In the 10th edition of the UK Future Consumer Index, we are seeing consumers reacting to inflationary pressure and reducing discretionary spend as a potential recession looms. Although sensitivity to price increases seen across all categories is high, consumers are reacting differently to past crises. Coming out of the pandemic, consumers have learned new ways of behaving and living; sustainability remains important and digital engagement continues to advance. Brand and retailer reactions to the challenges and opportunities these consumer trends present will be key.
Unlike the pandemic and previous financial crises, the current and future challenges consumers face won’t (or shouldn’t) come as a sudden shock to either consumers or retailers. The pressure points, such as the upcoming energy cap changes have been well publicised, giving both retailers and consumers time to prepare.
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