Consumer spend views in a Brexit world
With a likelihood of Brexit being delayed and the prospect of a no-deal Brexit remaining a possibility, it is an uncertain economic time not just for the UK, but further afield too. Such uncertainty impacts the most those who tailor their spend according to the economic outlook.
We have taken a look at consumers in the Republic of Ireland who claim that their purchasing is directly impacted by the economic outlook and how that has changed over the last 5 years.
Steady drop in economic outlook impact on spending
Since 2013, the percentage of adults aged 15+ who agree that ‘The economic outlook heavily affects my purchasing behaviour’ has steadily declined. Our TGI consumer data shows that in 2013 53% of adults aged 15+ agreed with this statement, however today this figure stands at just 40%. As the country emerged gradually from the financial crisis that began in 2008, it appears that confidence has been returning incrementally.
In 2013, older adults were more careful with their spending than their younger counterparts. Those aged 65+ were 21% more likely than the average adult to agree with this statement whilst 20-24 year olds were 27% less likely to agree. Today such discrepancies by age have largely been ironed out, save amongst the youngest adults, the 15-19 year olds, who are 32% less likely to agree.
Younger adults find things particularly difficult on their current incomes
Financial security is fueled by how secure consumers feel on their present incomes. TGI consumer data shows that those aged 65+ are 37% more likely than the average adult to say they live comfortably on their present income whilst 20-24-year olds are 80% more likely to say they find it very difficult.
Economic outlook-influenced spenders group are increasingly financially savvy
Those who feel the economic outlook impacts their spending have been showing an increasing trend in recent years towards reading up on financials and looking to make their shopping go further. Our TGI consumer data from 2013 shows that this group were 22% more likely than the average adult to select a shop based on its loyalty card scheme and 17% more likely to read the financial pages of their paper.
In 2015 this rose to 33% more likely to pick a shop based on its loyalty scheme and 21% more likely to read the financial pages of their newspaper. Whilst today the data shows that this group are 46% more likely to select a shop based on its loyalty card scheme and 45% more likely to read the financial pages of their newspaper, showing how this group is becoming increasingly financially savvy and practical.
TV advertising can be a key way to engage this audience
In terms of best reaching and engaging this economic outlook-minded group, TGI consumer data reveals they have consistently shown a particular interest in television advertising.
In 2013 they were only 17% more likely than the average adult to find TV adverting interesting but are today 34% more likely to agree with this statement. In addition, they are 46% more likely to buy products from companies who sponsor TV programmes.