Holidays Unzipped:
Zip Canada’s 2021 Holiday Spending Report
Fascinating consumer insights to guide
your retail strategy this holiday season.
After a highly unusual holiday season in 2020, Canadians are embracing the holiday season much as they have in years past, but with a cozy, local spin: many plan to spend the holidays in their own city or town, spending predominantly online, with household items like furniture and decor at the top of the gift list.
However, Buy Now, Pay Later (BNPL) users in Canada are a trendsetting bunch, and hints at a crack in the status quo have emerged in their approach to budgeting, gifting, and experiencing all that the holiday season has to offer. This report covers everything retailers should know to make the most of a rebound in spending during the 2021 holiday season.
This report is based on findings from a Zip survey as well as proprietary Zip data.
Survey Methodology:
Online survey conducted by YouGov, on behalf of Zip Canada
Completed by n=1640 Canadian respondents aged 18-65
10 minute online survey among Canadian Nat rep sample
Before we jump into the details, let’s take stock of the big picture. Here’s a quick look at macro consumer trends and how this compares to last year’s holiday shopping season.
When it comes to spending, Canadians are most likely to be spending on:
While the majority of Canadians are creating budgets ahead of the holiday season, BNPL users are more enthusiastic – setting aside larger quantities of cash and planning to spend more.
of Canadians are creating budgets for the holiday season.
Intended monthly spend for Gen Z
(more than Millennials, Gen X, and Baby Boomers)
Intended monthly spend for BNPL users
(significantly higher than $145 budgeted by non-BNPL users)
Canadians may not be ready to travel internationally this holiday season, but they're eager to shop. Retailers can expect higher spends this year, especially among young Canadian Buy Now Pay Later users - those looking to spend more now and pay later.Steve Croth, Managing Director, Zip Canada
Convenience reigns as the majority of BNPL users aim to complete holiday shopping online and early to secure their gifts on time in the face of supply chain issues.
THIS HOLIDAY SEASONare planning on getting the majority of their holiday season shopping completed by Black Friday / Cyber Monday to ensure they get the best deals, but also avoid potential shipping delays and retail crowds in store.
BNPL users are even more motivated,
planning to have completed their holiday shopping by Black Friday / Cyber Monday.
Like younger Canadians, BNPL users are more likely to shop in digital channels, participate in digital shopping events, and seek inspiration from brands, media and influencers for holiday gifts.
of Canadians
want to be
offered personalized suggestions
from brands.
This jumps to
30% for BNPL
users.
of Canadians seek holiday gift inspiration from browsing websites of their favourite brands.
find online
influencers a great
source of inspiration
for gift-giving.
of BNPL users
look to
influencers
for gifting
inspiration.
Traditional gifts and practical items top the wish lists for Canadians this year,
while travel and experiential gifts lag.
of Canadians prefer traditional gifts, such as tech products, clothing, and accessories, over any other category.
BNPL users are more interested in gifting:
Younger generations (Gen Z and Millennials) are more likely than older generations (Gen X and Baby Boomers) to gift non-monetary gifts, like giving their time, this holiday season.
There's no place like home for the holidays! The majority of Canadians (56%) are planning for local travel this holiday season. However, BNPL users, Gen Z, and Millennials are more likely to jet set or road trip domestically to visit family and friends.
of Canadians do
not plan to
spend anything
on holiday travel
this year.
of Canadians wiling
to travel plan to
visit the US.
Gen Z and Millennials are more likely to desire
to be close to their family and friends.
One in five Canadians plan on purchasing gifts internationally this year, 12% from specifically US retailers.
Of those willing to spend internationally,
plan on
purchasing their
gifts online only.
are opting for a
hybrid of online and
in store shopping.
of Canadians plan
to specifically
travel across the border to purchase gifts in store.
Younger Canadians cite payment flexibility as a leading factor in their decision-making process.
Canadians choose not to shop
internationally because:
Ready to put these insights into action?
Here's the high-level, TL;DR summary:
Interested in learning more about the benefits of offering Buy Now, Pay Later ahead of the holiday season?
Learn more about becoming a Zip merchant at the link below.
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