Consumer confidence linked to price rises; spending focus is value, quality, convenience
Value, quality, and convenience are the top three purchasing considerations for 2022, especially in the face of rising prices, a KPMG consumer confidence survey suggests.
But according to a third of 3,000 consumers asked about their financial confidence and spending intentions this year, sustainability will be key when buying both goods and services.
The findings reveal that rising costs are the biggest deterrent to spending, with almost a quarter citing it as the reason for caution. Other factors included higher taxes and household bills, and uncertainty linked to the coronavirus pandemic.
And with businesses facing mounting cost pressures they will be hoping “the effectiveness of the booster programme leads to a feel-good factor that increases spending intention further”, the report noted. It could also have added that milder illness caused by Omicron may also be a help.
Linda Ellett, UK head of consumer markets, leisure and retail at KPMG noted that businesses facing mounting cost pressures “will be hoping that the effectiveness of the booster programme leads to a feel-good factor that increases spending intention further.”
KPMG found that younger people felt three times more financially secure than older consumers entering 2022, compared with this time last year.
And although the survey showed a quarter of UK respondents had not saved any money last year, those who had will be willing to use some of their savings to buy non-essential goods.
“This intended spend is much needed… but consumer confidence is such that even those willing and able to spend on average won’t spend more than a sixth of their pandemic savings in the coming 12 months.”
Ellett also said regarding the importance of sustainability that it will be a key consideration, particularly among younger consumers, and is “further evidence that businesses need to ensure that their environmental, social and governance strategy is walking the walk, not just talking the talk.”
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