Living with less and re-evaluating purchases

63% of 16,000 consumers globally say that the new behaviours they have had to adopt during the Covid-19 pandemic now feel “normal” – this is according to the latest edition of the EY Future Consumer Index.

The Index finds that consumers are reprioritising their purchase decisions and are spending less on what they perceive to be unnecessary goods. 49% are taking this new approach for financial reasons, while 30% cite environmental reasons.

Sustainability is also key when making purchase decisions for 85% of respondents. Since the first Index was launched in April 2020, the “planet-first” and “experience-first” consumer segments have increased in size - rising from 16% to 26% and from 11% to 18% respectively - over the “society-”, “health-” and “affordability-first” segments.

When it comes to the latest gadget and technology trends, 41% of respondents say they feel less pressure to keep up with the latest brand and trends. Just 27% say that they now buy more things because it makes them feel happy, while 48% disagreed with that statement.

Overall, the pandemic has helped consumers realise they can live with less and consume “better” with 48% saying they feel they have more clothes than they really need, while 53% are more likely to repair things instead of replacing them.

CONSUMERS RETURN TO STORES

While increased e-commerce has been a major theme since the onset of Covid-19, over half (51%) of respondents are planning to look for deals in-store, up from 39% last year. The Index indicates that two factors could explain this trend: not only have restrictions eased and stores reopened, consumers are also choosing to shop in-store more to avoid increased shipping costs and delays caused by supply chain disruption.

For the consumers who will shop online this season almost a third (32%) say the top frustration is expensive shipping, with a quarter citing product availability as an issue.