Introduction to a New Holiday Trend
The holiday season is upon us, and with it comes the traditional rush to buy gifts for loved ones. However, this year, Generation Z is taking a different approach. Born between 1997 and 2012, this generation is forgoing traditional gift-giving, instead opting for a more experiential approach to the holidays.
The Rise of Experiential Gifts
According to a report from Deloitte, Generation Z plans to spend 34% less on gifts than last holiday season. This shift in spending habits is not due to a lack of funds, but rather a change in priorities. This generation believes that their "presence is the present," and would rather spend time with loved ones than give physical gifts. In fact, 92% of Americans are more than happy to receive experiential gifts, such as tickets to events or activities, over traditional physical gifts.
A Shift in Holiday Spending
The data supports this shift in spending habits. Searches for holiday lights events have increased by 56%, while searches for holiday concerts have increased by 52%. Attendance at wine events has increased by 25%, food events by 18%, and EDM raves by 12%. This trend suggests that people are valuing experiences over material goods, and are willing to spend their money on creating memories rather than buying physical gifts.
The Cost of Traditional Gifts
In contrast, physical Christmas gifts are 26% more expensive this year, according to a new analysis. Shoppers are spending 38% more on kitchen items, 34% more on electronics, 20% more on clothing, and 17% more on toys. Popular gifts, such as Beats Solo 4 headphones, are 30% more expensive than last year, and an air fryer-oven combo from Instant Vortex is 16% more expensive than last holiday season.
A New Approach to Gift-Giving
While some may view Generation Z’s approach to gift-giving as cheap, it is more likely a reflection of their values and priorities. As the most nostalgic generation, they are seeking to create meaningful experiences and connections with others, rather than simply exchanging physical gifts. This approach may be a welcome change to the traditional holiday season, and one that could have a lasting impact on the way we think about gift-giving.
