Consumer behaviour looks at the how, when, and why your customers buy. There are many social and economic factors that can influence changes in the way people purchase their products.
At Embryo, we are always researching and keeping up to date with consumer behaviour reports so that we can adapt our digital marketing strategies by understanding why and how people are purchasing. This allows us to get ahead of the trends and can positively impact our client’s revenue streams.
In this blog, we look at the most surprising statistics we have found on the ever-changing consumer behaviour in 2023. At Embryo, we’re extremely intuned with consumer behaviour and can create campaigns which take these behaviours into account. To learn more about how we do this get in touch by phone at 0161 327 2635 or email [email protected].
Online Vs In-Store Shopping
- 86% of the UK population uses the internet every day, spending almost six hours online. (Hootsuite). In the last month alone, 86% of the UK’s internet users searched for a product online, with 81% making a purchase.
- Overall, 61% of shoppers still prefer shopping in-store, while 39% shop more online, resulting in a net balance towards in-store of +22. (Retail Economics).
- 48% of Work-from-home consumers primarily shop online, compared to 38% of commuters. (Retail Economics).
- 2. 64 % of UK consumers purchase food online rather than in stores, with fruit and vegetables as the most popular item. (Statistsa)
- UK customers are returning to stores. In fact, 73% of overall retail sales will still be offline in 2023. (YouGov)
Consumer Behaviour Generational Comparison
- Millennials prefer to shop online. In contrast, Generation Z prefers to shop in physical stores despite being digital natives—they like to see products in person to feel confident in the quality. (Indeed)
- While millennials will pay attention to content for 12 seconds, Gen Z will only focus on it for eight seconds. Whereas, Gen Z enjoy short-form video content, like that of Snapchat or Instagram Stories, while millennials value long-form content, such as detailed videos or podcasts. (Hubspot)
- Gen X consumers are especially likely to make this commitment, with a net -29.3% planning to buy less. But fast fashion’s biggest consumers (Gen Z) will also cut back: -21.6% net. (Ask Attest)
- 46% of millennials and Gen Z say that they take the resale value of a product into consideration before buying, indicating that these shoppers see the resale market as an investment opportunity. (thredUP)
- 85% say they prefer chatbots and automated customer service over speaking to a live agent. (Shopify)
- In 2022, Vinted was the UK’s most downloaded shopping app. The second-hand clothing store’s official app received 7.67 million downloads in 2022, putting it well ahead of second-placed Amazon Shopping with 5.64 million downloads. (Money Transfers).
- A 2022 survey found that four in 10 consumers purchased secondhand goods, while another one-third of consumers sold their used items on the secondhand market. (Statista)
- Second-hand shopping will be a big pastime in 2023, with 34.8% of consumers saying they’ll be hunting for charity shop bargains to combat the rising costs of inflation. (Ask Attest)
Cost Of Living Crisis In The UK
- 62.3% of consumers have cancelled subscriptions as a result of the rising cost of living. More than 22% have axed a TV streaming service to cut costs and 14.8% have cancelled a music streaming service. (Ask Attest)
- The tag #dupe has been viewed 3.7 billion times. From January 1 to March 20, 2023, 15% more people talked about it online than in the previous months. (BrandWatch)
- Subscriptions are a casualty of the rising cost of living, with 62.3% of consumers cancelling one. More than 22% have axed a TV streaming service to cut costs and 14.8% have cancelled a music streaming service. (Ask Attest)
The Rise Of Buy Now Pay Later
- Almost 9 in 10 people suggested that their shopping habits had changed since they started using Buy Now Pay Later (BNPL) Apps. 50% said they had bought something they would otherwise have to save for; 44% had checked that BNPL was available when shopping; and 38% had spent more than they planned because BNPL was available. (The Behavioural Insights Team)
- 3 in 10 said they had experienced an issue when managing their BNPL spending – such as missing a payment, being charged a late fee, and falling behind on other payments or bills. (The Behavioural Insights Team)
New Methods Of Shopping
- TikTok users are shopping. More than half (55%) of users have made a purchase after seeing a brand on TikTok. Create a consistent presence on TikTok to start generating more sales from your viewers. (Sprout Social)
- Google found that 40% of internet users aged 18 to 24 start an internet search on TikTok or Instagram—rather than using Google. (Techcrunch)
- 76% of smart speaker owners have used their devices to make a purchase. (Adobe Analytics)
Consumer Ethics When Spending
- In May 2022, up to 8% of the consumers had chosen a product based on it being made by small businesses. This year, the number has grown to 42%. (Rock Content)
- 84% of customers in the UK say that poor environmental practices will alienate them from a brand or company. (The Round Up)
Brand Loyalty is Diminishing
- 46% of consumers will move to a competitor if their usual brand is out of stock. (Shopify)
- More than 70% of consumers bought from the competitor of their go-to brand between May 2021 and May 2022. (Shopify)
Insightful 2023 Prediction Stats
- In 2023, 62% of U.K. consumers will be making less impulsive purchases, with over half extending the research and consideration phase (53%) and 47% holding out more for potential sales. (Data & Marketing Association)
- Consumers will be pickier when it comes to which companies to buy from. When making purchases on social platforms, 54% of social media users are worried that companies aren’t legitimate, 48% worry that they won’t be able to get a refund, and 44% are concerned about the quality of the products being sold. (hubspot)
- Online will continue to be the channel with the strongest growth in the UK’s food and grocery sector in 2023. (Modern Retail)
- UK fashion sales are anticipated to climb by 23.9% in 2023, from £43.23 billion to £53.58 billion. (Modern Retail)
Conclusion: Consumer Behaviour Continues to Change
Factors such as inflation and the cost of living are significantly impacting consumers’ shopping habits. This is looking likely to continue for the remainder of 2023. We have identified that people are more price-conscious which has led to the rise in secondhand, off-brand products, and cheaper alternatives such as dupes. As well as Buy Now Pay Later apps becoming more and more popular.
Sustainability and brand ethics still play a big role in consumers’ purchase behaviour despite people cutting back on spending. As well as
To learn more about how understanding consumer behaviour can improve your digital strategy. Get in touch with our team here today.