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how their core values are communicated to consumers.
Local brands may find a competitive edge and can expect to see a renewed focus in many cases. More than 60 per cent of consumers report that they’d like to purchase locally to know that their purchase has a local benefit, and where they came from.
Trend: Consumer spending is changing, and they’re saving more. Job security is a global concern, with 23 per cent of people are worried about their jobs. Levels of concern are highest in Asia Pacific.
Consumers feel stressed about job security and finances. As a result, we’re seeing that close to 40 per cent of people worldwide have changed the way that they spend — and save — money.
We expect this changed view to continue into 2021 in several key ways:
• Not only do people plan to save more, but we expect a renewed focus on budgeting.
• Many consumers will trade down, looking at “contender brands” for household staples.
• We’ll also see cautious spending this holiday season.
So, what can we expect for holiday 2020 spending? We dug in to find out.
• Close to 40 per cent of consumers are concerned about holiday spending and will be more selective in what they spend money
on, with fewer gifts for co-workers and friends, for example.
• COVID concerns have fewer people gathering, decreasing the need for gift purchase.
• Of those that do plan to purchase gifts, close to 50 per cent of people will holiday shop based on price.
• We’ll see less gifting, with gift cards being the second highest type of gift people plan to purchase this year.
For holiday and beyond, we’ll see fewer impulse purchases — though we continue to see people investing in home improvements, and more stable, longer-term investment strategies.
Finally, two larger themes have emerged from the massive spending shift in 2020:
1) Consumers have become less “consumerist” as they have fewer opportunities to make purchases.
2) The level of savings consumers need to feel comfortable about their future has increased.
Key takeaway: With interest rates on savings accounts at low levels, financial providers must find alternative ways to appeal to customers and ensure their value propositions are presented to their target audience.
Trend: The automotive industry is down, but not for long. A lack of job security and
financial stability have people delaying large purchases that
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require financing. Automotive sales are expected to be down in 2020 overall, with upwards of 20 per cent (and as high as 54 per cent) of consumers delaying their new car purchase.
Interestingly, we’ve seen pockets of demand emerge and expect a few bright spots in 2021. As automotive dealers clear their inventory (which may have decreased as a result of production COVID-19 production delays), and financing becomes more attractive, we’ll see many consumers making automotive purchases. This is specifically true of…
• Wealthier, more financially secure consumers
• Those who have moved from the city to suburb
• People less willing to take public transportation due to safety concerns
Key takeaway: As a result of these consumer shifts, we’ll see areas of opportunity for automotive makers as we enter 2021.
Trend: Working and learning have changed. Many of us are still working from home. Globally, more than 33 per cent reported working from home over the course of the pandemic, up from 6 per cent typically. This seismic shift has had a ripple effect on the way that we engage with co-workers, and how we spend our time.
• Of those that work from home, 79 per cent would like to continue to do so. They have found they have more time to
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