Dreaming of an expensive new watch or designer handbag under the tree this year? You might want to think again.
This Christmas, Australians are ditching mass-produced electronics and clothing for more ‘meaningful’ gifts, according to a new report by IBISWorld.
The report found that the rising cost of living and stagnant wages growth are weighing heavily on consumer spending.
That means we’re focusing more on gifts that offer ‘meaning’ and ‘quality’ this year.
Think hand-made cards, charity donations, pet toys for the pooch and lots of food, according to the report.
It seems that while we’re spending less on retail goods, Australians are happy to open their wallets for a decent feed.
The latest numbers indicate that we’re set to spend an additional $10 billion on food and drinks this Christmas compared to last year, as we splash out more on premium, locally-sourced products.
Conversely, recreational goods such as games, toys and sporting equipment are predicted to fall by almost nine per cent, along with clothing and electronics.
“We are seeing consumers move away from purchasing traditional recreational gifts this year,” said Hayley Munro-Smith, IBISWorld Industry Analyst.
“Instead, Australians are spending more money on meaningful experiences (such as Christmas lunch), charitable donations and their beloved pets.”
Looking for a gift that is that is a little more special (and cheaper) than what you’d usually get loved ones?
Four great (frugal) options are baked goods, handmade cards, printed photos and online discount gift vouchers.