Affordability, Value, and the Cost of Living: Balancing Budget and Lifestyle

Delivery

This report comes in PPT.

Key findings

Consumers have diverse needs, desires and shifting spending priorities

Global consumers continue to struggle with the cost-of-living crisis, as inflation remains high and regular price increases are implemented. Businesses that understand the diverse needs, desires and shifting spending priorities of consumers have developed solutions aimed at maintaining demand instead of shifting the burden onto consumers with higher prices for maximum margins.

Diverse realities of the rising cost-of-living impact felt globally

Different income groups’ spending habits vary depending on the market. The impact of the cost-of-living crisis trickles down through varying levels, impacting both top earners and struggling households. Companies have reacted in a range of ways, from reactionary price increases to more empathetic solutions that appeal to certain consumers’ spending priorities.

Developed market consumers seeking simplicity and added value

Developed market consumers are seeking to simplify their lives by spending less and saving more. The important differentiating features between products and services are no longer only “value for money” but also “added-value” aspects that align with consumer needs and desires. Products and services that proclaim these added-value features are proving successful.

Mixed reactions in emerging and developing markets

A significant proportion of spending is dedicated to essential items in emerging and developing markets, while emerging Asia is showing strong resilience. Companies need to understand the different regions’ response to the cost-of-living crisis and develop strategies that acknowledge the local cost-saving habits and measures.