With Christmas just around the corner, the Portuguese are considering changing their spending habits for 2021 and rising interest rates and inflation are the main culprits
Consumer strategies include reducing the cost or quantity of gifts, and also buying at times of promotion. Environmental motivations may also lead the Portuguese to opt for more sustainable gifts.
The Research Center for Business Sciences and Tourism at the Consuelo Vieira da Costa Foundation (CICET-FCVC), in partnership with ISAG - European Business School (ISAG-EBS), conducted a study on Circular Economy and Consumer Behavior in Christmas Shopping. The survey of 807 residents in Portugal, with an average age of 35.22 years, concluded that the Portuguese intend to reduce spending this Christmas, revealing themselves more open to purchasing sustainable products at the time of purchase, although most have not yet mastered the concept of Circular Economy.
The study concludes that the current economic and financial situation stands out as an important factor in changing the Christmas consumption habits of the Portuguese. The inflation rate, with 65.9%, and interest rates, with 65.1%, are the factors indicated as being of high and extreme importance in influencing the decision making in consumer behavior at this time of year.
In this context, 37.2% of respondents also reveal that this year, compared to 2021, they will opt for cheaper gifts, 24.5% by buying a smaller number of gifts, or 13.8% by choosing to buy products on promotion. However, there are few who do not intend to buy gifts (2.9%) or who will opt to choose "white label" products (2.7%).
This Christmas, respondents expect to purchase, on average, 10.33 gifts and spend, on average, 239.06 euros on these items. It should also be noted that respondents anticipate spending an average of €26.30 on Christmas decorations, €108.02 on meals (supper and lunch), and €75.04 on outings and leisure.
Mainly motivated by environmental reasons (53.8%), but also for economic reasons (21.4%), 87.9% of the sample declare their predisposition, in the context of Christmas shopping, to purchase products containing recycled materials, while 79.4% reveal the possibility of buying recycled or reused products. The choice for second-hand products is also an option highlighted by 58.0% of respondents, while the likelihood of purchasing defective products, even if fit for use, is the least foreseen by respondents, indicated by 41.5% of them.
Circular Economy
Although the Portuguese are aware of sustainability-related issues and this awareness is reflected in their purchasing behavior, it should be noted that 62.3% indicated that they had never heard about the concept of Circular Economy. To the respondents who said they had heard about Circular Economy, 32.2% defined the concept as an economy capable of regenerating itself, 27.0% said it was a more sustainable production and consumption model and 11.2% associated it with Reduce-Reuse-Recycle.
The protection of the environment is seen by 57.9% of respondents as the main reason why it is relevant to implement Circular Economy practices. In terms of advantages in its implementation, 45.4% of respondents associate the fact of drastically reducing the consumption of natural resources, while 17.4% link its importance to new business opportunities and jobs, with the same percentage of respondents relating the advantage to the reduction of pollutant emissions. On the other hand, the barriers indicated to the implementation of Circular Economy practices, highlighted by 47.4% of the respondents, are the lack of knowledge of the population, followed by the lack of financial support from public bodies (17.4%).
It should also be noted that, of those respondents who have heard about Circular Economy, 83.9% say that it makes a positive contribution to society, and 82.2% state that it increases society's awareness of the sustainability issue, besides having a preponderant role in the environmental education of the younger generation (81.6%) and contributing to the improvement of public health (80.6%).
Still within the scope of the circular economy and in the group of respondents who are aware of its concept, 79.3% consider that products with a guarantee of return and/or exchange top the list of most frequently purchased products, followed by products with high energy efficiency, namely with A+++ certification (70.7%), and by those that can be recycled or disassembled (67.4%). In terms of practices, 44.7% highlight sharing their own goods with other people, and 20.4% highlight shared housing as the most frequent behaviors within this group of respondents.
For the scientific coordinators of CICET-FCVC and Professors of ISAG-EBS, Elvira Vieira and Ana Pinto Borges, "it is a pertinent conclusion to observe that, although there is a significant majority of respondents who claim not to know the concept of Circular Economy, most people end up showing predisposition to put into practice some of its assumptions, by assuming openness to acquire recycled products, composed of recycled components or even second-hand ones. Although with a very direct impact of the economic and financial situation of the country, with direct influence on the generalized increase in the cost of living, the Portuguese appear to be more open to contribute positively to a more sustainable lifestyle.
The research study "Circular Economy and Consumer Behavior in Christmas Shopping" was conducted by CICET-FCVC, in partnership with ISAG-EBS, and is part of the project NORTE-06-3559-FSE-000164, co-financed by the Regional Operational Program of the North (NORTE2020), by Portugal 2020 and by the European Union, through the European Social Fund (ESF).
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