Findings:
Consumers are tightening budgets due to inflation.
Less spending on personal care, apparel, travel, vacations, restaurants, entertainment and media.
Discount, thrift, and outlet stores are gaining popularity.
Consumers are split on shopping directly from brand websites.
Concerns about data collection, especially with the use of Gen AI.
Key Takeaway:
Inflation is causing consumers to cut back on spending across various categories, including personal care, apparel, and experiences. Consumers are seeking discounts and alternative shopping channels to save money.
Trend:
The trend is towards frugality and value-seeking behavior among consumers due to inflation. This is leading to a shift towards discount stores, thrift stores, and outlet stores, as well as a reevaluation of spending on experiences.
Who is it about?
The report focuses on U.S. adult consumers across different generations, particularly Millennials, Gen X, Baby Boomers, and Gen Z.
Description of consumers/product:
Consumers: The report covers a wide range of consumer demographics, with a focus on their spending habits and preferences related to personal care, apparel, experiences, and data collection.
Products/Services: The report mentions various product categories like personal care and apparel, as well as experiences like travel, vacations, restaurants, entertainment, and media. It also discusses paid memberships and subscriptions.
Conclusions:
Consumers are increasingly price-conscious and are actively seeking ways to save money due to inflation.
While experiences were previously favored, consumers are now cutting back on these as well.
There is a growing interest in discount stores and secondhand shopping.
Consumers are concerned about data collection practices, especially with the rise of Generative AI.
Implications for brands:
Brands need to focus on offering value and discounts to attract price-sensitive consumers.
They should consider expanding their presence in discount and outlet stores.
Offering personalized experiences and focusing on product sizing could be more effective than simply lowering prices.
Brands need to be transparent about their data collection practices and consider offering incentives for data sharing.
Implications for society:
The trend towards frugality could have a significant impact on the retail and entertainment industries.
The growing interest in secondhand shopping could lead to a more sustainable consumption model.
The increasing concern about data collection and AI usage raises questions about privacy and consumer rights.
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