Consumer Mindset - February 2025
This report is informed by the Credit Union Consumer Sentiment Index, in partnership with Core Research.
Between Storm Éowyn, the Donald Trump presidency and the promise of a ceasefire in Gaza, February has been a rollercoaster, with the Irish public experiencing a turbulent series of events. Public happiness has declined by 5 percentage points this month, dropping from 45% to 40%, suggesting that the fresh start joy brought on by January is dissipating.
Consumer Confidence Remains Steady
The Credit Union Consumer Sentiment Index, conducted in partnership with Core Research, sees a score of 74.8 in February 2025. This remains steady with the scores reported in January 2025. This February is the exception to the rule, as data from 2024 revealed that February tends to see a reversal of the January gains that come after the joys of Christmas period and new start to the year. It remains to be seen whether this trend will persist throughout 2025, though global uncertainty is likely to influence consumer confidence.
It’s a Precarious and Unstable World
In this month’s report we explore the mood of society. There’s a perception that we’re living in a “Precarious and Unstable” world, as just 5% say the mood of contemporary Ireland is “United and Together”.
With little expectation of change in the next decade, the future seems just as fractured. Henri Tajfel’s Social Identity Theory (1979) suggests that in times of uncertainty, people strengthen their identification with social groups, seeking security through shared identity.
Yet, in a world that feels disjointed, there are gaps in how people are strengthening their communities, leaving many searching for a deeper sense of belonging. Could embracing communities and nurturing our collective identities be the antidote to this?
Social Identity Theory
Social Identity Theory suggests that people shape their identity through group membership and this February we’re shining a light on how this plays a crucial role in the communities we identify with and our sense of belonging. For example, self-expression is one of the ways that we signal group membership, reinforcing where we belong and grounding our group cohesions. Whether we know it or not, we send these signals out every day; through symbols and aesthetics, our behaviours and rituals, our fashion, our language and slang and even through the internet culture we engage with. All the ways that we showcase who we are, signal who and what we belong to.
Brand Implications
The idea of harnessing our collective identities to ground our sense of belonging means that connection matter more now than ever. Consumers align with shared values and it’s important to remember that they use brands as one way to bring these aspects of their lives to life.
To stay relevant, brands must innovate the ways that they engage with (sub)cultures and communities. This could be done through championing niche interests, through aligning with causes and cultural movements that resonate with their audiences, through building immersive brand experiences, by cultivating an offering that signal identity markers and making it easier for consumers to find and connect with like-minded individuals. More than just selling a product, successful brands become the host for associated communities to flourish.
In March, Core Research will publish a special report called TRIBES: Expression & Community – exploring the relationship between tribal self-expression and where people seek belonging.
