GLOBAL CONSUMERS ARE CHOOSING TO LIVE WITH LESS AND ARE RE-EVALUATING THEIR PURCHASES
Consumers perceive as “normal” the new behaviors they have been forced to develop since the start of the pandemic, according to the results of a global survey by EY.
Climate change and the search for complete and satisfying experiences are now more important issues. During the pandemic, the groups of consumers who put the environment (“planet first”) and experiences (“experience first”) as a priority strengthened – from 16% to 26%, and from 11% to 18%, respectively – according to the eighth edition of the EY Future Consumer Index. At the same time, sustainability is an important purchase criterion for 85% of consumers.
Re-defining our purchasing decision
EY’s global research reveals that consumers are redefining their purchasing decisions and spending less on what they perceive as non-essential goods for financial (49%) and environmental (30%) reasons. This trend is likely to have a long-term impact on consumption. Indeed, brands are a secondary consideration for 44% of consumers worldwide (49% for millennials and 47% for Gen Z).
Similarly, nearly half of global consumers (41%) feel less pressure to keep up with the latest in technology and gadgets. Just 27% say they are currently buying more stuff because it makes them feel happier, while 48% hold the opposite view. Additionally, nearly half of global respondents (47%) say they feel more comfortable with themselves without the need for grooming products.
Live with less and consume better
More generally, the pandemic has helped consumers understand that they can live with less and consume “better”: they feel they have more clothes than they really need (48%) and are more likely to repair, rather than replace (53%), what breaks down.
EY’s global research shows that younger consumers will lead the holiday shopping: 71% of Gen Z and 68% of millennials, compared to 37% of baby boomers, plan to participate in the upcoming big shopping season. However, the way they shop has changed from year to year.
51% will look for deals in physical stores
Despite the increased share of e-commerce during the pandemic, more than half (51%) of respondents will look for deals in physical stores, 39% more than last year. According to the survey, this trend can be explained by two factors: in addition to the fact that restrictions have come, and stores have reopened in most regions of the world, consumers are also choosing to buy directly from the store to avoid increased shipping costs and delays caused by disruptions in supply chains. Indeed, for consumers who will be shopping online this holiday season, the primary concern is high shipping costs (32%), followed by product availability (25%).
New supply chains and value propositions
The research highlights that to mitigate these concerns, companies need to redesign their supply chain, inventory and logistics processes, particularly as the quality of the service they offer becomes increasingly important to 57% of consumers. As consumers are now much more selective about how they spend their money, removing any barriers and ensuring a seamless experience between the physical and digital worlds will be imperative for businesses.
Compiled by Export-Angels.com market analysts 2022