Consumers choosing to cut back on fashion and food amid rising costs, survey says
Consumers are most likely to cut back on eating out and fashion as they adjust their spending to cope with the cost-of-living crisis, a survey has suggested.
More than two-thirds of consumers (69%) say they would try to save money on eating at restaurants or ordering takeaways, while 60% said they would reduce spending on clothing, according to research for Advertising Week Europe.
However, fewer than half (46%) of 2,000 respondents from across the UK said they would cut back on holidays and travel, suggesting that cancelling trips already delayed by the pandemic is out of the question for many.
While the squeeze on living standards has caused two-thirds of respondents to adjust their lifestyle, the crisis has been most felt by those older than millennials. Some 72% of 42 to 67 year olds say they have already started to make changes to how they spend.
Some 69% of millennials – those aged between 26 and 41 – have made lifestyle changes to deal with the crisis, decreasing to fewer than half (49%) of 18 to 25-year-olds. 39% of all respondents reported their energy bills having increased by between 50% and 75%.
Advertising Week Europe President Ruth Mortimer said: "It is particularly notable that all generations have had to make significant lifestyle adjustments to deal with rising costs. For young people, it’s clearly not a simple case of reducing expenditure on coffee and avocados, despite what some may think.
"In a world where cost is becoming king, brands now have serious decisions to make about balancing affordability for consumers with other factors like product origin and sustainability."