An unstable economy and high inflation have forced consumers to rethink their spending habits. As per a recent EY consumer survey, nearly 37% of consumers buy only essential items.
The percentage is higher when compared to 26% in the February 2022 survey. The survey reveals that affordability is a key factor in the buying decision. Here are some insights into the buying trends of UK consumers.
Cut back on spending
The Ukraine invasion and the Covid-19 pandemic are a few reasons that have created a negative impact on consumer confidence. The rising price of energy bills and goods, in general, is a big source of concern for UK residents.
Many consumers worry about the increase in the price of essential household items. Prices of food, petrol, and more are high. This has led to consumers restricting their spending.
The fear of a massive increase in prices in the future has led to changes in the shopping behaviour of Brits. Shoppers focus on discounted goods and promotions to get the best value for money.
Online shopping
The pandemic-induced consumers shift to online shopping has changed in 2022. More and more people are shifting to in-store shopping. But online shopping is a preferred option still for many people. The ease of buying things online is a big reason.
For instance, if you are looking to buy a bath online, you can compare the prices, designs, styles, and more easily online. Online stores are offering affordable and competitive prices. These are key deciding factors in the present economic situation.
Sustainable choices
Consumers are making sustainable and affordable choices now. Some of the changes seen in 2022 are
- More and more people try not to waste food items
- People make eco-friendly choices while shopping
- More people now prefer to repair and reuse items than replace them
- There is waning interest in fashion trends and the urge to buy the newest tech.
This new shift to sustainable and affordable shopping is making businesses leverage it and find chances to exploit it.
Subscription services
There is a rise in subscription services ever since the lockdowns came into effect. The trend has not declined even after an ease in the restrictions. Many households continue to spend on TV subscriptions like Amazon Prime, Netflix, and more. Services for music streaming like Spotify have also increased in popularity.
Other brands are making use of the popularity of such services. They provide unique services and products. For instance, many creative industries use services like Substack to monetise their work. Such platforms offer subscription services for providing exclusive content to supporters and fans of various creatives. Creative industries affected due to the pandemic use such services to earn additional income.
Vegan Diet
More than a third of people in the UK prefer a plant-based diet as per a survey done in December 2021. January 2022 saw many Brits signing up for the Veganuary challenge. As per the challenge, they will go vegan for the entire month of January.
Saving the earth and shifting to a healthier way of life were cited as the main reasons for the change in eating habits. A few of the respondents wanted to try a new diet while a few others wanted to do it to improve their social profile.
Social influence
It is not only food choices that social consciousness influences. Cosmetics, leather goods, and other consumer products are also impacted. Saving the earth, social justice, and more impact the purchase decision of people, especially the younger age group.
Businesses that recognize this trend and make use of it wisely will benefit. The popularity of vegan cosmetic products and faux leather goods are some instances of changing consumer preferences.
Hospitality
The hospitality sector is one of the worst hit industries during the pandemic. With only takeaways being allowed the industry is trying to come up with unique ways of attracting customers. One such solution is the home delivery kit.
For Brits who do not fancy supermarket food or cooking at home, the luxury restaurant kits are a popular choice. Recipe boxes and restaurant kits are great takeaway alternatives in the UK now.
The best part about such kits is they are more cost-effective than ordering individual foods. Many companies provide ready-made meals by Michelin chefs right at your doorstep. You need to just reheat them at home.
Final takeaway
Consumer focus on value governs the lifestyle trends at any given time. With the looming uncertainty over the rising prices, Brits are more conscious of how much they spend and on what they spend. Businesses that identify ways to deliver sustainable and affordable products will survive and flourish in the coming years. The shift in consumer preference towards sustainability is a good thing that can help shape a healthier, and safe future.
