Consumers Buying Cheaper Brands, Used Gear, Fewer Electronics: Report
More than three-fourths of consumers in a May Jungle Scout survey said their spending was affected by rising inflation, and a third said their personal spending declined, compared with about a fourth in a study of Q1 consumer shopping trends.
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Some 72% of consumers said they're making fewer fun or impulse buys due to economic conditions. About 63% of millennials are saving for a large purchase or expense, 33% of baby boomers; 53% of millennials described their household income as “unstable.”
About 35% of millennials, 52% of baby boomers, said they’re buying a less expensive brand to cut costs; 32% of millennials, 47% of baby boomers, are opting for generic brands, said the study. Forty-three percent of boomers are doing without some products to reduce spending, as are 26% of millennials. About a third of both groups are buying fewer products, and 78% of boomers are buying items on sale vs. 43% of millennials, it said. About 63% of boomers are using coupons and discount codes, 38% of millennials; 44% of boomers are buying in store to avoid shipping costs, 29% of millennials; and 14% of boomers are buying used products to save money vs. 22% of millennials.
By category, a quarter of all age groups said they were buying fewer electronics and 21% fewer office supplies than they did in Q1. Their spending was rising on groceries (27%), cleaning supplies (19%), clothing (17%) and outdoor goods (17%).
By retailer, just over half, 54%, shopped in store at Walmart, followed by Target at 24%. Nine percent shopped at Apple and Best Buy stores, it said. Online, 64% said they were shopping at Amazon, 34% at Walmart.com, 14% at Target.com, 8% at Apple.com and 3% at Bestbuy.com, the report said.
Affordable or free shipping was the leading benefit that 74% of consumers looked for when shopping online, the report said. The lowest price was important for 69% of shoppers, highest reviews were important for 64% and fastest shipping for 58%, it said. About a third were looking for pre-owned products, it said.
Among Amazon customers, 25% don’t have a Prime account and don’t plan to get one, said the survey; 41% of customers pay for their own membership, 15% share a Prime account and 12% don’t have one but would consider getting one; 7% didn't know. About 27% of Amazon customers shopped there once a month or less, 12% once a week and 6% once a day and more than once a day, it said.
On e-commerce influencers, 48% of respondents read social media comments to learn what’s being said about a brand, 45% think it’s important for brands to respond to social media comments and 35% have bought a product after watching a social media brand’s livestream, the report said.
Nearly half, 46%, of respondents agreed they’re often “followed” around the internet with ads about products or brands they’ve viewed. Of those, 43% accepted it as common practice, 42% found the practice helpful as a reminder, 32% indicated “it creeps me out” and 26% said they want it to stop. The survey of 1,000 consumers, ages 18-75+, was fielded May 6-May 10.