It’s the most wonderful time of the year, and yet we are all so… stressed.
Recently, I was walking through the Metro Centre (the North East’s biggest shopping centre), and I noticed that you can now shop in many stores using Klarna and Clearpay.
Klarna and Clearpay are two of the most popular Buy Now Pay Later services, which allow people to purchase products (previously only online, but now in stores, too) without paying a penny upfront. It’s not the availability of BNPL that gets me, as much as the way that brands use it as a selling point to get you over the line.
As usual, the Financial Conduct Authority (FCA) is late to the game, with investigations into BNPL schemes starting in September 2023 - despite several years of these services encouraging people as young as 18 years old to spend money they simply don’t have.
Why am I writing about this now? Well, firstly Klarna has posted its first profit in four years, meaning that more and more people are turning to the platform, while retailers are embracing the BNPL schemes to line their pockets and encourage window shoppers to turn into paying customers. And secondly, I don’t think it’s a coincidence that the Cost of Living crisis has risen to breaking point for many families all while these credit companies get stronger and stronger.
It’s not you, it’s them
As both a marketer and mental health advocate, I am interested in seeing how these brands use immediacy and FOMO to encourage buyers to make purchases they can’t afford. This is no new strategy, however. When I was growing up, young people were pushed to sign up for store cards when shopping in the likes of Topshop, giving us discount on our initial purchases.
A lot of this comes down to dopamine, a chemical released in the brain when we achieve a goal or buy something we want. Brands know that we crave this warm, fuzzy feeling, and by using carefully considered language and flashy graphics, they can push us to buy things, even when we don’t have the funds. I’ve written about this fascinating phenomenon before…
The language these brands use takes advantage of our need for dopamine. They create a sense of urgency, making us believe that we not only want their products, but we need them.
Klarna has positioned itself as not only a provider of credit, but also a means of “try before you buy” - a way of acquiring products, perhaps clothes in multiple sizes, without footing the bill. I’m all for being sceptical about clothing sizes; we know that women’s sizes are especially inconsistent across the high street, but buying items we don’t need increases our carbon footprint, puts pressure on low-paid delivery workers and continues to perpetuate the cycle of fast fashion.
But, like I said, I’m not here to make you feel guilty. The brands quite literally create marketing campaigns to appeal to our brain chemistry.
All I want for Christmas is… whatever I don’t already have
In recent years, Black Friday has kicked off the spending pressures that last all through the Christmas period and into the Boxing Day sales. We are pushed to buy new outfits, make-up, footwear and more, all to keep up with the trend cycle and, often, we are encouraged to put ourselves into debt to achieve this.
Christmas is one of the hardest times to resist consumerism. We feel pressure to buy for ourselves, but also for others. Buying and receiving gifts is still very important part of the festive period, and I would never encourage you to avoid this if it means something to you. However, there are a few ways we can take a step back and make more careful and considered purchases that will mean just as much, if not more, to our loved ones on the big day.
Buy experiences or vouchers
Instead of choosing physical gifts, pick up a gift voucher for a store or experience day. This could be something you can do together, like go for afternoon tea, or a special treat for them to do alone, like get a massage or a facial.
Support small businesses
I cannot stress this enough. In previous years, I was guilty of doing the majority of my Christmas shopping on Amazon. It’s just so convenient. But this year, I am vowing to only buy from the ecommerce giant if absolutely necessary. I am buying books from local independent retailers, small gifts from Whitley Bay High Street and attending a few local markets to grab pieces by talented creators for wrapping under the tree this year.
The festive period is critical for small businesses. In fact, data shows that 25% of SMBS (small and medium businesses) are expected to make more than half of their income over the Christmas period. When you buy from a small business, your money is going directly into the pockets of people just like you - and not a faceless tax-dodging corporation.
Buy second hand
This might be a controversial one, as I know some people don’t think we should give second-hand gifts but I am a big proponent of this method. Another way of avoiding Amazon, in fact, is by buying books on World of Books, a huge pre-loved book retailer that is a registered B-corp.
Make something
You don’t have to be a professional artist to get creative. I recently read that brown paper is the only guaranteed recyclable wrapping paper. So, over the snowy weekend, my daughter and I made some potato prints and got the acrylic paints out to create some chaotic wrapping paper for our friends and family’s gifts. She’s only 17 months, so I was definitely more into it than she was…
That’s all from me, but if you have any tips for saving money and shopping sustainably this Christmas, then let me know in the comments below.
“Do not spoil what you have by desiring what you have not; remember that what you now have was once among the things you only hoped for." - Epicurus
This week, we went to see Hamilton at the Palace Theatre in Manchester. To say I was excited would be an understatement; we bought our nosebleed tickets back in March! Even Craig, who isn’t a fan of musicals and has never watched Hamilton on Disney+ all the way through, had an amazing time - turning to me after an incredible performance of Dear Theodosia and whispering: “I get it now.”
If you get a chance to see the show, I highly, highly recommend it. Fellow North-easterners will be pleased to hear it’s coming to the Sunderland Empire in 2025.
That’s all from me this week,
See you next week for more chat about mental health for the chronically online,
Ellen x
Such a great piece and could not agree more - I think as copywriters we have to be careful who we work for. Encouraging people to buy stuff they don't need doesn't sit well with me! And in terms of buying sustainably and spending less this Christmas, I'm trying but struggling. It's so hard. Will definitely check out World of Books. Thanks for the recommendation.
Spot on! Completely agree on this - and it seems we both woke up on the same side of mass consumerism this week 😂
I’ve always found Pay Later - particularly for fast fashion brands - to be a pretty gross and irresponsible considering their target markets. So many businesses profit from people being sucked into debt.
I do believe that, in some circles, gift giving is falling out of favour - and like you say, people are turning more towards gifting ‘experiences’ for their loved ones which support the arts or local businesses!
I remember an article a few years ago about ‘peak stuff’ and it definitely changed my perception a bit about the unnecessary performative side of gift giving that happens at Christmas. This is why I think work Secret Santa can get in the bin 😂