The Ultimate Guide to the Consumer Market for Christmas and Seasonal Decorations... 

The Christmas and Seasonal Decorations Report 2010  UPDATE

Unity Marketing, a consumer insights research firm that has been at the forefront of research on the gifts and seasonal decorations market, offers a new consumer insights study of the market for Christmas and other seasonal decorations.  Based upon the results of a quantitative surveys conducted among 1,049 consumers who recently bought any seasonal decorations in the 2008 sales year and supplimented with a new survey among 548 decorations buyers in 2009, this report helps decorations marketers and retailers tap into the psychology of people who buy their goods in order to find opportunity to grow their share of the decorations market. 

Marketers can discover new marketing strategies and opportunities through this study of the seasonal decorations consumer market. 

This research study explores the consumer market for seasonal decorations, including indoor and outdoor decorations for Christmas and other holidays throughout the year.  The study places a special emphasis on the needs, desires and passions of the decorating consumers, specifically those who bought any seasonal decorations in the past year.  Companies that design and develop seasonal decorations products, as well as retailers that sell these products, including internet and direct marketers, will benefit from the new insights presented in this report into the seasonal decoration customers' purchase behavior and mindset. 

This report will help marketers and retailers understand their consumers better.  In this way, they can discover new marketing strategies and opportunities that will help them reach their target consumers more effectively and more productively. 

With a focus on consumers and their buying behavior, needs, desires and preferences, this research study will include research data and statistics about:

• Seasonal Decorations Market Size and Growth: What is the size of the seasonal decorations market, including the key product segments in the market, including indoor and outdoor decorations?  How is the market segmented by type of product and channels of distribution?   How rapidly is it growing?  What are future growth trends in the seasonal decorations market? 
• Demographics of the Seasonal Market: What are the demographic characteristics that distinguish the prime target market for seasonal decorations marketers?  What are the key demographic differences found among and between buyers of the different products and service segments (e.g., gender, age, generation, HHI, size, composition, ethnicity/race, education, etc.)?
• Buying and Shopping Behavior of Seasonal Decorations Consumers: What are the primary characteristics of the consumers' buying behavior related to seasonal decorations?  Where do consumers shop for the different types of products and services? What kind of shopping experiences do consumers crave and what kind do they disdain?  What motivates them to buy seasonal decorations and how can marketers tap these motivators through branding and marketing communications initiatives?  What factors influence their decision making in product purchase?  How much do they spend buying each of the products and across the entire category? What are the popular price points for key products within the seasonal decorations market? What is the role of brand in product and services selection and shopping choices?  How do different demographic segments differ in their shopping and buying behavior?
• Favorite Seasonal Decorations Brands, Licenses & Stores:  A major thrust of the research is to understand the brand preferences of seasonal decorations customers in both their product selections and retail shopping choices.  What are the top product brands based upon usage and brand awareness in this category? How do these competing brands rank in terms of consumer awareness and usage?  What retailers do consumers favor for seasonal decorations purchases?  And what licensed properties are most popular with decorations consumers?
• Psychographic Profile and Segmentation of the Seasonal Decorations Markets: A psychographic profile of the seasonal decoration consumers is presented in this study.  The profiles identify different types or personalities of consumers of these goods. These profiles identify each personality's drives and motivations in purchasing decorating products.  By understanding the psychology of different types of shoppers, marketers will discover what factors are more or less important in driving each personality’s purchasing decisions and how consumers' different attitudes and motivations influence what they buy and how much they spend.  These insights will help seasonal decorations marketers and retailers better understand the hearts and minds of their consumers. 

 Consumer Survey Delves Deeply into Purchase Behavior and Motivation

In conjunction with a survey of gift consumers conducted in January 2010, consumers were asked about their purchases of any seasonal or party decorations throughout 2009.   A total of 528 seasonal decorations consumers reported on their seasonal decorations purchases.  Only a short battery of questions were included in this survey, sufficient to update the marketing size and growth data included in Chapter 2 with 2009 data, as well as key purchase incidence and demographic data in Chapter 1.  Questions asked in this short-form survey included:

• Decorations purchases by holiday
• Decorations purchases by type
• Place of purchase
• Amount spent on decorations purchases

In-Depth Decorations Survey 2009

The seasonal decorations survey was fielded January 15-20, 2009 by an online service bureau using their survey panel.  Survey respondents were qualified by income ($35,000 or more of household income) and age (24-64 years) and as well as whether they had purchased any seasonal decorations product in the past 12 months. 

Respondents were further qualified by the level of involvement and/or responsibility for decorating decisions with only those who were either primarily or jointly responsible for holiday decorating or purchasing responding to the survey. 

The average age in the seasonal decorations survey sample was 44.2 years; household income was $75.500 with 49 percent of the sample falling in the low-or-middle-income range of $35,000-$74,999 and 51 percent falling in the upper-middle-to-affluent income range over $75,000.  The gender split of the general survey sample was 71 percent female and 29 percent male. 

Results of the 2009 survey are compared with the previous seasonal decorations surveys to provide trend analysis

This report will also compare the current survey findings with those gathered in previous Unity Marketing surveys among seasonal decorations consumers conducted in 2004, 2005 and 2006. 

Specific data points analyzed in this survey include:

Market Demographics

The demographic data contained in this report helps marketers identify the key descriptive characteristics of their primary target market. 

Marketers can use the demographic data contained in this report to identify the key descriptive characteristics of their primary target market.  The demographic composition of the seasonal decorations market gathered in this survey describe the consumers' gender; age; income; marital status; home ownership; children and number of people living in the home; occupation; educational attainment; and ethnicity.

How People Decorate for Each Holiday and the Trends in Decorating Traditions

In order to understand the opportunities for seasonal decorations marketers to sell into their target market, basic information was gathered about their holiday decorations practices. 

In order to understand the opportunities for seasonal decorations marketers to sell into their target market, basic information was gathered about the respondent's current decorating practices, specifically whether they decorate either inside, outside or both inside and outside for the 11 major holidays celebrated by Americans, specifically:

• New Year's Day
• Valentine's Day
• St. Patrick's Day
• Easter/Passover
• Memorial Day
• Fourth of July
• Halloween
• Thanksgiving
• Christmas
• Hanukah and/or Kwanzaa 

Special Investigation: Christmas Decorating Traditions and Purchases

As the most popular decorating holiday, this study places a special emphasis on Christmas decorating traditions in 2008 and tracks trends from previous surveys. 

Thus marketers can anticipate decorating trends for Christmas 2010 celebrations and beyond.

The survey placed special emphasis on respondents' Christmas decorating traditions.  Information was gathered about how many trees, both full-sized and tabletop, were displayed in the home and in which rooms those trees were shown.  For the 2008 year, consumers were asked whether their decorations were more or less extensive than in past years, or about the same. 

In terms of outdoor decorating, respondents shared what types of decorations were used, with detail gathered about types of lights, from incandescent to LED, net and rope lights.  Further, respondents shared where they displayed those lights, such as on the eves, door, walkway and in the garden.   Additional information was gathered as to when the respondent set up their outdoor Christmas decorations and whether they used a decorator or decorating service in the past year.

Data on decorating styles, themes and colors enables product designers to know what types of products to develop that will attract the widest possible audience

Data was collected about the colors they used for their Christmas 2008 displays and the style of decorations they favored, such as traditional, fashion-forward, country/rustic, formal, retro/nostalgic or cute/whimsical. 

Consumer's favorite decorating themes for Christmas 2008 were also gathered, such as whether they used such themes as snowmen, Santa, angels, animal/wildlife and 11 more.  Data on both indoor and outdoor colors, themes and styles were gathered.

What Christmas decorations were purchased for Christmas 2008 celebrations guides marketers and retailers on popular products for Christmas 2009 and beyond

In addition to the detail data about their Christmas 2008 decorating traditions, respondents also shared details about what new decorations -- both indoor and outdoor -- they bought for the previous year's celebrations and how much they spent on those decorations.  This provides guidance to marketers about future purchases for Christmas 2009 and beyond.

Special Investigation:  How the Current Economic Crisis in Impacting the Decorations Shopper and the Trends on Future Spending on Decorations

The results of these questions will help decorations marketers understand the impact of the 2008 recession on the mindset of their customers and how this economic situation will effect their spending in the coming year.

Respondents were also asked specific changes they have made in their Christmas celebrations and decorating including gift purchases in response to the current economic crisis. They were also asked about how this year's economic crisis impacted their overall enjoyment of their Christmas celebrations. Further they were asked about their expected spending on decorations in the coming year in light of the new economic reality. 

This information is critical for marketers to assess their future financial status and to plan new marketing programs that may help them manage their business for the immediate future. 

Other Holiday Decorations Purchased and Amount Spent by Holiday

Study provides detail about indoor and outdoor decorations purchases for 11 other major holidays, in addition to Christmas, and spending for decorations for each holiday.

Detail data by holiday allows marketers to develop products that are in demand for each special holiday celebration.

For each of the other holidays and other celebrations, respondents shared what decorations they bought, either indoor or outdoor, for that holiday, specifying the items bought for that holiday and how much spent for decorations for that holiday. 

Where Holiday Decorations Were Bought

Information was gathered about the type of stores where decorations customers made their purchases. 

This supports marketers and retailers in understanding the shopping habits of their customers to make sure that the right products are available in the right types of stores.

Decorations buyers reported where they made their holiday decorations purchases in the past year, thus allowing marketers and retailers to understand the channels of distribution for each major product category. The types of stores included in the survey were:

• Furniture and home furnishings stores (such as Pier 1, Linens 'n Things, Bed Bath & Beyond, Pottery Barn, Williams Sonoma, Restoration Hardware, Bombay Company, Crate and Barrel, Ethan Allen or local furniture stores)
• Food and beverage stores (such as Kroger, Albertson, Safeway, etc.)
• Home Improvement retailers and/or hardware stores (such as Home Depot, Lowes, Ace Hardware, Menards)
• Local garden centers and/or pool supply stores
• Health and personal care stores, drug stores, cosmetics stores (such as CVS, Rite Aid, Walgreens, local cosmetic stores)
• Traditional department stores (such as JC Penneys, Macys, Sears, Dillards,  Bloomingdales, etc.)
• Discount department stores/Mass retailers (such as Wal-Mart, Kmart, Target, Sam's Club, Kohls, other discount department stores)
• Warehouse clubs (such as Costco, Sam's Club)
• Deep discounters/Close-out retailers (such as Big Lots, TJ Maxx, Marshall's)
• Dollar stores (such as Family Dollar, Dollar General)
• Craft & hobby stores (such as Michaels, Hobby Lobby, JoAnns)
• Book and music stores (such as Barnes & Noble, Borders, etc.)
• Year-round Christmas specialty store (such as Bronners, Christmas Tree Hill, Christmas Loft,, etc.)
• Specialty gift and card stores and/or party goods stores (such as Hallmark, Carlton Cards, Factory Card and Party Outlet, Party City, Paper Warehouse, Factory Card Outlet,  etc.)
• Florists shops
• Pet specialty stores (such as Pet Smart, Petco)
• Office Supply Stores (such as Staples, Office Depot, Office Max)
• Internet or Online websites (such as Amazon.com, eBay.com, etc,)
• Direct mail catalogs (such as Frontgate, Grandin Road, Skymall, etc.)
• TV Shopping (QVC, HSN, Shop NBC)
• Sporting goods stores (such as Cabelas, Dicks, Academy)

For each type of store, shoppers rated the relative importance of each store for their decorations shopping, specifically whether the store was a regular shopping destination, an occasional one, rarely or never used source for decorations shopping.

What Shopping Experiences Decorations Shoppers Valued

By analyzing the factors that most influence the consumers to buy, marketers can gauge the relative effectiveness of their marketing efforts and allocate resources according to those factors that are most influential in getting the consumer to shop.

The results of these questions support retailers in better positioning their store to capture the loyalty of the best decorations shoppers.  

Decorations shoppers shared the relative importance of various factors in influencing their choice of store for their purchases, such as customer service, sales, discounts, return policy, etc.  They also rated the relative importance of different types of shopping experiences, such as discounting new decorating ideas, service personal who can help find specific items, regular communications about sales, and others. 

Special Investigation:  Where They Get Decorating Inspiration

The results of this investigation will help  marketers better understand how to communicate with their best potential customers.

This research study also included information about where the decorators get decorating inspiration, such as from cable television shows, women service magazines, etc.  These data points will help marketers identify opportunities to communicate more effectively with their primary target market:  the enthusiastic and passionate holiday decorators.

Attitudes about Holiday Decorating and Purchasing

This study identified five different types of consumer personalities that make up the overall decorations marketplace.

The analysis of these five personalities enables marketers to understand the mindset and psychology that distinguished the best from the worst target for their marketing promotions. 

The survey concluded with a series of 12 attitude questions that respondents were asked to rate in terms of how strongly they agreed or disagreed with each statement.  The result of this battery of attitude questions is used to segment or cluster the consumers surveyed into different personality types distinguished by different motivations in holiday decorating motivation and shopping behaviors.   An analysis of the attitude statements helps marketers understand the mindset of different types of consumer personalities that make up the overall holiday decorations marketplace.

By understanding the different personalities that make up the decorations market, marketers and retailers can more effectively tailor their marketing and advertising messages to each type of personality.  It enables them to understand the mindset and psychology that distinguished the best from the worst target for their marketing promotions.