Presents that are functional rather than fun might find their way under Christmas trees across Ireland next month as the cost-of-living crisis deepens and forces people to reassess the gifts they buy and the prices they pay for them.
According to research from EY published on Wednesday, consumers in Ireland and in other countries are getting ready for a “more financially cautious” Christmas, with cutbacks in festive food and decorations likely and seasonal spending set to focus on gifts people think are useful rather than on-trend.
While colourfully wrapped vacuum cleaners, air fryers or slow cookers may not make Christmas 2022 a season to be jolly, the EY Future Consumer Index does contain some good news as more consumers appear likely to have an environmentally friendly festive season, while growing numbers are feeling upbeat about life returning to normal in a post-Covid world.
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Overall, consumers are optimistic about the future with 74 per cent looking forward to getting “back to normal” after so much disruption caused by the pandemic.
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And while 58 per cent said they were very concerned about the rising cost of living, a similar percentage said they felt in control of their lives and were eager to catch up on experiences they missed out on due to the pandemic.
The 11th edition of the EY index, a global survey of more than 21,000 consumers in countries including Ireland, suggests that 25 per cent of respondents said they would be approaching Christmas with an “affordability first” mindset with a similar percentage saying “planet first” would be front and centre.
With environmental concerns rising, consumers are seeking ways to reduce consumption with 37 per cent saying they would buy less food for celebratory meals to avoid waste and 44 per cent plan to use less festive lights and decorations at home.
Concerns over inflation and the economy are ever-present with 92 per cent of respondents saying they were either extremely or moderately concerned by their country’s economy and 87 per cent expressing concern over their own finances.
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“We have seen Irish consumers grow more cautious over the course of 2022,” said Colette Devey of EY Ireland. “While fears of a resurging pandemic finally seemed to have lessened, a combination of inflation and increasing energy and household prices are challenging consumer sentiment.
“However, we believe there is still a cohort of Irish consumers who are eager to ‘make up for lost time’ and who are willing to spend, albeit with discernment, on shared experiences with loved ones over the festive season in a way that wasn’t possible at the height of the Covid-19 pandemic,” she said.
She said Irish consumers “are also making different decisions about the products that they will purchase. In addition to possibly spending less overall on gifts this year, consumers may shy away from the latest trends to focus on gifts that they believe are useful and which are locally sourced.”
