Consumers are more conservative with their spending
Some consumers are gradually getting more comfortable about going back to normal activities like trying on clothes in a store. But progress is slow and not universal. In the US, for example, consumers feel as uncomfortable about using public transport or sending their children to school as they did in May.
And a cautious return to necessary activities, like paying the hairdresser a visit, doesn’t imply any increase in discretionary spending. In fact, 61% of consumers say they will be more aware and cautious about their spending now. And 48% want to postpone the purchase/replacement of big-ticket items, such as automobiles, furniture and appliances, until after the pandemic is over.
For many people, that longed-for return to normality will take much longer than they hoped. As a result, they are deeply worried about the impact of recession. Globally, 54% of consumers say price is a more important purchasing criteria than it was just a month ago.