Children’s Gifts Insight: Spending and Marketing (Canada)
Etiquette experts agree that $20-30 is perfectly reasonable for a child’s birthday gift and a maximum of up to $100 for the child of a close friend or relative. In comparison, an average American is ready to spend about $330 per child on holiday gifts like Christmas gifts. Below is an overview of the findings
CHILDREN’S GIFTS INSIGHT: SPENDING AND MARKETING
The Typical Spend on Birthday And/Or Winter Holiday Gifts
- According to a recent survey, "the average parent spends approximately $400 on a birthday party for their child."
- According to etiquette experts, $20-30 is a reasonable amount to spend on a child’s birthday gift and a maximum of up to $100 can be spent on the child of a close friend or relative.
- The average American is ready to spend about $330 per child on holiday gifts like Christmas gifts.
- Grandparents spend an average of $218 on holiday gifts for their grand kids.
- As per a survey by Opploans, grandfathers spend more on holiday gifts ($244) than grandmothers ($202).
The “Sweet Spot” for Pricing
- According to Jennifer Porter and other experts, $25 gifts are considered as the "sweet spot" regardless of what the relationship with the child is.
- Also, if an all-in cost birthday party costs $500 or more, it is known as a "budget-buster".
Who Should Marketing Materials Be Angled To
- The marketing materials are mixed as they target both parents and children. Their purchasing power and influence has increased over the years.
- Parents are targeted by marketers as the parent’s buying journey accounts for the motivation behind their purchases.
- Marketers are also known to target mothers, as "American mothers are estimated to make the vast majority of household purchasing decisions" and reportedly spend over $2 trillion per year.
- A marketing study reports that "52% of three-year-olds and 73% of four-year-olds often, or almost always, asked their parents for specific brands."
- The CFC reports that children who are younger than 12 influence $500 billion in purchases annually.
- Brands like Target allow kids to take control and create their own content thereby creating brand ambassadors and consequently increasing its understanding of children's likes and dislikes.
How Does a Company Attract New Customers?
- As more parents shop online, brands attract them by selling their products through Amazon, Etsy, and other online retailers that parents often use.
- Also, advertising on social media sites like Facebook, Instagram, and Pinterest, or blogs/publications like Parenting, Focus on the Family, helps promote and market gift and shopping ideas for kids.
- The "pester power" of a child has a massive influence on parents when they want something for themselves.
Marketing Change Depending on the Time of Year
- Retailers plan their promotions and marketing based on the prior year, the back-to-school period, and holiday seasons to drive sales.
- Parents are the main target for marketers during the holidays because they spend the cash and make gift-buying decisions.
- Marketing can alter depending on "how close key shopping events are", for example, Black Friday and Cyber Monday, Christmas and Hanukkah, and other holidays.
- As per PwC Canada, Canadians spend over $1,500 on average during the holiday season and 41% of that amount is spent on gifts.
To identify and compile insights for the gift-buying journey of Canadian parents shopping for their children, we scoured for information through industry reports and blogs from KPMG, Inc., PWC, Statistics Canada -the national statistical office, Markets and Markets, Euromonitor, Statista, Pew Research, among others. We also scoured through media publications and news articles from Retail Dive, Reveal Advertising, Global News, The Daily Mail, NY Times, WSJ, among others. The idea was to gain insight through the surveys/studies conducted by the above-mentioned sources which highlight the consumer journey for Canadian parents purchasing gifts for their children.
We were able to gain insights on the consumer journey for Canadian parents purchasing gifts for their children for the U.S. market and not for the Canadian market as all studies and surveys for the Canadian market focused on the average spend by person in Canada, household consumption, education, recreation, health, kids aged 18 and older and not on the gift-buying journey of Canadian parents shopping for children younger than 18 years. Hence, we have provided supplement research focused on the United States in the absence of Canada-focused insights. We dug deep and found the insights mentioned above.