At the end of a difficult year for most Australians — with rising costs from petrol to milk, interest rates and rents — Christmas spending during sales periods has become more important than ever.
So far, Aussies are seeking out less expensive brands, such as Pandora, that are still of a high quality to give their loved ones as gifts.
In October, the Australian Retailers Association (ARA), in conjunction with Roy Morgan, predicted Australians would spend $66.8 billion between November and Christmas Eve.
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This is only 0.1 per cent more than last year, despite big rises in the prices in goods and services Australia-wide.
Food spending was tipped to make up the biggest slice of spending — $26.7 billion of the overall spend — mostly due to price increases.
More than 40 per cent of retailers this year began their Black Friday promotions at least one to two weeks early, with some continuing into December, and overall sales increases of 10-25 per cent were reported.
The ARA had predicted in early November that Australians would spend $6.36 billion across the four days between Black Friday and Cyber Monday, up three per cent from 2022.
Founder of marketing agency Insil, Tate Zanner, told Best Picks that ultra-luxury brands were likely to be those most disappointed by their sales this year.
He has been analysing Google Trends data to find out what people are searching for the most online.
The top eight brands searched online this week are:
● Pandora
● Mimco
● T2
● Lovisa
“Pandora exemplifies the trend of searching for middle-level brands that promise quality,” he said.
“Because its jewellery is modular, gifts can range in size — and cost — from very small to substantial.”
Middle-market fashion brand and an Australian stalwart, Country Road, has had a renaissance in the past two years.
Woolworths Holdings Limited (South Africa) reported double-digit growth for Country Road Group for the first half of FY23.
Surfstitch famously began in a humble garage and has become one of Australia’s most innovative e-commerce brands.
It has achieved the difficult task of maintaining a top trend position in the hugely competitive fashion middle-market.
Household spending has grown by 4.8 per cent through the year to August, figures from the Australian Bureau of Statistics show.
But ongoing high inflation and higher interest rates have forced shoppers to focus on essentials over discretionary goods.