The LEK Consulting Consumer Sentiment Survey has identified shifts in consumer attitudes and spending behaviors, which it says have important ramifications for retailers, www.israelidiamond.co.il says.
The survey's key findings include a significant uptick in affluent consumer spending and optimism, and shifting online commerce expectations.
According to an LEK press release, the study found that affluent consumers (i.e. households earning $150,000 and over annually) are bullish on the economic recovery, and 39% believe their spending was either not impacted materially by the recession, or has already returned to pre-recession levels.
The poll found that general consumers, by contrast, are significantly more cautious: only 12% expect their personal finances to improve by fall 2010, and 65% said they did not anticipate their finances will rebound significantly in the next 12-24 months.
According to LEK, affluent consumers are the only demographic that is spending more today than before the recession, and it is the only group whose spending is expected to increase in 2010, by a predicted 3.5%.
“LEK’s survey findings show that wealthy consumer spending is outpacing the general public significantly and appears to be literally pulling the US out of its recession,” said Andrew Rees, Vice President and Head of the LEK Consulting Retail Practice.
“The distinct affluent demographic underscores why retailers need to truly understand what motivates each customer type. Deep customer segmentation will give retailers the insight to chart a clear course despite hazy market conditions.”
The survey also found that the recession has amplified the phenomenon of "selective splurging." Data also suggested that the most prevalent mega-trend through the recession continued to be online shopping. The US Commerce Department reports that e-commerce sales totaled $38.7 billion in Q1-2010, indicating a continued shift of retail sales to the web.
Of the total respondents to the LEK survey, nearly one quarter said that their online shopping increases every year. The survey also found that the web plays an important role in influencing in-store purchases.
“Online shopping continues to be an important focus for retailers, and our survey found that one quarter of consumers’ purchasing decisions in physical stores are influenced by their online experience,” said Dan McKone, Vice President of LEK Consulting.
“Consumers are also emphatic that they expect consistency across various elements of the multi-channel merchandising. In particular, we found that retailers that don’t think through the implications of pricing inconsistency across the store versus online channels risk alienating customers.”
The study found that the influence of social media on purchasing is growing, saying that 12% of consumers on social networks, who see product recommendations from friends, plan to purchase those items themselves.
LEK also found that consumers were more inclined to respond to an email from a retailer, if they have joined that retailer’s mailing list (26%), than they are to respond to an email forwarded by a family member or friend (21%).
Retailers that can convince consumers to become a part of its online community (perhaps through promotions or other incentives) can build a powerful connection that can support long-term sales.
