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Issue Three, The No-Spend Consumer

Crowd DNA's monthly digest.

It’s 2024, otherwise known as No Spend 2024. OK, consumers are still purchasing stuff, they’re just doing it differently.? A UK survey found 61.5 per cent are spending “cautiously” and 40.7 per cent are buying fewer things (Attest, 2023).?

While no one needs reminding about the factors at play behind this economic mindfulness trend in a short newsletter... the No Spend customer is starting interesting trends to look at. Luxury brands are finding cute ways to appeal to the No Spend customer (without dropping their price tag), TikTok is leading on education of the budget shopper, and little treats are now big business.

In this issue of Crowd Source, we celebrate this cautious spender and their shopping journey...

1. Cheap Luxury

Hot on the heels of last year’s rubbish bags from Balenciaga, comes Fendi launching a bag designed around a penny sweet.

The Chupa Chups lollipop holder is a nod to how luxury can shrug off a very strong association to the much-maligned one percenters by simply injecting a bit of budget joy into their design. “Luxury should be fun“ insisted Artistic Director Kim Jones at the Fendi 2024 Winter show.?

But the price tag remains quite serious business…?

Read more here.

2. Loud Budgeting

Many people have turned to content creators on social media - aka FinTok - to gain some financial literacy.

A recent survey found that 79% of Americans between ages 18 and 41 use social media for financial advice (Forbes, 2023). But behind the viral terms like ‘Loud budgeting’, ‘cash stuffing’ and ‘soft spending’, learning to speak to the generation wanting to take control of their money is booming business and one that financial brands are keeping a close eye on.?

Read more here.

3. "I'll call an Uber"

Commodities are out. And houses. Pensions. And of course, cars.

In 1997, 62 percent of 17-year-olds had a driver’s licence. In 2020, this had fallen to 45 percent. There’s a lot that sits behind the statistics. Ambivalence to car-centric culture, ease of E-scooters, E-bikes and ride-sharing options, environmental concern, and of course the high cost.?

Read more here.

4. Doom Spending

Little luxuries is big business.

Milestones like getting a mortgage might not be on the list. But spending is still a good barometer of what is happening in culture. About 27 percent of Americans admit to 'doom spending' to cope with the concerns about the economy and foreign affairs (Credit Karma, Nov 2023). It’s about buying what’s needed for the moment rather than what’s setting you up for an uncertain future.

Read more here.

5. Path To Purchase

The traditional shopper journey is over.?

As summed up in a recent analysis in Vogue Business: “That consumer funnel was built for the old world — and Gen Z doesn’t live there anymore.” The No Spend consumer is a reflection of this new world: consumption is not a linear or top-down journey but an infinite loop of inspiration, exploration, community and loyalty.

Read more here.

Local Store Luxe

Read more here:??

At Crowd DNA we’ve been tracking this trend for a while. Last year we saw it emerging with the growth of Local Store Luxe - the consumption of little luxuries and how that is shaping the grocery store industry.?

Meanwhile, we asked the Crowd team:

What is your (non-shady) no-spend hack??

Rachel, Director?

“My hack is going back to my parents for a weekend and taking advantage of my mum wanting to give me 'TLC' - aka home cooking.”

Isabelle, Cultural Stategist?

“Intentionally not making evening weekend plans is a double win because I’m able to save money and this gives me time to practise my hobby.”

Zoe, Cultural Strategy Executive?

“I'm a big believer in library cards! I got one as soon as I moved to London from Canada and now I only need to purchase the books that'll look good on my coffee table.”