Self indulgent spending set to soar in January
Hey Big Spenders
New Year – New Wheels
January is often perceived to be a fallow season for brands, or a time for selling sale stock, but data released by eBay Advertising today demonstrates that the New Year is likely to see a significant rise in premium purchases, as shoppers revert to more self indulgent spending following the gifting season.
In the first month of 2016, interest in big ticket items across categories soared, proving that brands have rich opportunities to engage beyond sale shopping.
Hey Big Spenders
eBay Advertising data shows that from the 24th of December 2015, through to the 24th of January 2016, there was a 190% increase in searches for “designer” items, and a 148% increase in searches for “luxury” products, with 40-49 year olds the most likely to be self indulgent shopping.
This increase was significantly more pronounced than the 105% rise in searches for “sale” and “reduced” items over the same period, demonstrating that the January sales are not always the biggest draw for shoppers at this time of year. Of those shoppers seeking a bargain, 50-59 year olds were the most active age group.
In addition, January’s window of opportunity for brands engaging with high end, inspirational messages, is longer than that for those aiming to capitalise on sale shopping. Searches for “sale” or “reduced” items peaked on 3rd of January, whereas interest in “luxury” and “designer” goods reached a high on 24th of January.
Rob Bassett, Advertising Director at eBay in the UK says it’s natural for brands to associate January with sales shopping, but goes on to say: “Our data shows that they shouldn’t overlook the potential to tap into premium spending, ring-fencing budget and adapting messaging, as people stop buying for others and get ready to treat themselves.
New Year – New Wheels
If proof was needed that many shoppers are in the mood to splash out in the New Year, ebay.co.uk experienced a significant increase of interest in the automotive category, with a particular focus on luxury vehicles.
Between the first week of January and the first week of February, searches in the Cars, Motorcycles and Vehicles category rose by 30%. Moreover, the increase in this category significantly outstripped the rise in searches in eBay’s Vehicle Parts & Accessories category, demonstrating that shoppers are specifically interested in purchasing their next vehicles, rather than repairing existing ones. And there was particular interest in luxury car brands; searches for “Audi” rose by 58% between December 31st and January 31st, while searches for “Porsche” and “Jaguar” were up by 46% and 40%, respectively, during the same period.
Shoppers also treated themselves to new technology at the beginning of the New Year: average searches in eBay’s electronics category went up by more than 1.5 million in the first month of 2016.
And while tech shopping is often seen as the preserve of the young, eBay’s data shows that searches in the category rose the most amongst shoppers in their 60s over this period. This age group also exhibited the biggest increase in searches for video games and consoles in January, while interest in the Cameras and Photography sub category rose most amongst the 70-85 age group during the same time frame.
Of course, the annual Christmas feed up is followed by a renewed fanaticism for fitness early in the New Year. And in the spirit of self-indulgence, a significant group of shoppers are seriously splashing out on their workout equipment; interest in designer sportswear brands “Moncler” and “Canada Goose” rose by 20% and 25%, respectively. In addition, searches for high end Omega juicers spiked by more than 30%, as shoppers invested in their health for the year ahead.
Rob Bassett concludes: “To run a successful campaign, brands need to be able to distinguish between shoppers with an eye for a bargain and those who are looking to splash out on big ticket items to avoid alienating their audience. As always, accurate targeting is everything.”