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Curious about how global spending habits will shape up this year? Our latest study “Global retail and brands at a crossroads” reveals insights into spending patterns and consumer optimism across different demographics and regions. On average, monthly spending patterns are expected to hold steady, but there's a twist! Younger consumers are feeling optimistic and ready to splurge a bit more. 📈 Over half of consumers are planning to boost their monthly spending, while 28% anticipate no changes and 20% are looking to tighten their belts. 🌏 Consumers in China and the UAE are leading the charge in optimism, with over two-thirds planning moderate spending increases. 🇩🇪 German survey participants are also feeling positive, while Brazilians are taking a more cautious approach. 💼 What's even more interesting? Younger generations (18-24-year-olds) are gearing up to open their wallets wider, with nearly a quarter expecting significant increases and 44% planning moderate bumps in spending. 👵 On the flip side, about half of those aged 55 and over are aiming to maintain or slightly decrease their spending. Discover where people are willing to spend their money so you can perfectly align your company strategy accordingly.

Think you know what consumers want? Think again. Some findings about consumers' changes that McKinsey has identified: 💰 Value for Money: Despite a previous focus on sustainability, consumers prioritize value for money, with younger generations less willing to pay a premium for eco-friendly products. 🏋🏻♀️ Wellness Trend: The wellness market is booming, driven by an aging population and increasing interest in fitness, sleep, nutrition, and overall wellness, especially in emerging markets. 👩🏻🌾 Urbanization and Social Commerce: Secondary cities are becoming new growth hubs, and social commerce is gaining traction, particularly in Asia. 💻 Online Shopping Shift: Millennials and high-income earners are leading the move to online shopping, affecting both essential and nonessential categories. 💝 Brand Loyalty: Consumers are increasingly switching brands, driven by availability, convenience, and value, benefiting private labels. 🕵🏻♀️ Microtargeting and Hyperpersonalization: Businesses need to invest in data and advanced capabilities to understand and cater to individual consumer needs and preferences.

Curious about how global spending habits will shape up this year? Our latest study “Global retail and brands at a crossroads” reveals insights into spending patterns and consumer optimism across different demographics and regions. On average, monthly spending patterns are expected to hold steady, but there's a twist! Younger consumers are feeling optimistic and ready to splurge a bit more. 📈 Over half of consumers are planning to boost their monthly spending, while 28% anticipate no changes and 20% are looking to tighten their belts. 🌏 Consumers in China and the UAE are leading the charge in optimism, with over two-thirds planning moderate spending increases. German survey participants are also feeling positive, while Brazilians are taking a more cautious approach. 💼 What's even more interesting? Younger generations (18-24-year-olds) are gearing up to open their wallets wider, with nearly a quarter expecting significant increases and 44% planning moderate bumps in spending. 👵 On the flip side, about half of those aged 55 and over are aiming to maintain or slightly decrease their spending. Discover where people are willing to spend their money so you can perfectly align your company strategy accordingly. Download our study now! Richard Federowski, Thorsten de Boer #RolandBerger #ConsumerSpending #ConsumerBehavior

𝐃𝐞𝐜𝐨𝐝𝐢𝐧𝐠 𝐜𝐨𝐧𝐬𝐮𝐦𝐞𝐫 𝐛𝐞𝐡𝐚𝐯𝐢𝐨𝐫 We are presenting fresh insights into global consumer sentiments and an outlook for 2024 combined with recommendations for retail players and consumer brands on how to navigate and master the road ahead. If you want to dive deeper please reach out to my colleagues, Thorsten de Boer, Richard Federowski,Stephanie Glander or me. Roland Berger, #Retail #FMCG #consumerbehavior #spedingpatterns

RESEARCH: There is an expected slowdown in consumer spending in 2024, with overall growth slower than in 2023, according to Colliers. This could have a profound impact on retailer strategies, as consumers are likely to form resiliency by being judicious with their spending dollars. Other factors may come into play as household incomes fluctuate and the aging population — baby boomers and retirees — maintains their spending habits despite higher interest rates.

🌍 The Optimistic Consumer: Shaping the Future of Global Spending. The global consumer landscape is shifting, revealing new trends that businesses need to stay ahead of.  In the latest McKinsey State of the Consumer report, key insights reveal that the future of consumer spending is being driven by three distinct groups: 📍Youth in Emerging Markets: By 2030, 75% of consumers in emerging markets will be aged 15-34, showing a strong willingness to spend on premium products, driven by optimism about the economy. It’s Asia and the Middle East that will be particularly important in the 18 to 24 age group for consumer-facing companies. 📍Retired & Ready to Spend: Older consumers, especially in wealthier economies, are increasingly focused on spending on experiences over goods, highlighting a shift towards travel and entertainment. 📍Squeezed but Splurging Middle Class: Despite rising costs, the middle class is surprisingly maintaining high levels of discretionary spending, particularly on travel and dining. Key trends: ⭕ Wellness Boom: The global wellness market is growing rapidly, driven by both aging populations and younger consumers, particularly women. ⭕ Weakened Brand Loyalty: Post-pandemic, consumers are more willing to explore new brands, leading to increased private label penetration across categories. ⭕ Sustainability’s Mixed Impact: While still important, sustainability is often overshadowed by value for money, with younger consumers being less willing to pay a premium. ⭕ Urban Hotspots & Social Commerce: Growth in tier-two and tier-three cities and the rise of social commerce present untapped opportunities, particularly in emerging markets. ⭕ The Age of Microtargeting: As consumer behavior becomes more nuanced, hyperpersonalization and AI-driven🤖 strategies will be key for companies aiming to meet consumers where they are. The state of the consumer is optimistic but increasingly discerning. Businesses that adapt to these trends will be well-positioned for success in this dynamic landscape. 🔗 Read more: https://mck.co/4dDMI5t #ConsumerTrends #EmergingMarkets #BrandLoyalty #Wellness #Sustainability #MarketingStrategy

Discover 6 key trends shaping Baby Boomers' consumer behaviour in 2024. Despite declining numbers, Boomers hold significant economic power, seek exceptional service, prioritise experiences over products, and drive sustainability. Retailers must adapt to cater to this influential demographic. Read the full article by Trent Rigby here: https://lnkd.in/gXD_MeMC Subscribe to the RetailOasis Newsletter for the most up to date retail news & trends. We’re thought-leaders in the retail industry. #BabyBoomerTrends #Retail2024 #RetailOasis #RetailStrategists

I often talked about the pace that consumers are evolving today.  Building products and strategies are no longer as simple as segmenting customers into broad cohorts.  Maybe of the platforms and methods used today are no longer effective in the modern era where consumers and their use of technology have progressed beyond where most brands are meeting them. McKinsey & Company release their recent 2024 report on the State of the Consumer where they surveyed 15,000 across 18 major markets that make up 90 percent of the global GDP.  While 2 of 9 trends are wellness focused, I found relevant applications in all 9 for our industry. 1️⃣ Young people (18-24) are driving demand and are willing to spend.  While they might be able to spend as much as their more mature cohorts, this should be an area of focus - win them now to have them spend more later. 2️⃣ Retired people - Going to the other end, retired people are spending on discretionary purchases and longevity.  They are living longer and seeing experiences - wellness concepts include travel and premium offerings. 3️⃣ Middle-Income consumers will view splurge on where they find value.  They might delay big purchases but are willing to spend on experiences. 4️⃣ Brand exploration.  During the pandemic, when supply chains were constrained, 50% of consumers switched brands when they could not find what they were looking for.  Consumers are less brand loyal than you think - which is why it is important to constantly focus on improving your experience. 5️⃣ Sustainability is not longer a key feature.  Consumers, especially Gen Z and millennials are deprioritizing sustainability for a better product or value. 6️⃣ Worldwide Wellness Wave - the new meaning of WWW.  In countries like India, Saudi Arabia and the US, 44 / 30 / 22 percent of consumers are intent on spending MORE on their fitness and wellness including supplements. 7️⃣ Wellness for women.  Consumers are indicating a great interest to spend on women’s wellness products and services.  The gap, estimated to be $1 trillion globally, could close by 2040.  A higher percentage of women in emerging markets (48 percent) show an intent to splurge on health products than advanced markets (27 percent). 8️⃣ New Urban hot spots.  Young people are moving away from the big mega cities into “secondary cities.”  How do brands expand their offering to serve these transplant consumers. 9️⃣ Social Commerce. China has lad the shift to social / mobile commerce - everyone one is following.  Gen Z makes purchases on social media 4x more than older generations. How do you address these trends? ✅ Build micro targeting capabilities.  AI can help. ✅ Invest in Wellness, not just fitness. ✅ Do not ignore the social experience. ✅ Offer premium products and experiences where consumers want them. Let me know what you think about these trends below. 👇 #strategy #markets #consumer #evolution #fitness #wellness #healthcare #premium #marketing #ai #genz #growth 

Decoding consumer behavior Discover regional insights on spending trends from our latest study “Global retail and brands at a crossroads”. While younger consumers are optimistic about increasing their spending, regional variations tell a diverse story. From China and the UAE's optimism to Brazil's cautious approach, explore how demographics shape spending behaviors. Don't miss out on understanding the nuances of consumer sentiment. Download our study now! Richard Federowski Thorsten de Boer Roger Claudius Stephanie Glander #RolandBerger #ConsumerSpending #ConsumerBehavior

With large-scale shifts in consumer behaviour occurring in recent years, manufacturers and retailers alike are kept on their toes. Based on a broad-based research of 15,000 consumers in 18 markets, making up 90% of global GDP, this article describes who the future consumers are, and what they are looking for. It also suggests four pillars for how companies can address this changing consumer landscape. Some of the most influential consumers of tomorrow - currently underserved - include: 1.      Young people in emerging markets 2.      The “retired and ready to spend” 3.      The “squeezed-but-splurging middle” How are consumer’s priorities changing? 1.      They explore different brands to find the best “value” and switch retailers in search of better prices and discounts (weakening brand and store loyalty) 2.      They show a declining willingness to pay a premium for sustainable products 3.      They have an increasing interest in spending on fitness and wellness (including weight management). Where will consumers shop? 1.      In advanced markets (e.g. the U.S.) new urban “hotspots” are emerging, cities with 50,000 – 500,000 people, many of which are in the South and West, where people have moved to leaving the large cities in the Pacific Northwest and Northeast.  2.      In emerging markets, it is both, megacities and secondary cities where people keep moving to in search of better economic opportunities and well-being. 3.      Social commerce is gaining ground, particularly in emerging markets, and among Gen Z and Millennials in the West. How can consumer companies address these forward-looking themes? 1.     Microtargeting: use consumer data to target specific groups of consumers with personalized experiences. 2.     Invest in wellness: develop and sell new wellness products and services. 3.     Social-digital experience: engage with consumers on social media and other digital platforms. 4.     Premium products / Value Plays: offer premium products where they matter, which can help improve brand loyalty. For categories which are more suitable for value-plays, institute pricing tiers and tailor product assortments at the local and channel level. McKinsey & Company, Sajal Kohli, Christina Adams, Kari Alldredge.