In the next six months, global consumers are planning to reduce their spending in luxury or premium products across a variety of retail categories, including fashion, which is forecast to see a 41 per cent decrease in spending, according to the 2023 PwC Global Consumer Insights Pulse Survey. However, there still remains an appetite for future spend, with 40 per cent consumers indicating they will look to treat oneself or others.

As the cost of living crisis continues to rise globally, consumers have drastically adjusted their spending behaviours, with the majority (53 per cent) of global consumers ‘holding back’ on non-essential spending. Fifteen per cent of consumers have stopped non-essential spending altogether, according to the PwC’s survey.

In the next six months, global consumers are planning to reduce their spending across luxury categories, including fashion, which is forecast to see a 41 per cent decline in spending, as per a PwC survey. However, there still remains an appetite for future spending, with 40 per cent consumers indicating they will look to treat oneself or others.

The survey found that the majority of consumers expect to reduce their expenditure across all surveyed categories over the next six months, a significant decline in planned spend across all categories since the previous pulse survey, June 2022. Industries including luxury and premium products and fashion expect to see the greatest portion of consumer spend reductions over the next six months.

Consumers globally are shifting their consumption habits in-store and online as the cost-of-living surges and supply chain disruptions impact product availability and delivery times. As a result, almost half (49 per cent) say they are buying certain products when on offer/promotion, 46 per cent are looking to retailers offering better value, 40 per cent are using comparison sites to find cheaper alternatives, 34 per cent are buying in bulk to save cost, and 32 per cent are buying retailers ‘own brands’ in order to find savings.

Demographically, generation x is the ‘most-concerned’ (47 per cent) and has taken action on non-essential spend, baby boomers lead concerns to ‘some extent’ (33 per cent) while taking action, whereas millennials lead the way when ‘concerned’, but not changing behaviour.

While more than half of consumers (56 per cent) said rising prices remains the most frequently experienced issue when shopping in-store, supply chain issues also dominate with larger queues and busier store locations (30 per cent), as well as product availability (26 per cent) impacting consumer behaviour. Supply chain disruptions for in-store shopping appear most prevalent for consumers in Australia (36 per cent), United States (35 per cent) and India (34 per cent). For online shoppers, rising prices (48 per cent), product availability (24 per cent), and longer than expected delivery times (24 per cent) lead reported concerns.

Sustainable products are in-demand from consumers. Despite a planned spend reduction and a challenging economic environment, consumers say they are still willing to pay more for sustainable product types. Overwhelmingly, more than three-fourths (78 per cent) are willing to pay higher for a product that is produced/sourced locally, or made from recycled, sustainable or eco-friendly materials (77 per cent), or produced by a company with a reputation for ethical practices (75 per cent).

In-store shopping remains largely stationary year-on-year as the most common medium of consumption in 2022 (43 per cent), whereas use of mobiles/smartphones (34 per cent), PCs (23 per cent), and tablet consumption (15 per cent) have all marginally declined. The survey finds there is a continuing trend in consumers stating they never purchase products via tablets (51 per cent), smart home voice assistance (64 per cent), and wearable devices (71 per cent). These numbers are all on the rise since the last PwC Global Consumer Insights Pulse Survey.

Adoption of the metaverse as a shopping channel is still in its early stages, however the medium still remains under-utilised, with only one-quarter (26 per cent) of respondents having used the platform for entertainment, virtual experiences, or purchasing products in 2022.

Fibre2Fashion News Desk (DP)