The “MasterCard Love Index” highlights shoppers are getting physical, preferring personal purchases and experiences when it comes to buying for a loved one
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LONDON, February 11th, 2016 – The move to digital and online shopping shows no sign of slowing down but when it comes to love, shoppers want to get physical. Today MasterCard has revealed that when it comes to expressing love shoppers in the UK and around the globe prefer the personal touch by picking out presents in store for their Valentine.
Consumer spending in the build-up to Valentine’s Day by Britons has increased by 15% over the last three years, and the data also revealed that many people are moving away from gifts and grand gestures in the pursuit of an experience and the creation of special memories.
“It is interesting to see that when it comes to Valentine’s Day and spending on romance, more of us prefer experiences over material gifts. Even though the ongoing shift to online shows no sign of waning for the British shopper, this time of year is an exception, rather than trusting our gestures of love to the digital world it appears we still need the reassurance of choosing our purchases in person or enjoying romantic experiences together.” Commented Mark Barnett, President of MasterCard UK and Ireland.
The “MasterCard Love Index” showcases global shopper behaviour in over 200 countries, including the UK, and was created by analysing credit, debit and prepaid card transactions over a three-year period between 11-14 February in 2013, 2014 & 2015. The Index not only looked at the volume of spending and the amount spent but also analysed the types of spending associated with Valentine’s Day.
The study identified some other purchasing trends, highlighting some notable differences around the globe:
- The personal touch: 80% of UK shoppers made purchases in-person, whereas only 12% preferred to make their transactions online. Europeans made the most of buying online with over a fifth (21%) of transactions taking place via the internet. Globally, 90% of purchases were made in-person.
- Experiences over physical items: Spending patterns across the globe show an increasing number of people are treating their loved ones to meals in restaurants (33%) and hotel stays (28%). Shoppers in the UK (52%), Latin America (54%) and the United States (38%) saw the majority of transactions in their regions at restaurants, while the Asia Pacific, Europe and Middle East regions preferred to get away from it all by prioritising hotel stays.
- Still saying it with flowers: There was a slight decline in the sale of flowers and cards during the three years in the UK, down 8% from 2013 and accounting for just 5% of total spending during this period, which in line with average global spending patterns. However, Latin Americans are bucking this trend by almost doubling their spending on flowers (92%) during this period, whereas the Middle East were the only region to show an increase in purchases of cards, and by a significant amount of 107% too.
Global Valentine’s Day spending patterns by region:
|KEY SPENDING PATTERNS PER REGION DURING VALENTINE’S DAY PERIOD|
|Asia and the Pacific Rim||
|ITEMS/EXPERIENCES PURCHASED||% OF MONEY SPENT BY REGION||YEAR-OVER-YEAR SPENDING CHANGES|
|Flowers||United States (5%)Canada (4%)UK (2%)Asia Pacific (2%)Europe (2%)Latin America (2%)Middle East (0%)TOTAL (4%)||UK (-19%)Asia Pacific (-25%)Canada (-34%)Europe (+15%)Latin America (+92%)United States (-17%)Middle East (+6%)TOTAL (-9%)|
|Hotel/Motel||Middle East (43%)Asia Pacific (36%)Europe (33%)UK (31%)Latin America (23%)United States (23%)Canada (20%)TOTAL (28%)||UK (+14%)Asia Pacific (+25%)Canada (+9%)Europe (+28%)Latin America (+48%)United States (+32%)Middle East (+51%)TOTAL (+31%)|
|Jewellery||Middle East (23%)Asia Pacific (14%)UK (7%)Europe (7%)Canada (6%)United States (6%)Latin America (5%)TOTAL (7%)||UK (+26%)Asia Pacific (+22%)Canada (-9%)Europe (+11%)Latin America (+67%)United States (+8%)Middle East (+4%)TOTAL (+14%)|
|Restaurant||Latin America (54%)United States (38%)Canada (29%)UK (25%)Europe (25%)Asia Pacific (24%)Middle East (12%)TOTAL (33%)||UK (+56%)Asia Pacific (+36%)Canada (+4%)Europe (+53%)Latin America (+12%)United States (+66%)Middle East (+58%)TOTAL (+49%)|
|Transportation||Canada (35%)UK (32%)Europe (32%)United States (24%)Asia Pacific (22%)Middle East (21%)Latin America (10%)TOTAL (25%)||UK (-6%)Asia Pacific (+13%)Canada (-16%)Europe (-17%)Latin America (+45%)United States (-3%)Middle East (+12%)TOTAL (-6%)|
|Stationary||Latin America (6%)Canada (6%)United States (4%)UK (2%)Asia Pacific (2%)Europe (1%)Middle East (1%)TOTAL (3%)||UK (-25%)Asia Pacific (-7%)Canada (-24%)Europe (-17%)Latin America (-4%)United States (-14%)Middle East (+107%)TOTAL (-12%)|
Adam Keal, MasterCard UK&I: firstname.lastname@example.org +44 (0)7710 916 144
James Thorpe, MasterCard UK&I: email@example.com +44 (0)7807 378 265
About the Valentine’s Day Study
The study analysed aggregated transaction information made by credit, debit and pre-pay cards across pre-selected merchant categories which took place over a three-year period between 11th – 14th February from 2013-2015.
MasterCard (NYSE: MA), www.mastercard.com, is a technology company in the global payments industry. We operate the world’s fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. MasterCard’s products and solutions make everyday commerce activities – such as shopping, traveling, running a business and managing finances – easier, more secure and more efficient for everyone. Follow us on Twitter @MasterCardNews, join the discussion on the Beyond the Transaction Blog and subscribe for the latest news on the Engagement Bureau.