HomeOPINIONNew research reveals Gen Z and males to spend the most this Christmas

New research reveals Gen Z and males to spend the most this Christmas

Research from Accenture NZ has revealed that Kiwis are feeling cautiously optimistic towards their spending this holiday season. The survey of 777 New Zealanders found that Kiwis plan to spend, on average, $562 per person towards gifts and groceries.

Parents, Generation Z, and males will be splashing out the most this Christmas, followed by single adults living alone and single adults living with others. Surprisingly, females will be spending the least. 53 percent of those surveyed said they are planning on spending roughly the same amount on Christmas as they did last year, while 33 percent are planning on tightening their wallet, and 14 percent plan on spending more.

In comparison to the United Kingdom, where 36 percent of consumers are planning on spending less this Christmas, and the United States, where 41 percent will be spending less, New Zealanders seem to be embracing festive spending.

Accenture NZ managing director Ben Morgan says 2020 has been a very uncertain year for Kiwis and retailers.

“It appears Kiwis will be a bit more cautious with their spending this holiday season but, considering the magnitude of challenges Covid-19 has thrown at retailers, you could say spending intentions have held up rather well.

“Overall, Kiwis’ spending intentions can best be described as cautiously optimistic. That likely reflects how Kiwis are feeling at the moment in terms of the nation’s economic prospects.”

What can retailers expect for the busy sales season ahead?

Firstly, e-commerce will be booming. 63 percent of Kiwis are planning to shop online and 24 percent plan to buy their gifts through their mobile devices. However, this will not stop the last-minute shoppers who raid the mall like their life depends on it. Bricks and mortar still reigns top choice for consumers with 79 percent of Kiwis saying they are willing to face the crowds and hunt down a deal.

“For retailers, that means reevaluating their online presence and supply chains to make sure they can meet this change in demand. At the same time, they can’t afford to overlook their physical store presence,” says Morgan.

And how could we forget delivery. Good luck to retailers, post offices and delivery drivers this holiday season because 34 percent of Kiwis are expecting an online order delivery at-least once a week. And no one is more impatient than someone waiting for their parcel. When asked about delivery of their orders, 28 percent of those surveyed expect fast and free delivery, or for retailers to present them with a range of delivery options at a moderate cost. 70 percent will be making the most of home delivery services, while 13 percent will pick up their online orders from the store.

“With parcel deliveries becoming more ubiquitous, the demands of Kiwis for speedy and accurate delivery of goods will increase. To retain customers, local retailers should also invest in good technological solutions for inventory management and order fulfilment or risk having their customers turn to competitors”, says Morgan.

So, while retailers can be pleased with the spending intentions of Kiwis this Christmas, they still need to initially attract them and meet their (sometimes demanding) needs.

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