Spend-Shift: What's On Shoppers' Minds

Highlights from our recent presentation at Ascendant Network

John Gerzema and I were thrilled to present at this year’s exciting and growing Ascendant conference in NYC. Our talk, titled “Navigating the New Spend-Shift Landscape: Strategies for Engaging in Today's Marketplace Dynamics,” delved into the complex relationship between the American consumer, the economy, and how this impacts retail behaviors, needs, and desires.

A Snapshot of Key Points from Our Discussion:

• The Consumer-Economist Disconnect: There's a palpable disconnect here. Consumers and economists seem to be living in entirely different realities. Despite positive economic indicators, consumers aren’t feeling the relief when they reach the checkout. This tension is causing wallets to tighten, and you can read more about the current "gold rush" at Costco and how Americans are spending less on ‘fun’.

  

  

• The Rise of Intimacy Marketplaces: This isn't just about people being on social platforms; it's about social platforms facilitating a deeper level of personal connection and interaction (e.g., a feeling I know this person). This environment encourages the sharing of ideas, learning, and advice, making it a natural hub for discovery and purchase.

• TikTok Dominate for Gen Z, Temu on the Rise: For Gen Z, TikTok is more than just entertainment—it's a key resource for discovering new products and ideas. Meanwhile, Temu is climbing the ranks as a significant shopping platform, for example 58% Of Gen Z/Millennials have purchased from Temu already. As for Millennials and Gen X, while Millennials closely follow Gen Z’s trends, YouTube remains a dominant source for Gen X across various categories.

  

• AI’s Holds The Key: Our research with Rokt uncovered that 62% of Americans now spend more time online searching for better prices, deals, and offers. Nearly half of these consumers report feeling exhausted by the vast array of choices they must navigate. AI is emerging as a pivotal solution to this challenge, helping to simplify the decision-making process and tailor the shopping experience to individual needs, thereby reducing the overall sense of overwhelm.

  

• Redefining the Role of Physical Stores: As online shopping continues to evolve into two distinct experiences—seamless, transactional processes and engaging, social interactions—the question arises about the role of physical stores. Young consumers, in particular, see physical stores not just as places to purchase products but as venues for immersive storytelling. They value experiences that can draw them away from their screens and into a tangible, engaging environment that physical stores can uniquely provide.

  

• Early Holiday Shopping Trends: Based on trends from the previous year, we anticipate that young Americans will begin their holiday shopping earlier this season due to ongoing financial pressures.

For those interested in diving deeper into our findings, I encourage you to reach out to me here or on LinkedIn for the full 25-page deck from our presentation.

Our session aimed to shed light on the subtle yet significant shifts in the consumer landscape, highlighting the need for businesses to adapt their strategies to meet changing consumer expectations. As we continue to explore these dynamics, the insights we gather will be crucial in shaping future engagement strategies in the marketplace.

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3 Links

• The dawn and demise of retail disruptors: How the last 20 years changed shopping (Vogue Business)

• Jokes, Pop Music and Radical Honesty: How TikTok Is Changing Home Sales (Bloomberg)

• The rise and fall of Allbirds: The sneaker company whose stock went from IPO darling to trading below $1 (Business Insider)

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Penned by Libby Rodney and Abbey Lunney, founders of the Thought Leadership Group at The Harris Poll. To learn more about the Thought Leadership Practice, just contact one of us or find out more here.