Consumers and Christmas
Will consumers and Christmas help the UK economy?
As the festive season approaches, many marketers are fearing consumers’ unwillingness to buy due to their own personal financial circumstances. Pockets are being tightened and piggy banks filled as jobs are lost and the UK falls in to an economic crisis. Consumers and Christmas may not adequately benefit the profit for companies this year.
Even though confidence for the economic future has begun to rise, GfK’s monthly consumer confidence index tells a different story…
The monthly consumer and Christmas confidence index shows that while the likelihood to make a major purchase increased by four points in September compared to the prior month, it still sits at -21, way down from the score of -1 in 2016. The figures appear to point towards a Christmas of socks and candles, not new phones and the latest advertised products.
This may not seem to be a big deal for consumers or the general public, but for marketers, this could be their job on the line. With many companies already cutting costs through jobs, could a negative Christmas see the loss of more marketing jobs or could it show the value of marketing?
Although there appears to be an improvement in the overall index, the major purchase index and consumers’ views on their personal financial situation for the coming year remain low and in negative territory.
The negative numbers indicate that shoppers may be unwilling to make large and numerous purchases during the golden quarter. This September, consumer confidence came in at -25, well below the recorded -12 last year (2019).
The current economic situation has consumers concerned for the future, scoring -61, hugely increased from the score of -32 from last year’s concerns over Brexit.
This study was performed between 1st to the 14th of September, prior to the latest Covid case rises and lockdown measures. It’s likely this sudden rise and change has created more distress, causing consumers to save over the coming Winter lockdown in fears of the financial crisis.
This December could likely be worse than 2018, when sales flatlined for the first time since the 2008 economic crisis.
In 2008, The US’s largest investment bank, Lehman Brothers, collapsed, sparking an unprecedented economic crisis across the globe. The UK was hit with a recession, unemployment and poverty rose, damaging many people’s personal situations. It’s likely those who remember the crisis are worried 2020, into 2021, may mirror the 2008 circumstances.
What’s to come of Britains economy in the coming months?
Will consumers and Christmas benefit the economic crisis?
Only time will tell, however, the Shire Marketing team believe that from the trends, high street stores may suffer but those taking advantage of the digital world may see a rise in sales online.
Now is the time to start your Digital Marketing in hopes to financially reap the benefits of a ‘Digital Christmas.’ Contact our team today to start your Marketing and Sales adventure.
See our marketing and sales services here. Bespoke packages can be arranged depending on your needs and budget.