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Corporate Social Responsibility
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11.16.2007 - 04:30pm ET
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A Green Christmas: Deloitte Survey Says One in Five Consumers Will Purchase More "Eco-Friendly" Products This Holiday Season; Many Willing to Pay More
Clothing, games among top gifts; consumers avoiding holiday crowds and commercialization, embracing Internet shopping
(CSRwire) NEW YORK - November 16, 2007 – The environment is increasingly on
consumers' radar screens, according to the 22nd Annual Holiday Survey of
retail spending and trends, commissioned by Deloitte.
The survey reports that almost one in five consumers (18 percent) will
purchase more "eco-friendly" products this holiday season than in the
past, and a similar number (17 percent) will shop at more "green"
retailers.
Additionally, almost one-third of consumers (27 percent) surveyed will use
fewer plastic bags from supermarkets and other stores this holiday season,
and one in five (20 percent) will consider not wrapping holiday gifts to
conserve paper. Surprisingly, these responses concerning the environment
and holiday shopping intentions were consistent across gender, age and
income groups.
"Most importantly, a significant number of people - 17 percent - are
willing to pay more for 'green' gifts or supplies, which tells us that
this issue is on shoppers' minds this year and is becoming more central to
consumers’ purchasing decisions," said Stacy Janiak, Deloitte's U.S.
Retail Leader.
"Savvy retailers are taking concrete steps to become more environmentally
friendly, and are incorporating this sensibility into their operations, as
well as their customer communications. At the same time, they should be
cautious about promoting their eco-initiatives too early, before they've
made real progress, due to the potential for consumer backlash."
Clothing and Games Continue to Be among Top Gifts
How this environmentalism will translate into gift purchases remains to be
seen. In the survey, clothing continued its four-year run as the second
most popular gift category (gift cards have been #1 for four years);
however, the popularity of clothing as a gift has fallen over the past
several years, especially among younger groups. Toys, including games,
dolls, and computer/video games and consoles, ranked third. CDs/DVDs/tapes
and books continued their four-year decline.
The top specifically-named gifts that consumers intend to buy for friends
and family included Apple's iPod, Nintendo's Wii, Microsoft's Xbox and
Sony's PlayStation. Other top gifts mentioned included recently released
video games Halo 3, Guitar Hero III, Barbie and Transformers. Also in the
top 10 this year: jewelry and watches, televisions, and experience gifts
such as travel, spa services, and tickets for entertainment events.
As previously announced, the survey found that gift cards/certificates
continued to be the #1 gift that consumers plan to buy; the top venues for
these gift cards are discount department stores (such as Wal-Mart and
Target) and large home improvement stores (such as Home Depot and
Lowes).
The Gifts That Keep on Giving
For those who don't receive gift cards this holiday season, the good news
is that the majority of the gifts received will likely be returnable, if
needed.
The great majority (75 percent) of survey respondents said they prefer to
shop at stores that have hassle-free return policies. One-quarter (25
percent) of consumers said that last season they returned or exchanged
gifts; they did so 2.4 times.
In addition, almost one-quarter (22 percent) said they re-gifted last
holiday season. Women were much more likely to do so than men, as were
younger consumers. Those that re-gifted did so an average of 2.8 times.
"Hassle-free return policies can improve the customer experience,
encourage sales and enhance customer loyalty," said Janiak. "Retailers can
also look for ways to up-sell when customers return or exchange gifts."
Happy Holidays! Now Get Out of My Way!
Almost two-thirds of consumers (63 percent) say they enjoy the experience
and spirit of the holidays; however, a similar amount (61 percent) say
they avoid holiday shopping crowds - an increase from the 56 percent that
said this in 2006.
Consumers said that over-commercialization, rude people/bad manners and
crowded stores are the aspects of holiday shopping that they find most
frustrating; surprisingly, younger age groups were most likely to cite
these frustrations.
"These findings may help explain why American consumers continue to turn
to the Internet in droves," said Janiak.
Seven in 10 consumers (70 percent) said they would do part of their
holiday shopping online, and one in five (19 percent) said they will shop
primarily or entirely online this holiday season. Almost half (48 percent)
say they like the convenience of shopping with multi-channel retailers -
that is, those that have some combination of stores, Web sites and
catalogs.
"Retailers who sell across multiple channels can increase their chances of
success with this year's holiday shoppers," commented Janiak. "In our
survey, almost two-thirds (64 percent) of consumers told us they have made
at least one multi-channel purchase over the past year, most frequently
purchasing in the store after viewing the product on the retailer's Web
site or catalog, or purchasing on the Web site after viewing in the
retailer's store. Further, younger generations' affinity for the Internet
and dislike of crowded stores tells us that online and multi-channel
shopping will be an increasing trend. To be most successful, retailers
must provide an exceptional customer experience in every channel, ensuring
that these shopping experiences are not only seamless, but also as
convenient, pleasant and as easy as possible."
About the Survey:
The survey was commissioned by Deloitte and conducted online by an
independent research company between September 24 and October 4, 2007. The
survey polled a sample of 14,135 consumers and has a margin of error for
the entire sample of plus or minus one percentage point.
For more information about Deloitte's Annual Holiday Survey, including
interesting statistics, historical data and useful links, please visit www.deloitte.com/us/2007HolidaySurvey.
About Deloitte
As used in this document, "Deloitte" means Deloitte & Touche USA LLP.
Please see www.deloitte.com about for a detailed
description of the legal structure of Deloitte & Touche USA LLP and its
subsidiaries.
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