Survey: Consumers' near-term, holiday spending plans include...
Consumers are continuing to grow concerned about the economy, but that isn't stopping some from increasing their spending.
According to a new survey from AI marketing platform Attentive, 85% of consumers are concerned about the U.S. economy, with millennials leading the way at 90%. Two-thirds (64%) are more concerned than they were three months ago – including 67% of millennials and 75% of Gen Z.
However, the two younger cohorts have increased their non-essential spending. Almost three-in-10 (29%) Gen Z respondents and almost a quarter (24%) of millennials reported increasing their spending, while just 18% of Gen X respondents and 9% of baby boomers said the same. Despite economic pressures, 77% of consumers plan to splurge on something in the next three months – including 81% of millennials and 93% of Gen Z.
Attentive notes that younger consumers may be caught in a cycle of “doom spending,” defined as behavior where financial stress leads to impulsive purchases as a coping mechanism.
The vast majority (89%) of shoppers plan to change their shopping approach if economic concerns continue. The top changes consumers will make include waiting for sales and promotions (54%), switching to lower-cost alternatives (54%), and buying fewer items. Shopping at different retailers (25%) is the least common change consumers will make, according to the survey. However, more than a third (36%) of millennials plan to do so.
Among those planning to curb spending in the near future, accessories (62% decreasing spend), apparel (54%), books (52%) and toys & games (51%) are the most popular categories for scaling back. Groceries (78% maintaining or increasing), pet products (77%) fitness & wellness (62%), beauty (57%), and travel & hospitality (56%) are among the categories where consumers plan to splurge.
“If you’re a brand in a decreasing-spend category, be the option consumers choose when they do decide to buy,” said Attentive. “Position your products as worthy investments and use messaging that emphasizes quality and value. Help customers justify the purchase as a meaningful investment. For brands in thriving categories, lean into messaging that encourages regular purchases and stocking up during sales. Your audience may have tolerance for a higher volume of marketing messages since they’re continuing to buy in this category.”
Black Friday/Cyber Monday spending
Consumers planning to scale back on spending means holiday shopping plans are changing. Nearly six-in-10 (59%) respondents will start their holiday shopping before Black Friday and Cyber Monday, including 66% of Gen Z and 61% of millennials. Seventeen percent of consumers have already started their holiday shopping as of early August, while only 20% will start their holiday shopping during Black Friday and Cyber Monday sales.
Among shoppers planning to increase their Black Friday and Cyber Monday spending, 70% cite reasons tied to economic uncertainty. Almost four-in-10 (39%) want to stock up on regularly-used items while they’re on sale, while 34% are making major purchases they’ve postponed and 24% want to take advantage of deals on items that have had recent price increases.
A majority of consumers (68%) are motivated by deep discounts (especially baby boomers at 84% vs. 58% of Gen Z) when buying holiday items. More than half (56%) want free shipping, especially Gen Z at 61%. Thirty-five percent respond well to limited-time offers, while the same amount (35%) want free gifts with purchase.
Almost half of shoppers (46%) will browse for deals on items not already on their shopping list during Black Friday and Cyber Monday. A similar amount (44%) will compare prices across retailers to get the best deal, while 29% are making specific shopping lists for the two shopping holidays. Gen Z (38%) is especially keen on making lists ahead of time.
[READ MORE: Survey: Consumers feel prices rise; plan to adjust Black Friday, Cyber Monday spending]
For its consumer pulse survey, Attentive surveys 600 US consumers every month since April to help brands understand how consumer mindset is shifting and how to adapt their marketing strategies.