Executive summary

In last year’s first edition of our annual research series, What matters to today’s consumer, we found that consumer sentiment had shifted dramatically over the preceding 18 months, with consumer expectations evolving in parallel. In this year’s edition, we see many of these trends persisting, alongside the emergence of new ones, as the cost-of-living crisis takes hold.¹

In 2021 we found that consumers:

had returned to in-store shopping but were continuing the online shopping trend developed during 2020;
had come to expect fast, easy delivery and fulfillment, whether shopping on- or offline;
continued to scrutinize closely the ethical status of brands and products;
wanted assurances around healthiness of products and sustainability of production processes;
expected to be able to find sustainable products for which they did not have to pay a premium;
were open to ordering directly from favored brands, as well as sharing data with them, especially if this resulted in a better buying experience.

This year, we find that many of these behaviors have changed amid the ongoing development and repercussions of the COVID-19 pandemic, the geopolitical crisis and subsequent tensions, and rising inflation affecting energy, food, and housing prices around the world.

Yet, certain behaviors and trends have remained largely stable. In this year’s research, we find that consumers are:

very concerned about their personal financial situations; many are worried about the cost of feeding their families and buying other essential items;
have changed their purchasing patterns in light of the rise in their cost of living and are seeking more affordable brands and spending more time searching for bargains and promotions;
expecting companies to help them through this difficult time with the likelihood that they will reward the most considerate brands with long-term loyalty;
shopping less, both in-store and online, with many concerned about potential stockouts, especially of essential products;
persistently more concerned with delivery and fulfillment than in-store experiences and willingness to pay extra for fast delivery has increased.

_{¹ “Cost-of-living crisis” refers to a scenario in which the cost of everyday essentials like energy, food, and housing is rising much faster than average incomes.}

In this year’s research, we explore the theme of the rise of influencers on social media and their impact on consumers’ search and decision-making processes. We found that nearly one-third of all consumers discover new products through social media including a substantial number, especially among Gen Z and Millennial consumers, who learn of them through influencers they follow.

We highlight three key actions that will help brands and retailers to capitalize on the opportunities that these evolving trends offer.

First, companies must drive cost reductions by rethinking the way they operate and how the supply chain is organized to ultimately be able to pass on costs savings to consumers. This involves using technology to digitize planning and forecasting along with automating warehouse operations and delivery and fulfillment.

Second, brands and retailers must identify new revenue and channel growth opportunities. This involves tailoring experiences and content to divergent consumer needs and selecting the appropriate influencers for the appropriate audience to bring authenticity and credibility to their products.

Third, companies must lead with purpose and help consumers through this difficult time to build goodwill and loyalty in the longer-term.