Mastercard Love Index 2018: The rise of the experience economy
South Africans continue to
say “I love you” by investing in experiences over material goods, as new data shows sentimental spending has increased
by 50 percent since 2015, with the number of transactions up by 63 percent during the same period.
Whisking
your partner away for an unforgettable travel experience is also still a
popular Valentine’s Day choice. Hotels take the highest share of spend
(37
percent) with a nine percent share of transactions in 2017. The number
of transportation transactions increased by 144 percent in 2017,
accounting for 21 percent of total spend during the Valentine’s Day
period.
“The data supports the rise of
the ‘experience economy’ as happiness clearly comes from creating
lasting memories - worthy of posting on social media - instead of
purchasing ‘things’,”
says Mark Elliott, Division President, Mastercard Southern Africa.
Money
spent on traditional gifts such as flowers decreased by 25 percent in
2017 versus 2015 and the number of transactions decreased by 21 percent.
Spending
on jewellery decreased by 15 percent compared to 2015 but the number
transactions remained flat.
The study, which looked at
shopper behaviour in more than 200 territories around the globe,
identified further purchasing trends:
- The data suggests that we are getting ahead of the curve when buying gifts. It’s no longer left until the last minute, as the majority (32 percent) of Valentine’s purchases in South Africa are made on the 11th February. However, just over a quarter (26 percent) of all transactions (between 11th – 14th February) were made on Valentine’s Day itself.
- The rise of online shopping in South Africa continues with an enormous 990 percent increase in the number of e-commerce transactions from Valentine’s Day 2015 to Valentine’s Day 2017. Nonetheless, 97 percent of transactions around Valentine's Day are still made in person with only three percent of gifts purchased online.
“Spoiling your loved one on
Valentine’s Day shows no signs of slowing down. Our data suggests that
while people still purchase traditional gifts, the move towards putting
on a great experience trumps all. The Mastercard
Love Index – now in its 3rd year – highlights global and regional
trends to offer retailers priceless insight into consumer buying habits
over the romantic period,” says Elliott.
Regional summary of consumer spending habits across the globe:
KEY SPENDING PATTERNS PER REGION DURING VALENTINE’S DAY PERIOD ACROSS 2015 – 2017
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United States
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Latin America and the Caribbean
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Europe
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Middle East and Africa
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Asia Pacific
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Canada
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