Consumer Mindset - February 2024
This report is informed by the Credit Union Consumer Sentiment Index,
in partnership with Core Research.
February perhaps brings a little more freshness to our lives. Yet, there is a familiarity to both the local and global news stories that might yet rein in the possible joys of spring. The familiar issues are inflation, Ukraine, and Gaza. And as horrific as the situation in the Middle East is, people will continue with their day-to-day concerns.
IS IRELAND STILL A LAND OF WELCOMES?
The anti-immigration protests countrywide are a significant story for people. While having less importance than Gaza and the continuing homelessness crisis, the protests gain more news attention. Whether this attention is being gained due to abhorrence of, or support for the protests is debatable. While a majority of 55% of people have a negative perspective on the protests, feeling disgust, anger, sadness, fear, contempt, or shock, there is a sizeable proportion of 10% who are happy and 18% who are neutral toward the protests. The political conversation now includes how to deal with immigration and arson attacks. Early 2024 marks a point when we “welcoming Ireland” is challenged. It is a time for brands to carefully consider if they have any negative connotations of narrow-minded language and be positive toward open-minded inclusiveness, a truer representation of Ireland’s universalism and benevolence.
INFLATION DOWN BUT CONCERNS REMAIN
Despite a December blip, inflation continues on its downward trajectory, with January continuing at 4.1%. Despite this positive news about the slowdown in price rises, consumers' level of concern is unchanged. So, while inflation has more than halved since June 2022, concern is at nearly 80% of its June 2022 level, and 50% of the population remains concerned about the cost of living (as of January). Why is there an apparent contradiction?
Some consumers may be insulated against still-rising prices. Yet many continue to endure a more financially stressed life, not helped by winter bills and being "short on money" post-Christmas. Value, and how to spend, will continue to be key decision factors for consumers. Brands should maintain an empathetic tone of voice to their base, ensuring that there is no contradiction between this empathy and the value they can deliver to consumers.
2024 WILL FOCUS ON THE HEALTHY SELF
Amidst all the local, economic, and global challenges that 2024 presents, it is the self on which people are placing the most importance. Under the guise of personal health, 70% of people deem this the most important issue for them over the next 12 months, significantly ahead of other issues. Assuming that this relates to physical health at the New Year is safe. Yet, it seems reasonable that there is an element of developing resilience to all the challenges so that we are mentally protected. With 59% saying family and friends will be very important for the year ahead, and second in the hierarchy, it is the immediate, micro world that will hold focus. For brands, it is a time to credibly talk about the individual and their environment, and how the brand can support building a strong, healthy, protected self.
ARE YOU READY FOR AN ELECTION?
The population certainly is, with 76% expressing a desire to see a new government in the next 12 months. The ennui toward the current regime has grown significantly from just last November when the desire for a change at Leinster House was at just 60%. And in the scramble for votes, even if not until early 2025, we can be certain that Ireland and immigration will be on the doorstep agenda.
