Consumers are ready to share the holiday cheer with trusted retailers – WWD
After spending last year’s holiday season overwhelmed by the pandemic, PwC’s 2021 holiday consumer survey reveals that consumers feel the freedom associated with the vaccine and are ready to participate in activities related to the vaccine. vacation.
Notably, the company found only 20% of consumers saying the pandemic could “dramatically decrease vacation spending.” In fact, nearly 40% of those polled said the pandemic would not affect their ability to make it through this holiday season and 30% of consumers said they would likely spend more than last year.
On average, according to the report, consumers will spend $ 1,447 on gifts, travel and entertainment, an increase of over 20% from the 2020 holiday season and a 13% increase from 2019.
Further, the survey indicates that after feeling deprived during the 2020 holiday season, consumers also plan to indulge themselves this year with consumers saying they will spend $ 442 on themselves on average this season. vacations, an increase of 48% year over year.
Millennials, the PwC report reveals, have the highest average budget for the holiday season at $ 1,646, compared to an average budget of $ 1,447 for all consumers. Additionally, 20% of Millennials said the pandemic had actually had a positive impact on their vacation budgets, citing increased savings during uncertainty last year.
In contrast, 26% of Gen Z consumers said the pandemic would have a significant impact on their ability to spend those vacations. To win over all consumers, PwC notes that it will be important for retailers to understand the differentiated preferences associated with budgets. For example, the report reveals that price-sensitive buyers are increasingly using a range of buy-it-now, pay-out options.
Meanwhile, when shopping, Millennials consumers were found to favor in-store pickup more than consumers in other age groups. PwC advised companies to create space in physical stores to meet this expectation, noting consumers’ willingness to try new methods of convenient pickup and repeat visits after great customer experiences.
Millennials also said they were eager to buy environmentally and socially responsible brands this holiday season, and took to social media for insight into a company’s environmental, social and governance practices. Mark.
According to PwC, trust will continue to be a big factor in winning over consumers this holiday season, with key drivers of purchasing decisions revealed as trust in the brand, local producers and stores, and brands that are environmentally friendly. and socially responsible.
Overall, 76% of consumers said they would favor companies with a strong ESG engagement. Diversity and inclusion in particular are on the minds of vacation buyers with 80 percent of survey respondents citing these values. Additionally, 76% of consumers said they would end a relationship with a company that they learn treats the environment, employees, or the community in which they operate poorly.
An overwhelming 92% of consumers said trust was a priority when shopping for the holiday season, compared to 70% of responses PwC saw in its surveys in previous years. The authors of the report said this was likely due to a change in the environment that has seen increased concerns about public health, cybersecurity and privacy issues when shopping online. To that end, 85% of shoppers said they would buy from local stores and independent retailers with a higher priority.
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