European_ConsumerCompass_Q3_2023_WiP06

Savanta Consumer Compass Europe Q3 2023
Consumer Compass opinion
Whilst there remain crucial variations between different markets, the consistent picture is that confidence, whilst
improving, remains extremely fragile and brands will need to remain connected to the needs and concerns of
consumers to benefit from the opportunities for growth which still exist
Nikki Lavoie
EVP | Strategy & Innovation
Looking at the patterns, there are some notable observations:
Consumer confidence remains fragile across
European markets
This is reflected in the latest performance in Germany and
the Netherlands this quarter; they had been the strongest
markets in terms of consumer confidence but have had a
challenging Q3; suggesting that the road to recovery will be
a long one.
The UK growth trajectory remains slow and steady although
confidence remains low in this market, in particular around
job security.
Consumer spending remains focussed on the essentials
With a continued focus on essential outgoings such as
petrol, utility bills and groceries, households are continuing
to restrict spending in discretionary sectors.
Fashion and Eating out are sectors where consumers are
making significant sacrifices in their spending. Consumers
remain active in both sectors but are adapting and
becoming more strategic in their spending habits in order
to make the most of restricted budgets.
Opportunities remain for brands who can adapt to the
new reality
Whilst price and value remain key drivers for consumers,
we believe that brands do not necessarily have to focus
exclusively on lowering prices.
Brands can influence spending by focusing on quality;
providing consumers with longer-term value for money.
Offers and promotions are also an important lever in
bringing forward spending and attracting new shoppers
into a brand.
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