Christmas 2021 may still be three months away, but there are compelling reasons why retailers and suppliers should source stock early and have it shipped now – because this year’s ‘silly season’ Down Under is set to be like no other.
On one hand, consumers are being urged to shop early for Christmas as the global supply-chain crisis looks set to delay deliveries and some manufacturers in Asia struggle to meet orders due to factory closures. [Read about the cross-border freight crisis here.]
And on the other, demand for Christmas indulgences this year could be higher than ever before. Many Australians have not spent money on overseas travel for 18 months or more, and due to lockdowns and social-distancing rules have been unable to dine out, or attend entertainment and sporting events in person.
With lockdowns most likely to be over by December in most if not all Australian states, consumers are likely to look to reward themselves this Christmas-New Year holiday season as they try to expunge the lockdown blues and the return of freedom. And those who have maintained a steady income through the crisis are cashed up and ready to spend away the blues.
According to Small Caps, while individual circumstances vary and some consumers will be really struggling after repeated lockdowns, “household savings balances are still predicted to be very strong as the year draws to a close, reaching as much as $200 billion”.
“Once confidence returns, it could do so with a rush.”
Expect more splurging on presents for families and friends, along with a trend towards families and individuals rewarding themselves for enduring the tough Covid-impacted year.
Last year, Australia’s Covid-impacted June quarter GDP was negative 7 per cent, but with lockdowns over and life returning to relatively normal, by Christmas, the economy had bounced back with pre-Christmas November and December retail sales up 11 per cent year on year. Some economists are projecting a similar pattern this year.
Citing a report by Monash University, outdoor ad agency Ooh! Media contends that if last year’s consumer behaviour was an indicator we can expect to see people hit the shops as early as October this year.
Research from Junkee Media shows that since Covid, younger Australians are reconsidering buying gifts from abroad, instead looking to buy local: more than half say they plan to buy Australian-made this year – among females 72 per cent.
The categories most likely to benefit from such largesse: homewares, home furnishings, kitchenware, electronic gadgets, appliances small or large, garden and home improvement supplies, gift cards – and let’s not overlook quality food and beverages.
Father’s Day was a potential barometer of what Christmas could bring: an anticipated $800 million is expected to be splurged on Father’s Day presents this year, according to the ARA and Roy Morgan. Topping the gift list: alcohol and food.
In the survey, 79 per cent planned to spend the same amount as last year, and 13 per cent would spend more.
Starting early
If we want further insight into projected consumer spending habits this Christmas-New Year season, it’s worth taking a look at what Americans did last season as most of its states began to emerge from strict lockdowns.
According to the National Retail Federation, more than 40 per cent of holiday shoppers said they started earlier than usual. By early November last year, 59 per cent of US holiday shoppers said they had started shopping for Christmas - that’s a rate that was 21 per cent higher than a decade earlier.
Match that trend with growing warnings by retailers in Australia that stocks may be in short supply due to supply issues – and you can see why it is smart to source stock locally via TradeSquare at wholesale prices.
Already this month, ARA chief Paul Zahra has urged consumers to start thinking about Christmas now. “It really will be the case of the early bird gets the worm,” he told ABC.
So, never before has it been more important to stock up early for Christmas stock or business needs.
The best chance of sourcing stock now is to order from within Australia.
Fortunately, TradeSquare has more than 800 suppliers on our platform able to supply products to any Australian-registered business at wholesale prices.
If you have not done so already, check out our Christmas page!
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