In the latest McKinsey Global Consumer Sentiment Survey 2016, it indicated a shift of worldwide consumer behaviour towards a very similar set of behaviour.
The survey summarizes the findings into 5 truths of today's consumers:
1. They proactively search for savings.
2. They are brand-loyal . . . but only if the price is right.
3. Once they ‘trade down,’ they might not go back.
4. They are selective splurgers.
5. They shop across channels.
Source:
Max Magni, Anne Martinez, and Rukhshana Motiwala (2016). Saving, scrimping, and splurging? New in sights into consumer behaviour. McKinsey Insights. URL: http://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/saving-scrimping-and-splurging-new-insights-into-consumer-behavior?cid=other-eml-alt-mip-mck-oth-1603 (Accessed: 29/3/2016)
The current economy or the uncertainty of the governments in many countries might have contributed to the changes of consumer behaviour. As mentioned in this article, the spending pattern was largely influence by the perception on financial status of household. When consumer are worry about their source of income or afraid of losing their job, their purchasing pattern will change in order to accommodate their prudent lifestyles, and vice versa to those who have more confidence with their job and income status.
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As such, this will have a significant implication to retailers or producers in various industries. Some will benefit from the change of consumer behaviour and some will suffer from losing their customers. Those who can response to this changes of consumer behaviour would give them the opportunity to retain their existing customers, increase the sales, win over competitors' customers or even create new market opportunity.
What do you think?