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Around the world, rising costs are contributing to consumers’ financial struggles and playing a key role in global consumer trends. The war in Ukraine has only exacerbated supply chain disruptions, causing the prices of fuel and other goods to skyrocket
Due to myriad economic pressures, including worldwide inflation, consumers are changing their behavior and outlook, including how they manage their money and what they purchase.
What do these consumer behavior trends mean for your business? The list below will help you understand how to adapt and meet your customers’ needs.
Table of Contents
Introduction to Global Consumer Trends
Global consumer trends will impact not just your sales, but your marketing and operational processes. By considering them, you can increase your chances of growing your business.
From the global pandemic to the war in Ukraine, consumers have been forced to make radical shifts in lifestyle. Many seized chances they normally would not have and put old plans into action.
Whatever the current trends in consumer behaviour, it is necessary for your business to remain agile and respond accordingly.
Let’s get started.
1. Alternative Options Due to Supply Chain Disruptions
In the last two years, many businesses suffered from supply chain disruptions. Hence, they were forced to purchase similar items from alternative sources, or find creative solutions.
As supply chain disruptions remain a possibility, companies should make use of data to rethink investments, improve supply chain visibility, and streamline operations.
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2. Digitization & Remote Work
Even after the Covid-19 crisis has been brought under control in most nations, remote and flexible work options are likely to remain a fixture in many consumers’ lives. This has resulted – and will continue to result – in shifting daily routines and habits, including a general shift to “digital living”.
Companies have been provided with fresh opportunities to engage with more consumers across various platforms, thanks to the digitization of many traditionally in-person activities such as workout lessons and grocery shopping. The rising use of digitization is driving both consumers and businesses to invest more heavily in technology.
Hence, one of the most important factors in your strategy planning will be using technology advancements. These will help you future-proof your business and make successful recoveries from previous blows from the pandemic.
3. Tech-Savvy Seniors
Older consumers have been forced to become more familiar with the digital world. Now, many are not just familiar, but comfortable with technology, and use it out of choice to connect with family, order food, and more.
Simplifying existing technologies, making your apps and websites accessible, and developing user-friendly devices will help you cater to this group of consumers. To be successful at this, your solutions must be straightforward and frictionless.
Why should you care? Because, even just in the US, 80% of people aged 55 and over are active internet users. Tech-savvy seniors are among the leading consumer trends around the world. (After all, the convenience of online shopping is hard to ignore.)
Do not forget your younger target audience, but it would be wise to consider older adults in your marketing strategy.
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4. Quality Over Quantity
Consumerism is far from dead, but it is slowing. Millennials lead this growing lifestyle. In-store and online sales have declined in recent years. A culture of ambivalence towards consumption has been on the rise.
However, it’s not that your profits have to fall. The focus has just been shifted to high-quality goods that last over cheaper items that need to be thrown away in a few months. This global consumer trend has placed increased importance on the value and quality of your products and services.
There are a couple of primary reasons for this:
Environmental consciousness – a desire to create less waste
Economic drivers – rising inflation, stagnating income, a desire to save
Consequently, several alternate consumer communities are springing up. These are facilitating more self-sufficiency and collaborative consumption. Swapping events are also becoming increasingly popular, especially for accessories and apparel.
5. Socially Responsible Brands
Consumers being more eco-conscious doesn’t just mean they’ll buy products not made of plastic – it means they prefer eco-friendly and socially responsible brands. Giving back to your community, donating to charity, using sustainably-sourced materials, etc., will all help boost your brand image in the eyes of these consumers.
6. A More Frugal Approach
Consumers are expected to take a more frugal approach, with a shift to conscious saving and value-based purchasing. This applies not just to consumers struggling financially, but also those who are financially stable.
While low prices will be important as budgets continue to be stretched, consumers are willing to invest in quality products – buying less, and buying better. While many consumers are keen to return to brick-and-mortar stores, the eCommerce phenomenon is not likely to fade any time soon, if ever.
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7. Purposeful Action
In 2020, consumers were forced to make drastic personal and lifestyle changes, leading many to reassess their goals and values. A record number of employees left their jobs, and many others shifted permanently or partially to remote work.
You have an opportunity to innovate services and products that cater to this shift, coupled with marketing that targets and embraces it.
Conclusion
We hope this article has given you an insight into how to move your business forward in today’s uncertain times. Is there a major point you would add? Let us know in the comments!
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Our management team has decades of experience and includes former executives of Barclays Bank, Bank of America, and ICBC. Contact us today for reconciliation services or book a free demo if you’d like CrushErrors!