81% of Consumers Are Changing Spending Habits

Consumer behavior is notoriously unpredictable, but a new study has revealed that industry fears are coming true. This study was conducted by Future Publishing, and it revealed some of the biggest changes that are occurring in consumer spending because of the fact that this is the sort of thing that could potentially end up helping brands to weather the inflationary cycle. 87% of consumers who participated in this survey stated that they are concerned by inflation, and this is resulting in a massive shift in their spending habits.

With all of that having been said and now out of the way, it is important to note that 41% of consumers plan to change their spending habits drastically. A further 40% stated that they are making slight changes, and only 14% confirmed that their spending habits would remain the same. The biggest spending cuts will be for non-essential goods, but in spite of the fact that this is the case 58% of consumers who are reducing spending said that they will go back to normal once inflation is under control.

The pandemic resulted in a mark decrease in consumer spending, and this helped 73% of consumers save more than might have been the case otherwise. That has resulted in 69% of consumers saying that their savings will help them survive this period of inflation, although 62% said that they fear these savings will be diminished due to essential purchases. Interestingly, 48% stated that they plan to use these savings on non-essential goods, so the market is not quite as dry as some may have feared.

43% of consumers will be maintaining their current lifestyle by dipping into their savings with all things having been considered and taken into account. Inflation is also not dampening consumer excitement about the upcoming holiday season, although 74% said that they would be waiting for Black Friday deals and discounts.

Brands might need to meet consumers halfway here. 35% expect some concessions in exchange for brand loyalty, and 38% are looking forward to potential price slashing to facilitate an increased volume of sales in the short term.

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