Consumer confidence is set to improve markedly across 2024, with as many as 61% of the public saying that they expect their finances to improve over the next six months.
This is according to WARC’s latest Consumer Trends report, which finds that a cautious optimism among the wider public is set to inform their purchasing decision over the next year, with 68% of Gen Z and 65% of millennials predicting improved finances. This number is however significantly lower among baby boomers (29%).
Painting a rather less positive picture however, is the rise in demand for cooling equipment to global warming patterns currently affecting the globe, with purchases of air conditioning units rising by 358% since 2020 and 48% of people affected by heatwaves considering buying cooling products.
Economically, the difficult housing market has led to an exponential rise in multi-generational households which has in turn fed into changing consumer behaviours – 50% of respondents said that they were the main shopper in the households, compared with 62% in Q3 2021.
“2023 was a year of resilience, with consumers persevering through persistent high inflation and subdued economic growth. Today, consumers feel more optimistic about their financial situation but remain cautious,” WARC senior research executive, Stephanie Siew said.
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“Lingering economic uncertainty and high living costs force trade-offs, such as moving back in with family for additional support. At the same time, advancements in AI generate interest, particularly its potential to make cost-cutting easier and more efficient.”
In more upbeat developments, the AI is set to further enhance the consumer experience for the better as around a fifth (20%) have now used generative AI during the shopping process, whilst over half (51%) have used AI chatbots for price comparison.
Major events are also predicting to continue experiencing a consistent post-Covid bounceback, aided in no small part by a major summer of sport including the Euros and the 2024 Paris Olympics.
Monks regional head of growth for southeast Asia, Yasmine Mansour added: “Brands will stand out by catering to their customers’ specific needs and the powers of hyper-personalization and enhanced marketing intelligence will certainly help them do that.
“While challenges may arise, there’s no doubt that generative AI is a potent force and there’s no going back from here. New realities will require new ways of thinking and executing.”
