82% of Consumers Plan to Reduce Non-Essential Purchases in 2022
- 8.8% increase in clothing inflation since 1989
- Young people (25-34) cutting non-essential spending
- 82% plan to reduce spending on non-essential items for the rest of 2022
- 47% will cut costs on clothing
- 61% reducing spending on takeaways
- Brands should re-evaluate offerings and engage customers personally
A recent study by Braze reveals that consumers are cutting back on clothing expenditure due to rising inflation, with 8.8% being the highest rate since records began in 1989. Young people aged 25-34 are particularly affected, as almost 90% plan to reduce non-essential spending. The data also shows that 82% will cut costs on non-essential items for the rest of the year, with 47% focusing on clothing and 61% on takeaways. James Manderson, SVP of customer success at Braze, advises brands to re-evaluate their offerings and engage customers personally using first-party data to build loyalty during this challenging economic period.
Factuality Level: 8
Factuality Justification: The article provides relevant information about the impact of the cost of living squeeze on consumer spending and includes insights from an expert in the field. It cites specific data sources (Braze and ONS) to support its claims and offers advice for businesses to adapt their strategies during this challenging economic period.
Noise Level: 3
Noise Justification: The article provides relevant information about the impact of the cost of living squeeze on consumer behavior and offers insights for brands to adapt their strategies. It also includes data from a reputable source (ONS) and quotes an expert’s opinion on how businesses can respond to the situation.
Financial Relevance: Yes
Financial Markets Impacted: Retail and clothing industries
Financial Rating Justification: The article discusses the impact of rising costs on consumer behavior, specifically focusing on retail spending and clothing inflation, which directly affects these industries and their financial performance.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the last 48 hours.
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