Consumer Mindset Report - November 2022
This report is informed by the Credit Union Consumer Sentiment Index, in partnership with Core Research.
Consumer Sentiment Index remains low at 45.3
As a nation, we have been through a few turbulent years beginning with a pandemic and now an economic downturn with significant cost of living increases. However, people have learnt resilience, we have overcome recessions before, and no doubt will again. We can allow fear to control our lives, or we can live according to hope and appreciate what brings us joy. For some this joy may be the beginning of the Christmas celebrations but the Credit Union Consumer Sentiment Index, in association with Core Research, reveals confidence remains low at 45.3. Consumers will be approaching festivities with caution.
According to Bob Dylan who played Dublin recently, Times are a Changing. If we look back one year ago, uncertainty reigned, primarily due to circumstances outside our own control, with increases in COVID-19 cases spiking, putting many families’ plans on the long finger.
Today, we can control our own decisions and while Christmas for some will have financial pressures, it is still a time we will meet up with family or friends or even spend time alone re-evaluating ones plans for the coming year ahead.
Our Health is our Wealth
With the recent passing of Vicky Phelan, who has been a fearless advocate for women, it is encouraging to see that our research participants have a heightened sense of managing their own health (physical and mental), with less than one in twenty saying they have no interest in their own health. Uncertainty and high inflation remain, but less adults are stressed than the number who were stressed a month ago.
Our happiness levels have increased slightly – a welcomed sense of hope exists. Ratings for the Government’s handling of the inflation are low, but there is a growth in the number of people who believe citizens are handling the situation well.
Past behaviours help our coping tactics
While our optimism to overcome the current cost of living crisis is relatively flat month on month, it is obvious that we have become accustomed to specific behaviours, in other words using economic coping tactics which we have learnt from previous recessions - buying more own branded goods or being more selective about what we are purchasing.
As we move into 2023, it will be critical for brands to remind consumers of the value which their product or service provides. Consumers are extremely conscious of high inflation and remain vigilant to further cost-of-living increases. As a result, many categories will be scrutinized to find savings, but value does not mean discounting in all households.
Approximately 45% of people believe their own household finances will improve or remain the same over the next 12 months. It will be important for brands to communicate and remind these consumers of the benefits they provide during these challenging times and not seek to fight on price.
Benefits which free up time for consumers to spend with friends and family, provide a greater level of certainty or improve one’s mental and physical health remain in demand for consumers as we move into 2023.
