South Africans will prioritise food and gifts in their overall holiday budget this year. Of their budgeted holiday spend 30% will be spent on food, 26% on gifts, 24% on socialising and 20% on travel.
Concern over SA’s economic health
Most consumers surveyed felt concerned over the health of the South African economy. Fewer than 50% said that the current economic environment is negative while a small minority (10%) said it was positive.
Older participants were more pessimistic. Around 13% of consumers aged 18-34 said they felt current conditions were positive compared to only 2% of consumers aged 55 to 64.
“The need to celebrate and share gifts despite the unfavourable economic conditions will affect the purchase behaviour of shoppers over the festive season. They are likely to seek out promotions and specials to offset the increases in living, electricity, education and health costs,” said Rodger George, consumer business industry leader at Deloitte.
The most popular gifts
Cash was a firm favourite for the fit wish list among 41% of South African adults, suggesting that most of those surveyed believe that a practical somewhat impersonal gift is better than an unwanted surprise. Traditional gifts made it in the top ten too with chocolates getting 38% of the vote and CDs, clothing and books (37%) also remaining popular choices.
Smartphones entered the top ten for the first time this year with 24 % of South Africans wanting it for Christmas.
While cash was the most desired gift, chocolates was voted as the gift that people would likely give to others followed by books, CDs, cosmetics and vouchers.
Meanwhile, parents were most likely to give their teenagers video games and CDs as gifts this year. Other popular choices included clothing and cash.
“While South Africans reported that their overall spending power had decreased this year, they were still relatively optimistic about their future spending power and would rather cut back on holidays, clothing and other entertainment than festive season spending,” said Kay Walsh, Deloitte economics advisory lead.