Avg. budget for kids' Christmas gifts in Japan declines for 4th year in row

TOKYO -- High prices are putting a winter chill on spending on Christmas gifts for children in Japan, as the average budget for packages under the tree for the wee ones has declined for the fourth consecutive year to 7,718 yen (about $52), down 243 yen (approx. $1.70) from 2022, according to a survey by major toy maker Bandai Co.

Bandai has run the survey every year since 1995. This year's edition was conducted via the internet in early November, and responses were received from 600 people in their 20s to 50s with children aged between 3 and 12.

When asked about their budget for Christmas presents, the most common response was "between 5,000 yen and no more than 6,000 yen (roughly $34 to $41)" at 43.8%, followed by "between 10,000 yen and no more than 20,000 yen (about $68 to $136)" at 30.8%, "under 5,000 yen" at 10.9%, "between 6,000 yen and no more than 10,000 yen" at 9.5%, and "20,000 yen or more" at 4.8%.

However, those responding that there was "no change" or an "increase" from last year's budget accounted for approximately 94% of the total. As for the reason for the decrease in the average amount, a company representative suggested that "the decrease in the number of respondents with a budget of 20,000 yen or more may have had an impact."

Last year, 5.7% of the respondents had a budget of 20,000 yen or more, and the average sum in this highest tier was 34,000 yen (roughly $231). On the other hand, this year, not only did the proportion of respondents with a budget of 20,000 yen or more decrease, but the average amount in this bracket also slid to 29,310 yen (about $200). This suggests that the decline in top-tier spending may have pushed down the overall average.

The most common reason for increasing the children's gift budget was "age-appropriate change" at 50.0%, while that for cutting spending was "change in the cost of gifts requested by children," also at 50.0%. Some 34.4% of respondents also said that "other expenses have increased due to higher prices."

Meanwhile, the gifts most desired by children was the same as the previous year: gaming software at 19.0%, followed by gaming consoles at 7.0% and character cosplay toys at 4.8%. Electronic devices such as smartphones, tablets and computers came in fourth at 3.8%.

Electronic devices made it into the top five for the first time this year, having previously reached a high of No. 9 in 2018. Requests were particularly high among 9- to 12-year-olds. This is likely due to the introduction of devices such as tablets as learning tools in elementary school classrooms, and respondent comments included, "I want to use (a device) at home, too," and, "I want to watch videos on a large screen."

(Japanese original Shiho Fujibuchi, Business News Department)