Buying trends and consumer behaviour have changed significantly over the past years. As the world continues to be a volatile place with macro developments impacting the smallest communities, consumers will evolve in terms of purchasing behaviour. Following a turbulent couple of years starting from 2020, it will be interesting to see how buying trends will change in 2023. In this article, we shall be discussing the key factors that will potentially influence buyer behaviour in 2023.
Many analysts and economists are foreseeing a recession to dominate the headlines in 2023. When going through a recession, spending power decreases and people reduce expenditure in areas that they can live without. The first thing that people would cut out on is discretionary spending, typically on entertainment and vacations. Irrespective of whether people’s income has been impacted, recessions create fear of the future and saving more becomes a higher priority.
Increased cost of living
Another considerable influence which is set to take centre stage in 2023, is that of the increased cost of living. The invasion of Ukraine has translated into increased energy tariffs and general cost of living. With the conflict showing no signs of stopping anytime soon, higher costs and inflation are set to remain core economic problems throughout 2023. To tame inflation, central banks have increased interest rates, which are impacting loans and mortgages. Impacted by these expenses, spending power is set to suffer as people become more cost conscious.
Environmental awareness continues to accelerate and people are becoming more inclined to purchasing products and services that are friendlier towards the planet. One example is that more people are opting to purchase electric cars rather than the fuel-based vehicles that we are accustomed to. People are also working towards making their homes more sustainable. One leading example is solar panels aimed to use the sun’s energy to generate power. Another pattern is that of people buying more food products that are beneficial for the environment.
As time progresses, consumers are becoming more demanding. Following recent events, people have become more sceptical of authority, leaders and the media. In 2023, businesses can expect to deal with more demanding customers as they strive to ensure that they are getting value for money. Consumers are less likely to be forgiving towards businesses that are not fully aware about product details and specifications.
Looking at 2023, it will be interesting to see how businesses will cater for evolving consumer trends, especially during differently difficult periods.