LATEST FINDINGS ON US CONSUMER INSIGHTS
Consumer spending has always been among the key gauges in the country’s overall economic health. Willingness to take out cash signifies the confidence of people regarding their financial state, which is shaped by several factors such as wages, job security, and their outlook on how the market will develop in the future. An increase in expenses also fuels growth within an economy, since it is beneficial for businesses.
The recession in 2008 has deeply impacted the people’s drive to spend but fortunately, this was recovered overtime. Recently, a consulting firm McKinsey & Company has conducted a survey on consumers attitude towards their expenditures and was able to derive five truths based from the perspective of retailers who participated in the initiative.
Americans still opt to save during shopping The study discovered that almost half of the population are looking for ways to save more cash, especially the millennial females with children. They try to explore all options in hopes that they will stumble upon something more available by shopping around, using coupons or loyalty cards, and buying in bulk. This indicates that although spending has improved, many individuals tend to remain cautious with their purchases.
Cheaper brands defeat loyalty Around 52% participants in the survey have altered their buying behavior when it comes to their favorite brands--a figure that is down from a previous 64% six years ago. While a number still choose their preferred labels, they are constantly monitoring its price difference from competitors and have looked for ways to be able to buy their favored item through sales, discounts, and small quantity buys. This is also a positive signs, since fewer people are restricting themselves from spending on their favored product name.
Low chances of downgrading McKinsey found out that 9% of buyers are willing to buy cheaper items in exchange for what they really want. Millennial moms are the biggest group that is most likely to downgrade without regretting their choices. A significant 74% of them also said they will persist selecting less expensive goods. Baby boomers, on the other hand, have the smallest percentage of upgrading at 5%.
Personal necessities and alcohol extravagance People have their categories in which they are eager to splurge. The study discovered that the two items which topped in this list are alcoholic beverages and personal care items. Surprisingly, around 14% of young moms have admitted to choosing pricier options when it comes to the said products.
Buying platforms’ contribution Given the many forms of purchasing available at this age, shoppers have easier access to a wide variety of offerings. Presently, three of the most common spending channels include online retailers, discounters, and club stores.