Holiday Decorations

Halloween is just a week away, and we're two months away from Christmas eve...

'Tis the Season for Decoration Purchases

The economy may still be frightful, but marketers of holiday decorations may find the fourth quarter delightful. With consumers poised to make an increased numbers of purchases of decorations for Halloween, Thanksgiving, and Christmas, the marketer offering the right product in the right place may find the winter a welcome opportunity for sales.

According to The Christmas and Seasonal Decorations Report 2010 Update, a new report from Unity Marketing, purchases of decorations for fall and winter holidays have been on the upswing. "This year as last, Halloween will see the biggest increase in consumer spending on decorations," says Pam Danziger, president of Unity Marketing. "Halloween celebrations will go more sinister with a boost from the growing popularity of vampires and werewolves which will be favored themes for both costumes and decorations."

Also expected to post strong growth are Thanksgiving decorations, which this year will emphasize natural floral accessories and nature themes throughout the inside and outside of the home.

For Christmas 2010 celebrations, Americans are likely to return to the stores to buy new Christmas decorations for their outdoor areas and especially their Christmas trees. Danziger says, "This is likely to be a good year for marketers and retailers offering ready-lit Christmas trees, which seemed too pricey the last two years. They also are likely to make the investment this year toward more energy-efficient lights to replace the old electricity-hogging models."

Decorations market expected to grow 3-5 percent in 2010

"Overall the market for decorations grew 3.8 percent between 2008 and 2009, and we anticipate it will grow another 3 to 5 percent in 2010," Danziger notes. "This expansion is good news for those in the decorations market, but not all types of decorations or retail channels are expected to expand equally."

Danziger predicts that the biggest growth in type of decoration purchased will come from outdoor decorations, reflecting consumers' increasing interest in the outdoor areas of their homes. Likewise, decorations with a natural look and feel will also be popular, reflecting consumers' interest in the more organic options in their lives. "Even though consumers will be buying more decorations, this isn't the year for gaudy displays. Rather, consumers will want more subtle holiday displays using items that complement their existing outdoor decor," Danziger says.

Additionally, Unity's research predicts that consumers will be shopping for their holiday decorations in some very specific retail locations. While more consumers will be shopping online and through other non-store sources (such as catalogs and home shopping shows), the big winners will be home improvement and building supply stores. "Retailers like Lowe's and Home Depot are poised to see a strong fourth quarter in the decorations department, and they are gearing up to maximize sales," Danziger notes.

"Other retailers will need to be on their toes to compete effectively with these large home improvement stores, which turn what was their summer outdoor gardening area into a winter wonderland of decorations. But by stocking items that emphasize the holidays and decorating styles consumers find most appealing this season, all marketers can enjoy this upsurge in interest in spreading some holiday cheer."

(Source: Unity Marketing, 10/07/10)

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