Consumer Compass (Europe Report)

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Savanta Consumer Compass Europe Q3 2023 Focusing on value for money instead of absolute price point. We know that shoppers appreciate good value, and an occasional bargain. But when brands focus exclusively on price point at the expense of quality, there can be a risk of impacting brand perceptions Levi’s provides a great example of a quality message in their “Greatest Story ever worn” campaign; where they focus on the quality and longevity of their products so that consumers reflect on the broader value equation when considering what to buy How can your brand provide consumers with a sense of value for money, without competing solely on price? 30
Savanta Consumer Compass Europe Q3 2023 Summary 1. Impact of inflation remains high across necessary spend categories (e.g., grocery, bills) so consumers continue to cut back and deprioritise spending on non-essential sectors. Across markets, all non-essential sectors fall in to the deprioritised or sacrificed categories highlighting that consumers are continuing to cut back on spending and change their behaviours. Inflation impacts grocery the most, presenting an ongoing challenge for supermarket retailers. 2. Eating out and fashion continue to suffer the most, with both of these categories being sacrificed. However, frequency isn’t necessarily shrinking as consumers spend more strategically. These two sectors have seen the highest proportion of consumers reducing their spend across markets but frequency of spend is still relatively high; 3 in 5 are eating out on a monthly basis, whilst just under two thirds are making fashion purchases at least every other month, demonstrating there is still appetite within both of these sectors. Consumers have adapted and become savvier in their ways of spending e.g., second-hand clothing has become a popular solution to tackling climbing prices on the high street. 3. Price and value remain the biggest purchase drivers as consumers continue to face economic challenges, but other factors can be leveraged by brands to encourage consumers to spend with them. Brands can look outside a narrow focus on prices, promoting instead the quality and durability of their products to drive value for money perceptions amongst consumer. 31
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Consumer Compass (Europe Report)

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