Christmas is celebrated as a cultural and religious celebration worldwide. For many people, Christmas is known as a tradition, a time spent with family, giving gifts to loved ones. However, from an economic perspective, it is also known as the most commercial event of the year. The Christmas period is known as the highest level of consumer spending, making it extremely profitable for businesses in the retail, tourism and entertainment sectors. Companies can quadruple their sales during the holidays because of more demand, seasonal pricing, emotive marketing, and more jobs. In the 21st century, Christmas has become more of an economic occasion that businesses employ to maximise profit.
The most common ways businesses profit from Christmas are through a sudden increase in consumer spending. During the Christmas holidays, people's expenses increase even more due to the decorations, giving gifts to loved ones, children asking Santa Claus for gifts and setting the table for guests. In the United States, Christmas-related consumer spending regularly exceeds $900 billion a year, with a significant portion of it occurring in November and December alone. In the UK, about a quarter of annual retail sales occur during the Christmas season. For a business, this means that you can earn a significant portion of your annual income in a few months.
Companies like Amazon and Walmart have much more sales in December because of a sudden change in consumer behaviour. Sales rise particularly for food, toys, electronics and decorations. Christmas allows these firms to sell large numbers of products in a short period, increasing revenue and making full use of their large-scale operations.
Another reason is that, during Christmas, customers are so busy that sometimes they don't even notice or pay attention to prices, which allows companies to increase prices for certain goods. Christmas has a fixed date, and its emotional significance means that people are willing to pay more to avoid stress, disappointment, or to make everything look perfect. As a result, businesses can raise prices and the difference will not be noticeable, and there will be no risk of losing many customers. This is especially true in the travel and hospitality industries. Flights in December are frequently 20-40% more expensive than in non-peak months. Hotels and vacation rentals are also seeing rising prices, especially in popular places, for example, in European countries. Despite this, demand remains high, as people go to see relatives or on holiday. Similarly, products such as Christmas trees, decorations, and popular gifts generally become more expensive closer to the holiday. All this brings a lot of earnings to businesses because they sell not only more but also for a higher price, which doubles the profit.
One of the main reasons firms generate enormous profits during Christmas is seasonal marketing, in which companies employ fresh packaging, emotion, and tradition to create a relationship with consumers. These commercials don't just sell items; they tap into people's feelings about family, memories, and holidays.
Coca-Cola is a typical example of seasonal marketing. n advertising “The Holidays are Coming", first published in 1995, contains luminous red trucks and the popular holiday song, turning Coca-Cola into a symbol of the season.
Research shows that the effectiveness of this campaign is exceptionally high. In one evaluation, it received some of the highest ratings for brand responsiveness, emotional impact, and potential long-term returns - it often exceeds 90 out of 100 points in key indicators.
Many cosmetics companies are also updating their packaging and products to make them seem special, collectable, and suitable for gifts, and this strategy has proven itself well with consumers because it's a new holiday package that can be presented as a gift. For example, advent calendars from brands like Dior, such advent calendars, are simply sold out instantly because they give a sense of celebration and are an ideal gift for loved ones.
These examples indicate that Christmas marketing works by not merely showing off a product, but also creating a joyful spirit. When consumers feel emotionally linked to a company, they are more inclined to make a purchase not only during the holiday season, which creates long-term consumer loyalty.
In conclusion, the Christmas season plays a vital part in the development of modern enterprises. Thanks to increased customer demand, inelastic pricing, and successful emotive marketing, corporations can earn a considerable part of their annual income during just the holiday season. Examples such as Amazon, Apple, Coca-Cola, and major airlines and beauty brands highlight how firms strategically use Christmas to maximise sales and profits. Companies already know how consumers behave during the Christmas season. They create strategies that increase their profits at that time by increasing the price for goods and services, changing packaging and producing more Christmas stuff that satisfies the consumer.