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Rising Consumer Confidence Amidst Economic Challenges: A Bright Outlook

Rocio Lugo by Rocio Lugo
noviembre 7, 2023
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Rising Consumer Confidence Amidst Economic Challenges: A Bright Outlook
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As we approach the holiday season, concerns about the rising cost of living have cast a shadow on many predictions. However, there’s a ray of hope in the consumer confidence landscape, particularly when it comes to fashion, footwear, and beauty purchases over the next few months.

While some are tightening their belts, our ‘UK eCommerce Confidence’ report from digital commerce provider Visualsoft reveals that others remain optimistic, seeking moments of enjoyment and signaling pockets of positivity.

Our research shows a dynamic consumer sentiment: 35% are planning to reduce discretionary spending, but an encouraging 29% anticipate increased expenditures in the coming months. The driving force behind this trend is the appeal of more accessible pleasures in the face of unattainable big-ticket items like mortgages and vacations.

For those looking to invest in themselves, the top three categories for online shopping in the next quarter include fashion and footwear (48%) and health and beauty (40%). Only 8% expressed no interest in online purchases.

Visualsoft’s digital platform data corroborates these trends, with a remarkable rise in web traffic and revenue for fashion retailers—fashion revenue has surged by 5.4% compared to the previous quarter, and footwear has seen an impressive 12.4% increase. This hints at a sustained demand for clothing and accessories in the months ahead.

Notably, age plays a role in economic outlook: 18-24 year-olds are the most optimistic about the UK economy (43%), whereas the 45-54 (23%) and 55-64 year-olds (26%) are less optimistic. Surprisingly, 66% of 18-24 year-olds express optimism about their financial situation, outpacing the 42% among those aged 55-64.

The report underscores the shift to online shopping, with 99% of consumers now making their purchases online. A significant 79% shop online at least once a month, and 35% shop online weekly or even more frequently, indicating a growing preference for online shopping, even for everyday items.

Lenny Nash, CEO of Visualsoft, shared his insights, stating, ‘Our survey results show that the pressure of the ongoing cost-of-living crisis has yet to ease. However, amid all the macroeconomic challenges, 50% of consumers maintain optimism about their financial situation. This suggests a substantial potential for consumer spending, even in these challenging times. Effectively, we’re witnessing a polarized economy, with clear distinctions between the ‘haves’ and ‘have-nots.'»

For more information on consumer confidence and online shopping trends, consult our ‘UK eCommerce Confidence’ report.»

Tags: BEAUTYDESIGNFASHIONNEWS FASHION
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