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Gifting Underpins Positive Retail Report

September 21, 2020

Gifting underpins a positive retail report for Christmas 2020

Retailers must capitalise on Christmas. Many are hoping it cements the growth in online shopping. Others are banking on Christmas to make up for a shortfall in profit. Some are hoping it saves them from insolvency. Regardless, every retailer is hoping shoppers return ready to spend record amounts this holiday season. 

Is it possible? We analysed Rakuten Advertising’s report to find out. It’s surprisingly positive. Thankfully, 70% of shoppers are planning to maintain or increase their spending this Christmas. However, the research hints of a deeper consumer trend emerging.

Key insights from the report include: 

  • 31% of consumers will spend more on their immediate family this Christmas
  • 37% plan to buy a more thoughtful gift
  • 17% are planning to increase their charitable donations

In this piece, after analysing the spending predictions for the coming holiday season, we confront two key questions. Does the data signal an underlying trend? If so, how can brands embrace it to help consumers? Keep reading as we explore the implications. 

YouPay is a safe, secure and free way to let someone else pay for you. It can help retailers increase their sales this Christmas.

Retailers are banking on kindness for Christmas

1. 31% of consumers will spend more on their immediate family this Christmas

It’s especially great to be a Mum, Dad, brother, sister, or child this Christmas. Families are set to spend more buying gifts for each other. As Rakuten’s report identified, 31% of consumers will spend more on their immediate family this Christmas. 

A second study of 2,000 shoppers across the UK supports this trend. As financial comparison experts found, families intend to spend 25% more this Christmas. 

2. 37% of consumers plan to buy a more thoughtful gift

It’s the thought that counts. As eBay’s Christmas Spend Trends report found, 37% of consumers said they’ll put more thought into this year’s gifts, compared to previous years. So what will these thoughtful gifts be? Given 56% of consumers have started a new hobby since the pandemic started, and 31% of their family members have taken notice, the most common gifts this Christmas will help them pursue their new passion. 

Specifically, the three most popular new hobbies started during lockdown are:

  • Baking (20%)
  • Gardening (20%)
  • DIY or home improvement (14%)

3. 17% planning to increase their charitable donations

Santa is going to need a bigger sled. Rakuten’s report revealed that 49% of consumers will maintain their donations to charities this Christmas—and 17% will increase it. Australia can expect a particularly generous trend this holiday season. 

At 39%, Australia has the highest percentage globally, of people planning to purchase Christmas gifts for more than 5 people. Even if there is a partial return to lockdown, 73% of Australians won’t decrease their spending.

Do those statistics signal a larger trend? 

As the above statistics attest, the gifting culture has grown significantly within families. Whether it’s textbooks for university, a new mattress when kids move out, or even a weekend away—families are increasingly finding ways to help each other out. However, modern consumers, shown by the 17% who’ll increase their charitable spend this Christmas, want to help the entire community. 

We believe these statistics are part of a broader cultural trend. Modern society is moving from a predominantly consumption economy to a combined consumption and gifting economy. Consumers have initiated the trend, companies must embrace it. As Rakuten’s report concluded, “Brands must be seen to be helping consumers.”

The cultural shift starts with consumers, but it’s supported by brands who aim to empower both families and communities. Two popular brands that exemplify this trend are Warby Parker and TOM’S. For every pair of glasses or shoes you purchase from them, they donate a pair to someone in need. 

However, the ‘buy-one, gift-one’ model has its limitations. We often want to gift a product, without having to buy it for ourselves as well. Given the overarching trend, it’s time to empower consumers with a new technology to help consumers navigate the gifting economy.

Empowering consumers to navigate the gifting economy

Before YouPay’s founder realised he could help millions of consumers, he wanted to buy his wife a gift. A dress, actually. While Matt runs a digital design company and is clearly technically adept, even he was frustrated navigating the website to select the right style and size. Then he had to click through multiple pages to pay. Why was buying a dress for his wife so difficult? Enough was enough. 

Matt envisioned a simple solution. Imagine if his wife could find the dress she wanted, send a payment link to Matt, and he pays—in one click. Simple, right? Having already integrated thousands of payment gateways at his design company, Matt knew it was possible. So he built it.

It’s time to introduce YouPay. It’s a safe, secure and free way to let someone else pay for you. Imagine if the 56% of consumers who started a new hobby during the pandemic had access to YouPay. When they find an item that helps them pursue their new passion, they could quickly send a YouPay link to a family member—who wants to spend more money on a thoughtful Christmas gift. 

Could a YouPay link bring you more customers this Christmas? If you’re a retailer who wants to empower your customers while increasing sales, you can apply to become a seller. Nevertheless, it’s the greater trend towards a gifting economy that’s most meaningful. We are excited to see how it continues to help individuals, families, and people in need. 

We’d love to hear your feedback on this trend and our tool. You can visit YouPay to learn more and send us a message. Christmas is around the corner, so let’s get ready.

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