According to a new survey from Criteo, the commerce media company, 74 per cent of UK consumers anticipate spending the same or more than they did last year online in the run-up to the holiday season, while 66 per cent of shoppers expect to match or exceed in-store spend. Against the tide of rising prices, smart purchasing strategies are enabling shoppers to maintain or increase their spend in more discretionary categories, like health & beauty (71 per cent), consumer electronics (60 per cent), apparel (59 per cent) and home furnishings (57 per cent).
Three ways consumers are saving money
Consumers are feeling the pinch around essentials in particular. 69 per cent say they have spent more on energy bills and 61 per cent say they have spent more on groceries in recent months.
To help ease the cost of living:
- 68 per cent are buying products such as detergent and tissues in larger packs to get greater value for money.
- A further 43 per cent are willing to buy more items together to get free shipping or to save on shipping costs
- 68 per cent of shoppers express loyalty points will be another important influence over where they shop
Despite this, 79 per cent are prepared to purchase from online stores that they don’t usually purchase from during the rest of the year. Moreover, 61 per cent report frequently trying new brands and retailers.
Nicole Kivel, managing director, Northern Europe at Criteo comments, “Today’s shopper can be both loyal and agnostic. On the one hand, retailers and brands should be doubling down on their loyalty programmes, both to drive purchases and also for the monetisation potential of that data. But it’s not enough to focus on pushing through sales, you have to make sure the brand is being seen and is drawing in new audiences. Consumers are making tricky compromises and spending time weighing up products and brands from all aspects. While there are risks, there’s also so much opportunity in this environment.”
Three things consumers will spend more on
Exactly two-thirds of consumers are being more selective in what they buy or are shopping at more quality orientated stores. To this end, 76per cent state reviews are an important part of their purchase decision. In fact, shopper diligence is leading to more questions being asked of larger marketplaces; 56 per cent of respondents now suspect some of the products they see on Amazon are counterfeit.
While received wisdom dictates brand building and starts with having a great product – nine-in-10 consumers still describe product quality as important – there are several other elements that inform the price consumers are prepared to pay, and in some cases surpass.
| Ethically produced apparel, footwear or accessories | Carbon-neutral delivery | Locally produced food | |||
| +5% extra | 37% | +5% extra | 39% | +5% extra | 39% |
| +10% extra | 16% | +10% extra | 13% | +10% extra | 22% |
| +20% or more | 3% | +20% or more | 2% | +20% or more | 5% |
For instance, 56 per cent of consumers would pay at least 5 per cent extra for apparel, footwear or accessories that are proven to be ethically produced.
Similarly, 54 per cent would pay extra for carbon-neutral delivery. Another important consideration is whether the product is recyclable, which 73 per cent of consumers stress is important in their purchase decision. Taking these factors into account when optimising brand campaigns could unlock significant amounts of revenue as consumers find more meaningful points of differentiation.
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