HShaking hands is a thing of the past, the mask is our constant companion, the virtual world is the new normal – the COVID-19 pandemic has turned our lives upside down this year. Looking ahead to Christmas, the mood is subdued for some and optimistic for others. But everyone agrees that it will be a special Christmas. And the Christmas business? Does it fall victim to Corona like so many other people or is the urge to give gifts all the greater?
Much is different, some is the same
To find an answer to this, EY carried out a representative study. In the period between November 11th and December 7th, 2020, we had 400 consumers in all parts of Switzerland telephone surveyed by an independent market research institute – with the aim of receiving detailed information about planned purchases of Christmas gifts. The general consumer behavior in the run-up to Christmas was not the subject of the survey. Lo and behold: Even if COVID-19 has changed a lot, some things seem to last. The purchase of Christmas presents is also firmly planned for Swiss consumers this year.
A full Christmas budget like never before
Sure, the anticipation of the festive season and the pre-Christmas shopping experience are somewhat clouded due to the current circumstances and restrictions – that’s what seven out of ten respondents say. Swiss consumers don’t let their Christmas shopping spoil themselves – on the contrary: According to our Christmas study, the planned average budget for Christmas gifts this year is CHF 327 per person, more than ever in the last ten years. The previous high was recorded in 2018 at CHF 310. In view of the uncertain times, this number may surprise a little at first glance, but at second glance it is understandable, as we had an exceptionally challenging year because of the COVID-19 pandemic; many people worry about the future or have lost loved ones. Despite or because of these difficult times, they want to do something good for themselves and their families this Christmas.
Differences in gender and regions
The main drivers for the high budget are men. You want to spend an average of 393 francs; their willingness to consume increased by 65 francs compared to 2018. In comparison, women with an average budget of CHF 264 shop much more modestly; their willingness to consume decreased by 27 francs compared to 2018. Families with children have a gift budget of 399 francs and singles one of 221 francs – their budgets have remained relatively constant since 2018. The situation is different for childless couples. Your average budget this year is 366 francs, plus 59 francs compared to 2018. There are also differences between the various regions in Switzerland: with 356 francs, the consumers in the Zurich region are particularly generous. The Ticino residents are the most economical with an average of 150 francs.
Toys top, travel flop
As in previous years, toys top the gift hit list in 2020, for which an average of 58 francs is spent, followed by gift vouchers and money (57 francs), groceries and confectionery (46 francs), books (27 francs) and cosmetics (24 Francs). In view of the ongoing pandemic, the fact that board games are among the best-selling items is not surprising – nor is the fact that trips and visits to events are given significantly less. The time of Christmas shopping also remains unchanged: 59% of those surveyed buy their gifts in December, as they did before.
Offline instead of online
However, the type of shopping is a bit unexpected. There is no doubt that digitization has experienced a huge boost with the corona pandemic. The virtual world found its way into everyone in one form. We worked remotely, our kids were homeschooled, and we shopped online. It is all the more astonishing that Christmas shopping in stationary retail is still very important despite COVID-19. 61 percent of the 400 consumers surveyed said that they would buy the Christmas gifts in department stores, shopping centers and specialty stores again this year. This is the only place where the products can be assessed directly and, if necessary, expert advice is available – arguments that continue to work. Only ten percent of those surveyed prefer online shopping. While haptic, sensual and emotional perception falls by the wayside on the Internet, online purchases can be made around the clock and from home, which is now beneficial to health protection. Again, 29 percent of those questioned make use of both options. The study clearly shows: Despite Corona and despite the digitalisation push, Swiss consumers will remain true to their behavior with regard to Christmas gifts in 2020.
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