November and December still remain the most profitable months for Christmas crafters, with businesses making an average of 39 per cent more during this time, equating to an estimated £92,000 worth of additional stock over these two months.
While some companies are proving there is a demand for festive cheer all year, pop up businesses are extremely popular at Christmas.
The research reveals almost one in five businesses selling goods at Christmas markets only open for the festive season. This is supported by further analysis into the number of self-employed workers in the months leading up to Christmas. There were up to 124,000 more sole traders active between October and December last year than the average for the whole year, representing an increase of 2.7 per cent.
More than a quarter of companies we spoke to believe it is imperative for craft businesses to make changes to the stock they sell over the festive season to drive additional sales.
Nick Breton, Head of Direct Line for Business, said: “It’s interesting to see how festive trading has evolved. Previously, businesses tailored their stock to reflect the holiday season they are targeting, but now we’ve seen an appetite among consumers for Christmas products all year round. There’s definitely been a shift in the way consumers shop as many take advantage of seasonal fairs and pop ups to buy their Christmas shopping earlier and under one roof.
“People selling products at Christmas markets and fairs may not realise they are effectively running a small business and should check they are adequately covered with the right business insurance to in case anything should go wrong.”
Festive businesses are extremely effective at stock management. Following the Christmas rush, just 13 per cent of stock is left unsold while more than a third of companies claim to have no stock left when festive trading ends.
