount shopping events like Black Friday or Singles Day. More than half of the respondents also indicate that they plan to reduce their spending in order to save money. The findings underscore the changing dynamics of consumer spending, with inflation, rising interest rates, and credit-card delinquencies eroding purchasing power.
Financial Concerns and Budgetary Measures
The survey, which polled more than 22,000 consumers in 28 countries, including the US, China, India, Brazil, Japan, and Germany, reveals that 80% of respondents express concerns about their finances. As a result, consumers are seeking ways to stretch their budgets. Many plan to cook and entertain at home instead of dining out, while others are reducing their expenses on non-essential impulse purchases.
Shift to Online Shopping
According to the study, 50% of consumers will predominantly or exclusively shop online this holiday season, marking a 16% increase from the previous year. However, this figure is still lower than the 61% that favored e-commerce in 2020. The report also indicates that only 10% of respondents plan to do their shopping exclusively in-store this year, a decline of 14% from last year, when consumer mobility was limited due to the pandemic.
Varying Spending Patterns Across Regions
The survey shows that consumer spending patterns differ across regions. In the US and Europe, 39% and 35% of respondents, respectively, plan to spend less during the holidays. On the other hand, in China, only 11% of respondents plan to reduce their spending, while 45% plan to increase it.
