Watch a video of the report here: http://www.youtube.com/watch?v=_lDxJUKFN6c
The report, drafted before Christmas by ESADE, states the Spanish families will spend a median of between 600 and 650 euros, as compared to an average outlay of between 900 and 1000 euros in 2007.
The ESADE professor Gerard Costa stated that “the worst consumer symptom is not that people have less money in their pockets, but that they no longer have confidence in economic recovery”. After four years of economic crisis, consumers have become accustomed to saving. A report by ESADE’s Consumer Observer confirms that consumer habits in Spain have changed and that consumption is “frugal” due to the crisis but consumers have become accustomed to a “new normality”. Shopping during the Christmas season was therefore expected to be much more “rational” and less “impulsive”.
Consequently, people are expected to splurge less on their Christmas shopping, with greater emphasis on practical gifts (hardware and textile goods), cosmetics and food, although we will make room for little rewards that we have been putting off all year (such as replacing an electric appliance for the home), and for traditional items such as lottery tickets and family lunches. Also, although parents are making every effort to ensure their children are not affected by the crisis, they will also cut back on their budget. They are expected to get the same number of toys, but average spending will be reduced to some 50 euros per child.
What will we be spending on?
· Electronic goods increases 31%.
· Clothing increases 30%.
· Toys decreases 19%.
· Experiencies decreases 14%.
· Cosmetics increases 13%
To continue reading more of the report
if you are interested, ESADE will be launching a Master’s in Digital Business on the Internet, given by Pau Garcia-Milà (EyeOS) and José M. Villanueva (Privalia).