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More than just hams and boxes of sampler biscuits will be delivered to New Zealand homes when Christmas hampers arrive this month - fridges, flat screen TVs and barbecues are now a big part of the growing hamper business.
New Zealand's two main Christmas hamper companies, Chrisco and Mrs Christmas, anticipate another bumper season, despite the now-expected criticism from the savings industry and consumer groups.
After 16 years, Chrisco hampers have become a tradition in many New Zealand families, while a relative newcomer, Mrs Christmas, is carving out its own market.
Both work on a layby system, where customers select items from a catalogue and make payments over time. When the item is paid for, delivery is arranged.
Many people start buying for the following year soon after Christmas.
The business is growing strongly, though predictable competitive caution makes it difficult to get firm numbers from the two main players.
Chrisco, however, describes itself as "the number one player" in New Zealand and Australia.
"If you lined up end-to-end every Christmas hamper box we deliver they would cover the distance down State Highway 1 from central Auckland to south of Cambridge," says Chrisco CEO, Julia Dol.
Meanwhile the "Christmas hamper" label is becoming less representative of the business the two are doing.
"Christmas food hampers are the mainstay of our business. However, we have an increasing demand for other items which customers can select and save for throughout the year," says Dol.
"These include home items such as refrigerators, DVD players, televisions, computers, furniture, small domestic appliances, barbecues and camping equipment through to gifts and toys."
In a healthy economy and a strong labour market, layby schemes may seem less popular but for a certain market, they are necessary. According to MasterCard International commissioned research, the average New Zealander spends $900 on Christmas.
"Our customer research showed a large number of New Zealanders felt they spend more than they had budgeted on Christmas supermarket shopping. Some 97 per cent of survey respondents said they were susceptible to impulse purchasing at supermarkets in the lead-up to Christmas," says Dol.
While Chrisco is a firm number- one player, such is the success of the Christmas layby idea that Mrs Christmas is thriving and growing fast, targeting households with an average income of about $60,000.
The five-year-old company is just expanding into new, larger premises in Albany, and last year entered the Australian market.
"We've created a lot of interest out there, we've become a well-known brand in a short space of time," says Phil Walls, a director of Mrs Christmas.
Mrs Christmas has more luxury hampers, and goes for more top-of-the-line food products, says Walls. It does little things, such as delivering the ham chilled - not frozen - and it's also pitched a bit cheaper than Chrisco. Walls says it beats other forms of finance. "The big advantage with us is that in comparison with hire purchase, you are not paying more for the item," he says.
Customer trust is a big issue with these hamper companies which are handling millions of dollars every year. Farepak, a Christmas hamper business went bust in Britain last Christmas, taking all the customers' deposits. The British Government has now ensured customer funds are protected.
Deposits to Mrs Christmas are held in a trust fund with Westpac, while Chrisco manages customers' funds in a similar way to Britain. Funds are held and drawn down as required to fill the customer orders and ensure delivery in time for Christmas. "We account for every cent. We can't get it wrong or people would be marching on us with pitchforks," says Walls.
Despite its growing popularity, the hamper system draws annual criticism, with some especially harsh words from the credit union industry.
Phil Barnett, general manager of Credit Union Forestland based in Whakatane, says: "It's cruel in some ways to appeal to people [in this way]. When Chrisco first started, we tried to counteract them with Christmas Club and Christmas hamper savings accounts. What they are doing is using other people's money."
He is resigned that there will always be a market for such companies. "We've got a number of people in the area who have not got off the treadmill. Chrisco can work well for them. That's the shame of it."
While the Mrs Christmas company says the prices they put on their goods are the manufacturer's recommended retail price, and that they don't make a lot of money from the millions in deposits they take every year, Barnett remains sceptical.
"They have got bulk buying [power]. You know that they are going to be making money," he says.
And he adds that if they are failing to make money from the deposits held during the year, then "they must be taking bad financial advice".
The credit unions argue if people have a Christmas savings club, they at least get interest on their savings.
Credit Union Forestland's Christmas Club savings scheme earns people 3.5 per cent annual interest.
Customers have saved more than $12 million to cover this year's extra expenses for Christmas, says the New Zealand Association of Credit Unions. This is an increase from just under $12m last year and $11m in 2005.
"Some people don't have the will to leave the money there for Christmas unless they are very strong about it. That's one example where the hampers do stop that from happening," says Janet Gibb, CEO of Credit Union Waikato. "They are better than putting Christmas on a credit card."
The Consumers' Institute is fairly unequivocal in its opinion on hamper companies. "If you want to save for your Christmas fare, supermarket vouchers are a good deal. Hampers aren't," it says. "Our own surveys, and others, have shown that joining a Christmas hamper scheme is an expensive way to buy your groceries."
Not everyone in the finance industry has a problem with the Christmas hamper business.
Bank of New Zealand chief economist Tony Alexander says he likes the idea of a giant hamper turning up to delight the children.
The appeal of hamper layby schemes has nothing to do with New Zealanders' savings habits, he says.
"It's more related to handling Christmas in a good manner - taking the stress out of it."
