Consumer Trends: Embracing Thrift and Seeking Norms
In a recent study conducted by Gartner, it was revealed that consumers are increasingly viewing thrift as a virtue to aspire to, rejecting consumerism in favor of self-improvement and similar motivations. This shift in mindset is accompanied by a trend known as “norming,” where individuals seek validation for their behavior and beliefs by comparing them to established standards within their communities. Additionally, consumers are displaying a sense of paranoia when it comes to unexpected or inconsistent pricing and costs.
According to the research, a significant 74% of consumers are open to embracing automated technologies such as drone delivery and cashier-less stores. We had the opportunity to speak with Kate Muhl, a consumer and cultural insights expert at Gartner, to delve deeper into the implications of these findings, which are available exclusively to Gartner clients.
The Rise of Wholesome Thrift
A new generation of “New Spartans” is championing thrift as a lifestyle choice. While the desire to save money may be influenced by recent economic challenges, it has evolved into a broader movement. The study found that 88% of consumers are engaging in underconsumption behaviors, such as using products for longer periods, opting for second-hand items, and repairing items instead of buying new ones. Interestingly, 68% of respondents cited lifestyle and self-improvement reasons for their thrifty habits, including decluttering, feeling better about themselves, and environmental concerns.
Kate Muhl commented on this trend, noting that consumers are using thrift as a way to craft a narrative about themselves. Despite the decrease in inflation, there is a notable absence of the conspicuous consumption seen in the ’90s. Instead, austerity is being embraced as a sign of strength and wisdom. Muhl also highlighted the shift towards valuing experiences over material possessions, emphasizing the lasting impact of an experience compared to a material item.
The Quest for Norms
In a world filled with uncertainty, consumers are seeking objective or communal benchmarks to guide their decisions and beliefs. The study revealed that individuals are looking for clearly defined boundaries, the ability to categorize things, self-understanding, and a roadmap for navigating life. This concept of norming has gained traction recently, as people struggle to find their place in an increasingly complex world.
Muhl explained that this trend contrasts with the previous focus on individuality and personal data. She emphasized the importance of understanding how individuals fit into the larger societal framework, highlighting the need for a sense of belonging and purpose.
Price Paranoia
A concerning finding from the study was that almost 60% of consumers lacked confidence in understanding the true cost of their purchases. Factors contributing to this uncertainty included unexpected price increases, discrepancies between online and in-store prices, and hidden fees. Muhl noted that this trend has far-reaching implications, as consumers grapple with the impact of inflation and strive for financial stability.
Businesses thrive on predictability and stability, and Muhl suggested that individuals seek the same reassurance when it comes to their finances. The slow adjustment to changing economic conditions reflects a broader sense of unease among consumers.
Implications and Insights
While data on consumer spending habits is abundant, Gartner’s research delves deeper into the underlying beliefs and values driving consumer behavior. By analyzing cultural trends alongside consumption patterns, a more comprehensive understanding of consumer motivations can be achieved. This approach allows for a broader perspective on consumer behavior, moving beyond surface-level observations to uncover the deeper forces at play.
As businesses navigate the evolving consumer landscape, understanding these trends is essential for adapting strategies and meeting consumer needs effectively. By recognizing the shift towards thrift, the quest for norms, and the concerns around pricing, businesses can better tailor their offerings and messaging to resonate with today’s discerning consumers.
(Note: The research findings on consumer comfort with automated technologies were conducted prior to recent developments in the news cycle.)