The cost of Christmas 2008

The cost of Christmas 2008 A survey by Keep Christmas Cheap The Cost of Christmas 2008 A survey by Keep Christmas Cheap This survey—hosted by Survey Monkey—was conducted between 26-28 November 2008 by Keep Christmas Cheap (www.keepchristmascheap.co.uk). A total of 55 respondents took part in the survey, the majority of whom are members of UK Business Forums (www.ukbusinessforums.co.uk). About Keep Christmas Cheap Keep Christmas Cheap is a resource for consumers and businesses who want to save money at Christmas. • • Consumers can use the site to browse and share ideas for saving money at Christmas; for example, recipes, craft ideas, discount shopping codes and ads for low-cost Christmas gifts and trimmings Businesses can advertise for a one-off fee of £10 per page, either by advertising individual products or by providing sponsored articles (recipes, craft ideas etc). Keep Christmas Cheap is owned and managed by debbidoo Ltd (www.debbidoo.com), a marketing services provider in North Wales. 2 Question 1 How respondents feel about money in the run-up to Christmas 2008 The majority of respondents (34%) said they would probably have to tighten their belts a bit, but didn’t foresee any major problems. Which of the following statements most closely describes your thoughts about money in the run-up to Christmas 2008? 9% 5% 5% 5% 13% I'm a Christmas addict - I can't wait! Money or no money, I'll still enjoy myself Things have never been better - lead me to the shops! Recession? What recession? This Christmas is no different to any other. Respondents answering “other” said: • • 4% I'll probably have to tighten my belt a bit, but I don't foresee any major problems I'm pretty worried, and will definitely cut back in some way this year 25% • I'm terrified - I'm drastically reducing my Christmas budget this year I'm depressed - the thought of being so skint this Christmas is really getting me down • • 34% Other (please specify) “I don’t really feel any different” “I hate commercialising Christmas, so love the festival, avoid the shopping” “Recession or not, I really dislike the tasteless overspending at Christmas!” “When’s Christmas?” “Situation the same as last year” 3 Question 2 How respondents’ Christmas 2008 budget differs from their 2007 budget The majority of respondents (41%) said their financial situation is about the same as it was last Christmas. How does your Christmas 2008 budget differ from your Christmas 2007 budget? 5% 4% 5% 7% 11% I'm considerably better off this Christmas than I was last Christmas, so my budget is considerably bigger I'm a little better off than I was last Christmas, so my budget is a little bigger My financial situation hasn't changed since last Christmas, so I'll spend about the same Things are a bit shaky for me financially this year, so I'll spend a little less Money is really tight this Christmas, so I'll spend considerably less I'm really worried about money this Christmas, so I'll be really battening down the hatches I'm skint - Christmas is cancelled 41% Respondents answering “other” said: • 11% • • 16% “Reducing costs now will ensure I don’t get a problem later!” “I’m not short of money now, but worried about the future, so spending less.” “My financial situation has changed but I will spend about the same as Christmas isn’t about money for me.” Other (please specify) 4 Questions 3 and 4 Comparing the amount spent, on average, on each Christmas present in 2007 and 2008 In question 3 we asked respondents how much they’d spent, on average, on Christmas gifts they bought for friends and family for Christmas 2007, and in question 4 we asked how much they planned to spend on each present in 2008. Responses to these questions were combined into one graph to aid comparison. What did you spend, on average, on each Christmas gift you bought in 2007, and how does this compare to gifts you'll buy this Christmas? 41.80% 45.00% 40.00% Percentage of respondents 30.00% 25.00% 20.00% 15.00% 7.30% 3.60% 10.00% 5.00% 0.00% 27.30% 35.00% 2007 20% 14.50% In 2007 the amount spent per Christmas present was fairly evenly spread between the £10-£20 and £20-£30 categories. In 2008, the majority of respondents (41.8%) plan to spend £10-£20 per gift. 29.10% 10.90% 2008 9.10% 9.10% 1.80% 1.80% 0% 1.80% 0% 0% 0% £90£100 0% 5.50% 5.50% 7.30% £5-£10 £10-£20 £20-£30 £30-£40 £40-£50 £50-£60 £60-£70 £70-£80 £80-£90 3.60% More than £100 Am ount spent/to be spent 5 Questions 5 and 6 Comparing the total amount spent, on average, on Christmas in 2007 and 2008 In question 5 we asked how much respondents expected to spend, in total, on celebrating Christmas 2008 (to include gifts, food and drink, decorations, wrap, tags etc). In question 6 we asked the same again, but in relation to Christmas 2007. Results have been combined into one graph to aid comparison. How much did you spend in total on Christmas 2007, and how does this compare to Christmas 2008? 30.90% 35.00% In 2007 30.9% of respondents spent more than £1,000 on celebrating Christmas. In 2008, the percentage of respondents spending more than £1,000 on their Christmas celebrations halved, with more respondents saying that Christmas would cost them £300-£400. Percentage of respondents 30.00% 25.00% 20.00% 10.90% 15.00% 10.00% 5.00% 0.00% 1.80% 5.50% 14.50% 20% 12.70% 14.50% 10.90% 10.90% 9.10% 10.90% 2007 7.30% 7.30% 7.30% 7.30% 5.50% 3.60% 5.50% 2008 1.80% Up to £100 0% £100£200 £200£300 £300£400 £400£500 £500£600 £600£700 £700£800 £800£900 1.80% £900£1000 More than £1000 Amount spent/to be spent 6 If you're trying to keep costs down this Christmas, how do you plan to do so? Please tick all answers that apply Question 7 How respondents will keep their Christmas costs down in 2008 This was a multiple-answer question, which asked respondents:”If you’re trying to keep costs down this Christmas, how do you plan to do so?” While 45.5% of respondents said they don’t intend to reduce their Christmas spending in 2008, many respondents that are trying to reduce costs say they will do so by spending less on luxury foods (40%), convenience foods (23.6%) and alcohol (25.5%). Spending less on presents was another popular way to save money. 45.50% Making my ow n Christmas cards/w rap/tags etc Making my ow n Christmas decorations/other trimmings Buying few er convenience foods (e.g. ready-prepared veg, readymade gravy etc) Buying few er luxury foods (e.g. tins of sw eets/nuts/crisps etc) Doing more home baking/cooking (cakes, mince pies etc) Having Christmas dinner at someone else's house Buying my Christmas foodfrom a supermarket associated w ith "budget" shopping (e.g. Aldi, Lidl etc) Buying less alcohol Making my ow n Christmas presents Buying few er Christmas presents (e.g. only buying for children, relatives or very close friends) Spending less, on average, on each Christmas present Looking out for special offer codes and cashback schemes online, clipping coupons from magazines, etc I've saved up all my rew ard/incentive scheme points (e.g. Boots Advantage Card, Tesco Clubcard etc) and w ill use these to pay for I don't intend to reduce my Christmas spending this year Other (please specify) 0.00% 5.50% 5.50% 23.60% 40.00% 23.60% 10.90% 10.90% 25.50% 3.60% 27.30% 32.70% 24% 14.50% 1.80% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% 45.00% 50.00% One respondent answered “other,” specifying “home brewing” as their preferred money saving tactic this Christmas. Number of respondents 7 Question 8 Christmas marketing and advertising budgets (aimed at businesses only) This question was for those respondents involved in the marketing of a business, for example as a business owner or marketing manager. The aim of this question was to help us understand business’ approach to marketing and advertising as we approach Christmas during the economic downturn. If you're involved in the marketing of a business - for example as its owner, marketing manager etc - how would you say the economic downturn has affected your approach to advertising and other marketing activities in the run-up to Christmas 2008? 9% 2% Respondents answering “other” said: • • Our budget is about the same as it was this time last year 33% 16% There's less money in the budget than there was this time last year, but we'll still be advertising We're relying more on the sort of marketing activities thatcan be done for free or with a very small budget • We've increased our marketing budget - marketing and advertising are more important to our business than ever We've stopped marketing altogether; we simply can't afford it 26% 14% • “Increased budget to increase market share.” “We are doing better and so we have increased our marketing budget. Nothing to do with the economy.” “Marketing budget will be increased in the new year.” “For the first time ever, we are thinking of advertising, no need to previously.” Other (please specify) 8