Recession is a Major Concern for 64% of Consumers

The state of economy has been in shambles for quite some time now, and consumers are really starting to feel the burn. As many as 64% of consumers have stated that they are worried about the prospect of a recession. 72% also said that various factors including climate change, inflation and others are having a more significant impact on their life over the past few years.

In spite of the fact that this is the case, there are some consumers who seem unbothered by all that is happening. For example, the Free-to-Be consumer is a category of market participants who stated that they are 52% less worried about inflation or the recession. These are useful consumers for luxury products since their lack of concern means that they are more likely to spend their extra cash instead of saving it.

With all of that having been said and now out of the way, it is important to note that another category of consumer is that of the Anxious-Avoidant consumer. Focusing on issues might be useful because of the fact that this is the sort of thing that could potentially end up making a brand more palatable to consumers who are in this category. Studies show that the likelihood of them buying from a brand goes up by 45% if the brand has the same values as they do.

Finally, we have the category of Cautiously Optimistic consumers. They are not exactly anxious, but they are still wary of what could occur. Such consumers tend to prefer products that have some kind of familiarity or nostalgia value attached to them. They also like products that can boost their self esteem with all things having been considered and taken into account.

This data from State of the Consumer 2023 reveals that grouping customers by demographic might distort the actual factors at play here. Brands must adapt their approach to the new classifications of consumers that are emerging, since not all of them are going to overlap with the categories that brands and marketers may have gotten used to over the past few years and decades.

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