According to the latest GfK survey, consumers in Germany plan to spend an average of €330 on Christmas gifts this year, which translates into a potential sales volume of €19.8 billion for this important year-end sales period. The second wave of Covid-19 is unsettling consumers in terms of economic and income expectations, as the current GfK consumer climate shows, and half of the consumers are worried about their personal economic future. Nevertheless, retailers can expect a good Christmas business similar to last year.
The selection of gifts is also influenced by the pandemic. While retailers could still expect a sales volume of €1.84 billion for vouchers in 2017, it is expected to be significantly smaller in 2020. Sixty-three percent of consumers do not want to give travel vouchers as gifts, 58 percent will do without restaurant vouchers and 55 percent will avoid buying vouchers for beauty salons, fitness studios or other wellness facilities. Restrictions on travel and the closure of restaurants and leisure facilities are having a clear effect this year.
There are differences in spending behavior among the different target groups. The 18 to 29-year-olds, for example, want to spend around €500 on Christmas gifts, almost 50 percent more than last year. In addition to cosmetics and perfume, consumer electronics are very popular this year.
However, savings will be made by people age 50 and over. They are mainly looking to spend less money than last year on clothing, shoes or accessories as well as home accessories and decorative items. According to the GfK survey, almost half of the 50-74-year-olds think it is the right thing to hold back on gifts this year.
Online retail has benefited greatly from the Covid-19 pandemic so far and this is also the case for the Christmas business. 55 percent of the people surveyed are planning to buy more Christmas presents on the Internet this year than usual, especially the 18-39-year-olds.
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