NPD Reports Holiday Trend of Experiential Purchases

Rather than filling stockings or wrapping packages, many holiday shoppers plan to purchase less tangible gifts this year, reports The NPD Group. According to a recent survey by the global information company, thirty-nine percent of U.S. consumers plan to purchase experiential gifts this holiday season, like wine tastings, concert tickets and spa treatments.

“When store displays show off the same old sweaters or the hot kitchen appliance is sold out in stores, consumers are faced with a gifting dilemma,” says Marshal Cohen, chief industry analyst for NPD. “Giving an intangible gift, an experience, can be more personal and more memorable for the gift-recipient and in many ways easier for the gift-giver, making them an ideal holiday gift solution for many consumers.”

In addition to experiential gifts, subscription services are also on the radars of some consumers this year. Seven percent of shoppers plan to purchase a subscription box or service as a gift this holiday season. Similar to the top experiences, food subscriptions top the list among consumers, followed by beverages, electronics, health/fitness, fashion and beauty/grooming subscriptions.

The purchase intent for experiential gifts and subscription services this holiday season is strongest among Gen Z and Millennial holiday shoppers, as well as households with children and annual incomes over $75,000. Similarly, gift cards, more common ‘intangible’ holiday gifts, are popular among higher income households and those with children, but Gen Z is the least likely to purchase them.

Despite Gen Z’s lack of interest, anticipated gift card purchasing shows a small uptick for Holiday 2017, reaching 45 percent of consumers. Only 25 percent of consumers told NPD that they did not plan on purchasing gift cards this holiday season, while the rest were unsure at the time of the survey.

“Gen Z and Millennials think to give experiential gifts because that is what they seek—people like to give what they want themselves,” Cohen adds. “Whether shoppers are looking for more unique gifts in general, or reacting to current retail offerings, the popularity of intangible gifts poses a very real threat to traditional retail.”

Doing anything to offer “an experience” to your customers this holiday season? Tell us in the comments!