Three in four high-end merchants optimistic about peak season as Brits prioritise quality over quantity
New research from Tink shows that, this festive season, quality is trumping quantity as many cost and climate-conscious consumers choose to invest in higher-quality goods, even if that means purchasing fewer items overall.
75% of high-end merchants expect to maintain or improve profit margins on last year’s peak season, new research from Tink shows.
Despite this optimism, cost of living and climate considerations mean consumers remain highly selective when purchasing higher end goods.
With fraud also a top concern for consumers, it is vital that high-end merchants prioritise a seamless, secure customer experience to win share of wallet.
In a highly competitive market, payment solutions that offer enhanced security, reliability and flexibility – such as Pay by Bank – can give merchants the edge.
Our latest research of more than 2,000 UK consumers and over 500 UK high-end merchants* reveals that 60% of consumers would rather opt for higher-quality but fewer items, rather than many lower-quality items. Additionally, 43% of consumers surveyed who shop for high ticket and luxury goods say they are doing so more frequently now compared to this time last year.
This trend is giving high-end merchants cause for cautious optimism, with three quarters (75%) of those surveyed expecting to maintain or improve profit margins over the festive period compared to last year.
Conscious consumerism on the rise: budget and sustainability drive peak season shopping behaviours
Shoppers’ focus on quality is reflected in their festive spending, as over a third (37%) of respondents say they would rather give fewer but nicer gifts to family and friends this festive season, and 40% say they would rather receive one nice, quality gift than several cheaper items.
However, high-end merchants cannot afford to rest on their laurels this festive season, as Tink’s research also suggests a shift to ‘conscious consumerism’ is leading shoppers to be more cautious and considered when buying higher end items.
Budget remains a key consideration when shopping for higher ticket items - with 70% of consumers surveyed saying cost of living concerns mean they are very selective when buying high ticket and luxury goods.
Similarly, many consumers are conscious of the environmental impact of the festive season - with over a third (36%) of respondents saying that Christmas brings an excess of low-quality, unnecessary gifts that often go to waste. This comes as one in four consumers (25%) say they want to be more sustainable this Christmas by buying better-quality, but overall fewer, items. Merchants themselves recognise this trend - nearly three quarters (71%) of those surveyed believe that consumers are more conscious about sustainability when they’re buying during peak season.
Payment experience: a make-or-break factor in today's competitive market
Yet despite signs of growing demand for higher ticket and luxury goods, competition for share of wallet remains fierce - with 81% of merchants surveyed saying competition in their sector is higher than ever.
Customer expectations are also at an all-time high, and payments remain a sticking point. Among consumers who purchase high ticket or luxury goods, an estimated 58% worry about payment security, while 31% of high-end merchants say the high cost of managing fraud is a key challenge.
A poor payment experience can also impact conversion rates. Among consumers surveyed who purchase high end and luxury goods, 18% said they are frustrated when having to enter lots of payment details manually at checkout. These concerns would lead four in ten (41%) to abandon the transaction altogether.
Lucy Grant, Commercial Strategy Director at Tink, said: "It's clear that high ticket and luxury shopping isn’t just for Christmas - sustainability and quality are now front of mind for shoppers. But with this trend comes a heightened expectation for a top-tier customer experience, as consumers expect smooth, secure, and flexible payment options as part of the buying journey.
"Merchants investing in solutions like Pay by Bank – often with payment service providers such as Adyen – can help turn these expectations into a strategic advantage, transforming common pain points into loyalty-building moments that set them apart from fierce competition. Seamless authentication without the need for manual entry, as well as fast refunds, are just two of the benefits of adding Pay by Bank to your checkout."
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*High-end merchants defined as merchants (senior management level or higher) who sell higher price point items in businesses they describe as ‘luxury’ or ‘higher end’
Merchant research was conducted by Censuswide on behalf of Tink between 25/10/2024 and 01/11/2024 amongst 501 higher end merchants.
Consumer research was conducted by Censuswide on behalf of Tink between 25/10/2024 and 28/10/2024 amongst a nationally representative sample of 2,010 consumers aged 16+ in the UK. Censuswide abides by and employs members of the Market Research Society and follows the MRS code of conduct and ESOMAR principles. Censuswide is also a member of the British Polling Council.
Case studies, statistics, research and recommendations are provided “AS IS” and intended for informational purposes only and should not be relied upon for operational, marketing, legal, technical, tax, financial or other advice. Tink and Visa does not make any warranty or representation as to the completeness or accuracy of the Information within this document, nor assume any liability or responsibility that may result from reliance on such Information. The Information contained herein is not intended as legal advice, and readers are encouraged to seek the advice of a competent legal professional where such advice is required.
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