Criteo, the commerce media company, has released a study of over 1000 consumers in the UK, revealing that despite spending more on non-negotiables like mortgages or food, a majority are still finding the means to purchase the goods and experiences they want most.
According to the survey, 63 per cent say they are buying essential items such as detergent and tissues in bulk to get more value for their money. To find the very best offers, over two-thirds (67 per cent) report they are spending more time online.
Cost-cutting measures are enabling many consumers to continue buying similar volumes of non-essentials. Among the top categories consumers report increasing or maintaining spend are health and beauty (66 per cent), consumer electronics (57 per cent) and apparel and accessories (56 per cent).
Now more than ever shoppers want great products that are made to last. Product quality is the most important factor for shoppers (88 per cent), ahead of free shipping (86 per cent) and discounts/coupons (79 per cent).
Trade-offs
For 69 per cent of consumers, energy bills have become a greater cost centre. They are also spending more on non-negotiables like their groceries (54 per cent), fuel (49 per cent) and their mortgage or rental agreement (29 per cent).
The categories these risings costs appear to have impacted the most are hospitality and travel. While these purchases are under pressure, 45 per cent of consumers say they are managing to spend the same or more on dining out and 54 per cent are committing the same or greater spend to travel.
Similarly, when it comes to luxury goods, over 37 per cent of low to mid-income consumers report spending the same or more. This increases to 53 per cent or more for high-income consumers.
A forward-thinking mindset
To mitigate rising prices, other tactics include buying gifts for future holidays and birthdays (36 per cent) and buying high-value items such as appliances and furniture sooner (25 per cent).
Looking ahead, consumers may also be more willing to compromise on certain aspects of the products they do still choose to buy. Only half of the respondents surveyed expressed eco-friendliness was important to them when buying from a brand or retailers and 62 per cent selected brand values.
To drive purchases, brands and retailers should double down on reward systems, with over two-thirds (67 per cent) of consumers expressing loyalty points will be integral to their decision of who to buy from over the next six months.
Sam Benkel, director enterprise Northern Europe, Criteo, comments, “While shopping habits are evolving and compromises are being made, it’s clear to see how determined consumers are to stick with the brands they love. Its vital brands make the most of this continued loyalty and concentrate on how they can stay front of mind at physical and digital checkouts. This will require close collaboration between brands and retailers to ensure shoppers only see the most relevant products and promotions based on their specific needs.”
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