AMZ123 has learned that a newly released survey by market research firm Pureprofile shows that as living costs continue to rise, Australian consumers are approaching the Christmas shopping season with greater caution. 79% of respondents plan to adjust holiday spending, 35% plan to reduce gift budgets, and 30% intend to choose cheaper food and drinks.

The survey covered 1,015 Australians aged 18 to 64. It found that 62% of respondents are under moderate to high cost-of-living pressure. Among those facing the greatest financial pressure, the trend of spending cuts is more obvious: 90% plan to adjust spending, 44% plan to cut gift spending, and 34% plan to lower the tier of holiday food and drinks.

Rising living costs are also changing how Australian households allocate Christmas budgets. Respondents expect to spend an average of A$518 on food and drinks this year, A$12 more than last year, while the average gift budget is A$487, down from A$491 last year. This is the first decline in Australian consumers’ planned Christmas gift spending since 2023.

To cope with increasing holiday expenses, consumers are prioritizing cuts to non-essential spending. Among items they plan to reduce, Christmas decorations rank first at 70%, followed by dining out at 65%, and holiday experiences at 58%. This means that rather than canceling Christmas spending entirely, some consumers prefer to cut decorations, gatherings, and entertainment first to free up budget for food and gifts.

Overall consumer confidence has also weakened. Only 24% of respondents believe current economic conditions are good, down from 29% a year earlier; 33% say they have had a good or very good past year, also down from 36%.

Pureprofile said that as the holiday shopping season begins, consumers will pay more attention to price and spending certainty. Facing a cost-of-living crisis that continues to affect many Australian households, brands need to offer more affordable options and respond to spending concerns through services and information that reassure consumers.

Black Friday has become an important part of this holiday spending adjustment. The survey found that 58% of Australians plan to use promotions to pay for Christmas shopping. Among households with children aged 12 or under, this rises to 76%, showing that families with children are more eager to use promotions to lower holiday spending.

However, promotions do not necessarily mean real savings. Among consumers participating in Black Friday shopping, 47% say they often spend more than their original budget; among young families, this rises to 58%, and among Gen Z and millennial consumers, it is 51% for each group. For households with already tight budgets, promotions can both offer lower prices and trigger extra purchases.

Promotional pressure on consumers is also increasing. 44% of respondents say Black Friday promotions make them feel pressured to buy items they had not planned to buy, up from 34% a year earlier; another 37% find the whole promotional season overwhelming, also up from 29%.

The survey suggests that brands need to help consumers stay in control through clear and genuine discount information, easy price comparisons, price-match commitments, and flexible return policies. For merchants, the key to promotions is not just creating urgency, but showing consumers whether deals are real and products are worth buying, thereby building trust and driving orders.

In terms of shopping channels, habits differ across age groups. The survey shows that 21% of Gen Z respondents say they buy more products directly through social media platforms such as TikTok, Instagram, and Facebook than they did a year ago. This shows social platforms continue to play a role in product discovery and purchase among young consumers.

But young people have not completely shifted online. The survey found that 65% of Gen Z prefer to buy gifts in physical stores rather than online; among millennials, the figure is 50%. For some younger consumers, offline shopping is not just about purchasing products, but also includes meeting friends, experiencing the environment, and touching and comparing items in person.

Different age groups also receive promotional information differently. Compared with Gen Z, Gen X and baby boomers are about twice as likely to respond to retailer emails and newsletters; traditional media remains most influential for baby boomers. Brands need to arrange marketing channels according to different consumer habits, rather than concentrating budgets only on social media or online ads.

AI tools are also entering consumers’ Christmas shopping plans. The survey shows that about one in five Australians may use AI tools to find deals. The proportion is 26% among both millennials and Gen Z, higher than the overall level. For consumers planning to use AI, main uses include comparing prices or finding discounts, getting gift ideas, and seeking product recommendations while shopping online.

In terms of gift preferences, consumers also show a more pragmatic tendency. Gift cards, clothes or shoes, cash, and food and drinks are the gift types respondents most want to receive. At the same time, more people plan to make gifts by hand: 15% of respondents plan to give homemade gifts this year, up from 11% a year earlier; but only 17% say they want to receive homemade gifts.

The survey also shows that Australian consumers are already setting priorities for life after Christmas. Looking ahead to 2027, 53% of respondents list increasing savings as their top goal, followed by improving health and fitness at 39%, and spending more time with family at 37%. By comparison, travel and career development rank lower.

Author ✎ Summer/AMZ123
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Source: Australian e-commerce news
Original link: https://www.amz123.com/t/JCdhFwns