Everything is currently becoming more expensive, from food to clothing to technology. Does that also influence people’s gift planning for Christmas this year?
There are several reasons for the currently horrendous price developments. On the one hand, the effects of the corona pandemic are still evident. On the other hand, one can clearly see the consequences of the Russian war in Ukraine and the associated sanctions. The increased material costs, delivery problems and lack of staff, etc., do their part to drive up prices and inflation. In view of the approaching Christmas, TECHBOOK wanted to know whether and if so to what extent the current price developments are affecting Christmas shopping.
Price increases play a role when buying Christmas presents
To find out, we asked our readers if the increased prices are affecting gift planning. Then we were also interested in how many people wanted to buy technical devices for Christmas and if so, which ones and within what price range. Over 30,000 took part in the non-representative survey and the results are quite clear.
More than half (58 percent) indicated that current price developments would affect their Christmas shopping. At just under 29 percent, significantly fewer voted “No”. Just under 13 percent stated that they did not yet know exactly whether the prices would affect gift purchases. At 73 percent, the majority of those surveyed also plan not to buy any technology for Christmas. The other percentages are distributed as follows:
- Smartphones and tablets (7.5 percent)
- TV (4.7 percent)
- Game consoles and/or games (3.6 percent)
- Headphones (2.3 percent)
- Smartwatch or fitness tracker (2 percent)
- other electronics (6.6 percent)
When it comes to the planned budget for technology Christmas gifts, the picture is not quite as clear. A total of 63 percent want to stay below 100 euros. 8.8 percent plan at least up to 200 euros, 6.3 percent up to 300 euros. 6.7 percent can imagine spending up to 500 euros, 3.4 percent up to 750 euros and 2.9 percent up to 1000 euros. And indeed, a proud 9 percent even want to spend more than 1,000 euros on electronic devices under the Christmas tree.
Also interesting: If you buy an iPhone 14 now, you will get nothing at Christmas
Amazon and Co. expect weak Christmas business
Of course, these results do not come as a complete surprise. With inflation and high energy prices in 2022, many are sure to think twice about buying expensive Christmas presents. A few weeks ago, online giant Amazon was quite pessimistic about this year’s Christmas business. In its outlook for the traditionally strong 4th quarter, the company expects sales of between 140 and 148 billion US dollars. That would be compared to last year. still a growth of two to eight percent. However, before the announcement of these figures at the end of October, analysts assumed significantly more.
November and December traditionally count for the important Christmas business in the retail trade. Important campaigns such as Black Friday and Cyber Monday also take place at the end of November, which give an additional boost to business. A spokeswoman for MediaMarkt and Saturn told TECHBOOK: “Basically, we have noticed that our customers are currently shopping in a more targeted and considered manner.” The reason for this is certainly the current price developments. Many are forced to cut corners this year and weigh new purchases carefully.
Trend towards energy-efficient devices
However, the evaluation of the first weeks of the Christmas business in 2022 also provided exciting insights. In general, there is a trend towards more energy-efficient and sustainable devices. High energy prices and the omnipresent climate crisis probably lead to this more precise buying behavior. “Were particularly in demand this year [zum Black Friday] Smartphones, TV sets, smart home products, IT hardware and small electrical appliances. In addition, the trend towards the purchase of high-quality and energy-efficient large household appliances has continued,” said the spokeswoman for MediaMarkt and Saturn to TECHBOOK.
This also roughly corresponds to the results of our reader survey and the current values of the GfK consumer climate index. Although the values improved somewhat compared to the previous month, overall we are still at a historic low. This leads to cautious purchasing behavior, with rising energy prices now leading to consumers wanting to rely on energy-saving technology in order to save money in both the short and long term.
Sources
- fiberglass (accessed November 30, 2022)
- Handelsblatt (accessed November 30, 2022)