Havas Media Group North America and Disqo Report: 35% Of Us Consumers Cutting Back on Holiday Spending

By PR Newswire On Dec 14, 2022

Havas Media Group (HMG) North America and customer experience (CX) intelligence platform DISQO^™ released a “Holiday Intelligence Report” with insights about consumers’ holiday shopping intentions as they approach peak seasonal spending days this year. Highlighting the divide between lower- and higher-income consumers, the report discusses potential spending impacts across grocery, gifting, travel, and more.

Havas Media and DISQO found that the majority of consumers (72%) “trading down” or staying flat on spending due to financial constraints, but many also remain willing to increase spending on gifts, connecting in-person with loved ones, specialty groceries and dining out. The insights show opportunity areas for brands and their messaging that will compel consumers to purchase behaviors through the remainder of the season.

Also Read: Facemoji Keyboard’s New Features Let Users Text With Style

“As the industry champion for meaningful media, Havas Media helps brands authentically and meaningfully connect with customers around sentiment and shared values,” said Amy Pacheco, Vice President of Marketplace Intelligence at Havas Media Group North America. “DISQO helped us to give our clients a pulse on consumer attitudes and intent during a cost-constrained season so they know how best to advertise right now.”

Key takeaways:

Spending less is a priority for most consumers (35%). Higher-income consumers (annual HH > $75K) are much less likely to cut back.

Across all product categories, there is a 4-point decrease in end-of-year spending intent, suggesting that overall spending will be below 2021.
For lower-income consumers, about 40% are cutting back; while only 25% are increasing spending (15-point difference).
For higher income consumers, the findings are reversed: 27% cutting back and 41% plan to increase spending (14-point difference).

Consumers are prioritizing personal connections including gifts and spending time with loved ones.

The only spending categories to see increases in intent are buying gifts, traveling by car, and attending parties and social gatherings.
- Intentions for air travel were down 7 points while intentions for car travel were up 5 points; the 12-point difference shows preference for economical travel.
When it comes to buying gifts, 21% of consumers are willing to trade up to more premium products, higher than any other category.

Specialty groceries and dining out are high priorities.

Over 30% of lower-income consumers and more than 50% of higher-income consumers are willing to pay more for a nicer dining out experience; consumers are also willing to tip generously.
Over 25% are willing to pay “a little more” for specialty groceries, but only ~15% will pay “a lot more.”

“DISQO and Havas Media are like-minded about propelling valuable customer experiences by helping brands put their customers at the center of every decision,” said Patrick Egan, Director of Research and Insights at DISQO. “As consumers tighten their belts, it has never been more important to meet them where they are. Our work with HMG will help brands understand how, when and where consumers expect them to show up.”

SOURCE: PR Newswire