PwC’s 2023 Global Consumer Insights Pulse Survey shows that as the cost of living crisis continues to escalate around the world, consumers have drastically adjusted their spending behaviorswith 53% of global consumers “holding back” from buying non-essential items.
The survey captured the opinions of 9,180 consumers in 25 countriesincluding 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 altogether.
– 50% of consumers are “extremely” or “very concerned” for your personal financial situation.
– It is expected that luxury/premium products, travel and fashion bear the brunt in the next 6 months
– Rising prices and supply chain disruption are driving changes in consumer behavior, both in-store and online:
49% say they are buying certain products when they are on sale/promotion46% look 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 that include luxury and premium products, travel and fashion they expect to see the lion’s share of the 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.”, commented Sabine Durand-Hayes, Head of Global Consumer Markets at PwC France.
“If retailers want to thrive in this challenging macroeconomic environment and maintain consumer engagement, they must leverage and diversify their distribution channels, offer competitive prices, invest in greater supply chain resilience and offset the growing reluctance of customers to share data online by better monitoring their customer base and loyalty programs,” added Durand-Hayes.
To see more details of the survey, go here.
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