New Data Finds Emerging Shifts in Consumer Behavior Amid Evolving Economic Landscape
Having never quite settled over the last few years, Pitney Bowes’ latest BOXpoll survey is revealing more shifts in consumer behavior as inflation continues to plague American consumers.
“This summer will present both new challenges and new opportunities for brands,” said Vijay Ramachandran, vice president of market strategy, global e-commerce at Pitney Bowes. “Overstocks and markdowns will impact profitability, but also create new openings to sell as a large portion of consumers seek out deals — further aided by the return of Prime Day and other mid-year promotions. At the same time, our survey found a growing number of consumers cutting back on retail spending altogether as they react to record inflation and gas prices and rising interest rates.”
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Further, Ramachandran said, compared to 2021 being defined by its historic disruptions in the supply chain, 2022 is poised to be the year of oversupply and price volatility.
While discounts are definitely on consumers’ minds as they consider high inflation rates, the reactionary behaviors to markdowns appear split. Nearly half (49 percent) of consumers, including 60 percent of Millennials, said they will plan to buy more online over the next six months due to discounting trends, however, 15 percent of consumers say they are unlikely to take part in these deals due to a commitment to cut back on spending.
Notably, a similar index report from Digital Turbine found that 84 percent of Americans plan to cut back on spending as a direct result of rising prices with a corresponding growth in apps that offer ways to save money. Top apps in this category were revealed as Craigslist, Dollar General, Klarna and Fetch Rewards, all of which feature different ways to save cash. Shein’s app was also found to be thriving with high install volumes.
One behavior that has remained steadfast is the preference for online shopping, although according to the company’s latest data motivations have evolved in recent months leading to the return of some pre-pandemic e-commerce behaviors. According to Pitney Bowes’ BOXpoll, 56 percent of survey respondents said their motivations for buying online have changed since the peak periods of the pandemic, where 43 percent reported they choose to shop online to save a trip to the store, compared to just 15 percent who cited fear of COVID-19 exposure.
At the same time, Ramachandran said consumers have found joy in online shopping. Those retailers and brands who spent the pandemic investing in innovative e-commerce experiences, he said, will likely see this behavior continue to grow, possibly even “eclipsing the ‘I need it now mentality for the majority of consumers.”
Meanwhile, the survey found that while shipping speed has been a growing motivator in recent years, the behavior may have leveled out. Data showed that 67 percent of consumers are no more likely to pay for faster shipping than they were three months ago. Looking at Gen Z and those shopping online more than they were three months ago, however, a third said they are more likely to upgrade shipping than they were previously. Twenty-three percent of parents and 22 percent of Millennials also reported they are willing to pay for speed.
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