Shoppers worldwide will be focusing on value this festive season and are using technology to find the best deals, a recent survey shows.
A global survey by EY has shown that 69% of shoppers worldwide are focused on finding value this festive season, with a third planning to spend more than they did last year.
Described as “smart, savvy and shrewd”, according to EY, which surveyed 13,000 people worldwide including South Africans, holiday shoppers are using technology to uncover the best deals, are avoid misleading promotions and are prioritising meaningful value over impulsive purchases.
EY said the festive season shopping season this year started earlier than usual, with retailers rolling out deals as early as September. However, 52% of global consumers are holding back on spending, waiting for better deals as the season progresses. Over 67% of these consumers are actively tracking prices and promotions, while parents scramble to manage their tight budgets.
“Consumers say they will not start spending their holiday budget until later in the season. Our data suggests many are trusting that better deals will emerge as the seasonal sales unfold. In fact, the majority of global consumers say they will be buying only products that are on sale or promotion this year,” said EY.
According to EY, consumers are approaching holiday spending more intentionally, with many relying on credit, loans, or buy-now-pay-later options, while others have saved in advance. The report said consumers are focused on value and longevity, prioritising durable items such as technology, reusing decorations and cutting back on indulgent holiday foods to stretch their budgets.
“Not everyone is borrowing to spend; around half of all consumers say they have been saving for the festive season for some time. Wherever the money comes from, more consumers are determined to spend it well this year. Overall, they are more interested in buying items that promise value that lasts beyond the season”
The survey has also shown a surge in social commerce sentiment especially in China where half of consumers plan to shop via platforms such as TikTok. EY said social media is becoming a key sales channel, offering features including live-streamed shopping events where influencers showcase products and engage directly with shoppers. Retailers worldwide must integrate these innovative approaches to remain competitive, it said.
“Younger consumers are likely to be the most active shoppers this festive season. In fact, members of Gen Z are planning to increase their spending across nearly every category, from clothing to technology to experiences. These consumers can be particularly hard to please. They are impatient, they want convenience and they value sustainability. In many ways, they point to behaviours more consumers will adopt in the coming years.”
In SA, shoppers are blending physical and digital experiences. While 68% of consumers still prefer physical stores for the ability to see and feel products, online research plays a crucial role in decision-making, said EY.
SA shoppers are navigating the festive season against the backdrop of mixed economic signals. Stats SA this week reported a slight increase in consumer inflation to 2.9% in November, with food and nonalcoholic beverage inflation dropping to its lowest in 14 years.
Essentials including bread, cereals and eggs have become more affordable, offering some relief. However, fuel prices have increased and dining out has grown more expensive, with restaurant and hotel prices up 5.9% year on year.
However, optimism is also on the rise after business confidence reached its highest level since 2015, spurred by increased international tourism, higher metal prices and supportive government policies.
Consumer confidence, particularly among high-income households, is also at its best festive season level since 2019, according to the FNB/BER Consumer Confidence Index. Retail confidence has followed suit, reaching a three-year high in the fourth quarter of 2024, according to the Bureau for Economic Research.
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