• Irish consumers again most optimistic about economy and job security
• Significant growth in Internet spend this year
• Irish spend most in Europe on children’s presents – with games consoles and dolls leading the toy choice this year

Irish consumers will be the biggest spenders in Europe this Christmas with the average household in Ireland expected to spend EUR1,339 during the holiday season, which is double the European average, according to Deloitte’s eighth annual consumer survey of Christmas spending plans.

Irish consumers are planning to increase their household spending by about 10 per cent from last year, a rate of increase that means we now outspend even the US (EUR1299 per household). In Europe, only the UK (EUR1057), and Spain (EUR904) can come close to the Irish’s Yuletide spending habits. The average European household is projected to spend EUR662.

According to Cormac Hughes, a Consulting Partner at Deloitte, Ireland’s high rate of spending is linked to our confidence in the economy, job security and political stability.

“We are the most confident in Europe when it comes to the current state of the economy and buying power, and the stability of our political system. Just over 80 per cent of Irish people are satisfied that the economy is stable or improving, whereas in Germany, France, Spain and Portugal, high numbers of the consumers surveyed are pessimistic. In addition, a majority of Irish households are optimistic about their financial position, with 50 per cent expecting their position to improve next year,” commented Hughes.

Irish consumers are also set to use the Internet to buy more of their Christmas presents this year. Forty seven per cent of Irish consumers say they plan to spend more on-line for their Christmas shopping in 2006 than they did in 2005.

The main reasons cited by shoppers here for buying over the Internet were to avoid crowded stores and the ease of delivery. The most common presents bought over the Internet are DVDs/CDs/Videos, books, video games, computer software, and clothes.

Spending Summary

Of the EUR1,339 that Irish households plan to spend, EUR824 will go on gifts, EUR251 on food, and EUR264 on socialising.

When it comes to spending on gifts, the average Irish consumer will buy the highest amount of presents across Europe at 18.

We also lead Europe in splashing out on our children, with the largest average amount spent on them of EUR121, which is double the European average.

However, it remains to be seen whether this will be money well spent as only 50 per cent of Irish consumers know what children under 12 want for Christmas. According to Cormac Hughes, this presents a communications challenge for retailers and brands.

In case anyone needs guidance, the most desired gifts by children under 12 are dolls (24 per cent), consoles (22 per cent), traditional toys (15 per cent), video games (10 per cent), and outdoor games (eight per cent).

In Ireland, most people buying for children under 12 will stick to the traditional gifts of toy figures, toy vehicles, CDs/DVDs/Videos, books, and video games.

When it comes to teenagers, most buyers go for presents such as CDs/DVDs/Videos, clothes, gift vouchers, books, and video games.

Of course, adults have their Christmas wishes too and for Irish grown-ups the ten most wished for presents are (in order) -  CDs/DVDs/Videos, clothes, books, gift vouchers, jewellery, cosmetics, travel, electronic material, flat screen TVs, and mobile telephones.

What women want

The age-old problem of Irish men buying the wrong Christmas presents for the women in their lives is set to continue this year.

The most popular present desired by women is clothes (67 per cent), but only 50 per cent of men are planning to buy clothes for women. Nearly 65 per cent of women would like jewellery, but only 42 per cent of men will give such a present. The gap is particularly bad when it comes to holidays. Nearly 40 per cent of women would love the present of a holiday, but only seven per cent of men have thought about whisking their loved one away.

However, men are on women’s wavelength when it comes to books (60 per cent each), and close on presents such as DVDs/CDs/Videos, gift vouchers, and cosmetics.

The old rule that you can’t go wrong with a gift voucher also seems to hold true again this year with 48 per cent of Irish consumers wishing for a gift voucher and 58 per cent intending to give them as presents.

The shopping experience

According to the survey, although most Irish customers started their Christmas shopping before November, only five per cent said that they really enjoy shopping during this time of the year citing frustrations such as crowded shopping centres, the lack of product availability, and shortage of innovative gift ideas.

Irish shoppers are also among the most likely in Europe to engage in last minute Christmas shopping with over 60 per cent splashing out in the final days in order to take advantage of discounts.

Customised offer is key to success for retailers

According to Gilles Goldenberg, Deloitte partner in charge of consumer business for Europe, the biggest challenge for retailers across Europe is to adapt to the hyper segmentation of the market as European cultural diversity grows.

“Year-end is atypical for retailers, not only because they do much more volume than during the rest of the year, but because consumers would also like to be treated differently during this period: they need many more advices to help them in their difficult gift selection. All this is about the imperative for precision retailing in today’s more competitive environment. Precision and agility should be the key words for retailers,” commented Goldenberg.

Ends

Notes to editors
About the research

The Deloitte 2006 Christmas Survey, which was designed to measure consumer expectations about Christmas expenses, has been conducted by Deloitte each year since 1998. This year’s survey was conducted on internet and telephone, with a structured questionnaire to a sample of individuals (aged 16 to 65), within controlled panels. 405 Irish people were surveyed.

This year, the country sample has been widely extended, including for the first time Scandinavia, Russia, Turkey, Greece, Cyprus and South Africa. As new trends in the US frequently have direct impact on Europe, comparisons with the US, where Deloitte has conducted a similar survey, have been added.

About Deloitte

Deloitte Ireland is a world-class firm of expert business advisers, serving senior business leaders who are seeking to protect and create value in a complex, dynamic environment. Our objective is to help our clients succeed by anticipating tomorrow’s agenda with focused, insightful and fresh thinking borne out of our multidisciplinary strengths. We draw upon our specialist skills in audit, tax, consulting and financial advisory both within Ireland and across the Deloitte worldwide network. 

What’s different about Deloitte is our people, who focus on building long-term relationships and are determined to deliver measurable value for our clients’ business. With almost 900 people in Dublin, Cork and Limerick Deloitte is known as an employer of choice for our innovative human resources programmes and is dedicated to helping our clients and our people excel. 

'Deloitte' refers to Deloitte & Touche and any associated partnerships and companies established under the laws of Ireland. Deloitte is the Irish member firm of Deloitte Touche Tohmatsu. For more information, please visit the Irish member firm’s website at www.deloitte.com/ie.