A very COVID Christmas: Nearly 3 million Hong Kong adults planning to cut costs

7 October 2020 rsbradbeer BUSINESS 0

COVID-19 has put a dampener on Christmas spending this year according to new research by global financial comparison website Finder.com.

A new survey of 1,215 respondents reveals 47% of Hong Kong adults aged 18 and above – equivalent to nearly 3 million people – are planning to spend less money on Christmas compared to last year.

Those planning to spend less are reducing their budget by more than a quarter on average (26%). With last year’s Christmas spend averaging around HK$2,916 per person this means a forecast spend of HK$2,172 per adult (HK$744 less).

The flow on effect will hit retailers and service providers, costing them an estimated HK$1 billion in reduced sales.

Susannah Binsted, money specialist at Finder, said some people are cutting costs harder than others.

“Around one in five will shed just 5-10% from their annual Christmas outlay, while 14% will at least halve their budgets this year,” she said.

“There are a couple months to go until Christmas – this is still enough time to create a feasible budget and work out your savings strategy.

“Planning ahead can save you big bucks and reduce stress, especially if you spread the cost over a number of months rather than holding out until December.

“By shopping early you can take note of the best retail prices and take advantage of sales events like Black Friday and Singles Day.

“But keep in mind that many consumers will be looking to shop online this year so don’t leave online purchases to the last minute and make sure you check shipping and delivery times.”

Are you planning to spend less this year on Christmas compared to last year?

Yes, 5% less	14%
Yes, 10% less	7%
Yes, 20% less	5%
Yes, 30% less	6%
Yes, 50% less	7%
Yes, More than 50% less	7%

Tips for lowering your Christmas spend:

“Shop around: You’re only a few clicks away from comparing prices. Jump online and research the product you’re after to see if it’s in stock elsewhere at a cheaper price.
“Stick to your budget. Be realistic about the amount you can spend, and keep track of your purchases so you know where your money is going.
“Be sales savvy. Major sales days can see prices slashed across a huge range of products. Pencil the dates into your calendar so you don’t miss out!

You can catch the full report here: https://www.finder.com/hk/christmas-spending-statistics