Consumer spending now favors experiences, discount shopping over big brands
AFP Relaxnews / 04:14 PM April 07, 2017
A fresh study has highlighted a mass consumer move away from designer and expensive brand-name purchases in favor of experiences and items that will garner the most social attention.
The report by NPD Group, titled “Retail Reborn: How the Aspirational Purchase Has Shifted”, suggests that shoppers are no longer as willing to risk their credit rating to splurge on designer goods and prefer to spend on more unique purchases, avoid debt and gain followers instead.
More specifically, the study found that the decline of discretionary income during the Great Recession compelled consumers to shift spending habits, with individuals, anxious about debt, now prioritizing artisanal and handcrafted items; chasing individuality versus traditional fashion; valuing experiences over material products, and, increasingly, investigating the most photogenic option to inform their purchases (via WWD).
According to the research, millennials in particular are also embracing discount shopping, with figures showing that millennials who earned over $100,000 visited dollar stores almost 13 times annually. JB