How are consumers feeling about their finances?
In many countries, consumer sentiment has improved since 2015. Consumers have become more bullish about their ability to spend.
More consumers around the world are enjoying a sense of financial stability. In our third annual Global Consumer Sentiment Survey, conducted in September 2017 in 29 countries,1 respondents were more upbeat about their finances compared with the previous year. Fewer consumers said they were delaying purchases, cutting back on spending, and feeling uncertain about the economy. Across the globe, more consumers said they traded up to more expensive brands, while fewer consumers reported trading down to cheaper options (Exhibit 1).
The results of our latest survey indicate a further strengthening of the trends we summarized in our May 2017 article. For instance, the shift to e-commerce is happening even faster than it was last year, not just in China and India but almost everywhere. And it’s happening not only among affluent consumers but across all income tiers.
In addition, the latest survey results highlight three interesting trends that have implications for how consumer-packaged-goods (CPG) companies and retailers should pursue growth. More than half of consumers said they changed their buying behavior in one way or another within the past year. Specifically, we found that consumers are continuing to abandon midmarket brands, thrift manifests itself in different ways in different parts of the world, and health-conscious consumers aren’t necessarily buying natural or organic products. McKinsey – Read more…