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Merry Halloween?

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Tinsel. Goblins. Eggnog. Ghosts. Mistletoe. Witches. These items may seem like they have nothing in common, but thanks to the marketers of America, they are now being brought together into one fantastic and unprecedented holiday season. Gone are the days when candy corn and candy canes could be enjoyed months apart, because this year, Christmas is coming early.

As many marketers are painfully aware, it’s been a rough time in the marketplace recently. With little confidence in the economy, gas prices rising, and Chinese products-ranging from toys to seafood to toothpaste-being recalled, consumers are not making carefree or impulsive buying decisions any longer.

So, in an attempt to spur shopping in the hopes of offsetting what many predict will be a less than stellar shopping season, marketers have decided to bring Christmas out of December and into October. However, unlike in years past, this time marketers are significantly downplaying the Christmas factor. For example, the words “Christmas” and “Holiday” have been all but hidden in advertisements; red and green color schemes are subdued instead of overt; and there are very few references to Santa, elves, or holly.



Wal-Mart, who has led the way in this Christmas meets Halloween holiday trend, drastically reduced prices on toys this month but has not publicly admitted that the discounts are tied to the holiday season. Instead, they are merely using their euphemism for price cuts, “rollbacks.” And, the mega retailer isn’t the only company taking this approach. Companies such as L.L. Bean, Toys R’ Us, Sears, and JCPenney are all promoting holiday shopping while downplaying the Christmas themes.

The goal of this approach is not only to remind consumers that the holiday season will soon be upon us, but also to motivate them to shop earlier than usual. Why the sudden push? According to the National Retail Federation, holiday sales can account for more than 50% of a company’s annual sales. Yet, with the recent economic uncertainty, sales are projected to increase by only 4% this year, one of the smallest increases in the past five years. So, marketers are hoping that starting the Christmas season early will result in consumers buying earlier and buying more.

Ultimately though, while the objective may be to get consumers to think about the Christmas season, marketers are running the risk of alienating them. Moreover, for many consumers the typical time allocated for the shopping season, beginning the day after Thanksgiving, is all they need to check all the worthy individuals off their lists. Adding seven more weeks of shopping time may not change anything.

For instance, according to a recent survey conducted by NPD Group, the leading global provider of consumer and retail market research information, these actions will not produce marketers’ desired results. “As retailers continue to push the start of the holiday season earlier and earlier, consumers tell NPD they don’t anticipate starting their shopping until even later this year. Forty-one percent of survey respondents said they don’t anticipate beginning their holiday shopping until after Thanksgiving. That’s 10% more than reported in last year’s survey.”

Moreover, there is little evidence to support the notion that if the season starts earlier, consumers will purchase more.

So, while marketers may be bringing the freakish and the delightful together for one extended and somewhat odd holiday season, it is yet to be determined if the gamble will pay off. And if it doesn’t, you can be sure that next year the only holiday that Christmas will come close to is Thanksgiving.
On the net:NPD Group
www.npd.com/press/releases/press_071009.html

Christmas in October
money.cnn.com/2007/10/08/news/economy/npd_holidaysurvey/index.htm

National Retail Federation
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Popular tags:

 marketplace  holidays  gas  economy  NPD Group  America  consumers  JCPenney  Santa  L.L. Bean


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