Valentine's Day

Every year, couples from all around the world look forward to the 14th of February, aka Valentine’s day, to celebrate love.

Legend says that the origin of Valentine’s day started with a young priest named Valentine, who was furious with Emperor Claudius II. Claudius II believed single men make better soldiers. Therefore, the emperor outlawed marriage for men joining his forces. Valentine defied Claudius II by helping lovers to marry secretly. When Claudius II found out about this, he captured Valentine and eventually sentenced him to death. During Valentine’s time in jail, he fell in love with his jailer’s blind daughter. Before his death, it is alleged that he wrote her a letter signed “From your Valentine” on 14 February. Around 546 AD, Pope Gelasius declared the date, 14th February as a day to honor Valentine.

While this day is largely a mainstream commercial holiday, more people are spoiling their families and friends with gifts -- from chocolates to bouquets to experiential activities. On top of that, online and offline sellers can learn to make the most of this short and sweet holiday by using the right channels, price points, and products to maximize their profits.

So how much do people spend on Valentine’s day?

According to the National Retail Federation (NRF), Valentine’s day is the fifth largest spending event in the United States. Despite the fact that the global pandemic has shaken the economy and millions of jobs are lost, consumers are not cutting back when it comes to celebrating their loved ones.

The 24-hour celebration has helped boost the US economy as consumer spending drives almost 70% of the nation’s total output, making the largest component of the gross domestic product (GDP) shown in figure 1. In 2021, about half of the US adults will spend a total of $21.8 billion, slightly below from 2020 which is $27.4 billion, according to the NRF.

Figure 1

From chocolates to flowers, Valentine’s day is the time where people can spend on a plethora of things. When it comes to the demographic of people plan in spending on Valentine’s day shown in figure 2, surprisingly the highest age category of spenders is around 35-44-year-olds which is averagely spending around $279, while 25 to 34-year-olds average spending around $239 and 18 to 24-year-old spending $124. Likewise, when it comes to who they are spending their gifts on, modern consumers spend an average of $30 on family members other than a spouse, $15 on friends, and $11 on others. One interesting retailer’s statistic over the years has shown that there is a rise in spending on pets as roughly around 20% say they will buy Valentine Gifts for their pets shown in figure 3.

Figure 2

Figure 3

This Covid-19 pandemic has put a spotlight on the importance of appreciating and connecting with loved ones and Valentine's' day gives an extra lift this year. Forced to live in quarantine bubbles, people learn to appreciate the things in life that are often taken for granted such as when they are healthy and alive. This year new messages will accompany Valentine’s day gift, beyond the traditional “I love you” sentiment. A thankfulness message like “we made it through 2020” or “the distance only brought us closer” to friends and families will be accompanied in the Valentine’s Day gifts.

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About the Author

Rosemarie Chua is currently a Year 2 student studying Business Economics and Finance. Her go-to motto is, 'The mind is everything; what you think you become.' This quote has kept her pushing herself to become the better version of herself.