Data from GWI’s annual Connecting the Dots report has revealed that consumers are still planning to buy ‘little luxuries’ next year despite increased financial volatility and inflation.
Although consumers are not spending as much as they have before, increased stresses mean they still want to treat themselves when they can.
What little luxuries are consumers spending on?
When it comes to treating on a budget, clothing appears in the top three ‘must-have treat’ choices across all generations and genders globally. And with ‘quality’ a main purchase driver, it’s unlikely we’ll see consumers downgrading their wardrobes just yet. Since Q2 2021:
- The number of consumers who shop at TK Maxx, known for big brand labels is up 41%, whilst the number of consumers buying items from Versace is up 61%
- The number of consumers planning to treat themselves to a wristwatch up are 20%
- A repeat of the ‘Lipstick Index’ isn’t ruled out either, with skincare and beauty purchases high on the agenda for female millennials in particular
As seen on social media
Right now social media is an important part of the consumer shopping journey. While finding information is still the main reason why people go online, more consumers are now getting their information on social media, with the number of people doing searches for brand or product information this way rising by 43% since 2015. This is particularly true for Gen Z in the UK, with a 14% drop in using the internet to find information and the percentage of UK Gen Zers using search engines to get more details on products dropping 11% since 2016.
Buy now, save the planet later
Sustainability has become less of a concern for consumers. In 90% of countries surveyed, interest in news, politics, social issues and current affairs has declined since 2020, by 13% in the UK specifically. Consumers are struggling to find the headspace to both make ends meet and to live a more sustainable lifestyle.
