The latest edition of the EY Future Consumer Index (FCI), a comprehensive global study that surveyed over 22,000 consumers across 28 countries, revealed that American consumers prioritize value for money over experiences, brand loyalty, or convenience. This shift in consumer behavior is particularly noticeable among the 1,500 US participants included in the study.
The FCI, now in its 13th edition, provides valuable insights into changing consumer sentiment and behaviors across various timeframes and markets. It identifies emerging consumer segments and tracks their evolution, offering a unique perspective on the future of consumerism. The current economic climate, characterized by inflation and high-interest rates, significantly impacts US consumers’ spending habits as they approach the holiday season.
The Affordability First segmentation of US consumers continues to take the top spot (36%, increasing 10% points since October 2022), while Experience First has seen a momentous decline compared with the last festive season (12% of…
consumers surveyed, decreasing 11% points since October 2022), falling behind consumers in the Health First (26%), Planet First (14%) and Society First (12%) segmentations. The study found that many consumers are increasingly concerned about the rising cost of groceries.
This concern creates new opportunities for emerging brands and private labels to make their mark in consumers’ homes. As we move further into the festive shopping season, these findings suggest that retailers should focus on providing value for money to attract and retain customers.
With consumers becoming more price-conscious, businesses offering quality products at competitive prices are likely to thrive. “Cost-strained consumers want to know they are getting a deal, or they won’t prioritize a purchase,” said Kathy Gramling, EY Americas Consumer Industry Markets Leader.
“Traditionally, brands and retailers have turned to big moments like Black Friday and Cyber Monday to drive holiday demand, but we’ve seen that many consumers are trying to manage their budgets and have been preparing and shopping sales all year round.” Sales are no longer a ‘moment in time.’ With inflation in the US still at record levels, it’s…
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