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Christmas Spending Survey 2013 Savvy shoppers, stabilising spend Leading business advisers

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Page 1: Christmas Spending Survey

Christmas Spending Survey 2013 Savvy shoppers, stabilising spend

Leading business advisers

Page 2: Christmas Spending Survey

© 2013 Deloitte

Contents

• Executive summary

• Inside the consumer mindset

• 2013 Christmas budget

• Most desired and most popular Christmas gifts

• Purchasing strategies

• Cross-channel shopping

• Where do consumers plan to do their Christmas shopping?

• Survey methodology

• Deloitte contact

Page 3: Christmas Spending Survey

© 2013 Deloitte

Executive summary

Page 4: Christmas Spending Survey

© 2013 Deloitte

Page 5: Christmas Spending Survey

© 2013 Deloitte

Page 6: Christmas Spending Survey

© 2013 Deloitte

Executive summary

Irish consumers are once again Europe’s biggest spenders.

Although morale remains low amongst both Irish and European consumers, consumers are in fact more optimistic

about the current state of the economy. Irish consumers, in particular, show an increasing optimism towards the

expected state of the economy, with 22% of Irish consumers positive about the year ahead.

Many consumers will be reducing their spending for Christmas 2013. Although Irish consumers remain the biggest

spenders in Europe, they predict that they will spend 1.7% less this year. Irish consumers will spend on average

€894 this Christmas, with an average of €484.81 spent on gifts, €258.84 spent on food and €150.76 spent on

socialising. A significant difference to consumers in Poland who will spend on average €268 this Christmas.

The majority of Irish Christmas budgets will go on gifts (30%), followed by food (28%), socialising (24%) and

travelling (18%).

The purchasing behaviour of Irish consumers has changed. 22% of Irish respondents will focus on buying more gifts

that are on sale, while 56% of Irish consumers will actively buy less on impulse.

Irish consumers will search and compare across channels again this year for the best value for money. Over half of

Irish respondents will research and compare both online and offline. 68% of Irish consumers will engage on social

media for Christmas gifts.

The top gifts which adults in Ireland would like to receive are books, cash, clothes/shoes, cosmetics and vouchers,

while the top gifts which are most likely to be purchased for family and friends are books, vouchers and perfumes.

Page 7: Christmas Spending Survey

© 2013 Deloitte

Inside the consumer mindset

Page 8: Christmas Spending Survey

© 2013 Deloitte

How do you rate the current state of the economy?

Although both Irish and Eurpean morale

remains low, consumers are more optimistic

about the current state of the economy.

• For the first time since 2008 European

countries are optimistic about the current

state of the economy.

A downward trend

An upward trend

Index between positive and negative

answers

< -40%

-40% to 0%

> or = 0%

Page 9: Christmas Spending Survey

© 2013 Deloitte

How do you rate the expected state of the economy?

22%

25% 41%

11%

Ireland

Positive Neutral Negative I don'’t know

22% 24% 20%

25% 26% 24%

41% 41% 41%

11% 8%

14%

Average Men Women

Gender

Positive Neutral Negative I don'’t know

Irish consumers show an increasing optimism with regards to the expected state of the Irish economy.

• The majority of Europeans surveyed think the expected state of the economy will remain the same or improve,

compared to last year when 49% of Europeans thought the expected state of the economy would be negative.

• Irish women have a more pessimistic outlook on the extected state of the economy, compared to men.

Page 10: Christmas Spending Survey

© 2013 Deloitte

How would you describe your spending power compared to last year?

16%

36%

48%

Ireland

I have more to spend

I have the same amount to spend

I have less to spend

The spending power of almost half of Irish consumers has decreased.

• The percentage of Europeans who believe their purchasing power has diminished amounts to 41%, slightly

lower than the Irish figure of 48%.

• Europeans are on average slightly more pessimistic than last year as observed in Ireland, Portugal, Spain,

Italy, Greece, Belgium and Denmark.

• Russians are the sole nationality who believe that their purchasing power has increased compared to last

year.

-80%

-60%

-40%

-20%

0%

20%

40%

2009 2010 2011 2012 2013

Index based on the sum of positive and negative answers

Page 11: Christmas Spending Survey

© 2013 Deloitte

How do you think your spending power will develop in 2014?

In general, Irish consumers are optimistic that

their spending power will increase in 2014.

• Europeans, in general, are more optimistic,

in terms of spending power when looking

forward to 2014.

• Optimistic consumers include the Irish,

Danish, Finnish, Polish, Ukrainian, Russian

and South African.

A downward trend

An upward trend

Index between positive and negative

answers

< -25%

-25% to 0%

> or = 0%

Page 12: Christmas Spending Survey

© 2013 Deloitte

How do you think your spending power will develop in 2014?

26%

33%

22%

19%

Ireland

Improve Stay the same

Deteriorate I don't know

26% 26% 26% 33% 34% 33%

22% 26%

18% 19% 14%

23%

Average Men Women

Gender

Improve Stay the same

Deteriorate I don't know

26%

47%

33%

22%

14% 10%

33%

26%

35% 38%

33% 34%

22%

10% 14%

23% 29%

39%

19% 17% 18% 18% 24%

16%

Average 18-24 25-34 35-44 45-54 55-64

Age

Improve Stay the same Deteriorate I don't know

26% of Irish consumers believe their spending power will increase in 2014.

• The percentage of Europeans who feel their purchasing power will decrease is less than last year at 30%; Irish

consumers are below the average at 22%.

• Age is a contributing factor here, with almost half of 18-24 year olds believing their spending power will

increase, while the majority of 55-64 year olds believe their spending power will decrease.

Page 13: Christmas Spending Survey

© 2013 Deloitte

2013 Christmas budget

Page 14: Christmas Spending Survey

© 2013 Deloitte

Comparison budgets for all European countries 2012-2013 (without travelling)

3% to …

Ukraine (€374)

Russia (€442)

Germany (€399)

Poland (€268)

Switzerland

(€656)

17,4%

13,1%

6,7%

5,4%

3,0%

0% to -3%

France (€531)

Ireland

(€894)

Portugal (€393)

Italy (€477)

-0,9%

-1,7%

-2,3%

-2,4%

-3% to …

Greece (€451)

-12,8%

0% to 3%

Finland (€692)

Denmark (€634)

Spain (€567)

Czech Republic

(€430)

Belgium (€503) The Netherlands

(€286)

Luxembourg

(€825)

1,3%

1,1%

1,0%

0,8%

0,6%

0,3%

0,2%

Page 15: Christmas Spending Survey

© 2013 Deloitte

Please indicate how you intend to spend your budget for the Christmas season?

On average Irish consumers will spend €894 per household this Christmas season with an average of €484.81

spent on gifts, €258.84 spent on food and €150.76 spent on socialising.

• In line with results from previous years, Irish consumers spend the majority of their budget on gifts, followed

closely by food. This is the dominant trend for both males and females of all ages.

• Irish women are likely to spend slightly more on gifts than men with Irish women allocating 31% of their

Christmas budget for gifts compared to 29% of Irish men.

• The majority of respondents will also spend more on gifts apart from those in Greece, Poland, Russia and

South Africa.

28% 29% 28% 30% 31% 30%

24% 22% 23%

18% 17% 18%

2011 2012 2013

Ireland

Food Gifts Socialising Travelling

Page 16: Christmas Spending Survey

© 2013 Deloitte

What are the reasons driving your decision to spend less this Christmas?

59%

33%

11%

21%

22%

57%

40%

27%

8%

17%

18%

48%

24%

24%

19%

18%

15%

The economic downturn continues and I believe it will get worse

My revenues after tax have decreased

I am in debt

Other reason

I have to save money because I lost my job

I'd rather save money because I'm afraid of losing my job

Ireland

2011 2012 2013

Economic concerns are the main reason consumers will spend less.

• The main reason given by Irish consumers for spending less this Christmas is the economic downturn. This

had been the dominant response with Irish consumers since 2011.

• This is followed closely by an increase in tax after revenues and that consumers are in debt.

Page 17: Christmas Spending Survey

© 2013 Deloitte

Most desired and most popular Christmas gifts

Page 18: Christmas Spending Survey

© 2013 Deloitte

What types of presents would you most like to receive?

Top 10 (1-10) Average 2013 2012

Books 1st 48% 1st 46%

Money (cash) 2nd 38% 2nd 37%

Clothes/shoes 3rd 34% 3rd 35%

Cosmetics/Perfumes 4th 34% 4th 35%

Gift vouchers 5th 33% 5th 33%

Chocolates 6th 31% 8th 26%

Jewellery/watch 7th 26% 10th 26%

Food & Drink 8th 24% 11th 24%

CD 9th 24% 6th 31%

Smartphone 10th 20% 13th 18%

First choice 2013 2012

Ireland Books Books

France Money (cash) Money (cash)

Portugal Money (cash) Money (cash)

Spain Money (cash) Money (cash)

Italy Money (cash) Money (cash)

Greece Money (cash) Money (cash)

Switzerland Money (cash) Money (cash)

Germany Money (cash) Money (cash)

Luxembourg Books Money (cash)

Belgium Money (cash) Money (cash)

The Netherlands Money (cash) Books

Denmark Money (cash) Money (cash)

Finland Money (cash) Money (cash)

Poland Money (cash) Books

Czech Republic Money (cash) Money (cash)

Ukraine Money (cash) Money (cash)

Russia Money (cash) Money (cash)

South Africa Chocolates Money (cash)

Books are once again the top choice for gifts with Irish consumers.

• Unlike our European counterparts Irish consumers, both make and female, along with those in Luxembourg,

are the only consumers that would like to recieve books as their first preference as gifts.

• Money (cash) was the top choice for the majority of other countires surveyed.

• A strong trend has emerged this year with the smartphone. 27% of all respondants are eager to receive one

for christmas and the smartphone has become the 6th more desired gift in Europe.

Page 19: Christmas Spending Survey

© 2013 Deloitte

Which of the following types of presents do you think you will buy for your friends

and family this year?

Top 10 (1-10) Average 2013 2012

Books 1st 40% 1st 46%

Gift vouchers 2nd 36% 2nd 35%

Cosmetics/perfumes 3rd 34% 3rd 35%

Chocolates 4th 32% 4th 33%

Clothes/shoes 5th 27% 7th 29%

Beauty care, massage, spa treatment 6th 27% 8th 28%

Jewellery/watch 7th 22% 5th 31%

Food & Drink 8th 21% 9th 25%

CD 9th 21% 6th 29%

Money (cash) 10th 20% 12th 19%

First choice 2013 2012

Ireland Books Books

France Books Books

Portugal Books Books

Spain Clothes/shoes Clothes/shoes

Italy Books Books

Greece Books Books

Switzerland ooks Books

Germany Books Books

Luxembourg Books Books

Belgium Gift vouchers Gift vouchers

The Netherlands Books Books

Denmark Books Books

Finland Books Books

Poland Cosmetics/perfumes Books

Czech Republic Cosmetics/perfumes Books

Ukraine Chocolates Cosmetics/perfumes

Russia Cosmetics/perfumes Cosmetics/perfumes

South Africa Chocolates Chocolates

Not only are books a top choice with Irish consumers as gifts to receive, they are also the top choice in gifts to

buy for others.

• For the first time since 2010 gift vouchers have overtaken money as a gift of choice. This is consistent with

both men and women of all age groups.

Page 20: Christmas Spending Survey

© 2013 Deloitte

Which of the following types of presents do you think you will buy for a teen

between the ages of 12 and 18?

Top 10 (1-10) Average 2013 2012

Video games 1st 31% 1st 34%

Books 2nd 23% 3rd 27%

Gift vouchers 3rd 22% 6th 22%

CD 4th 20% 2nd 27%

Money (cash) 5th 19% 4th 23%

Clothes/shoes 6th 19% 7th 21%

Cosmetics / Perfumes 7th 15% 8th 17%

DVD/Blu Ray 8th 15% 5th 23%

Games 9th 11% 9th 14%

Console, device 10th 11% 16th 11%

First choice 2013 2012

Ireland Video games Video games

France Video games Video games

Portugal Books Books

Spain Video games Video games

Italy Books Books

Greece Books Books

Switzerland Money (cash) Books

Germany Books Video games

Luxembourg Video games Books

Belgium Money (cash) Video games

The Netherlands Books Books

Denmark Video games Video games

Finland Gift cards Gift cards

Poland Books Video games

Czech Republic Books Books

Ukraine Chocolates Chocolates

Russia Chocolates Chocolates

South Africa Video games Video games

Video games, books and gift vouchers are the top three choices for Irish teens.

• After consistant growth in the ranking of video games across Europe since 2010, the trend is beginning to slow

down.

• Money is the fifth most popular gift in Ireland.

Page 21: Christmas Spending Survey

© 2013 Deloitte

Which of the following types of presents do you think you will buy for anyone under

the age of 12?

Top 10 (1-10) Average 2013 2012

Games 1st 35% 1st 38%

Books 2nd 34% 2nd 37%

Dolls & plush 3rd 29% 5th 27%

Arts and crafts, creative design 4th 28% 3rd 28%

Action toys 5th 27% 4th 28%

Clothes / shoes 6th 24% 7th 27%

Model construction toys 7th 22% 6th 27%

Learning and experimenting 8th 21% 8th 24%

Baby and infant articles 9th 21% 9th 24%

Technical toys 10th 15% 10th 21%

First choice 2013 2012

Ireland Games Games

France Model construction toys Model construction toys

Portugal Books Books

Spain Learning and experimenting Learning and experimenting

Italy Baby and infant articles Baby and infant articles

Greece Games Clothes/shoes

Switzerland Books Books

Germany Games Books

Luxembourg Books Books

Belgium Games Games

The Netherlands Games Games

Denmark Games Games

Finland Books Games

Poland Learning and experimenting Learning and experimenting

Czech Republic Books Books

Ukraine Arts and crafts, creative design Books

Russia Model construction toys Model construction toys

South Africa Games Games

Games, books and dolls are the most popular gifts for children under 12.

‒ Games are the first choice of gifts in eight countries. Interestingly, France and Russia stand out with

construction toys, Spain and Poland with learning games and Ukraine with arts and crafts.

‒ Men prefer to offer model construction and technical toys, while women tend to offer gifts such as clothes.

Page 22: Christmas Spending Survey

© 2013 Deloitte

You stated you will be offering gift vouchers, what will be the value of one gift

voucher?

The average value of a gift voucher in Ireland is €38.

• Overall, the value of gift vouchers across Europe has dropped.

• Switzerland has the highest average value for a gift voucher at €70, while the lowest average is The

Netherlands at €14.

27

38 37

20

31 26

20

39

27

52

31

14

34 29

15 18 16

21 17

0

10

20

30

40

50

60

70

80

Gift voucher value in 2012 Gift voucher value in 2013 Average value of a gift in 2013

Page 23: Christmas Spending Survey

© 2013 Deloitte

For your chosen toys, which criteria do you favour?

58% 52% 55%

70% 71% 62% 68%

50% 37%

56% 62% 66%

45% 43%

62% 62% 65% 53%

60%

18% 23% 21%

19% 7%

19% 13%

24%

28%

21% 15% 13%

30%

10%

19% 21% 10% 22% 9%

8% 2%

7%

4%

6% 8% 5%

12% 14%

10% 6% 5% 11%

23%

5% 9%

12% 11%

4%

16% 23%

16% 7%

16% 11% 14% 14% 21%

13% 17% 16% 14% 23%

14% 8% 13% 14% 27%

Educative Traditional Green Innovative

60%

24%

4%

12%

54%

25%

4%

18%

52%

23%

2%

23%

Educative

Traditional

Green

Innovative

Ireland

2011 2012 2013

Irish consumers favour educational toys for young children.

• Educational toys are the first choice in all countries, with innovative and traditional toys in a close second

place.

• Irish women are more likely to chose educational toys with 61% of women favouring this compared to 54% of

men.

Page 24: Christmas Spending Survey

© 2013 Deloitte

Purchasing strategies

Page 25: Christmas Spending Survey

© 2013 Deloitte

Thinking about what you spend your money on now versus a year ago, are you

spending less, the same or more on the following:

13% 14% 15% 16% 16% 18% 18% 22% 23% 24% 31% 32%

42% 42% 45%

56% 39%

50% 43%

54% 58%

45% 52% 48%

38% 40% 36% 22%

38% 28%

22% 17% 14%

27% 14%

12%

7% 5% 3%

7% 7% 4%

17% 7% 6% 3% 3%

7%

Irregular spending

Entertainment/leisure

Clothing/footwear

Financial services

Holidays

Digital/electronic spending

Education

Health

Housing

Day to day spending

Essentials such as groceries and energy bills

Taxes

Europe

More About the same Less I don't know

10% 11% 12% 14% 14% 14% 18% 18% 22% 27% 32%

42%

33% 30% 34%

45% 35%

30% 45%

59% 50% 39%

45% 34%

53% 56% 51%

35% 48%

52% 35%

19% 25%

24% 21%

18%

5% 3% 3%

7% 3% 4% 3% 4% 4%

10% 2% 6%

Irregular spending

Entertainment/leisure

Clothing/footwear

Financial services

Day to day spending

Holidays

Digital/electronic spending

Housing

Health

Education

Essentials such as groceries and energy bills

Taxes

Ireland

More About the same Less I don't know

42% of Irish consumers believe they are paying more taxes compared to last Christmas.

• The increase in spending on taxes is a finding which is echoed across Europe, however at a lower rate of

32%.

• Unnecessary spending will be cut once again by both Irish and European consumers.

• Interestingly, more Irish consumers are spending less than Europeans on entertainment, leisure, clothing and

day to day spending. Irish consumers have stated that if required to they are happy to cut back further on

these areas.

Page 26: Christmas Spending Survey

© 2013 Deloitte

Regarding your Christmas shopping, how will you change your purchasing

behaviour compared to last year?

22%

13%

-3%

-4%

-5%

-23%

-28%

-39%

-52%

-56%

I will buy products and gifts that are on sale

I will focus on useful gifts

I will buy discount and retailers' private labelproducts, and few branded products

I will buy less expensive gifts

I will shop at less expensive stores

I will buy for fewer people

I intend to give group gifts

I will buy second-hand products as gifts

I will offer gifts without taking into account the price

I will buy on impulse

Ireland

16%

16%

-4%

0%

2%

-7%

-20%

-36%

-39%

-42%

I will buy products and gifts that are on sale

I will focus on useful gifts

I will buy discount and retailers' private labelproducts, and few branded products

I will buy less expensive gifts

I will shop at less expensive stores

I will buy for fewer people

I intend to give group gifts

I will buy second-hand products as gifts

I will offer gifts without taking into account the price

I will buy on impulse

Europe

Irish consumers are more thrifty than ever.

• 22% more Irish consumers will focus on purchasing gifts that are on sale. 13% will focus on buying useful

gifts.

• A big difference in purchasing patterns in the last year is that the majority of Irish consumers will not buy on

impulse and will take price in to account before purchasing.

• Irish women intend to buy more products on sale than Irish men, with 25% of women intending to do so

compared to 18% of men.

Page 27: Christmas Spending Survey

© 2013 Deloitte

Preference for loyalty/reward programmes

Earning points offering gifts

Immediate discounts (cash off)

Page 28: Christmas Spending Survey

© 2013 Deloitte

How influential are loyalty/reward programmes in your decision making process?

Rank loyalty/reward programme by preference.

1.7 1.9 1.8

1.7

2.1

1.8 2.0

1.5 1.3

1.2 1.4

1.6

1.3

1.8 1.8 2.0

1.8 1.8 2.0

0.0

0.4

0.8

1.2

1.6

2.0

2.4

Irish consumers are above the European average for considering loyalty/reward programmes as part of their

decision making process.

• 43% of Irish consumers favour immediate discounts such as cash off in store.

• Euproean countries that have been affected by the economic crisis are more likely to be influenced by loyalty

programmes.

43%

17%

14%

13%

9%

4%

0%

Immediate discounts (cash off)

Earning points offering vouchers to spend inseveral retailers

Earning points offering vouchers to spend inthe store

Future discount (cash off)

Earning points offering vouchers to spend inthe store and in the e-commerce site of the

retailer

Earning points offering gifts

Other

Ireland

Page 29: Christmas Spending Survey

© 2013 Deloitte

When do you expect to purchase the majority of your gifts for this year versus last

year?

Before Nov

17%

Nov 1-15 Dec

30%

16-24 Dec 25-31 Dec Jan and after

32%

17% 2% 2%

The majority of Irish consumers will purchase their Christmas gifts in the first half of December.

• Irish female consumers are more likely to purchase earlier, with 38% of female consumers purchasing gifts in

November.

• Interestingly, nearly half (47%) of Irish consumers’ Christmas shopping has been completed before December.

Page 30: Christmas Spending Survey

© 2013 Deloitte

Cross-channel shopping

Page 31: Christmas Spending Survey

© 2013 Deloitte

For the gift categories below, please state if you will be searching for products and

comparing value online, in stores or both?

Irish consumers search for products, including selecting brand, type and sizes both in store and online.

• For items such as toys, leisure, movies and video games Irish consumers are using cross-channel methods

more and more.

• Irish consumers prefer to buy and search for food and drinks products in store, similar to our European

counterparts.

30% 38% 39% 37%

32% 34%

19% 10%

23% 17% 20%

16% 26%

17%

25% 21% 19%

18% 17%

23% 39%

67% 38%

38% 35%

39% 24%

37%

45% 42% 43%

45% 50%

43% 41%

23% 39%

45% 44% 45%

50% 47%

Books

Music

Movies (DVD/Blu Ray)

Video games

High tech

Green tech

Health & beauty

Food & drinks

Box & cards

Home gifts

Sports

Fashion

Leisure

Toys

Europe

Website Stores Website and stores

21% 25% 23%

21% 26% 27%

10% 6% 11% 11% 12% 10%

18% 8%

27% 23%

22% 20%

19% 25%

42% 65%

50% 44%

35% 35%

27% 36%

53% 53% 55%

59% 54%

48% 48%

29% 38%

45% 53% 55% 54% 56%

Books

Music

Movies (DVD/Blu Ray)

Video games

High tech

Green tech

Health & beauty

Food & drinks

Box & cards

Home gifts

Sports

Fashion

Leisure

Toys

Ireland

Website Stores Website and stores

Page 32: Christmas Spending Survey

© 2013 Deloitte

For the gift categories below, please state where you will actually purchase these

gifts?

Irish consumers favour purchasing in store rather than online this Christmas.

• For all gift categories, Irish consumers research both in store and online, however for purchasing these gifts

stores are their first choice.

• This is applicable to both Irish men and women.

• With age Irish consumers lose interest in online sources for searching, comparing and purchasing.

55% 42% 40% 41%

47% 49%

67% 86%

59% 65%

62% 65%

51% 64%

10% 14%

13% 14%

14% 14%

9% 5%

11% 11%

12% 10%

13% 10%

32% 41%

44% 41%

35% 31%

20% 7%

26% 20%

23% 20%

32% 22%

Books

Music

Movies (DVD/Blu Ray)

Video Games

High Tech

Green tech

Health & beauty

Food & drinks

Box & cards

Home gifts

Sports

Fashion

Leisure

Toys

Europe

In physical stores Ordering online in/from a physical store

Online Mobile commerce

Mail order Catalogues

61% 44% 47% 49% 47% 48%

74% 88%

74% 66%

57% 64%

55% 72%

8% 18% 13% 13% 17% 14%

8% 4%

9% 14%

13% 12%

16% 9%

30% 35%

37% 34% 30%

28% 12%

4% 13%

15% 25% 19% 26%

15%

Books

Music

Movies (DVD/Blu Ray)

Video Games

High Tech

Green tech

Health & beauty

Food & drinks

Box & cards

Home gifts

Sports

Fashion

Leisure

Toys

Ireland

In physical stores Ordering online in/from a physical store

Online Mobile commerce

Mail order Catalogues

Page 33: Christmas Spending Survey

© 2013 Deloitte

Irish consumers’ purchasing trends

Searching

72%

Comparing 34%

22%

Buying

40%

16%

28%

Both Offline Online

--

50%

38%

Page 34: Christmas Spending Survey

© 2013 Deloitte

Cross-channel purchasing trends

25% 29% 22% 26% 33% 32%

33% 36%

29% 31%

67% 68%

42% 35% 48% 43%

2012 2013 2012 2013 2012 2013

Searching Comparing Buying

Europe

Online Stores Online and stores

17% 22% 12% 16%

28% 28%

41% 40%

33% 34%

72% 72%

43% 38% 55% 50%

2012 2013 2012 2013 2012 2013

Searching Comparing Buying

Ireland

Online Stores Online and stores

Cross-channel searching and comparing (searching both online and in stores) is decreasing somewhat this year.

• Cross-channel is used by both Irish and European consumers for searching and comparing. However, for

purchasing almost three-quarters of consumers favour purchasing in store.

• Although the trend of purchasing in store is dominant across Europe, Irish consumers are less likely to

purchase online than other European consumers.

Page 35: Christmas Spending Survey

© 2013 Deloitte

When shopping, what are the top three most important attributes of a retailer?

52%

23%

22%

20%

20%

15%

15%

15%

it offers the lowest prices

It sends me offers and promotions that arepersonalized and relevant to what I buy

Its loyalty program gives me rewards I value

Its stores are convenient for shopping

It has a very large selection of products

I can get exceptional service

It carries the brands I like most

It provides an omnichannel shoppingexperience

Ireland

59%

18%

21%

42%

47%

33%

28%

14%

it offers the lowest prices

It sends me offers and promotions that arepersonalized and relevant to what I buy

Its loyalty program gives me rewards I value

Its stores are convenient for shopping

It has a very large selection of products

I can get exceptional service

It carries the brands I like most

It provides an omnichannel shoppingexperience

Europe

Lowest price is the most important attribute for Irish consumers when choosing a retailer.

• Personalised offers and loyalty programmes are the second choice for Irish consumers.

• Retailers offering lowest prices is the main attraction for Irish men and women of all ages.

Page 36: Christmas Spending Survey

© 2013 Deloitte

In which area would you expect retailers to invest in order to improve your

shopping experience ?

+ - Customer relationship

Better gift packaging

service

Self scanning check outs

Sustainability

Lower prices Mobile commerce

Child care

Home delivery

Invest more in decoration to

improve ambiance

WIFI capabilities

in store

When attracting consumers to retailers, lower prices is the main area Irish consumers expect retailers to invest in

to improve their shopping experience.

• Customer relationship and home delivery complete the top three areas of investment for e-commerce and

stores.

• Sustainability is a growing area for investment with more and more Irish consumers placing importance on

sustainability issues.

• Irish males would like to see more investment in e-commerce, while older consumers value advice in store.

Page 37: Christmas Spending Survey

© 2013 Deloitte

You stated that you bought gifts online last year, were these delivered on time last

year?

If yes: In what way does it affect your buying behaviour this year?

90%

10%

Ireland

Yes No

44%

29%

12%

10%

5%

I will buy online, but at an earlierstage

I will buy online, but from a differentretailer/webshop

I will buy online, but I will pick up theproduct in the physical store myself

I will not buy gifts online this year

It will not affect my buying behaviour

Ireland

A significant number of Irish consumers will buy online at an earlier stage.

• 10% of Irish consumers who bought online last year will not be doing so this year.

Page 38: Christmas Spending Survey

© 2013 Deloitte

You stated you will be using social media. Please indicate how you will be using

social media to share your opinion/advice.

68%

62%

60%

59%

56%

52%

I give my opinion/advice by trusted comments,recommendations about products

I give my opinion/advice about discounts,coupons, sale information

I give my opinion/advice about product(s)(properties)

I give my opinion/advice about prices

I give my opinion/advice about gift ideas

I give my opinion/advice on retailer's fanpage(s)

Ireland

62%

57%

62%

58%

54%

48%

I give my opinion/advice by trusted comments,recommendations about products

I give my opinion/advice about discounts,coupons, sale information

I give my opinion/advice about product(s)(properties)

I give my opinion/advice about prices

I give my opinion/advice about gift ideas

I give my opinion/advice on retailer's fanpage(s)

Europe

More Irish consumers are giving their advice on social media sites than our European counterparts.

• Irish consumers are sharing their options and advice online for products, discounts, prices and many other

issues.

• Overall, European consumers prefer to look for information rather than to give advice.

• Irish men and women interact the same on these sites, however, men are likely to share more information

about the properties of products than women.

Page 39: Christmas Spending Survey

© 2013 Deloitte

Where do consumers plan to do their Christmas shopping?

Page 40: Christmas Spending Survey

© 2013 Deloitte

For the gifts you intend to buy in store, where do you think

you will buy them?

Irish consumers favour speciality chains.

• Across Europe, store choice depends on gift

type.

• Speciality chains are the preferred shopping

venue for high tech gifts, sports, toys and

video games.

• Traditional department stores are popular for

fashion items, health and beauty and gifts for

the home.

Traditional department stores

Supermarkets

Speciality chains

Page 41: Christmas Spending Survey

© 2013 Deloitte

For the gifts you intend to buy in store, where do you think you will buy your gifts?

Speciality chains are the most popular outlet in both Ireland and Europe.

• Speciality chains, supermarkets and traditional department stores are the three most popular stores for buying

gifts.

• Age is a huge factor in the attitudes of both Irish and European consumers. Older people are less interested in

speciality chains, and favour traditional local shops.

• On average, Irish consumers favour luxury stores more than those in other European countries.

24%

21%

25%

15%

7%

8%

33%

31%

18%

11%

6%

2%

31%

30%

23%

9%

5%

2%

Speciality chains

Supermarkets

Traditionaldepartment stores

Traditional localshops

Luxury stores

Factory outlet stores

Ireland

2011 2012 2013

26%

25%

23%

13%

10%

4%

33%

24%

25%

12%

3%

4%

30%

29%

22%

13%

3%

3%

Speciality chains

Traditionaldepartment stores

Supermarkets

Traditional localshops

Factory outlet stores

Luxury stores

Europe

2011 2012 2013

Page 42: Christmas Spending Survey

© 2013 Deloitte

What type of brands do you purchase in the following channels?

Irish consumers purchase brand labels and retailer brand labels across all channels.

• Except in hard discount shops, the cheaper the store is, the more people buy brand labels.

• Irish consumers that buy online purchase an equal amount of both brand labels and retailer brand labels.

• For purchasing brand labels, the best shopping venues are supermarkets and the internet.

• The cheaper products are, the more they are bought in hard discount shops.

• There is no difference in behaviour for men and women of all ages.

65% 61%

55% 55%

36%

61% 67%

61% 56%

52%

27% 24% 23%

26%

60%

Largesupermarket

shops

Normal sizedsupermarkets

Convenientstores

Internetshopping

Hard discountshops

Ireland

Brand labels Retailer brand labels Hard discount labels

66%

60%

49%

65%

38%

60% 66%

60%

45%

54%

29% 35%

31% 28%

59%

Largesupermarket

shops

Normal sizedsupermarkets

Convenientstores

Internetshopping

Hard discountshops

Europe

Brand labels Retailer brand labels Hard discount labels

Page 43: Christmas Spending Survey

© 2013 Deloitte

For the food you intend to buy for the Christmas festivities,

where do you think you will buy your food?

Large supermarkets

Normal sized supermarkets

Hard discount stores

Irish consumers tend to buy their Christmas food

in large supermarkets.

Page 44: Christmas Spending Survey

© 2013 Deloitte

Where do you intend to buy your food for the Christmas festivities?

Online is the last choice for purchasing food for Irish consumers.

• Large supermarkets and hard discount stores are the most popular choices for Irish consumers when buying

food for the holiday season.

• Traditional local food shops, such as the butchers or bakery, are popular with 41% of Irish consumers.

68%

53%

41%

32%

14% 9%

6% 0%

20%

40%

60%

80%

Men

Women

Page 45: Christmas Spending Survey

© 2013 Deloitte

Have you ever used your smartphone or tablet to buy a product and do you expect

to use it in the future for buying products?

26%

39%

22% 21% 29% 28%

20%

33% 33% 32%

14%

22% 27%

24% 19% 20%

24% 29%

38%

56% 54% 50%

70% 61% 60%

71%

46% 38%

45%

52% 52% 48% 48%

70% 73%

60% 66%

59%

Europe

I already have I will do in the future

Irish consumers are among the highest users of smartphones and tablets for buying gifts.

• 39% of Irish consumers have used their smartphone or tablet to make a purchase.

• Ireland, South Africa, Switzerland and Germany are using smartphones and tablets the most for purchasing

gifts.

• 54% of Irish consumers intend to use their smartphone or tablet in the future to make a purchase.

Page 46: Christmas Spending Survey

© 2013 Deloitte

Survey methodology

Page 47: Christmas Spending Survey

© 2013 Deloitte

Survey methodology

In the second and third week of September 2013, we questioned a broad representative sample of consumers about their Christmas preparations.

• We questioned European consumers about their frame of mind and planned expenditure on gifts, extra food for

festive meals, out-of-home entertainment, multi-channel shopping and leisure over the Christmas season.

• Information has been collected via the internet, with a structured questionnaire for a sample of individuals with

controlled panels.

• The survey covered 18 countries in western and eastern Europe as well as South Africa. A similar survey was

conducted in Canada and the United States.

• Respondents were aged 18 to 65 years old.

• A total of 17,354 consumers were surveyed. The sample size in Ireland was 773.

Page 48: Christmas Spending Survey

© 2013 Deloitte

Deloitte contact

Page 49: Christmas Spending Survey

© 2013 Deloitte

Contact

For further information please contact:

Kevin Sheehan Head of Consumer Business

T: +353 1 417 2218

E: [email protected]

Page 50: Christmas Spending Survey

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