Hard times mean gifts without glitz
Unemployment, escalating food prices and load-shedding have emerged as the collective Grinch that Stole Christmas.
Eighty20 consumer analytics and business researchers predict a subdued festive season mainly because of eroded household budgets.
Citing a recent Marketing All Product Survey, Eighty20 said the research revealed significant shifts in consumer behaviour towards value-centric offerings because of major economic challenges.
It suggests this festive season “could see more gifting without the glitter”.
The research showed that the number of consumers buying across all major categories has declined over the past year.
Purchases on essential goods such as food, airtime, clothing and cosmetics have seen a relatively small 5% decline year on year, while “nice-to-haves” such as gifts, electronics, toys and games saw a much larger 20% decrease year on year.
“This festive season might be one where relatives will appreciate stocking fillers as gifts that new pair of socks, underwear or deodorant that weren’t so fondly received in previous years,” Eighty20 said.
Ncumisa Ndelu, frugal living expert and founder of the influential 1 Family 1 Stockpile Facebook group, said she does not shop at one particular store, “because that’s how you end up paying more”.
“I use all of them, buying the cheapest item here and there until I have everything I need. There is no one retailer that’s cheap, you get those few items that are cheap in a store.
“The good thing about the Christmas rush is that it comes in the wake of Black Friday and we tend to shop for Christmas too during Black Friday, then wait for more specials in January,” said Ndelu.
Melanie van Rooy, head of marketing at the Clicks Group, said they’re expecting modest double-digit growth this festive season, though spending is likely to happen later than usual.
“It is abundantly clear that while consumers feel the pinch this festive season will be one for simpler, basic gifts for the lowerincome segments, but the more affluent will continue to spend on lifestyle favourites and essential items. Consumers will, however, opt for promotions with value-added offerings,” Eighty20 said.
Lauren Shantall, head of Scout PR, which conducts trends analysis, believes anti-materialism will be the order of the day when it comes to Christmas.
“Gifts of food, particularly small-batch and with heirloom ingredients, rather than objects that require space or storage afterwards. We are also likely to go for conscious consumerism — upcycled and sustainably produced gifts made from vegan ingredients, especially skincare.
“In lieu of receiving physical gifts, more and more people are choosing to support causes by asking for donations in their name instead of a gift,” said Shantall.
With food being a priority for consumers, supermarket retailers have stocked up for the festive rush.
Shoprite Holdings told the Sunday Times that extensive planning for the peak retail trading period started months in advance “to ensure that Shoprite, Checkers and Usave supermarkets are well prepared and have sufficient stock of what our 28-million customers want and need … this festive season”.
It added: “Popular food items this time of year include the Forage & Feast Limited Edition festive range … that includes starters and snacks, glazes and sauces, roasts as well as desserts and treats.
“Festive meats include turkey, easy-carve leg of lamb, corned beef, corned tongue and various gammons,” the retailer said.