You may have seen our CEO and Business Growth Expert Andy Soloman feature in the Independent I this week around the top consumer trends for Christmas 2018, but if you missed it you can read the full article right here.
As with previous years, excessive spending may take a back seat in 2018, but there are a few key areas that not only evolve year-on-year with wider trends, but have firm foundations as Christmas essentials and as a result, will always secure a degree of consumer spending.
Decking the halls
One trend that is sure to remain is the consumer spend on decorations. As a nation, we love to pull out all the stops when decorating the house and it’s become an essential spend in its own right.
While many will have their dusty old box of decorations sat in the attic, it’s inevitable that at least one or two additions will be made, if not a total overhaul.
We’ve already seen a few stakes placed by the big retailers with a focus on strong, vibrant seasonal colours, as well as wood and metal finishes to coincide with the presentation of wreaths and other natural centrepieces.
Whether it’s the tree, interior or exterior of the house, consumers will no doubt incorporate these into this year’s endeavours.
Much merriment
Christmas always comes with an uptake in the amount of alcohol being consumed. And aside from the usual bottles of bubbles and Baileys, we can expect to see an uplift in some of the more unusual offerings currently available. Craft beers have continued to grow in popularity, but so have gin, vodka and whiskey from independent distilleries with their own unique twist.
Natural light
While historically traditional during the festive period, candles are another big trend in 2018 sure to secure some consumer spend. They form and complete a wide range of decorative looks, are cost-effective, and create a cosy atmosphere during those long winter nights.
Back to our roots
Gift-wise, electronics will no doubt remain popular, but we are also seeing a resurgence among the more traditional gift ideas as parents look to stimulate their children away from a computer, tablet or phone screen. Lego is always big at Christmas, bikes and other outdoor activities should also do well, board games are making a big come back in popularity for adults as much as kids, and other creative products such as drawing and painting should also do well.
Full stomachs
It goes without saying that the Christmas increase in eating leaves many of us a few pounds heavier come the New Year. We expect that food will account for a large proportion of consumer spend this Christmas for two reasons. Firstly, it’s a time to come together with family and friends to eat and drink, and as a nation, we always go a little overboard. Secondly, despite our habits at other times of the year, we value quality at Christmas and opt to head to bricks and mortar outlets to ensure we are getting the high standards we demand.
We also expect to see a growing proportion of spend attributed to organic or free-range produce. And while a turkey is the go-to for many, it’s likely that vegetarian and vegan options will also become more prominent across the board, from roasts to desserts and everything in between.
Yomdel CEO and founder, Andy Soloman, commented:
“Last Christmas we saw a distinct difference between consumer spending habits on food and non-food items, with food spend up 2.6% while the latter saw a 4.4% drop — the lowest since 2012.
As we brace for Brexit, it’s likely that this year will see a similar trend as political uncertainty plays its part in an unstable economic landscape. From the major decisions such as buying a house, right down to the smaller purchases in the retail sector, the ‘what if’ mentality has seen the majority reign in their spend in anticipation of the worst.
But it isn’t just political pressure creating problems for UK retailers. A sluggish rate of growth where wages are concerned is dampening consumer sentiment and forcing many online for those big brand Christmas gifts, with many more also opting to wait until the January sales.
In 2017, all areas of online retail grew as shoppers secured deals on health and beauty products, electronics, shoes and clothing and more.
In addition to the savings available, the online space also represents convenience. The ability to bypass the hustle and bustle of the high street and avoid the mammoth in-store queues – not to mention the predictably frightful weather. All of these things help make a busy time of year that bit easier and it’s really up to the bricks and mortar outlets to decide how they incorporate this within their consumer proposition, or offer something in-store that’s worth braving the crowds for.
Unfortunately, the reality of this shifting landscape is job cuts and store closures and we’ve already seen a few major household names fall by the wayside in 2018. Survival in this day and age requires more than riding seasonal spikes in sales and we will inevitably see those who remain reliant on this continue to decline.
While a physical presence will always hold some degree of value, it’s imperative that our high-street retailers consider how the integration of technology can help with the heavy lifting, reducing overheads and outgoings, while increasing the number of customers they can serve.”
