Consumer awareness – more thoughtful spending decisions
High living costs in households translate into restrictions on spending on goods that are not essential items. In Poland, the most visible savings concern luxury products, jewellery and watches, but also furniture and interior design elements. More than half of consumers decided to prepare meals at home, giving up eating out, and nearly one third saved on entertainment. The smallest declines were recorded in categories such as children's clothes and accessories.
Inflation has resulted in a new approach to financial management among clients. It is mainly related to maximizing benefits while maintaining a specific spending regime and maintaining quality. Smaller quantities of products or products in smaller packages are much more likely to be purchased. Broken or damaged items are less often replaced with new equivalents and are more often repaired. Customers began to make informed choices and look for the best offers within their budgets.
Shopping frenzy – hunting for the best deals and choosing gifts
Consumers will take advantage of November sales mainly to meet their basic needs. Additionally, it will be an opportunity for them to do Christmas shopping and gifts at an attractive price. Hunting for the best offers, using deferred payments and discount coupons, special discounts, or additional benefits collected as part of loyalty programmes are undoubtedly the most popular consumer activities during the upcoming shopping frenzy. It should be underlined that consumers expect at least a 30% bargain during Black Friday.
According to the BCG report, we will see a record percentage of consumers planning shopping on Black Friday. In Poland, almost 80% of consumers declare their participation in November sales, and the planned spending of Polish consumers during this period is estimated at approximately USD 310. Mainly due to the high cost of living, the opportunity to take advantage of discounts on basic products and the previously mentioned Christmas gifts will be a major driving force in consumer choices.
Average spending related to November sales is expected to increase from 3% to 22% compared to 2022, depending on the studied country.
Almost half of consumers compare prices more often and consciously prepare for the sales period. Therefore, sellers should visibly offer combined price promotions, special discounts on first purchases or pre-order discounts. Due to the fact that more and more purchases are made online, we should remember about omnichannel approach, a transparent online and offline returns policy, a favourable selection of payment and delivery options, as well as efficient inventory management.
Shopping plans for the sales period and limited household budgets may mean that companies that have not prepared for the November sales may expect a decline in interest in their offer in the period just before Christmas.
Text: Dr hab. Anna Łaszkiewicz, Associate Professor, Sub-department of Marketing Research
Edit: Communications and PR Centre, University of Lodz