{{item.videoDuration}}
{{item.title}}
{{item.videoDuration}}
Global Consumer Insights Pulse Survey: Consumers rebounding?
In December, sixty-one percent of global respondents were optimistic about the future, with only 18% not sharing the enthusiasm.
Consumers are preparing to spend more – and while they care about environmental and sustainability issues nothing beats the lure of a good, convenient deal.
In-store and mobile shopping are on the rise as consumers begin to venture back outside the home for work and play.
How are consumers feeling now that the majority are at least partially vaccinated? According to the latest Global Consumer Insights Pulse Survey, released in December and consisting of responses from 9,370 people in 26 territories or countries, spending is on the cards and lifestyles are improving as employers embrace new ways of working.
The rise of the Omicron variant since the Survey’s fieldwork was conducted means it can be hard to pinpoint consumer sentiment from month to month. But even with multiple waves of the virus behind them when polled in September 2021, consumers remained resilient.
The six most significant findings of the December survey offer a unique snapshot into the public consciousness before Omicron. While consumer sentiment, certainly in Australia, has taken a hit since, only time will tell which of the below trends continue and which suffer as the effects of the Omicron variant subside.1
1. Vaccination status and flexible workstyle influence consumer optimism
Vaccination against COVID-19 is a major driver of global optimism -- 66 percent of vaccinated respondents are optimistic about the future, compared with 43 percent of those who are unvaccinated.
Respondents say they’ll spend more across categories over the next six months, with 41 percent predicting increased spending on groceries, 33 percent on fashion, and 30 percent on health and beauty.
Those who work from home are 10 percentage points more optimistic than those who work away from home. They are closely followed by hybrid workers at 9 percentage points more optimistic.
Millennials, city dwellers, those working mostly from home or in a hybrid way, as well as those who are vaccinated are the most optimistic cohorts. Presumably, because optimism is partly tied to vaccination rates, the climbing global vaccination rate bodes well for consumer confidence heading into 2022.
It's particularly important for business leaders to note the factors influencing optimism that they can control or affect, such as flexible work and vaccination. Supportive workplace policies that facilitate health and well-being will not only help companies rewrite the social contract with their people but could also create a ripple effect of activity and spending that yield business benefits.
2. Smartphone shopping is at a historic high
Forty-one percent of global respondents say they shop daily or weekly via mobile or smartphone, compared with 39 percent six months ago. Forty-three percent of Australian respondents report daily/weekly shopping via smartphone -- a number that has been consistently increasing.
Globally, In-store shopping has recovered to pre-pandemic levels: 47 percent say they shop in-store daily or weekly, compared with 45 percent six months ago. Even more Australian consumers, at 52 percent, say they shop in-store daily or weekly – levels are still less, however, than the 55 percent of Australian respondents who said they were venturing into stores in the March Pulse survey.
Mobile or smartphone shopping is far and away the most popular online shopping mode, with at least 10 percentage points (and as many as 25) separating it from PCs, tablets, smart home voice assistants and wearable devices. It has also been gaining ground on in-store shopping. Only 6 percentage points separate mobile shopping from in-store shopping, and will likely continue to close in over coming months and years.
For leaders looking to drive customers either into brick-and-mortar stores or online, analysis of survey findings uncovered specific factors that are strongly linked with a proclivity to shop one way or the other. For instance, making purchases possible via social media could help drive greater propensity to shop online, and a variety of physical retailers conveniently situated could drive greater frequency of in-store shopping.
3. Data privacy is key to consumer trust
Fifty-nine percent of global respondents say they’ve become more protective of their personal data over the past six months (in contrast, only 51 percent of Australians believe they have).
Data security has a far greater impact on trust than any other factor.
Environmental, social and governance (ESG) factors are not the greatest drivers of trust.
Companies that seek personal information so they can better tailor products and experiences and target consumers must be mindful of the criticality of keeping that information secure. Businesses should also note that the survey shows using customer data to personalise experiences is less likely to help build trust than using data to personalise discounts and recommendations.
Although ESG issues are important to consumers, when it comes to trust, factors such as meeting expectations and making purchasing easy—which affect consumers in a more obvious, direct way—matter most. Businesses can build a system of privileged insights, but only if the value they offer in exchange resonates with consumers and consumers trust them to make good use of their data.
4. Consumers care more about sustainability than ever before
Fifty-two percent of global respondents say they are more eco-friendly than they were six months ago. Forty-four percent of Australian respondents agree.
About half of respondents consciously consider factors related to sustainability when making purchasing decisions.
Those who work from home are 10 percentage points more likely than those who work away from home to consider sustainability factors when shopping.
Consumers today describe themselves as increasingly eco-friendly. For example, 51 percent of total respondents (47 percent of Australian respondents) say that when considering a purchase, they factor in whether the product was produced with a traceable and transparent origin.
It’s intriguing that those who work from home show more interest in sustainable shopping. It could be because at-home workers tend to be more white-collar and affluent, with more financial freedom to be selective in their purchasing choices. It could also be that the smaller carbon footprint inherent in working from home has led to more heightened awareness about how shopping habits affect the planet.
5. But price and convenience still matter most
Sixty-nine percent of respondents prioritise getting the best deal when shopping either in-store or online, with Australians wanting to be even more thrifty at 72 percent.
More than half say an efficient delivery or collection service is ‘always’ or ‘very often’ important. Efficiency is rated as an even more important factor (at 60 percent) by Australian respondents.
ESG factors are middle-of-the-road priorities compared with price and convenience.
Consumers care about ESG factors, but when stacked up against the basics of price and convenience, ESG fades in importance. Consumer businesses need to take these statistics to heart, because they’ve been consistent for years. People want to do the right thing for society and for the environment, but products can’t be only either affordable and easy to get or sustainable; they have to be both.
6. Consumers are venturing out more for both work and play
Fewer global respondents are working from home than in our June 2021 Pulse survey (42 percent globally, and 44 percent in Australia). Of those working from home in Australia, 37 percent are working in a hybrid way.
Globally, respondents are more likely to travel than they were six months ago. While slightly less Australians expect to travel by plane domestically since the June 2021 survey, the number likely to travel internationally has risen.
As consumers’ optimism re-emerges, they’re also emerging physically – though of course, whether this trend continues post-Omicron remains to be tested. Not only are global consumers more likely to travel and go to restaurants than they were six months ago, they’re also significantly more likely to go to a gym or a large arts, culture or sporting event. But the vast majority of survey respondents are still getting their entertainment at home and doing their workouts, dining and socialising with friends and family at home, too. The nesting habits that formed during the pandemic will likely stick to some degree, but our research shows a notable uptick in out-of-the-home activities, indicating we’ll likely see a hybrid home/away-from-home lifestyle re-emerge.
Conclusion
With 76 percent of respondents reporting being at least partially vaccinated, consumers are planning to spend more, and they are seeing improvements in their lifestyle as employers allow new ways of working. Of course, some things never change: when it comes to shopping, price and convenience still matter most, even as other factors, such as sustainability, are increasingly on consumers’ minds.
What’s in store as vaccinations continue and Omicron spreads? Stay tuned for the next instalment of the Global Consumer Insights Pulse Survey in the coming months.
References
- https://www.smh.com.au/business/companies/we-can-t-keep-going-like-this-retailers-struggle-to-survive-omicron-wave-20220119-p59phk.html
{{filterContent.facetedTitle}}
{{contentList.loadingText}}
{{contentList.loadingText}}