Recent research from Vericast reveals a conflicted consumer sentiment regarding holiday spending for the 2024 winter season. This study surveyed 1,000 U.S. adults and analyzed data from Vericast’s 2024 Holiday Retail TrendWatch, highlighting the tension between the desire to splurge and the necessity to save.
Spending Trends and Demographics
According to the data, 41% of consumers plan to spend more on gifts for themselves this holiday season, with this trend most prevalent among Gen Z (47%) and Millennials (56%). However, 46% of consumers are focused on budgeting and reducing overall holiday expenditures. The conflict extends to holiday party planning, where 56% of hosts aim to enhance their events by spending more, yet 66% are simultaneously seeking cost-saving measures.
Vericast’s research indicates diverse attitudes towards dining out during the holiday season. While 23% of consumers plan to dine out more frequently, particularly Gen Z (34%), Millennials (33%), and Millennial parents (42%), Gen X shows a shift towards dining out less (44%).
Shopping Behavior and Preferences
“Inflation has slowed, but that doesn’t mean it has stopped impacting wallets,” said Chip West, consumer behavior and retail category expert at Vericast. “Consumers will always spend around the holidays, but rising costs mean they are tightening their belts and putting more thought into what, how, and when they will buy – from gift giving to dining out during the season. Understanding how consumers are planning to shop this year can help marketers capitalize on moments in time and reach shoppers across channels.”
The study also highlights significant changes in holiday shopping behaviors. There’s a trend towards later shopping, with only 44% of consumers starting their holiday shopping in October or earlier, down from 47% in 2023. Most consumers (74%) plan to do their shopping in November (41%) and December (33%).
Deals and discounts play a key role, with 38% of respondents seeking affordable holiday shopping options and 56% viewing the holiday season as a good time for purchases due to sales. Additionally, 27% want guidance on where to find the best local deals, and 23% seek information on restaurant deals for busy days.
Implications for Jewelers
For jewelers, these insights highlight the importance of strategic marketing and timely promotions. With consumers exhibiting cautious spending behaviors and a preference for physical gifts, jewelers should focus on offering attractive deals and discounts, particularly through preferred channels such as email and online coupons. Moreover, limited-time offers can tap into consumer fears of missing out, driving impulse purchases.
