- Swiss consumers are spending an average of 282 Swiss francs this year - that's over 20 percent less than last year
- Almost 60 percent of respondents say they are reducing their Christmas gift spending "slightly" or even "significantly" due to inflation and energy prices
- Online shopping continues to gain ground: expected market share increases from 38% to 41% and 57% look for inspiration online
- Sustainability is also important for 63% of Christmas shoppers - regardless of age and income
Zurich, 13 December 2023 - Spending on Christmas gifts reached a record high of CHF 343 per capita on average in the previous year. For 2023, the amount of this expenditure has fallen significantly. Consumers in Switzerland still spend an average of CHF 282 on gifts - a decrease of 22%. The budget for Christmas gifts fell from CHF 375 last year to CHF 304 for men and from CHF 309 to CHF 266 for women for the upcoming Christmas.
Almost 60 percent of consumers surveyed in Switzerland stated that they would reduce their Christmas gift spending "slightly" or even "significantly" this year in view of inflation and high energy costs. Women in particular are expressing their intention to save: At 61%, the proportion of female consumers who intend to reduce their spending on Christmas gifts in view of the challenging economic conditions is significantly higher than that of men (55%). André Bieri, Markets Leader Switzerland at EY in Switzerland, explains: "Last year was probably still a catch-up year for many consumers due to coronavirus. The remaining savings were used to treat themselves to something. After a weak wage round, another significant increase in health insurance premiums and a second increase in the reference interest rate with a corresponding impact on rents, the outlook for 2024 is gloomy and will lead to a delayed inflation effect. Furthermore, the geopolitical situation remains very tense and is leading to further uncertainty."
The reduction in Christmas spending can be seen across all generations: Respondents aged up to 35 are the least impressed. They plan to spend 13 percent less money than last year. All other age categories are planning a Christmas budget that is between 19 and 23 percent lower. Inflation is also having a dampening effect on general shopping behavior - and thus beyond Christmas shopping: Only just 17 percent of consumers say that they are not reducing their general purchases despite inflation. Bieri says: "Inflation has definitely reached the general population. Since our survey was conducted, consumers have never planned to spend so little after adjusting for inflation. It is therefore to be expected that the effects of this declining domestic demand will have an impact on the economy as a whole."
These are the results of the annual EY Christmas survey conducted by auditing and consulting firm EY in Switzerland. More than 600 adult consumers in Switzerland were surveyed for the study in November and December. The survey period also covers "Black Friday" and "Cyber Monday".
The most popular gifts under the Christmas tree
Once again this year, the most popular gifts are in well-known categories: Gift vouchers/money are still the most popular Christmas present in Switzerland with 37% (previous year: 41%). Toys are in second place with 36% (2022: 38%), followed by food/confectionery with 34% (2022: 34%). In second place are clothing (31%), books (23%) and cosmetics (18%).
"This ranking confirms the trend of recent years of giving useful and sustainable gifts, as well as items for everyday use and necessary purchases. Young people are also the least likely to save when it comes to financial challenges," says Bieri.
Consumers in Switzerland are once again investing the highest sums by far in gift vouchers and toys this year: On average, spending on these is expected to be 48 francs (gift vouchers/money) and 46 francs (toys) respectively. Food/confectionery (CHF 34) and clothing (CHF 31) follow in third and fourth place. The biggest budget cuts compared to 2022 are expected in the areas of smartphones/tablets/wearables (minus 61%) and travel (minus 39%). However, the categories of consumer electronics, CDs/DVDs, jewelry, furnishings, printed books and e-books will also see year-on-year declines of more than 30%.
On average, women are planning to spend significantly more on printed books, home furnishings and cosmetics than men in the current Christmas season, while men will invest significantly more money in food/confectionery, consumer electronics, computers and smartphones/tablets/wearables than women in 2023.
A look at the individual gift budgets
Most consumers surveyed (22%) want to spend between 101 and 200 francs on gifts. 16 percent budget between 50 and 100 francs for their purchases, 15 percent reserve between 201 and 250 francs and 14 percent want to spend between 301 and 500 francs on gifts.
Overall, 80 percent of respondents want to spend between 50 and 500 francs, while only 7 percent have no more than 50 francs in their pockets for gifts. Only 13 percent of those surveyed plan to spend more than 500 francs - a year ago, this figure was 20 percent of Swiss consumers. A full 3 percent plan to spend more than 1,000 francs.
Online retail continues to dominate
A look at the sales channels reveals a trend that has been familiar for years: online retail continues to dominate with an expected market share of 41% (previous year: 38%), followed by shopping centers and specialist stores with an expected market share of 23% each. Swiss consumers intend to spend 116 francs in online retail (previous year: 131 francs). In shopping centers and specialist stores, respondents intend to spend 66 and 64 francs respectively. Both shopping channels have recorded a significant decline in this planned expenditure. André Bieri says: "Time is an important factor for purchases. The top gift categories can be ordered online very easily and without a shopping experience. Social media such as TikTok and Instagram are also likely to have a positive impact on online business, especially among the younger generation."
According to the respondents, the following aspects speak in favor of online shopping: 24-hour service (68%), no crowded city centers (59%), greater choice (54%) and lower prices (29%). On the other hand, according to consumers, the retail trade shines with the fact that products can be better assessed (75 percent), there are no shipping costs (65 percent), products are directly available (64 percent) and good advice is offered (57 percent).
Sustainability remains important when shopping
Interest in and consideration of sustainability aspects has increased slightly compared to 2022. 63% of consumers in Switzerland say that sustainability aspects play at least a minor role for them when giving gifts and celebrating Christmas this year (previous year: 59%), while 18% of respondents say that sustainability even plays a major role (previous year: 12%). Women (67%) consider sustainability aspects significantly more often than men (57%). It is interesting to note that the older the respondents are, the more important sustainability aspects become. Consumers aged 66 and over are at the top of the list. Sustainability plays a role for 69 percent of this age category. Sustainability plays the least important role for respondents under the age of 35; however, this figure is still 60 percent. In terms of specific behavior, regional purchasing is in first place. 36% of consumers in Switzerland state that they pay attention to this. This is followed by reducing or eliminating the use of wrapping paper (29%), and a full 25% pay attention to sustainability when choosing gifts themselves.
