A recent survey has found that Gen Z will be the group driving sales this year unlike previous years where families usually account for most of the spending.
Despite rising costs, new research from BlackHawk has shown that Aussies are anticipating spending 16 percent more on gifts and 23 percent more on gift cards this holiday season compared to 2021.
From a generational perspective, Gen Z and Millennials are winning the race in spending more – with an expected increase in spending on gifts of 38 percent and 19 percent.
Blackhawk Network marketing director APAC Marc Cheah stated that the data showcased that even after the pandemic and doing it tough over the past couple of years, the younger generation really wanted to return to shopping – showing their care and love they have for their family and friends through generous gift giving opting for online platforms for their shopping.
“Our research suggests that younger Australians are looking to shed the hardships of the past couple of years and not only spend more on gifts, but buy for more family and friends with 23 percent of Gen Z and 26 percent of Millennials planning to buy gifts for more people this year,” says Cheah.
Gift card spending rises
A big shift in the survey outlined that a big planned spend with gifts are gift cards. However, the incentives include winning rewards points and transferring them into Qantas points – which later are used to purchase flights. This has been a real game changer lately accelerating sales in gift cards. Cheah comments on the rise of gift card purchases explaining “gift cards are a big part of that planned spend with Gen Z and Millennials planning to spend 11 percent and 24 percent more on gift cards compared to 2021, with about half of those (Gen Z: 52 percent, Millennials: 44 percent) bought through online platforms.
“So the message for retailers, marketers and brands is that if you want to reach the biggest market and drive increased revenue this holiday season, it pays to think digital; advertise online, promote on social media, and embrace omnichannel messaging and alternative payment methods,” he says.