#65: will the economic crisis dampen our holiday spirits?

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This week, as the golden season commences, we have new research about how consumers are shopping and spending their money on Black Friday, and how confident they are to spend. There's also new insights on employee wellbeing.

Economic challenges can’t dampen the holiday spirit – Black Friday sales still expected to excel this year

54% of consumer spend this Black Friday period is predicted to be on Christmas presents, Wunderman Thompson Commerce and Technology’s?Black Friday report?reveals.

And the trend towards online shopping hasn’t diminished now that brick-and-mortar stores are back to business. In fact, 76% of Black Friday spend is set to be online this year. All of which will be music to the ears of marketplaces, spearheaded by giants like Amazon who remain the top choice for Black Friday deals, accounting for 54% of all Black Friday spend.?

But all is not lost for Amazon’s competitors. Amongst the 16-24 age group specifically, Amazon’s stronghold has become weaker, capturing only 37% of the market share.?

Consumer trust also remains a concern for the bigger players. Only 10% of consumers feel they are the primary beneficiaries of Black Friday, with 31% agreeing that Amazon benefits most from the sales period.?

This sentiment is further echoed by the fact that only 37% of UK consumers believe they secure the best deals during this shopping bonanza. The lingering disappointment from last year’s sales, felt by 41% of consumers, underscores the urgent need for retailers to recalibrate their strategies.

Consumer confidence polarised as cost of living crisis tightens but eCommerce remains buoyant

‘The UK eCommerce confidence report’?from?Visualsoft?suggests that consumer confidence is increasingly polarised amid the ongoing cost of living crisis. The research reveals that while 35% of people are looking to decrease discretionary spend, a substantial 29% are predicting an increase in their spending over the coming months.?

While one in three (35%) are tightening their belts, some consumers are still seeking moments of enjoyment, indicating that pockets of optimism exist. Most people expect their discretionary spending to remain constant (37%), while an impressive 29% plan to increase their expenses on dining out, entertainment and clothing. With the ‘big’ stuff out of reach, like mortgages and holidays, more accessible pleasures are compelling.

Only 8% stated they had no intention to purchase online in the next quarter. Consumers plan to spend more on themselves and their homes, with the top three categories for online purchases over the next three months being:

• fashion and footwear (48%)
• home and garden (42%)
• health and beauty (40%)

Just one in three UK businesses prepared to handle employee wellbeing concerns

The number of employees voicing wellbeing concerns is on the rise, but a significant number of organisations and managers are ill-prepared to address them. This is according to new research from?Mintago.

The fintech startup surveyed 503 senior managers within UK-based organisations (public and private sector). This revealed that an overwhelming majority (87%) have been approached by an employee in the past 12 months to discuss concerns relating to their wellbeing.

Following mental health (48%) and job satisfaction (43%), financial wellbeing (40%) emerged as the third most prevalent concern that employees spoke to their managers about.

Of those who had discussed financial wellbeing issues with employees, 68% of managers cited the cost-of-living crisis (68%) as the predominant source of concern. This was followed by requests for a pay rise (50%), keeping up with rental or mortgage payments (46%) and worries about debt (43%).

• Rather than cutting back, almost half of marketers (44%) are actively investing in experimentation as a direct response to the UK’s current economic slump. That’s according to new research from?Optimizely, which reveals marketers are using experimentation in the face of cutbacks as a way to deliver personal experiences that drive revenue, boost customer retention and deliver growth.
• Gartner released a survey of over 6,000 customers that reveals?38% of Gen Z and millennial customers say they’ll give up on a customer service issue if it can’t be resolved in self-service.?This is?versus just 11% of baby boomers.?Gen Z and millennial customers identified that if their issue could not be resolved in self-service they:?Would?use the service or product less?(55%);?Wouldn’t buy from that company again?in the future (52%); Would?say negative things?about the company or product (44%).
• A new survey from?StreaksAI revealed that 73% of the respondents think AI chatbots could help reduce loneliness. The survey, which gathered responses from 300 people across the UK, further revealed that: A majority (53%) believe the development of conversational AI technology will increase quality of life. 26%?of respondents express a willingness to engage in intimate and emotional roleplay with chatbots. Additionally, 48% expressed comfort in discussing personal or sensitive issues with an AI chatbot.
• New research shows retiring early in the UK increasingly?depends on your wealth, making it harder for many to stop working. In the early 2000s, retirement rates before 65 were similar across income levels. But now, only 7% of the lowest earners can voluntarily retire early, versus?24% of the highest earners.

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