The most wonderful time of the year and busiest for retailers has seen UK consumers choose quality over quantity when shopping for goods.
According to Open Banking platform Tink, customers are opting for higher-quality products and purchasing lower quantity of goods as they have become more cost and climate conscious this festive season.
Surveying over 2,000 UK consumers and 500 highend merchants, Tink’s recent research found that 60% of consumers would rather buy high quality goods in fewer amounts, as opposed to buying in bulk for lesser priced items.
Furthermore, 43% of consumers surveyed who shop for luxury goods revealed that they are purchasing these items more than they did last Christmas season.
This has given merchants optimism during the annually busy period for them and retailers alike, with 75% of those merchants stating that they expect to maintain or improve profit margins over this period compared to last year.
Shoppers’ focus on quality is reflected in festive spending, as 37% of respondents say they would rather give fewer but more quality gifts to family and friends this festive season, and 40% stated they would rather receive one nice, quality gift than several cheaper items.
Despite this surge in ‘conscious consumerism’, Tink has warned merchants that this shift in consumer behaviour has also led to shoppers becoming more cautious when buying luxury goods, whether that be due to the price or being potentially fraudulent.
The hangover from the cost-of-living crisis still lingers and consumers continue to budget over the Christmas period. 70% of those surveyed said that the cost-of-living crisis has meant that they have become more selective when buying costlier goods.
Yet despite signs of growing demand for higher ticket and luxury goods, competition for wallet share remains fierce, with 81% of merchants surveyed believing competition in their sector is higher than ever.
Customer expectations are also at an all-time high, and payments remain a vital sticking point. Among consumers who purchase high ticket or luxury goods, an estimated 58% worry about payment security, while 31% of high end merchants reveal that the high cost of managing fraud is a key challenge.
A payment experience impacted with high friction typically leads to consumer abandonment and 18% of those surveyed revealed they would get frustrated if their payment journey was subjected to friction when buying luxury goods, leading to 41% abandoning the payment and purchase altogether.
Lucy Grant, Commercial Strategy Director at Tink, commented on the findings, stating: “It’s clear that high ticket and luxury shopping isn’t just for Christmas – sustainability and quality are now front of mind for shoppers.
“But with this trend comes a heightened expectation for a top-tier customer experience, as consumers expect smooth, secure, and flexible payment options as part of the buying journey.
“Merchants investing in solutions like Pay by Bank – often with payment service providers such as Adyen – can help turn these expectations into a strategic advantage, transforming common pain points into loyalty-building moments that set them apart from fierce competition. Seamless authentication without the need for manual entry, as well as fast refunds, are just two of the benefits of adding Pay by Bank to your checkout.”
