Episode Transcript
[00:00:00] Speaker A: Well, of course a lot of people are thinking about their holiday spending maybe a little bit more, I don't know, thoughtfully taking a little more time when they're making purchases this year. Times tend to be a little tight right now for folks, but people are focusing on value as they, as they usually do. But there are some new trends out there that maybe, you know, people are taking advantage of to save a buck here or there or just kind of buy some cool things for the holidays.
Joining me now to talk more about that whole concept and kind of what is happening as far as holiday shopping this year is Mary Hines Drosch. She is head of consumer and small business products and analytics at bank of America. Mary, thank you so much for taking some time for me. Really appreciate it.
[00:00:46] Speaker B: Oh, thanks for having me, Matt.
[00:00:47] Speaker A: Well, so first off, what trends are you seeing for this holiday shopping season and really how have they been impacting consumer shopping behavior so far this year?
[00:00:59] Speaker B: Yeah, I mean, as you mentioned, the consumers are really being thoughtful about their holiday purchase this holiday season in light of continued inflation and concerns about tariffs. So they're trying to find out ways to make their money go further. So one is they're really focused on who are they buying for. 38% are only going to purchase guests for immediate family and close friends and then where are they shopping. So discount stores are incredibly popular this holiday season with 87% of the people that we surveyed sharing that they're going to spend at discount stores this season. And even stores like secondhand stores are really having a great surgeons in growth, especially with some younger generations.
[00:01:43] Speaker A: Yeah. And one thing that seems to be kind of taking off, I believe this holiday season more than ever before is this so called dupe culture here.
Tell our listeners what dupe culture is. And, and you know how that is sort of taking hold of folks, I think kind of almost literally because it's, you know, you kind of can just be scrolling through social media and you run across something. Right. It's kind of right there in your face.
[00:02:13] Speaker B: Yeah, absolutely. In our survey, 51% of people said they'd been open to giving a dupe, which is a product that is similar and design feature and quality as a higher ended branded item.
And social media has really propelled people engaging with dupes as they see TikTok videos of people with a dupe. So not only is it a less expensive option to get a similar item as a gift, it's also for younger generations cooler to have the dupe than.
[00:02:46] Speaker A: The real thing, which is kind of crazy. It's like, you know, no longer do you have to go to Chinatown and, you know, go into a back alley or a van somewhere to get something that's very similar to the brand. You can actually do that online. But. And these are not. Not to say that they're like, you know, direct knockoffs or anything, but as you say, kind of similar in quality and, and all of that kind of thing, but for a cheaper price.
[00:03:17] Speaker B: Yeah. I mean, I'll give an example. I got a Brandy Melville sweater with an American flag on it for $38.
People ask me if it's Ralph Lauren, which would have been $500, and I'm proud to say no, I got. I only paid $38 for this.
[00:03:33] Speaker A: It's a, it's a, like a, A badge of pride, really, to, to be walking around with that. That's great. Well, and so what generations, I guess, are more likely to hold on to these trends? I mean, obviously, I would say younger generations, maybe the Gen Z, the millennial generation, probably more in tune with all of social media, of course, and getting into dupe culture. But maybe. What about all. Maybe some of the different trends that you're seeing out there who's kind of clutching on to the different trends that are happening?
[00:04:10] Speaker B: Yeah, I mean, as you shared, a dupe is not as appealing to a boomer or Gen X.
And we're also seeing similar with the use of new tools like AI. Many people are using ChatGPT to figure out what to give somebody as well as to get the best price on that purchase. You see that much more pronounced with younger generations. So 51% of people we surveyed plan on using AI for holiday spending. 71% of Gen Z and millennials plan on using it. And that's also what we're seeing in our data is secondhand stores. So buying something used is much more popular with younger generation than older generations. But I think it's important for the older generations, especially boomers, to know those gifts are very well received. So don't hesitate from buying a dupe or getting something secondhand for your grandchildren or younger friends.
[00:05:07] Speaker A: Yeah, definitely. Got to understand that sort of dynamic that they, they view it through different eyes. Definitely. And, you know, speaking of the, you know, all of the.
Maybe going to secondhand stores and thrifts, thrift stores, things like that. What are maybe some ways that people can manage their spending? This holiday season? People are looking for deals and, and, you know, trying to pay more attention to their budgets maybe this year. But how can they actually do that in a practical way.
[00:05:36] Speaker B: Well, it most important is to make a list, check it twice and then stick to it. So figure out who are you buying for, how much do you want to spend, and then include all of the other things that go along with the holiday season, food, wrapping paper, scotch tape, etc. And then it's really hard, but stick to it. And that's where things like warehouse stores where you can buy in bulk for things like food and stocking stuffers can really help you manage against that budget.
[00:06:09] Speaker A: Yeah. Well, very good. Well, just about time for us to wrap things up here. But anything else that you wanted to touch on, Mary, that comes to mind that we haven't mentioned?
[00:06:17] Speaker B: It's really important that you use a rewards card when you make your spending this holiday season because that can certainly help you use the rewards for additional gifts or to pay the bill when it comes in in January. I always use my customized cash rewards card from bank of America which gives new clients 6% back on the category of their choice. I always do online shopping where I do my holiday spending and I use that cash back to pay down the bill in January.
[00:06:44] Speaker A: Oh. So yeah, very, very smart options there. Well, Mary Hines Drosch is with bank of America, head of consumer and small business products and analytics there at B of A. Thank you so much, Mary, for spending some time with me and talking about this. Really do appreciate it.
[00:07:01] Speaker B: Thank you. Happy holidays.
[00:07:02] Speaker A: You too.
