COVID-19 ISN’T CANCELLING CHRISTMAS
A GLOBAL VIEW ON CONSUMERS BEHAVIOUR AND PLANS FOR CHRISTMAS HOLIDAY CONTINUE TO REFLECT THE UNCERTAINTY OF COVID-19 CRISIS
THE 13th EDITION OF FERRATUM‘S INTERNATIONAL CONSUMER BEHAVIOUR SURVEY SHOWS SHIFT IN VALUES AND SPENDING DECREASE FOR THE UPCOMING HOLIDAYS
Lucky 13th Ferratum Group’s Christmas Barometer™ 2020 looks closer into the upcoming Christmas Holidays in times of Covid-19. Almost 20,000 households participated in the bi-annual survey which explored Christmas consumer spending behavior across 12 countries globally. Data included how the Coronavirus World Pandemic affected their lives and spending behavior, how this Christmas plans look like and how spending differs from last Christmas.
Holiday spending to decrease this year – Grocery stores are booming
The Ferratum Christmas Barometer shows that people are setting their budgets relatively low this year, with over half of respondents admitting that they will be spending less compared to last Christmas. Respondents are being more cautious when it comes to spending in times of crisis, especially when 10% of respondents lost their jobs and other 17% got a salary reduction. A maximum spend of 200Eur for the upcoming 2-3 months: that’s what 28% of respondents answered during this Summer, a number which increased to 57% after experiencing a few more months of the pandemic. Only 19% of respondents state they will spend a maximum of 400Eur during the next few months.
It comes as no surprise that the main source of spending this year is on groceries, with 21% of respondents saying that will be their biggest expenditure area. Closely followed by home goods (10%) and also clothes (10%), toys (9%) and sweets and delicacies (9%) since holiday season is just around the corner,
IT’S THE LITTLE THINGS. COVID-19 ISN’T CANCELLING CHRISTMAS BUT INSTEAD GETS US CLOSER
Even if more people will cut back on travelling and luxury products, this Christmas, the biggest gift is spending time with family and loved ones (70% of respondents) and enjoying the Christmas feast (19%). The Ferratum International survey shows that Coronavirus World Pandemic has shaken up the way shoppers plan to celebrate Christmas, cancelling their travel plans and planning to spend holidays at home surrounded by the loved ones. They also started to manage their finances better, develop new hobbies, learnt how to work and learn remotely.
WHAT MATTERS…HEALTH AS MAIN NEW YEAR’S RESOLUTION
When asked about their New Years’ Resolutions, 22% of the respondents put health and Covid-19 spreading prevention as top choice. Followed by spending time with loved ones 16%, appreciate more the little things 11% and exercise more 10%. At the end of the chart, with less interest for next year is buying a house or buying a car, things that became less important this year.
Out of the 12 countries who were part of our Christmas Barometer, the bigger spenders are in Bulgaria, where respondents stated that 25% of their monthly income will be allocated for the Christmas Holidays, followed by Romania with 24%, Croatia and Australia 23%. At the other end of the chart we find Finland with only 12% of their monthly income to be spent and Netherlands with 11%.
“With the significant amount of Government stimulus and the strong local economy it is no surprise that Australian’s a confident in spending almost a quarter of their monthly income on summer holidays.” Australia Country Manager
Contactless payments in times of Covid-19. Cash is no longer king!
COVID-19 has fundamentally changed our behaviours this year. We’ve shifted to remote working, online shopping and cashless payments. Even if cash had already been on the decline for years, COVID-19 has accelerated this move away from cash. When ordering online, card payments are preferred by 54% of the respondents worldwide, while 26% still voted for cash payments and the other 20% for bank transfer. When it comes to digital world and card payments, respondents from Norway run the chart where 93% stated they prefer card payments, followed by Denmark (80%) and Sweden (79%). At the other end of the chart, we can find Bulgaria where 71% people are still choosing cash payments over the online cards.
Even if COVID-19 pandemic has accelerated the shift towards a more digital world, consumers still chose in-store shopping
Despite the fact that during lockdown we did most of our shopping online, the Chrirtmas survey showed that shoppers much preferred the ability to see, touch, feel and try out items over shopping online. As we all know, shopping is therapy and in-store shopping is a relaxing activity that increase seretonine levels. Doesn’t come as a surprise that same as during Summer, 68% of the respondents answered that they would prefer to do in-store shopping.
Top Christmas spending 2020
Without a single exception, respondents from all 12 countries will allocate most of their money on groceries in the upcoming months. Next choices are home goods, winter clothes and financing children’s needs.
Christmas gifts are also important, and respondents are definitely allocating money for buying toys, sweets and gift cards for their loved ones.
“It is clear to see that compared with much of the world Australian spending habits remain relatively unaffected by Covid-19. Spending on gifts, travel and groceries during the traditional vacation season appears to be well and truly in the plans of most Australian’s”, Australia’s Country Manager
How was Ferratum Group Christmas Barometer 2020 ™ Covid-19 edition conducted?
• The survey was conducted by Ferratum Group who surveyed its active customers in 12 International countries via web survey with a standardised questionnaire. Incomes are stated in Euro, and relative Christmas consuming is calculated by the ratio of a family’s monthly disposable income in each country.
• Almost 20.000 households participated in the survey. Respondents were aged from 18 to over 61y. 59% of participants were women. The average available income of participating households was between €1087 – €4367. The average household size among the respondents was 2.7 persons.
• In addition to demographic factors, respondents were asked about their New Years Resolution, how did Corona Virus Wolrd Pandemic changed their life and spending behavior, what are their Christmas’ plans this year, if they fear about their financial situation and more.
About Ferratum Group:
Ferratum Oyj and its subsidiaries form Ferratum Group, a FinTech, that develops and operates a big data based global financial platform for real-time scoring, lending and banking services.
Ferratum, headquartered in Helsinki, Finland was founded in May 2005 and has expanded its operations across Europe, North America, South America, Africa, Asia and Australia.
As a pioneering digital lender, Ferratum has approx. 560,000 active customers and offers a comprehensive product portfolio to retail customers, who are able to apply for consumer credit in amounts varying between EUR 25 and EUR 20,000 and small businesses installment loans up to EUR 350,000 with a term of 6 to 24 months.
Ferratum Bank p.l.c. is a wholly owned subsidiary of Ferratum Oyj and a credit institution licensed by the Malta Financial Services Authority, allowing all Ferratum’s products and services to be passported to EEA member states.
Ferratum has developed its own proprietary core mobile banking platform, the Mobile Wallet. The Mobile Wallet is to be rolled-out throughout Europe and Ferratum will position the Mobile Wallet in the center of its customer communications.
The Mobile Financial Platform is at the heart of Ferratum’s growth strategy. The technology and infrastructure developed means the platform is ready-made and can be offered as a bolt-on, allowing Ferratum’s partners to effectively ’plug-and-play’ a bespoke range of financial services via mobile.
Ferratum Group is listed on the Prime Standard of Frankfurt Stock Exchange under the symbol ‘FRU.’ For more information, visit www.ferratumgroup.com