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Christmas in July?  The ups and downs of Christmas marketing

26 November 2011

As many client-focused businesses know, Christmas has a psychology of its own. Christmas, and the embedded message of gift giving (code for ‘spending’), has stretched well beyond the traditional Christmas months.

For retailers, the earlier they can get consumers into the Christmas spirit the more likely it is that they will ‘spend up’ in preparation – both in gifts and fixing up the home ready for entertaining.  Sales and packaging also help impulse buying because “it was on sale.” 

As a consumer, with all of the Christmas lights, decorations and advertising around the shops it’s hard not to think about Christmas.  However as customers have tightened their belts, many are becoming increasingly savvy at hunting out real bargains.

While we won’t deny the retailers any opportunity they can get, what happens to all the other businesses at Christmas time?

The Christmas slowdown

For many, Christmas is a slow-down period.  The longer the Christmas period stretches, the more sluggish sales become in the last quarter of the calendar year.  Customers influenced by the Christmas spirit delay decisions or put of purchases “until the New Year.”

If you’re in this market take a close look at what you can do to pull sales forward before the New Year and the poor cash flow months of February and March.  This might be a special offer or packaging, or payment plans to lock things in. Even if the sales don’t eventuate this year, some clever and targeted marketing will give you a good base to start off in the New Year.

 

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Disclaimer

This article is provided for information purposes only and correct at the time of publication. It should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.

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