Consumer confidence increases as Christmas spending rises between 4% and 5%, according to ESADE study

Spanish consumer attitudes are changing. Impulse purchases are becoming more frequent in contrast with the nervousness of previous years when most purchases were carefully planned for practical and inexpensive items. Christmas spending will be between 4 and 5 percent more than last year. 

The ESADE Spanish Consumer Attitude Report 2015 shows that spending and savings have recovered from 2012 levels and are currently reaching the levels of 2006 – evidence of increased consumer confidence. Some 63% of Spaniards believe that ​​the economic situation is stable or improving (7 points above the European average) and 66% believe it will improve further in 2016 (12 points above the European average). 

The ‘sales’ season in shops and online is causing an extraordinary increase in spending throughout the Christmas period. Consumers have recovered from the gloom and penny-pinching habits of previous years and rediscovered some of the euphoria of the pre-crisis period.

Initiatives such as Black Friday or Cyber Monday have become more noticeable this year and increased turnover by 10% compared to 2014. These sales events have led to an ‘explosion of consumption’ and have ‘advanced holiday shopping by encouraging a spurt of global spending’ says ESADE marketing lecturer Josep-Francesc Valls in the report. A ‘deseasonalisation’ of shopping is also reported. Some 60% of consumers wait for ‘sales’ before making purchases. Although the classical ‘sales’ periods are expected to continue, any type of occasion or event is currently used to justify online or shop discounts to attract clients.

Christmas online shopping   

The report also analyses online consumer spending. Franc Carreras, online marketing expert at ESADE, emphasises that data showing an increase in online sales underlines the rise in consumer spending. The average sales price has also increased from €60 to €70, and it is estimated that penetration of online shopping has grown from 44% in 2013 to 67% this year.

However, online transactions are still made from traditional computers rather than mobile devices, and the most pronounced current trend is towards multichannel sales (combining online purchases with actions in shops). Evidence of this trend, says Carreras, is that online players are opening bricks and mortar shops – such as the case of Amazon and the retailer Radio Shack.

Changes in types of buyers

The economic crisis has accelerated changes in buying habits that were first noticed some 15 years ago. It is significant that nine out of ten Spaniards now compare prices before buying, booking, or hiring a product or service. Shoppers search for the lowest prices – although they remain conscious of the value of brands. Rational buyers seeking quality products at reduced prices have increased by more than three points (from 23.9% to 27%); while price-motivated buyers have also increased considerably and now represent nearly 30%.

Both consumer categories look for discounts, special offers, and low-priced brands. Although Spanish consumers are buying more, they still look for the lowest prices (above the European average: 89% versus 82%), maintain a spending budget, and apply various austerity measures when eating out, holidaying and travelling, or using electricity. Buyers of second-hand goods are a rapidly emerging category.

- Value buyers (loyal to high-end brands)
Some 57.3% of shoppers increasingly chase value. They buy their favourite brands (but in smaller volumes), look for special offers, but usually avoid cheap products.

- Hybrid buyers (buy expensive and cheap at the same time)
Remain loyal to their favourite brands and are unlikely to take advantage of special offers, although value perception may lead them to change brand.

- Rational buyers (seek quality at reduced price)
Seek the best value for money, plan their purchases, and are the least likely to change brands.

- Price buyers (always looking for the cheapest products)
Reluctant to try new products in case they have to pay more in the end. Only buy new products if better benefits are offered. Prefer specialised shops, followed by supermarkets, and shopping centres.

Food purchases, very significant during the Christmas period, reveal that shoppers are buying the same products but at lower prices. Supermarket sales are up, and hypermarket sales are also slightly up (although market share is slipping).

How will Christmas shoppers behave this year?

Shoppers will focus on practical items – although more impulse purchases and more extravagant presents will be purchased this year than last year. The right amount of Christmas cheer in shops and shopping centres will push sales ahead.

A profile of the 2015 Christmas shopper:

- Attracted to ‘sales’
- Temporarily relaxes control on spending
- Combines shop and online purchases
- Looks for value at reduced price
- Enters shop with decisions already made
- Buys mostly practical items but makes some impulse buys
- More likely to use credit cards