Despite concerns about high inflation, a recent study conducted by Wunderkind, a performance marketing tech specialist, shows that online shopping in the UK remains strong and resilient, especially among younger consumers. While some shoppers are scaling back their spending and focusing on cheaper goods, there is also a noticeable trend of purchasing fewer, but higher quality, non-essential items.
The study surveyed 1,000 UK shoppers and found that 30% of them plan to reduce their spending on essential items. However, 42% of respondents stated that they intend to maintain their usual levels of online spending, with Generation Z consumers being the least likely to cut back. In fact, only 22% of Generation Z shoppers felt the need to reduce their discretionary spending.
The challenges faced by UK consumers are significant, leading nearly a third of them to plan cutbacks on essential items. This has already resulted in a shift towards purchasing own-brand grocery products and increased spending at discount stores. Despite this potentially troublesome news for the fashion industry, Wunderkind’s research indicated that 54% of respondents would limit spending cuts to luxury items, and 64% would reduce spending on non-essential, discretionary items.
It is worth noting that online fashion shopping remains a priority for many consumers. The aforementioned 42% who plan to maintain their usual e-commerce spending levels are encouraging for the industry. Additionally, 42% of UK shoppers stated that they would spend less frequently but opt for higher-priced, better-quality items when making a purchase. In comparison, 36% indicated that they would choose more affordable or lower-quality items.
This contrast is significant, as traditionally, during tough economic times, consumers would often prioritize cheaper items over quality goods. Wulfric Light-Wilkinson, the General Manager of Wunderkind, commented on this phenomenon, emphasizing that the current cost-of-living crisis has made purchasing decisions more complex for consumers. Assessing brand loyalty, carefully considering affordability, and making tough purchasing decisions have become more prevalent. Brands that can provide value and strengthen the customer-brand relationship during this period are likely to succeed both in the short and long term.
In conclusion, online shopping in the UK remains resilient, with younger consumers displaying confidence in their spending habits. While some shoppers are cutting back and focusing on cheaper goods, many continue to prioritize online fashion purchases. Additionally, there is a trend of buying fewer, but higher quality, non-essential items. Brands must focus on providing value and nurturing customer loyalty to thrive in these challenging times.
Useful links:
1. BBC News: UK inflation rate highest on record
2. Financial Times: UK consumer spending cuts back amid inflation fears
