Moderation: Lower Spending on Food, Gifts, and Decorations

The lesson of moderation has started to be embraced by more and more people. Even though the attitude is forced by rising prices, it's crucial that the first steps in this direction have been taken. Romanians are more cautious this year around the winter holidays, spending 12% less than last year on food, gifts, and decorations, with the average amount reaching 1,188 lei, according to a study by Reveal Marketing Research.

This year, Romanians plan to spend Christmas at home (56%) or visiting loved ones (39%). The enthusiasm felt by Romanians around the holidays has decreased from 17% in 2022 to 6% in 2023, with the main explanation being that Romanians enjoyed their first Christmas without restrictions last year. According to the results of the Reveal Marketing Research study, this year, Romanians have more positive feelings about the upcoming holidays (73%), compared to last year (64%). The most frequently mentioned emotions triggered by the holidays are happiness/joy (26%), well-being (16%), and a sense of gratitude (12%). On the other hand, negative thoughts persist for 22% of Romanians this year, with indifference (7%) and sadness or stress (7%) being the most commonly mentioned.

According to the Reveal Marketing Research study: "The majority of Romanians will spend the winter holidays at home this year (56%), reaching 72% for people over 55 and 73% for those with low income, below 2,000 lei. Moreover, 39% of Romanians plan to visit loved ones (family, friends) during the winter holidays, significantly more among those aged 45-55 (46%). We can observe that visits outside the place of residence are preferred more by young people aged 18-24 (18% vs. 13% total sample)."

According to the results of the Reveal Marketing Research study, the budget allocated for Christmas will be similar (50%) or smaller (38%) compared to last year. Only 12% mention a higher budget, significantly more among those aged 44 to 55 (25%). "Given the price increases of products and services in the last year, the 88% of Romanians who declare that they will allocate a budget similar or lower than that of 2022 for Christmas will have to make adjustments to their shopping basket since such a budget would not allow them to purchase the same products or maintain the same level of gifts and expenses as last year," said Marius Luican, CEO of Reveal Marketing Research. Looking at expense organization, 32% of the budget allocated for the holidays will go towards food and drinks, 28% towards gifts, and 11% towards decorations and festive atmosphere. Romanians are more moderate in managing holiday expenses, with 11% of this year's budget allocated to an unexpected expenses fund. "Compared to the winter holidays of 2022, over half of Romanians (64%) declare that they will reduce spending on decorations and festive atmosphere, while 46% intend to allocate a smaller budget for gifts, and 38% will reduce the amount spent on food and drinks. The average amount Romanians declare they will spend this year on food and drinks (546 lei), gifts (492 lei), and decorations (149 lei) is 1,188 lei, a 12% decrease compared to 2022 (1,350 lei)," reveals the study.

The exchange of gifts is a significant tradition in celebrating Christmas, and most Romanians (35%) are not picky, stating that the type of gifts they receive doesn't matter. The most desired gifts are clothes, especially this Christmas (30%), particularly by young people aged 18-34 (37%). Clothing is followed by jewelry, watches (18%), and personal care products (18%), categories favored more by women. For example, 22% of women wish for personal care products compared to 14% of men. Also, gifts related to specific passions/hobbies are preferred by 15%, more by men (21% vs. 10% women) and those aged 45-55 (29%), and gadgets by 14% of respondents.

Romanians still prefer to buy Christmas gifts from physical stores (43%), rather than online ones (26%). Additionally, four out of ten Romanians have bought Christmas gifts in advance or placed online orders to take advantage of discounts and avoid in-store crowds.