Just as the holiday season of sweets closes and the New Year’s diet begins, the chocolate and candy are put out in stores to tempt every soul who dares to enter near Valentine’s Day. With an estimated $18.2 billion spent each year on celebrating this holiday, there is a lot of love in both the air and the consumer market.
Who are people buying for?
Although the holiday is typically associated with couples romantically treating each other, the market also includes friends, family, teachers, and even pets. In a survey done by the National Retail Federation, consumers budgeted how much they plan to spend on each of the following people in their lives:
- $85.21 on their significant others/spouses
- $26.59 on other family members such as children or parents
- $6.56 on children’s classmates/teachers
- $6.51 on friends
- $4.27 on coworkers
- $4.44 on pets
Furthermore, there is a growing new audience of singles who also like to celebrate the holiday.
Less than 50% of the population is single, and around 25% are planning to celebrate this holiday. A single man averages $74 in spending, and a single woman averages $40 in spending during this holiday.
Brands may want to reconsider ways to target this growing audience for the holiday.
What do they want to buy?
Gifts for significant others will often include spendy hotels, dinners, jewelry, or clothing, but gifts for family, friends, and the self are typically much less expensive. “It’s the thought that counts” sways many people to purchase small chocolates or candy to remind the people in their lives that they care on this special day. However, 94% of people state that they want to receive chocolate or candy this year, so it is no surprise that an expected $1.7 billion will be spent on these sweets, just in the couple of weeks leading up to the big day.
Ways to improve sales during this time
Although Valentine’s Day will still primarily involve couples as consumers, there is potential to expand the market to singles or offer atypical gifts. It is important for brands to recognize this expanding audience to better target advertising and increase sales.
Market just in time
Statistics have shown that people do not plan ahead to shop for Valentine’s Day as much as they do for other holidays. In fact, around 46% say they will not even start buying until early February. Therefore, it can be an important budget saver to only market a couple of weeks in advance of Valentine’s Day.
Help impulses
In-store advertising is key to solidifying consumer decisions in the moment. Many customers make purchasing decisions in under five seconds, so in-store displays are vital for catching the buyer’s attention and providing convenient access to products. Valentine’s Day is a high-traffic time that provides the chocolate and candy industries an opportunity to stand out and drive sales.
How Observa helps you make more money
During this high-traffic holiday, products need to be present and displayed in an aesthetic way on store shelves. This is a prime opportunity to receive real-time, unbiased snapshots of what consumers are seeing. Fast results allow for immediate insights and corrective action before the holiday passes.