PwC’s 2023 Global Consumer Insights Pulse Survey shows that as the cost-of-living crisis continues to escalate around the world, consumers have dramatically adjusted their spending behaviors, with 53% of global consumers “slowing down” when buying non-essential items.
The survey captured the opinions of 9,180 consumers in 25 countries, including Australia, Brazil, Canada, China, France, Germany, Japan, Mexico, Spain, and the United States, among others.
The survey indicates that:
– 15% have stopped making non-essential expenses completely.
– 50% of consumers are “extremely” or “very concerned” about their personal financial situation.
– Luxury/premium products, travel and fashion are expected to be the most affected in the next 6 months
– Rising prices and supply chain disruption are causing changes in consumer behavior, both in-store and online:
49% say they are buying certain products when they are on sale/promotion, 46% search for retailers that offer better value, 40% use comparison sites to find cheaper alternatives, 34% buy in bulk to save costs, and 32% are buying “private brands” from retailers to find savings.
PwC notes that industries including luxury and premium goods, travel and fashion expect to see the lion’s share of reductions in consumer spending over the next six months, while grocery stores are expected to see the least decline.
“The cost of living crisis is having a material impact on the way consumers shop, both in-store and online. As prices rise, consumers around the world are cutting back on non-essential spending and spending more time looking for cheaper alternatives,” said Sabine Durand-Hayes, Global Consumer Markets Leader at PwC France.
“If retailers are to thrive in this challenging macroeconomic environment and maintain consumer engagement, they must leverage and diversify their distribution channels, offer competitive pricing, invest in greater supply chain resilience, and offset growing customer reluctance to share data online by better monitoring your customer base and loyalty programs,” added Durand-Hayes.
To see more details of the survey, go here.
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