Wise spending

Key Takeaway:

Consumers are re-focusing on what value means to them and spending more intentionally as a result, with the help of readily available digital tools, at their disposal 24-7.

Trend Type: Social & Business

Sub-trends: Online Savers, Intentional Buying, Frugal Life Hacks, Consumers Keep on Spending

April, 2023 • Less than 2 min read

Across major economies, consumers remain cautious and anxious about the possibility of a recession. On the unique economic preamble to this downturn, consumers banked significant pandemic savings — as much as three to six times compared to pre-recessionary periods going back to the 1960s – but money in the bank has been eroded by the sharp rise in the cost of living and interest rates. With pandemic savings almost over and with consumers seeing their purchasing power go down and expenditures climbing, consumption is expected to decelerate in 2023.
As caution intensifies, consumers are looking for frugal life hacks to make their budgets stretch, from product longevity to energy saving. At the same time, brands that are continuing their proactive role in their communities – started at the height of the pandemic when they’ve ensured their customers have access to the essentials – are investing in digital tools to appeal to budgeteers, which in turn drives long-term loyalty.
But moving through uncertainty requires wise use of resources – going beyond making budget-friendly choices to considering how factors like flexibility, durability, and sustainability will play increasingly important roles in the value equation. Consumers are re-focusing on what value means to them and spending more intentionally as a result, with readily available digital tools to help them 24-7.
For instance, Euromonitor states that with three times as many consumers being connected, second-hand online buying and selling in 2022 has passed the 50% threshold for the first time ever.
According to Forrester, it is expected that in 2023:
  • Companies will help consumers navigate economic uncertainty to foster loyalty;
  • Widespread connectivity will provide more digital tools in the arsenal;
  • Second-hand shopping will rise off the back of environmental and economic concerns;
  • Group-buying services will find popularity outside of China due to the cost-of-living crisis;

Use Cases

Google Shopping

ONLINE SAVERS: Google unveiled new shopping features to make it easier for consumers to locate good deals via search in late 2022. The ability to surface discounts in search will be a welcomed addition by consumers facing economic uncertainty.

Taobao Johuasuan

INTENTIONAL SPENDING: Chinese shopping site Taobao Juhuasuan launched an online sale of food and household cleaning products that were close to their expiration dates, with discounts of up to 70%. Around 2.1 million consumers purchased near-expired food through Taobao in the past year, according to the company.

Iceland's Shop Smart

FRUGAL LIFE HACKS: Value supermarket Iceland is taking on an advisory role via its Shop Smart Cook Savvy partnership with energy supplier Utilita, which includes in-store and on-pack instructions about the most energy-efficient and cost-effective way to cook its food.

Use Cases

Google Shopping

ONLINE SAVERS:

Taobao Johuasuan

INTENTIONAL SPENDING: Chinese shopping

Iceland's Shop Smart

FRUGAL LIFE HACKS: Value

Sub-Trend Sources
Online Savers: Euromonitor 2023 Digital Shopper Trends
Intentional Buying: Mintel Global Consumer Trends
Frugal Life hacks: Wunderman Thompson The Future 100
Consumers Keep on Spending: Forrester Predictions 2023