As the festive season approaches, businesses need to gear up for one of the busiest times of the year.  

With 2024 expected to bring unique consumer behaviours shaped by economic factors, local retailers in particular can take advantage of key insights to maximise sales.  

Based on the Bauer Insiders’ latest report on Christmas trends, here’s a guide for businesses on how to navigate consumer spending this holiday season and connect with customers effectively. 

The Cost-of-Living Impact 

Christmas remains a joyful time for many, but rising costs have increasingly influenced consumer spending. In 2023, 60% of shoppers adjusted their Christmas spending habits, and this trend is expected to continue into 2024.  

To manage their holiday budgets, consumers will increasingly rely on loyalty rewards, with 69% seeking more incentives, while others will look for price freezes and offers on essential items. 

Tip for Businesses: 
Highlight loyalty programs, exclusive discounts, or price freezes in your marketing campaigns. These incentives resonate with cost-conscious consumers and may encourage early spending. 

Strategic Gift Buying and Wish Lists 

Despite economic pressures, the joy of gifting remains central to the holiday season. In 2023, 88% of people still bought gifts, and the range of gift recipients has grown, with more people including friends, co-workers, and even pets on their lists.  

However, the nature of gifts is shifting toward more practical, budget-friendly items like clothing, food, beauty products and vouchers. 

Tip for Businesses: 
Offer affordable, practical gifts that cater to a wider audience. Gift bundles, hampers, or “essentials with a twist” can appeal to shoppers who want to give meaningful yet cost-effective presents.  

Promote early, but continue your marketing through December, as shoppers will wait for deals right up until Christmas Eve. 

The Role of Sales Events 

In 2023, over 50% of consumers relied on sales events like Black Friday to complete at least a quarter of their Christmas shopping. This trend shows no signs of slowing down in 2024, but businesses should be aware of growing consumer apathy toward over-commercialisation and distrust of sales promotions. 

Tip for Businesses: 
Ensure your sale events feel genuine. Consumers increasingly prefer price transparency, and nearly 84% report feeling that Christmas sales are becoming overly commercialised. Focus on clear, authentic messaging around your offers to build trust and appeal to deal-savvy shoppers. 

Online vs. In-Store Shopping 

Online shopping will continue to dominate, with 70% of consumers shopping online and 68% visiting physical stores in the lead-up to Christmas. That said, many shoppers will rely on both channels, especially for last-minute purchases.  

A key driver for in-store shopping is the convenience of securing gifts without worrying about delivery delays—a trend that is likely to remain strong. 

Tip for Businesses: 
Embrace both online and offline strategies. Ensure your website is user-friendly, offers easy checkout options, and highlights delivery cut-off dates. In-store, consider offering click-and-collect services or promoting the reliability of shopping in person to capture last-minute sales. 

Retailer Choice Driven by Convenience 

Convenience is a major factor in determining where consumers shop, with grocery stores remaining a top choice for buying Christmas gifts. The ability to shop for multiple items in one location appeals to busy shoppers who want to streamline their holiday errands. 

Tip for Businesses: 
If you operate in a retail location, focus on making the shopping experience as seamless as possible. Offer easy access to diverse products, bundle deals, and encourage impulse purchases with well-placed stocking stuffers or gift cards near checkout areas. 

Importance of Engaging Content and Advertising 

In 2023, 91% of consumers reported listening to the radio daily or most days over the Christmas period. Consumers often associate Christmas radio ads with the start of the festive season, and more than half look for information after hearing an advert.  

Additionally, storytelling in ads remains powerful, with 54% of consumers preferring ads that tell a compelling story rather than just focusing on price. 

Tip for Businesses: 
Leverage radio and audio advertising to create memorable, emotive campaigns that capture the holiday spirit. Incorporate storytelling into your campaigns to create a lasting connection with your audience. Don’t forget to maintain visibility right up until the last shopping days before Christmas! 

Make the Season Easier: Boost Sales and Engagement with Our Help 

Bauer Media’s creative and advertising services can help you engage consumers and drive sales during the festive season by tapping into these seasonal mindsets.  

By crafting tailored campaigns that resonate with holiday emotions and values, Bauer can position your products as must-haves this Christmas.  

Our diverse advertising platforms, including popular radio brands, allow businesses to reach a wide audience at the right moments.  

With strategic messaging and a focus on affordability and convenience, Bauer’s campaigns deliver measurable results, ensuring strong ROI and a successful holiday season. 

Talk to one of our advisors today 

Source: Bauer Insiders Insights Study Christmas 2023