The German tide is rising: from functional concerns to anxiety and frustration

It is no secret that the cost of living has increased tremendously in recent months. Due to the war in Ukraine and the rising rates of fossil fuels and raw materials, general inflation in Europe will remain high for longer. To uncover the emotional impact and changing consumer behaviour due to price inflation, DVJ Insights conducted earlier this year, in July, a price inflation study in five European countries. To better understand the impact of the current situation, we created a follow-up study for six European countries: the UK, Germany, the Netherlands, Sweden, Norway, and Denmark.

Download the full study here.

GERMANS FEEL VERY AFFECTED BY PRICE INFLATION

Compared to the first wave, more Dutch, German, and Danish consumers feel that the global economic and financial situation is getting slightly worse. Out of six researched countries, Germans were ranked as the ones who are the most engaged and the most concerned by price inflation. On average, one-third of them have experienced or expect to experience a significant impact of inflation on their daily lives, and not only in the financial aspect of their lives.

In Germany, 27% of respondents believe that current price inflation is causing serious problems not only in the financial aspect of their lives but also affecting their mental health. People in the UK, Germany, the Netherlands, and Sweden have reported a major impact on their close relationships with their partners, family, and friends. One of the most common associations related to price inflation were despair, fury, and frustration. Anxiety, anger, and frustration were recognized among Germans, English, and Dutch consumers.

EVERY SECOND GERMAN IS FACING FINANCIAL STRUGGLES

Around 50% of the respondents, currently experience struggles with their finances as they feel less able to keep up with their normal expenses due to price inflation, which is causing serious financial problems and forcing consumers to cut their expenses. For instance, only 11% of German consumers claimed that their job performance is affected and are cutting on necessary aspects such as insurance, housing etc. In June 2022, this figure was higher by 5%. Alternatively, the Germans decided to cut even more into pragmatic aspects. Around 50% of respondents already spend less on food ordering, clothing, and leisure activities and plan to cut back even more.

More specifically, in June, 44% of consumers cut back on expenses on ordering food, and in the next six months, 39% plan on cutting back even more on this category. In terms of the clothing category, Germans became really self-aware of their shopping behaviour as 54% of Germans decided to buy fewer clothes in the near future, as well as postpone the purchase or completely reconsider the purchase. Germans love to travel, however, the current economic situation has made 51% of Germans reduce the number of their holiday trips or delay them for later.

In the upcoming months, around 35% are planning to save more on gas, electricity and home improvements such as renovations, new furniture etc.

RESEARCH METHOD

The study is conducted among 3,337 people aged 18+ years old in Germany, the Netherlands, the United Kingdom, Denmark, Norway, and Sweden. This number is the national representative. In addition, a representative sample by gender and age was used. Based on this sampling method, we can state that the results represent the opinion of these five countries as it was at the time of measurement.

ABOUT DVJ INSIGHTS

DVJ Insights is the marketing research and analytics agency for brand growth. The combination of quality, added value, and passion ensure that DVJ Insights helps companies improve communication, build stronger brands, introduce more innovative products and services, and better understand people’s buying behaviour. DVJ Insights is known for its innovative approach and innovation resulting from intensive cooperation with practice and science in combination with a willingness to listen.