Is Christmas cancelled ?: Far from it

An ultimate test

This Christmas looks to be a fascinating time when retailers and FMCG marketers can test themselves against the most challenging market dynamics and consumer uncertainty and, importantly, test wits against each other.

The market-place is wide open with discounters fancying their chances against the usually successful retailers. This means that share of voice, the ‘Christmas message’, range, in-store experience and value (not just price) will all be extremely critical this year to maximise footfall and share of the £30bn.

Great expectations

Christmas behavioural segmentation research that we have conducted this year, when compared with previous years, shows big swings in segment sizes. Many people who would ordinarily buy premium products at Christmas say they will buy lower priced yet more ‘meaningful’ (i.e. valuable) gifts this year. To complement this, expectations from recipients are much lower. In fact, some recipients say they would be offended if receiving an ‘inappropriate gift’.

This is a great opportunity for mainstream retailers to target this year’s consumer needs with advertising, in-store activity and range. In particular, gift categories of 20 years ago (e.g. confectionery, toiletries, food gifts) - superseded by more pricey and ostentatious ones recently - may well see a revival. The trick from a marketing point of view is to create a perception and consumer feeing that these categories are actually contemporary, new and different and, most importantly, have high sentimental value and personal meaning.

Dorothy vs. Scrooge

This year, consumers are telling us that a ‘traditional Christmas’ is really something that they are looking forward to. At whatever budget level consumers have, their intention is to make Christmas as ‘special’ and enjoyable as possible. The whole Christmas occasion is likely to be centred on family traditions as opposed to excessive spending.

This is a great opportunity for both seasonal and non-seasonal FMCG categories to take advantage of creating a special Christmas experience and create a feel-good, rewarding, feeling during the long run up to Christmas and Christmas itself. “The Wizard of Oz” and “A Christmas Carol” will be perfect this year !

Creating a better future

Above all else, the next 6 weeks will be a fantastic time for us all in the FMCG industry to create consumer feel-good second to none. If we can get this right, we can hope for a 2009 where consumers, retailers, manufacturers (and don’t forget us humble market researchers !) can look to a bright new future which combines real meaningful value with a return to confident thoughts and deeds.