STAYING ALIVE IN A DEAD HOLIDAY SEASON 4
StayingAlive in a Dead Holiday Season
The2008 Christmas selling season was a terrible year for most of theUnited States retailers. The period was significantly affected byrecession that led to a massive contraction of economic activities.It led to a significant fall in spending for most of the citizens inthe United States (Schiffman et al., 2010). The stores catering toteens and young adults did well during this season due to a number offactors.
Thefirst reason was due to income elasticity. The income elasticity ofteens and young adults differ from those of their parents. The youthdoes not have to meet the fixed livelihood costs such as food andrent. It made it possible for retailers who catered for young adultsto succeed in their sales (Schiffman et al., 2010). When parentsstruggled to meet the daily needs, most of the youth` spend theirincome towards luxury items, entertainment and pleasure. A teen’spsychologist Schwartz says that most of the young people cut downtheir spending a month or two before the holidays so that they canhave enough for their Christmas shopping. Further, Schwartz says thatyoung people spend too much on these holidays leaving no money fornecessities or any other commitments in the following months (Crump,2013).
Theother reason that made teens store to do well during this period wasdue to brand loyalty. According to Professor James McNeal, who is apsychologist and author of a handbook “Marketingto Children”he said that by the time children reach their teens, they undergo astage when they become insecure and are looking for personalidentity. At this stage, they are taught that material possessionsare what matters most. Teens want to identify themselves with peergroups and in an absolute sense (Sitati, 2009). They are attracted tothe prestige and a belief that brand name clothing work for them.Teens are disposed of towards brand loyalty as compared to othermembers. For most youths, brand loyalty is more of a passion, andthey love what they love and will always buy products that providethem with comfort that they seek.
Thethird reason behind the teen`s store doing well during the 2008holiday selling season was due to the nature of the holiday. Most ofthe parents believe that Christmas is for kids. According to DrAmanda, a child psychologist states that most of the retailersdealing with youth stores record high sales during Christmas season(Crump, 2013). Further, she says that working parents feel thatbuying gifts during this period justifies the time spend away fromtheir children. On the other hand, a homestay parents also feelnecessary to compete with other parents and do the same because theydon’t want their children to suffer. In addition, parents decide tocut on presents for other adults and their friends in order to buytheir children what they want (Crump, 2013).
Parentspending were another reason behind the success of teens and youngadults store in the United States during the year 2008 Christmasseason. The results of the global recession in 2008 led to acombination of unemployment and a ruined housing market that madepeople spend less during Christmas. Parents usually cut down on theirspending before cutting down those of their children (Schiffman etal., 2010). This made other stores record weak sales as compared tokids store like American Apparel and Twilight that recorded andincrease in sales during the period.
Crump,W. D. (2013). TheChristmas Encyclopedia.Jefferson: McFarland & Company, Inc., Publishers.
Schiffman,L. G., Kanuk, L. L., & Wisenblit, J. (2010). Consumer behavior(10th ed.). Upper Saddle River, N.J.: Pearson Education/PrenticeHall.
Sitati,T. (2009). It`sa branded world: A collection of articles.S.l.: Lulu Com.