2010 HOLIDAY SPENDING SURVEY WHAT AMERICANS ARE BUYING HOW MUCH THEY‟RE SPENDING, ON WHAT AND WHERE WHAT CELEBS HAVE BEEN „NAUGHTY‟ AND „NICE‟
November 24, 2010
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Introduction As the holiday spending season begins, and Americans continue to reckon with a slower-thanexpected recovery, new research released today reveals that consumers are largely planning to hold the line on spending relative to 2009. 52% say that they will spend the same or more than they did last year. Though Americans see the economy today as better than it was, and are less concerned about losing their jobs, they are more concerned about the prospects for future economic growth than they were last year, and their budgets continue to be guided by caution about the current climate. In turn, consumers are increasingly turning to the Internet for their holiday shopping needs; 37% plan to shop online more this year, a gain of 7% over last year. And for the under-40 segments, the rise of social shopping continues as a key trend; 24% of social media users (representing 72% of total respondents) say they will make a purchase decision this holiday based on a recommendation they receive from friends or family through a social media network – including 34% of 30-39 year olds and 30% of 18-29 year olds. With Americans looking for ways to get into the holiday spirit, respondents were asked to choose from a list of public figures to determine who‟s been naughty and who‟s been nice in 2010. Sandra Bullock and Taylor Swift continue to be seen as particularly deserving of holiday generosity this year, while Americans think that Tiger Woods and Mel Gibson should be in for some healthy servings of coal. Penn Schoen Berland conducted 1,006 Internet interviews of American consumers from November 16-17, 2010. The margin of error is ±2.53% and larger for subgroups.
State of Personal Finances and Effect on Gift-Giving Overall, consumers are feeling slightly better about the current state of the nation‟s economy; 5% fewer describe it as “poor” than did so in 2009. And going forward, many are optimistic that the economy will improve; while just 16% think that the economy is in “excellent” or “good” shape today, 35% think it will be in one year‟s time. 2010
2009
Change
Male
Fem
Income <40K
Income 40-70K
Income 70K+
2
2
0
2
1
1
1
2
Good
14
11
+3
15
12
13
10
18
Not so good
58
55
+3
55
61
57
61
57
Poor
27
32
-5
28
26
29
28
23
2010
2009
Change
Male
Fem
Income <40K
Income 40-70K
Income 70K+
3
4
-1
4
2
2
3
5
32
38
-6
31
34
32
30
34
How would you describe current state of the nation’s economy? Excellent
A year from now, what state do you think the nation’s economy will be in? Excellent Good
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Not so good
49
41
+8
45
53
48
51
49
Poor
16
17
-1
20
11
18
16
12
Americans are also feeling more positive about the state of their personal finances – particularly those with annual household incomes over $70,000. 43% say that their personal finances are “excellent” or “good,” an increase of 6% over 2009; 56% of wealthier respondents say the same. Consumers are also feeling increased job security, as 6% fewer report that they are “very concerned” about losing their job in the next year.
2010
2009
Change
Male
Fem
Income <40K
Income 40-70K
Income 70K+
3
5
-2
3
2
2
1
6
Good
40
32
+8
39
40
29
43
50
Not so good
42
41
1
40
43
47
40
35
Poor
16
22
-6
18
14
23
16
9
How would you describe the state of your own personal finances? Excellent
How concerned are you that you will lose your job in the next year? Very concerned Somewhat concerned Not very concerned Not at all concerned
2010
2009
Change
Male
Fem
Income <40K
Income 40-70K
Income 70K+
15
21
-6
15
15
19
13
12
27
24
+3
29
25
27
29
25
29
24
+5
27
30
23
31
34
30
31
-1
28
31
31
27
28
Consumers feeling slightly more optimistic about the national economy and their personal financial situations, but how will that impact their holiday spending? Most consumers are planning to maintain their prior levels of spending this season – 52% say they will spend the same as they did last year. However, 29% are planning to cut back, including 33% of male respondents. Indeed, the current economic situation continues to exert a strong influence on holiday spending, with 33% saying that their budget will be affected “significantly” compared to past holiday seasons before the recession. This trend remains largely unchanged from 2009.
Compared to last year, do you plan to spend more/less/the same during the upcoming holiday season?
All
Male
Fem
Income <40K
Income 40-70K
Income 70K+
More
19
19
30
17
19
19
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The same
52
48
45
54
53
52
Less
29
33
25
29
27
29
How much do you think the current economic situation is going to affect your budget this holiday season compared to past holiday seasons before the recession?
2010
2009
Change
Male
Fem
Income <40K
Income 40-70K
Income 70K+
Significantly
33
36
-3
32
35
44
30
24
Moderately
31
30
+1
30
32
29
32
34
19
20
-1
18
21
27
22
20
17
14
+3
21
13
10
17
22
Slightly Not at all
Consumers who plan to spend less this holiday are largely doing so because they are trying to get out of debt (51%) or because they are not sure that the worst of the recession is behind us (48%). [Among those spending less] Why do you anticipate spending less this holiday season? Please select all that apply.
All
Male
Fem
Income <40K
Income 40-70K
Income 70K+
I am trying to get out of debt
51
54
48
47
54
51
I am not sure that the worst of the recession is behind us
48
58
39
44
50
53
We instituted a cap on gift costs this year
25
23
28
17
29
37
I lost my job
18
18
18
25
16
9
I am fearful of losing my job
11
14
9
8
14
14
Unlike last year, I am not planning to travel this year
10
8
11
7
11
14
I am fearful of my family members losing their jobs
9
9
9
5
11
13
I am anxious about my investments
7
9
5
4
4
12
Other
16
11
21
13
16
17
Online Shopping Gains, Though Retailers Keeps Pace on Deals
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37% of consumers say that they will be shopping online more this year – a 7% increase over last year. And the strength of online shopping is not based entirely on price advantages, as 51% continue to say that they will find better deals in a store rather than online. (Online retailers can take heart in the fact that 59% of respondents aged 30-39 say that they‟ll find better deals on the Internet). Nevertheless, 62% of consumers plan to shop at retail stores about the same amount they did last year. Compared to last year, do you plan to do each of the following more, less, or the same amount? (Ranked by % saying “more”) Buy discounted items
MORE
LESS
ABOUT THE SAME
2010
2009
Change
2010
2009
Change
2010
2009
Change
51
53
-2
7
7
0
43
40
+3
Use coupons
47
50
-3
12
9
+3
41
40
+1
Shop online
37
30
+7
20
22
-2
43
48
-5
Use cash to buy gifts
33
37
-4
15
15
0
52
48
+4
Shop at outlets or discount stores (e.g. Ross, TJ Maxx, Loehmann‟s, etc)
24
28
-4
25
24
+1
51
47
+4
Shop at retail stores
16
19
-3
22
23
-1
62
59
+3
Take advantage of special programs such as layaway or 0% interest
15
22
-7
38
28
+10
47
50
-3
Use credit cards to buy gifts
13
14
-1
45
48
-3
42
38
+4
Thinking about this holiday season, do you think you will find the best deals… In a store, not online Online
Male
Female
Income <40K
Income 40-70K
Income 70K+
58
45
56
51
52
46
42
55
44
49
48
54
18- 29
30- 39
40- 49
50- 65
0
51
41
49
0
49
59
51
2010
2009
Change
51
51
49
49
Some brick-and-mortar retailers are showing some growth, as well. 7% more consumers plan to shop at Target this year than did so last year. Furthermore, the online retail market may be diversifying – despite the increase in consumer intent to shop online this year, many fewer consumers are planning to shop at Amazon.com. However, current Amazon.com shoppers are increasing in intensity – 34% of respondents who shopped there last year plan to do so more this year. Do you plan to shop at any of the following stores this holiday season? Please select all that apply. Wal-Mart
2010
2009
Change
Male
Female
Income <40K
Income 40-70K
Income 70K+
55
63
-8
49
60
60
57
45
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Target
42
35
+7
34
51
37
44
47
Amazon.com
36
47
-11
35
36
32
38
40
Best Buy
27
28
-1
30
25
22
27
35
Kohl’s
26
23
+3
22
31
15
33
33
Compared to last year, do you plan to do each of the following more, less, or the same amount? (Ranked by % saying “more”) Amazon.com
MORE
LESS
ABOUT THE SAME
2010
2009
Change
2010
2009
Change
2010
2009
Change
34
31
3
21
19
2
55
50
5
Wal-Mart
25
29
-4
19
18
1
57
53
4
Target
18
18
0
25
28
-3
58
54
4
Dollar Store
18
27
-9
24
20
4
56
53
3
Kohl's
15
13
2
30
31
-1
46
56
-10
The Rise of Social Shopping Perhaps the most important trend affecting this holiday shopping season is the rise of social shopping, particularly in the under-40 demographics. 72% of consumers have created an account on social media, including 79% of 30-39 year olds. And a quarter of all respondents are following brands on social media, including 38% of 30-39 year olds and 31% of 18-29 year olds. Social media networks are increasingly integrated into consumers‟ shopping behaviors, as well. This holiday, 24% of social media users say they will make a purchase decision based on a recommendation they receive from friends or family through a social media network – including 34% of 30-39 year olds and 30% of 18-29 year olds. Have you ever created an account on a social media network (such as Facebook, MySpace, LinkedIn, Twitter)? Yes No Don‟t know
Do you follow any brands on social media
18- 29
30- 39
40- 49
50- 65
Income <40K
Income 40-70K
Income 70K+
76
80
79
73
58
74
70
73
28
23
14
19
25
41
23
29
25
3
4
2
6
1
2
1
4
1
2
All
Male
Fem
18- 29
30- 39
40- 49
50- 65
Income
Income
Income
All
Male
Fem
72
68
25
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networks?
<40K
40-70K
70K+
Yes
26
25
26
31
38
23
14
25
25
28
No
69
70
69
60
60
73
83
68
72
68
5
5
5
9
3
4
3
6
3
4
All
Male
Fem
18- 29
30- 39
40- 49
50- 65
Income <40K
Income 40-70K
Income 70K+
24
23
25
30
34
18
14
25
23
26
No
52
58
47
46
46
56
63
54
56
49
Don‟t know
23
19
28
24
20
27
23
21
22
25
Don‟t know
[Among social media account holders] Thinking specifically about this holiday season, do you think you will make purchase decisions based on recommendations you receive from friends and family on a social media network? Yes
What Americans are Planning to Buy Gift certificates, clothing and toys remain the three most popular gift categories, though spending for all has slipped slightly from last year. 2010
2009
Change
Planned Spend
Gift certificates/ Gift cards
50
49
+1
71.7
Clothing and accessories
47
50
-3
75.1
Toys
40
46
-6
53.9
Video games
33
32
+1
29.9
DVDs/Blu-ray Discs
31
34
-3
22
Books
28
30
-2
16.4
Cash
28
30
-2
54.7
Jewelry
23
24
-1
35.3
Music
22
24
-2
14.6
Consumer electronics (e.g. TV, iPod, etc)
21
20
+1
52.6
Gift Planning
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Health and beauty products
19
24
-5
16.6
Computer or computer products
15
16
-1
32.7
Items for the home or garden
15
13
+2
16.3
Wine/Liquor
14
17
-3
14.6
Tools
11
14
-3
13
Sports and outdoor equipment
11
11
0
12.9
Flowers/Gift baskets
9
13
-4
9.56
Movie theater tickets/memberships
9
12
-3
7.21
Charitable donations
7
8
-1
15.7
Magazine subscriptions
5
6
-1
3.11
Consumers are nevertheless still happy to get what they give, as cash, gift certificates and clothing/accessories top the list of gifts respondents would most like to receive. Consumers are also increasingly interested in receiving electronics as gifts – 17% say electronics are on their wish list this year, 5% more than last year. What do you want for Christmas this year? Top 5 shown. Cash
60
Income <40K 54
Income 40-70K 64
Income 70K+ 54
+1
24
36
32
30
26
0
18
35
26
25
18
19
-1
12
18
17
18
17
12
+5
14
15
15
20
2010
2009
Male
Fem
57
60
-3
Gift certificates/ Gift cards
30
29
Clothing and accessories
26
Books Consumer electronics (e.g. TV, iPod, etc)
Apple continues to be a buzz brand in the computer space this year – 40% of consumers who intend to purchase a new computer say they are considering Apple, a 12% increase over last year. And 12% of respondents who are planning to buy consumer electronics this year say that a tablet device such as an iPad or Blackberry Playbook is on their list, a strong showing for a category that didn‟t really exist in 2009.
[Among computer intenders] What brands are you considering? Top 5 shown.
2010
2009
Change
Male
Fem
Income <40K
Income 40-70K
Income 70K+
Dell
53
57
-4
51
56
39
67
51
Apple
40
24
+16
27
61
45
24
51
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Hewlett-Packard
30
54
-24
20
46
36
25
34
Toshiba
30
18
12
16
51
49
10
40
Sony
29
27
+2
28
30
41
22
30
Americans Know Who’s Bad or Good Sandra Bullock and Taylor Swift remain America‟s Sweethearts, topping the “nice” list for the second consecutive year. On the naughty side of things, Tiger Woods and Mel Gibson ride their turbulent 2010s into placements near the top of the list of celebrities respondents think deserve a lump of coal. NICE LIST Sandra Bullock
All 55
Top 10 Male 47
Fem 62
Taylor Swift
40
35
45
Angelina Jolie
30
31
30
Beyonce
27
23
30
Conan O'Brien
21
25
17
Katy Perry
18
15
Bret Michaels
17
Jay Leno
NAUGHTY LIST
“Top” 10 Male Fem 60 73
Tiger Woods
All 67
Lindsay Lohan
51
45
56
Mel Gibson
48
45
50
Kanye West
45
41
49
Real Housewives of New York City
39
35
42
21
Real Housewives of New Jersey
38
34
42
16
19
Real Housewives of Orange County
38
35
41
17
20
15
Brett Favre
37
42
31
Jon Stewart
16
21
12
Real Housewives of Atlanta
34
31
38
Leann Rimes
16
17
15
Britney Spears
33
32
35
Want more? PSB‟s Holiday Spending Survey contains detailed information about Americans‟ gift giving plans for the 2010 season. More detailed information is available for the following categories Clothing & Accessories Computers Consumer Electronics Gift Certificates
Health & Beauty Movies Music Toys
Please contact Dave Hughes at dhughes@ps-b.com or (646) 981-1486 to learn more.
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