“Happy Birthday” with… used gifts in Germany due to crisis

“Holiday gifts, slightly used, in good condition”. Does such an ad seem attractive?However, in Germany there are many people who seriously consider giving their loved ones second-hand gifts. According to a survey by the trade association Handelsverband Deutschland (HDE), which represents more than 100,000 retail businesses, in collaboration with the online platform Sellpy, 40% of respondents say they are considering this possibility. In fact, between the ages of 25-44, one in two “can imagine something like this”, while one in three has already given a used gift in the past.

“Pre-owned gifting used to be taboo, or at least that’s how most people saw it,” says Anna Geyer, manager of Sellpy. It seems that things have changed and today many “appreciate the benefits of sustainable consumer behaviour, even when giving gifts”. Indeed, in recent years a strong movement has developed in Germany that evangelizes “sustainable consumption”. Its purpose is to promote the exchange economy, to reduce unnecessary consumption, to join a more rational management of natural resources and energy. Particularly among 25-44 year olds respondents insist that “sustainable economy” is the main reason why they would choose a used gift.

Financial management during the holidays

However, the issue is not only ideological. As HDE general manager Stefan Genth tells Reuters, “many are those who are re-examining their consumer behavior under the weight of the financial crisis.” Inflation in Germany hovers around 10% and limits consumer choices. This is also confirmed by a recent study by the private consumer research company GfK. According to her, one in three Germans wants to spend less money on holiday gifts this year.

A percentage of 74% states that the price is one of the criteria by which they will choose their gift, while the per capita spending on gifts is expected to reach 299 euros, an amount reduced by 8% compared to 2021. In fact, even and a percentage of 42% of those with a net monthly income of more than 3,000 euros, declares that they will limit spending during the holiday season, even if there is no question of financial poverty.

“Two Speed” Gifts

Another survey by the private consulting company EY reaches interesting conclusions about the consumer behavior of the most affluent, but also of the economically weaker. According to this record, those with an income of more than 70,000 euros per year do not seem to be troubled by the accuracy and in fact intend to increase the money they spend on gifts by 1% this year (average spending 435 euros compared to 430 euros in 2021). Conversely, those earning less than 25,000 a year want to drastically reduce their expenses and are spending just 120 euros this year compared to 158 euros in 2021. This is the lowest amount recorded since 2008.

As Michael Renz, an executive at EY, tells Reuters, “at the moment there are many who are struggling to make ends meet and gifts are obviously not their priority.” On the contrary, at higher incomes “there is still money available”. From this trend, it is speculated that jewelry stores and luxury goods stores in the center of major cities may especially benefit this year, as people begin to return to the center for shopping, walking and entertainment after the difficult times of the pandemic.

DW – Giannis Papadimitriou

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