McKinsey Growth, Marketing & Sales’ Post

Here’s a great read for European consumer brands looking for insights to drive growth.     It’s our quarterly ConsumerWise analysis, which reveals levels of consumer confidence, trends by age group, and the product categories that stand to benefit or lose out.     The good news here is an overall increase in consumer confidence, driven by stabilising inflation rates, and reflected in growing intent to spend on discretionary goods and services. Click below for the full detail.     #Growth #ConsumerInsights #ConsumerBehavior #Europe  

Here is the latest update on consumer sentiment across five European countries. It indicates a slight increase in optimism in the economy and the continuation of a conflicting behaviour: selective splurging yet ongoing trading down. Specific findings from the research are: 1.      While most consumers continue to have mixed feelings about the economy, the percentage of who reported feeling optimistic grew slightly driven by feelings of stabilising inflation rates, while consumers who felt pessimistic attributed this to ongoing international conflicts and the challenges posed by climate change 2.      Consumers continued to improve their household finances by reducing their spending and tracking their expenses more carefully 3.      Consumers intend to maintain spending levels on essential items such as groceries, while increasing levels for gasoline, flights, hotels and notably short-term house rentals, reflecting the upcoming summer travel season, but also signalled a somewhat higher spend on jewelry, which may reflect their relative confidence in the economy. 4.      Gen Z reported the highest intent to splurge of any generation (dining out, traveling and apparel) 5.      Consumers across all generation intend to continue to trade-down adjusting the quantity of items purchased or shopping at lower-priced retailers. McKinsey & Company, Jessica Moulton, Gizem Ozcelik, @Nadya Snezhkova, Anja Weissgerber

The latest research from our ConsumerWise team signals that US consumers seem to be on the cusp of a shift. Economic pessimism grew slightly, fueled by concerns over inflation, the depletion of personal savings, and perceived weakness in the labor market. These concerns left consumers somewhat conflicted: on one hand, they continued to splurge, but they pared back spending in other areas. You can read more about the state of the US consumer in our latest article below, and thanks to my co-authors Christina Adams, Kari Alldredge, Warren Teichner for collaborating on this! https://lnkd.in/gMMAe6P3

In Q3, consumer optimism in the US economy reached its highest level in a year. While this is a positive development, familiar patterns remain: cautious spending mixed with occasional splurges. Want to know what's behind these trends? Explore the latest insights on the state of the US consumer: Read more in the article by my colleagues Kari Alldredge, Becca Coggins, Christina Adams, Warren Teichner

The state of the consumer is a complex picture with both positive and negative indicators. Here's a breakdown of some key trends: Positives: Spending remains somewhat resilient: Despite concerns about recession and inflation, consumer spending continues at a decent pace, driven by factors like accumulated savings, strong job market, and the recent holiday season. However, spending growth has slowed compared to earlier in 2023. Cautious optimism: Consumer sentiment has improved slightly since its lows in mid-2023, with fewer anxieties about the economy and job security. This could bode well for future spending if it translates into sustained confidence. Shifting priorities: Consumers are becoming more value-conscious, prioritizing essential purchases like groceries and utilities while cutting back on discretionary spending. This trend favors affordable brands and experiences. Growth in specific sectors: Certain sectors like travel and leisure are seeing an upswing thanks to pent-up demand and increased disposable income in some segments of the population. Negatives: Inflationary pressures: Inflation remains a major concern, eroding purchasing power and forcing consumers to make difficult budget choices. This can lead to reduced discretionary spending and increased financial stress. Recessionary fears: The possibility of a recession in 2024 is dampening consumer confidence and prompting some to tighten their belts further. This could lead to a broader slowdown in spending if concerns escalate. Uneven impact: The economic impact is not evenly distributed, with low-income households disproportionately affected by inflation and job losses. This could exacerbate existing inequalities and create pockets of economic hardship. Overall, the consumer picture is mixed. While some positive signs exist, challenges like inflation and recessionary fears remain significant. The next few months will be crucial in determining the trajectory of consumer spending and overall economic health. To give you a more specific answer, I'd need to know: Which region or country are you interested in? Consumer trends can vary significantly across different geographical areas. Are you interested in a specific segment of the consumer population? The experiences of different income groups, age demographics, and other factors can differ. What particular aspects of the consumer are you curious about? Are you interested in spending patterns, confidence levels, or specific buying behaviors? The more context you can provide, the more tailored and relevant my response can be. I hope this helps!

During the second quarter of 2024, consumer optimism in Europe grew slightly from the previous quarter, although most consumers continued to report having mixed feelings about the economy. A greater share of younger consumers said they planned to selectively splurge compared with older consumers, and they reported an interest in treating themselves to dining out and travel. As we’ve seen for much of the past year, consumers across Europe also said they continued to trade down. Together, these data indicate that consumers may have finally adjusted to higher-than-usual inflation, which suggests their shopping behaviors may have stabilized for the time being. Consumer spending patterns will always drive a significant portion of an economy and downstream businesses. Understanding consumer behaviours and change in habits remain a key critical element of any organisations ecosystem landscape. Executive leadership need to adopt a more entrepreneurial mindset around reacting and adapting quicker to these very important market shaping forces. At International Business and Executive Management Group Limited we are proud to announce the launch of our Entrepreneurial Leadership product, that assist leadership teams in this new world of opportunity. Do reach out to us at https://lnkd.in/ev6UwuFR to start the conversation. #leadership #csuite #culture #strategy #thoughtleadership #management #NED #

The world is changing fast, and all of those changes affect how consumers behave and what they buy. BCG’s new Consumer Sentiment Barometer asked consumers in six countries about their spending habits and attitudes. We found that while consumers overall are spending more and expect that to continue, the reasons for that and the categories of spending vary among markets. Companies need to know about these differences and adapt accordingly. Read more about our findings here: https://lnkd.in/gPu_ESNQ. #consumersentiment #customerinsights #resilience

The world is changing fast, and all of those changes affect how consumers behave and what they buy. BCG’s new Consumer Sentiment Barometer asked consumers in six countries about their spending habits and attitudes. We found that while consumers overall are spending more and expect that to continue, the reasons for that and the categories of spending vary among markets. Companies need to know about these differences and adapt accordingly. Read more about our findings here: https://lnkd.in/gkhhp-p3. #consumersentiment #customerinsights #resilience

Our quarterly review of European consumer sentiment shows consumers are largely in a holding pattern. In Q3, just 27 percent of consumers were feeling optimistic about their nation’s economy while 20 percent felt pessimistic - similar to figures we've seen since Q1 2023. And only 36 percent of consumers said they intend to treat themselves - again, holding steady. On this topic, we continue to see a strong age effect with younger consumers much more minded to indulge than older. Read more from our ConsumerWise team: https://lnkd.in/ewMmd_s7