Valentine's Day Spending Down Almost Everywhere
No Fancy Jewels but Flowers, Romantic Dinners and Chocolate Still OK
Feb 11, 2009
As you might expect, the recession dampened Valentine's Day spending and caused some weird repercussions. Take insurers, for instance; in the United Kingdom Aon Private Client worried that the comatose jewelry market would diminish the usual rosy profits for insurers.
Lower Level Of Jewelry Purchases
Says Ben Holroyd-Doveton, "Valentine's Day is when we see a spike in spending on gifts and our clients adding expensive items of jewelry to their insurance policies. We were expecting to see lower levels of jewelry purchases this year as a result of the economic climate and the relatively high price of gold forcing up the price of jewelry." He added that research showed that only one per cent of Brits would be buying jewelry as a gift and some 33 percent would be cutting back on gift buying altogether. The predictions came true.(globalreinsurance.com).
In the United States, the National Retail Federation (NRF) knew ahead of time that consumers wouldn't be spending as much on Valentine's Day as they did in 2008. On average it amounted to $102.50 for gifts and merchandise, down from last year's $122.98 per person. The total reached $14.7 billion.
"I Hate Valentine's Day Parties"
This year saw a backlash against the whole idea of Valentine's Day with groups assembling in "I hate Valentine's Day" parties in the United States, the United Kingdom and Canada. It's tempting to see it as part of the general economic malaise, rather than an indictment of the actual day.
Colored Stones, Lab-Made Cubic Zirconias
Lovers, not wanting to see their relationships bogged down in too much debt, opted not for diamonds and gold but for colored stones, lab-made cubic zirconias, titanium and palladium. While major greetings card manufacturers did not suffer too much, many downloaded cards instead of buying them.
Downsized Wall Street Bankers And Brokers
The girlfriends and wives of disgraced or downsized Wall Street bankers and brokers did not expect expensive baubles but wilted at demands to rein in credit card purchases and to think about moving to cheaper digs.The V-day treat was be flowers, chocolates and romantic dinners. The chocolates, of course, had to be handmade.
Romance Is Good For Business
However, the supposedly frugal Scots are passionate about Valentine's Day and did not cut back on spending. As well, love overrides the credit crunch for 45 percent of UK couples and for New Zealand's males although their women friends were more cautious .
Restaurateurs who have been mourning the loss of big spenders, see the traditional Valentine's Day dinner as a big help to bolster their bottom lines. Many, booked three years in advance, rejoice not only in the evening's takings, but also in the number of proposals made over their tables. Romance is good for business. Think of all the anniversary dinners stretching far into the future.
True Love Chocolate
In Japan and South Korea V-day works differently and does not involve fancy dinners or flowers. Men don't give the chocolates either; women do. They give honmei or 'true love chocolate' to their lovers and husbands and giri or 'duty chocolate' to their work colleagues. A month later on March 14, "White Day", the men return the favor and give women chocolate, marshmallows and other candy (japantimes.co.jp)
Less Cash For Retailers and Restaurateurs
This Valentine's Day meant less cash for retailers and restaurateurs because lovers didn't want to load their relationships with debt. Before the great day, Tracy Mullin CEO of the National Retail Foundation said the recession "won't stop Cupid, but it might slow him down. This year, more than ever, consumers will look for creative and inexpensive ways to show those they love how much they mean to them."
 |
