Consumers are cutting back, budget brands could thrive – Toluna report

Consumers are cutting back, budget brands could thrive – Toluna report

As cost-of-living rises dominate headlines, timely UK research shows 44% of consumers now have less money than they did pre-Covid and 37% are not confident about spending money over the coming months. That’s according to the Toluna Global Consumer Barometer Study.

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Those are two figures the UK fashion industry won’t enjoy. What’s more, with only 14% making their buying decisions based on the environment, sustainability-driven products could also have a tough time ahead of them as far as price-conscious consumers are concerned.

As rising energy costs and wider inflation drive financial frugality, 54% of the 1,066 people surveyed said they will now choose a new brand, product, or service based on price or cost. It also noted 20% of those interviewed are worried about job security and will spend less as a consequence.

Looking back to December, financial struggles had begun to weigh heavily on people’s minds with 48% saying they were concerned about being able to afford Christmas. Some 10% of  respondents were “extremely concerned” about being able to afford the event.

Additionally, 38% of people used credit to afford Christmas, and 33% said their financial situation had changed since previous years so they spent less on Christmas gift shopping in 2021.

In such times, cost-cutting historically hits the fashion industry, so price will become even more of an issue with value-focused retailers likely to increasingly become consumer favourites.

Lucia Juliano, UK Head of Research at Toluna said: “It’s clear that we’re living with the long-lasting impact of Covid-induced repeated lockdowns, ongoing restrictions, and uncertainty around the economy. Couple this with rising energy costs, inflation, and other household bills, and you have a perfect storm of financial worry and uncertainty. 

“As the cost of living rises, people are choosing to spend less and save more, with insecurity around personal finances remaining high.”

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