PRESS RELEASE: Aussies set to spend $10.5 billion on Christmas gifts despite cost-of-living crisis

Media Release

Aussies set to spend $10.5 billion on Christmas gifts despite cost-of-living crisis
 Australians expect to spend $10.5 billion on Christmas gifts this year, with more than 16m Aussies spending an average of $578 per person
 Gen Z is ramping up Xmas spending, with 26% planning to spend more on Christmas gifts this year than 12 months ago (despite increasing cost of living pressure)
 Responsible spending is the goal, with two thirds (67%) of Australians setting a budget for their Christmas spending
 Budgeting isn’t easy, with almost half (44%) of Australians expecting to get carried away and end up spending more than they meant to
 Australians expect to spend $3.4B in the Boxing day and New Year sales this year, with an average spend of $186 per person

5th October 2023: Tis the season to spend! Despite the cost-of-living crisis dominating headlines throughout the year, Christmas cheer and gift giving fever is inspiring Aussies to dig deep into their pockets and treat their family and friends. This results in an expected $10.5 billion in spending on Christmas gifts according to the September edition of the Fifth Quadrant Consumer Insights Study.

Boomers Top The List For Generous Giving
The cost-of-living crisis is plaguing our news feeds, with more than two thirds (71%) of Australians believing it will only get worse over the next 12 months. Despite this, consumers are still willing to spend to ensure a merry Christmas.
Gen Z is leading the way, with more than a quarter (26%) planning to spend more on gifts this year than last year.
When it comes to generational spending, Gen X is in the lead though with an expected spend of $692 (more than $100 ahead of any other generation), and Boomers are at the forefront when it comes to total spend, with sheer weight of numbers helping them contribute over $3.5 billion in gift purchases (vs. $3.2bn from Gen X).

Gen Z Leads On Responsible Spending
We all know how easy it is to get swept up in the excitement of holiday shopping for our loved ones, so Aussies are setting budgets to try and avoid getting carried away in the festive fervor. Gen Z leads the way on responsible spending, with almost three-quarters (73%) setting a budget for Christmas spending.
Unfortunately, despite these prudent efforts, more than two in five (44%) Gen Z still admit to typically going over budget.
Men Shopping The Sales In 2023
Looking beyond Christmas, more than 9m Aussies expect to shop the Boxing Day/New Year sales, spending a total of $3.4B. Flipping the script, men ($2B) are leading the way here, comfortably outspending women ($1.4B).
Younger consumers are also much more likely than their older counterparts to be looking for a post-Christmas bargain, with Gen Z at $293 and Gen Y at $273. Overall, this leaves Gen Y leading the way on total spend, expecting to drop $1.4B on discounted products.

Fifth Quadrant Director, Ben Selwyn said: “All in all, it is evident that it will take a lot more than a cost-of-living crisis to dim the spirit of celebration and generosity that defines the holiday season in Australia, with Aussies gearing up to welcome the year’s end with open hearts and open wallets.
For retailers, this means starting planning now to ensure they hold stock of popular items, and are ready for increased online and in-store traffic in the lead-up to Christmas.”

Other Key Research Findings
 90% of Aussies will purchase Christmas gifts for family, friends and work colleagues this year
 Consumers in QLD will lead the way on Christmas spending ($594), but NSW/ACT has the highest total spend with $3.6B
 Consumers in WA are ready for the sales, with the highest average spend ($230)
 Consumers in SA / NT plan to spend the least on both Christmas gifts ($514) and the sales ($94)
 Men ($589) are just $20 ahead of women ($569) when it comes to spending on Christmas gifts, but $75 ahead when it comes to shopping the sales ($225 vs. $150)

ENDS

For further information contact:

Ben Selwyn
Director
Fifth Quadrant
E: [email protected]
M: 0411 132 166

About the Fifth Quadrant Consumer Insights Study
• Monthly survey of n=1,000 consumers per month completing a 5-minute online survey
• Respondents are consumers 18+
• Data is weighted by state and gender to reflect the national distribution of the population across the country
• This report is based on the September wave of research (n=1,003).

About Fifth Quadrant
Too often, we see businesses confusing data with insights, but data alone is not enough. We provide organisations with insight about their markets and customers by layering context and expertise on top of data. This allows our clients to make better decisions and unlock tomorrow’s opportunities today.