Father's Day spending forecast to soar in 2014
Dads have never had it so good, with Australians expected to splurge to the tune of $753.4m this Father's Day – a 3 per cent increase on 2013 – with tools, hardware and electronics among the top contributors.
A strong economy, the healthiest consumer sentiment in three years and continuing high incomes are expected to fuel spending this Father's Day, according to IBISWorld Australia General Manager, Daniel Ruthven.
IBISWorld anticipates that Australians will spend an average of $51.60 on dad in the lead-up to Father's Day, up from an average of $50.70 in 2013. However, Dad still gets a bad deal compared with Mum, with spending on Mother's Day almost double what we spend on dad.
"While spending on Mum is significantly higher than spending on Dad, the gap is closing. There has been a perceived lack of gift options for fathers, but there is evidence that Australian dads are becoming increasingly comfortable with personal-care gifts from aftershave balm to hand moisturiser, rather than the standard gift of socks and ties," said Ruthven.
Ruthven tipped personal-care products to lead the charge with growth of 12.7 per cent. This is followed by footwear, clothing and accessories, forecast to grow by 5.6 per cent, and the stalwart tools, hardware and electronics category, growing by 4.4 per cent to reach an estimated $154.8 million and making up more than 20 per cent of all spending this Father's Day.
Gizmos and gadgets
The category most synonymous with Father's Day – tools, hardware and electronics – is expected to post healthy growth in 2014 as the range of products combines with heavy discounting to entice doting offspring to the DIY or electrical store.
"Despite increasing use of personal-care products, dad is unlikely to relinquish his DIY passion. Dad's love of DIY means this category will continue to perform well in the lead-up to Father's Day in a competitive and increasingly crowded market. Electrical retailers are also hoping for a bumper period, as increasingly sophisticated technology appeals to many fathers' enthusiasm for tech gadgets," added Ruthven.
Online shopping flies
Sustained growth in online retailing over the past year suggests that generous children are increasingly turning to online retailing, especially those retailers that gear themselves towards Father's Day. Online retailers are increasingly offering free or heavily discounted delivery options and favourable returns policies, both of which are supported by increased convenience, accessibility and price transparency.
"Consumers are able to check product prices at bricks-and-mortar outlets and compare them with prices online, and this has been made even easier due to the prevalence of smartphones and price comparison websites. Overall, online retail sales are forecast to grow by 13.3 per cent over the past year. IBISWorld anticipates this growth to continue, albeit at a less vigorous pace, as established retailers with a physical presence fight to remain profitable," said Ruthven.
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