Never too early for brands as Xmas countdown begins

The summer holidays might be in full swing, but greater consumer confidence in the return of the traditional Christmas is likely to prompt Brits to start shopping sooner and spend more this festive season – and brands will need to act early to make the most of the opportunity.

So says a new report from eBay Ads UK, which reveals a quarter (25%) of Brits that celebrate Christmas say they will have started thinking about Christmas shopping before the end of August.

The research, which surveyed 2,000 UK consumers who celebrate Christmas, reveals that people are feeling more optimistic about Christmas 2021 as they anticipate a more ordinary festive season than last year.

Three in five respondents (60%) feel optimistic that they will be able to celebrate as usual this Christmas, while half (49%) think that this Christmas will feel traditional and plan to do what they always do. A quarter (25%) feel Christmas will be more exciting this year – up from 16% in 2020.

This positivity could prompt people to prepare for Christmas earlier this year – with 27% of respondents planning to start Christmas shopping and preparations earlier than they did last year, and two fifths (41%) saying they will have have finished their Christmas shopping before December even starts. In comparison, when asked the same question in 2020, only 25% of consumers said they would plan to finish Christmas shopping before December.

And, while people report having spent slightly less, on average, on Christmas presents and celebrations in 2020 (£527.88) compared to 2019 (£551.34), this year many consumers are planning to spend more – suggesting greater confidence in their financial situation.

According to the research, nearly a third (30%) of consumers plan to spend more, and only 15% plan to spend less. This is much more optimistic compared to 2020, when only 13% said they’d spend more, and 31% said they’d spend less.

However, despite this optimism, many people are still worried about further disruption due to Covid-19. Nearly half (45%) are likely to put off making plans for Christmas until the last minute, and 30% are so worried about more disruption that they might even celebrate Christmas early with friends or family.

UK at eBay general manager of advertising Harmony Murphy said: “After so much stress and disruption over the past year and a half, and last Christmas especially, it’s brilliant to see Brits are finally feeling more hopeful about this year’s festive celebrations – albeit cautiously.

“To make the most of the opportunity this presents, brands need to start engaging with customers early on to ensure they are front of mind when it’s time to purchase. And, taking into account ongoing uncertainty, brands should also look to tap into the mindsets of their customers to make sure they are interacting with them in meaningful and relevant ways – however they are feeling this Christmas.

Over the course of August 2020, eBay saw a 66% boost in searches for the keywords ‘Christmas’ and ‘Xmas’ compared to July 2020.

The Sporting Goods category saw a particular surge in Christmas-related traffic, with searches up 262% in August 2020 compared to the previous month, while Christmas searches in the Clothes, Shoes and Accessories and Home & Furniture and DIY categories jumped 83% and 85% respectively.

MediaCom UK managing partner Pauline Robson said: “2020 brought us a Christmas like no other with retailers, brands and consumers having to flex and adapt plans at short notice. As we look forward to what we hope will be a less disrupted Christmas, this data from eBay demonstrates that it is even more important than ever to understand the mindset and behaviours of your audience in the run up to this crucial period.

“The brands that will win this Christmas will be those that are able to use this insight to drive cultural relevance and to ensure that their campaigns reflect the diversity of their audiences. But if there is one thing that the pandemic has taught us, it’s that things can change quickly and that businesses need to be able to adapt and pivot in response, so flexibility will be key.”