Indulging in Tradition: How Brands and Retailers Can Embrace Micro-Indulgence This Christmas and Beyond

AUTHOR

AMANDA LEIGH-JONES
Director

Overview

Christmas has long been associated with indulgence—whether it’s enjoying a decadent meal, spending on gifts, or partying too hard.  The season invites a sense of excess that feels justified—a time when a Terry’s Chocolate Orange before breakfast, a champagne at lunch or splurging on lavish decorations becomes socially acceptable.

For brands, the holiday season represents an unparalleled opportunity to tap into these behaviours. Limited-edition products, nostalgic packaging, and experiences that evoke the sensory joys of the season can deeply resonate with consumers. By reinforcing emotional connections and amplifying the festive spirit, brands can position themselves as central to the celebrations.

However, the concept of indulgence is evolving, driven by shifting consumer behaviours and economic pressures. In 2024 we’ve seen the rise of the “micro” trend – micro-homes, micro-transactions, micro-learning, micro-occasions. We’ve also seen that indulgence is no longer exclusively about excess; it’s also about seizing small, satisfying moments—ushering in the era of “micro-indulgence”.

A New Context for Indulgence

This Christmas, indulgence comes with a twist. While consumers are still drawn to emotional moments of joy and satisfaction, the hangover from the cost of living crisis continues to shape spending patterns. T garage’s CultureCast Cost of Living Tracker highlights that while levels of happiness and hopefulness are rebounding, restraint is a behaviour that’s here to stay. Consumers are continuing the trend of dining out less, prioritising essentials over luxuries, and carefully managing their leisure budgets. Whilst this may appear to be a negative situation for retailers and brands, it also presents an opportunity:

how can you offer affordable yet meaningful moments of indulgence, particularly during a season when indulgence is part of the cultural fabric?

Enter micro-indulgence—a trend that allows consumers to enjoy small, affordable luxuries without guilt. Whether it’s a nostalgic treat, an aesthetic home upgrade, or a playful DIY craft, micro-indulgence offers brands and retailers a way to resonate with consumers looking to stretch their budgets while still celebrating life’s pleasures.

Kmart and the Rise of Affordable Indulgence

Kmart has been a leader in embracing the micro-indulgence trend, particularly during the cost-of-living crisis, positioning itself as a destination for small but meaningful indulgences. Kmart’s success lies in its ability to blend affordability with aspiration. From $5 candles that rival luxury brands to seasonal decor that transforms homes on a budget, Kmart delivers small indulgences that feel significant. Its use of social media to showcase these products in lifestyle settings to amplify their appeal, making micro-indulgence an accessible reality for a wide audience.

Aesop: A Premium Take on Micro-Indulgence

In contrast, Aesop focuses on “quality over quantity.” Its premium skincare products, while pricier, last longer due to their concentrated formulations. This approach appeals to consumers seeking mindful indulgence—products that feel luxurious while offering tangible value. This ties in nicely to the Christmas trends we have seen around more meaningful and mindful gifts, and gifting for self.

Both brands demonstrate that micro-indulgence is not a one-size-fits-all concept. While Kmart taps into the mass market, Aesop attracts a niche, quality-focused audience, proving that the trend can be tailored to diverse consumer segments.

Strategies for Retailers and Brands

An easy way for retailers and brands to capitalise on the micro-indulgence trend is through key seasonal moments and events. For example, at Christmas emphasise seasonal nostalgia by reinforcing emotional connections through products that evoke memories of childhood Christmases. This could include limited-edition flavours or nostalgic packaging that tap into the festive spirit. Offering accessible luxury is also key. Another, is to identify Christmas micro-occasions such as Christmas Eve, Christmas lunch, Christmas dinner and even leftovers, and determining what micro-indulgence might look like for each from both the product and messaging perspectives.

Thinking beyond Christmas, brands can offer small indulgences like summer-inspired gourmet treats. Enhancing the experience remains relevant year-round by creating multi-sensory activations for spring festivals or summer pop-ups. Additionally, embracing digital connections can extend to campaigns highlighting “micro-moments” of indulgence tied to everyday life milestones, such as self-care weekends or weekday pick-me-ups.

Looking Ahead

Christmas may be the pinnacle of indulgence, but the desire for small luxuries and emotional connections is universal and timeless. Whether it’s through festive cheer, seasonal offerings, or everyday pleasures, indulgence remains a powerful way for brands to engage and inspire. Micro-indulgence is more than a passing trend; it’s a reflection of how consumers are rethinking luxury in an era of restraint. Brands have the opportunity to redefine what indulgence means, making it more inclusive, accessible, relevant and even frequent. By embracing the principles of micro-indulgence and finding new ways to connect emotionally, they can turn everyday moments into opportunities for delight.