According to the latest Ernst & Young Future Consumer Index (FCI), global consumers are preparing for a prolonged period of financial austerity, with rising cost of living and geopolitical uncertainty prompting them to seek financial control amid low economic confidence. . The research found that 79% of consumers said their finances were an issue, with 62% expecting their living costs to increase further in the next six months.
With consumer confidence shrinking, research shows the economic outlook for Western markets is decidedly pessimistic compared to emerging/other markets. More consumers in the US (54%), UK (65%), Germany (84%) and France (85%) say they think life will be the same or worse in the next three years, while Brazil ( The proportions are much lower in India (21%), India (24%), Saudi Arabia (37%) and China (38%). Rather than simply cutting back on their essentials to cut costs, consumers are trying new brands (33%) and turning to private labels (21%). While there is growing momentum and pressure to live greener ways, rising costs of living are hampering consumer efforts. 67% of global respondents said high prices for sustainable goods and products put them off. With 64% of global respondents saying they no longer feel the need to keep up with seasonal trends, more people (69%) are trying to repair rather than replace items, posing a challenge for fast fashion retailers. (PR Newswire, London, June 30, 2022)
