The State of the abnormal
Diving into today's retail scene, it's clear: there's no "business as usual" here. Over the past couple of years, consumers have had to deal with a pandemic and a return to society, making retail boom as people presented themselves to the world again. Consumers are now facing a cost-of-living crisis due to high inflation and interest rates, affecting their spending priorities. In this report, we explore the consumer trends of 2023, putting together the pieces of the puzzle to understand today's shoppers in the world of the abnormal.
The rise of Gen Z spending capacities
During this challenging and rapidly changing era, digital natives, especially Gen Z and young Millennials, are reshaping retail. Born tech-savvy and on the hunt for bargains, their growing financial influence is making an impact in retail. They prioritize experiences, high-quality brands and products, sustainability, and online communities. Discover the unique shopping habits of each generation in Chapter One.
Buy fewer yet pricier items.
Are natural bargain hunters.
Spend almost 20% more per item than other generations.
Prefer online shopping.
New brands take center stage
All challenges come with opportunities, and new brands are taking advantage of the current state of the market. By understanding the behavior of Gen Z, brands founded by influencers or tapping into them are using social platforms like TikTok to build communities and strong sales channels. As a result, newcomers are becoming significant players in the global retail stage. This new breed of brand is putting pressure on traditional retailers to keep up or risk being left behind.
Women – the savvy shoppers
In 2023, women are spending less than men overall. However, they excel in shopping smart. Our data reveals that women are adept at harnessing discounts, effectively maximizing their savings - showcasing their talent for optimizing every purchase. Find deeper insights in Chapter Three, which taps into the discount shopping habits of Nordic consumers.
Deliberate purchasing during economic turbulence
The cost-of-living crisis is making consumers consider their spending more carefully. Nordic shoppers spend less on each purchase; the average receipt value was 8.5% higher two years ago.
However, making consumers think twice before a purchase is not bad; this budget-conscious approach is enhancing sustainability. Economic pressures and a post-pandemic mindset are steering shoppers towards more thoughtful consumption, resulting in a 25% reduction in online returns.