Retailers ‘missing out on £1bn post-Christmas kids’ market’

Retailers might have missed a trick by focusing on the pre-Christmas trading period, according to Manchester-based marketing specialist Kids Insights.

The company, which carries out continuous surveys of UK children, says this demographic is now sitting on a £1bn post-Christmas spending spree, due to consumer changes brought about by technology.

Teens, tweens, and even under-12s, are becoming more financially independent and this has important insights for brands and marketers who may have focused on the traditional pre-Christmas period at the expense of the post-Christmas market.

Kids Insights’ chief executive, Nick Richardson, said: “This survey reveals the wave of cash which was being spent online after Christmas, rather than in the lead-up.

“Today’s kids don’t just know what they want, but they know where to get it from.

“Teens, tweens and even under-12s, are increasingly able to buy the tech toys and games they want, using their own debit cards online.

“Companies who focused their marketing just on the pre-Christmas period are missing out on this near-£1bn cash bonanza.

“Brands and retailers should consider the best ways to get this generation of kids to spend their cash with them.”

He added: “This data shows that, in a fragmented media world, it is more important than ever for brands and retailers to understand their audience.

“Our independent data, combined with the analysis our team of expert researchers undertake, helps uncover new trends and provide powerful insights.”

The survey shows that a colossal haul of £950m – an average of £82 per under 18-year-old – was expected by the young generation in the UK over the festive season.

The survey of 5,000 children asked: “How much money (cash) do you expect to get for Christmas?”

It is believed to be the first to capture the size of the growing Christmas cash gift market.

The financial figures are reached by cross-referencing the survey results with Office of National Statistics data on the numbers of UK children.

It found that kids between four and 12 expected an average of £68, and teenagers (13-18-year-olds) expected an average of £102 each.

Boys were expecting slightly more than girls, with £83 expected by boys as opposed to £82 per person for girls.

Northern kids – North West, North East, Yorkshire & Humber – were expecting £89.69 per head, with the South East and London expecting slightly less at £88.02.

Kids Insights said that 2018 has seen children increasing control over their own cash.

• Almost one third of younger children (aged four-12) save their money in a bank account – 32% (up 6% since the start of the year)
• Almost two thirds of children (63%) now handle their own savings/pocket money rather than have their parents do it for them (up 13%)
• Overall 17% of all kids now use some sort of pre-paid cash card and debit cards have doubled in use, from 7% to 14% (up 50%)
• The number of four-12s spending with pre-paid cash cards has risen from 4% to 9% (up 50%)
• Kids’ pre-payment system GoHenry is now used by 8% of all children (up 50%)

Manchester-based parent company, The Insights People, is used by major brands, retailers and other organisations, including Disney, Sega, Hasbro, Penguin Books, plus global media, entertainment and leisure companies to keep tabs on what UK and US children and teenagers are thinking, doing and buying.

This includes their shopping habits, leisure pursuits and use of technology.

The company says it has the biggest research panel of under-18s in the UK, questioning 400 different kids per week, and amassing more than 20,000 opinions every year as a result.