Why Do Stores and Commercials Begin Promoting Christmas Early?

The early arrival of Christmas marketing and advertising can be perplexing. To retailers, it represents a crucial opportunity to make a significant impact on their profits during this traditionally busy but short sales season, especially this year. Given the compressed shopping timeline, every marketing tactic they employ becomes critical.

The Retailer's Perspective

Facing a shorter holiday shopping season, retailers must leverage every available moment to secure sales. Success during this period often determines survival, as proven by past years where those that could not manage their inventory effectively faced liquidation or closure. Time is of the essence, and every sale counts.

Consumer Behavior and Market Dynamics

Conversely, it is consumer behavior that drives this early promotional cycle. Typically, individuals begin purchasing Christmas gifts well in advance, often in October. If consumers waited until closer to the holidays, retailers would indeed delay their promotions, but the early adopters would seize the inventory first.

Consider a theoretical scenario: Midcity USA has a population of 1,000 individuals, each planning to spend $100 on gifts, totaling $100,000 in spending. If there are 10 retailers each with $100,000 worth of gift inventory, the supply is $1,000,000. As the holiday season progresses, the spending capacity (Demand) accumulates to $10,000 as 100 people have bought their gifts. This leaves the remaining $900,000 in excess inventory for the remaining population. By spending early, retailers reduce the available pool of spendable money, thereby gaining a competitive edge over those who start later.

The Push for Early Start

Marketers observe that the window for early promotions is shrinking. Some stores start displaying Christmas items as early as mid-September, which some may argue dilutes the festive spirit. However, from a business standpoint, initiating early marketing is a strategic move to capture consumer attention before the holidays. This tactical approach is designed to stimulate spending and create a sense of urgency.

The early start has been a gradual trend, with stores increasingly moving their Christmas displays closer and closer to the beginning of the year. This year, the situation has escalated, with Black Friday, a traditionally end-of-year event, now starting a week in advance. The push for early marketing becomes even more pronounced, mirroring a zero-sum game where early action yields a competitive advantage.

Consumer Sentiment and Criticism

Personally, many consumers feel that the festive spirit is undermined by early marketing efforts. The traditional sentiment should be that nothing is done commercially about Christmas until after Thanksgiving. The influx of Christmas marketing by mid-November creates a constant barrage of advertisements and promotions, turning holiday shopping into a non-stop event. This year, the early start of Black Friday further exacerbates the situation, contributing to an oversaturation of marketing efforts.

Consumers argue that this strategy is purely marketing-driven, aiming to get people to spend money. As the season progresses, consumers become desensitized and overwhelmed by constant advertisements, leading to reduced effectiveness of the promotional efforts. The early start of these marketing activities, while beneficial for retailers, may not align with the traditional holiday spirit cherished by many consumers.

Conclusion

The practice of starting Christmas marketing early is deeply rooted in retail strategy and consumer behavior. While it offers significant benefits for businesses, it also faces criticism from those who value the traditional marking of the holiday season. As the holiday season continues to evolve, the balance between commercialization and celebrating the festive spirit remains a subject of debate among both retailers and consumers.