Gen Z feeling the pinch, plan subscriptions cull, sell possessions to pay for Xmas - price key lever for brands

News 12 Oct 2022 - 1 min read

Gen Z feeling the pinch, plan subscriptions cull, sell possessions to pay for Xmas - price key lever for brands

By Staff writer

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Tags: Retail marketing

Low wage earners especially Gen Z are planning to cull subscriptions, rely on BNPL and sell possessions to fund Christmas shopping this year, meaning brands will have to be price-focused in targeting younger Australians according to research from Sitecore. The good news for those with money to spend - and brands targeting the affluent - is that they plan to spend more of it.

What you need to know:

Poor to spend less, rich to spend more, Gen Z and young families squeezed.
A third more people planning to shop over Black Friday than last year.
Max shipping costs for online goods a firm $9.

A third of Gen Z consumers will be reliant on buy now pay later services and plan to sell possessions to fund Christmas, while a fifth of the broader Australian population plan to spend less and buy fewer gifts this Christmas than last are the more miserable findings of a survey by martech firm Sitecore, suggesting price levers will be key for brands targeting those cohorts.

Meanwhile, half of parents with kids at home say they plan to buy gifts just for their children this year.

The good news for non-kid-focused retail brands is that a third of higher earners - classed as people earning over more than $100k - plan to spend more.

Price-focused marketers might be better targeting Black Friday. Per the survey of 1,000 Australians, four in ten plan to shop over the November event, up a 33 per cent over last year when three in ten said they shopped.

The survey suggests $9 is the most people will pay for shipping costs.

Full report here.