Can guilt-gifting and self-gifting save holiday selling?
A bright spot in an expected subdued holiday selling season, according to The NPD Group, will be sales from consumers looking to splurge on themselves after a tough year and/or looking to splurge on others out of guilt for missing in-person celebrations.
“Splurges on both ‘guilt-gifting’ and self-gifting will be significant components of the consumer’s retail therapy during Holiday 2020,” said Marshal Cohen, NPD’s chief industry advisor, retail, in a statement.
Predictions of the trends are supported by findings from NPD’s annual holiday purchase intentions study:
- Forty percent of consumers indicated that, as a result of COVID-19, they will buy more gifts to bring joy during challenging times;
- Three in 10 are planning to spend more than last year because they have fewer expenses related to activities like dining out and travel;
- More than 40 percent will be shipping most of their gifts because they won’t be seeing family and friends as a result of COVID-19 precautions.
A survey from NextAdvisor found parents with kids under 18 are most likely to feel pressure to spend more than they can afford this year due to the disruptions their kids have faced. Farnoosh Torabi, contributing editor at NextAdvisor, said in a statement, “The holidays may feel like the final chance to make 2020 feel like it wasn’t a total bummer — especially for our kids who missed out on the normal childhood experiences.”
Groupon’s holiday survey found nearly 70 percent of Americans say they’re more appreciative of family and friends as a result of 2020’s challenges and 67 percent are more determined than ever to give their loved ones the perfect gift this year.
Self-gifting is expected to climb, according a few holiday surveys, as people look to treat themselves more for all they’ve missed out on in 2020. According to Groupon’s survey, self-gifting is expected to expand 35 percent. The average person plans to buy themselves six gifts, with the top self-gifts identified as dinner, clothes, staycation/road trip, wine delivery and spa packages.
- Practical Splurges and Guilt-Gifting Emerge As Holiday 2020 Sales Drivers, Reports – NPD
- ‘COVID-Guilt’: Why Parents of Young Children Are Feeling Pressure to Overspend on Holidays – Time/NextAdvisor
- 2020’s Silver Lining: 7 out 10 People Say They Appreciate Their Loved Ones More Than They Did at the Start of the Year – Groupon
- 2020 Deloitte holiday retail survey – Deloitte
- 90% of Canadians consider it important to buy from a retailer in Canada this holiday season – Retail Council of Canada
DISCUSSION QUESTIONS: Does it make sense that guilt-gifting and self-gifting will be prevalent this holiday season? How can retailers capitalize on the retail therapy trends?