6
The Critical Consumer 2024
Strategic technology improves the shopping
experience while reducing cost to serve.
WHAT DO YOU NEED TO KNOW?
Consumers show enthusiasm to try the
latest digital offerings. This provides a key
differentiating opportunity for retailers, given
shoppers' willingness to adopt new technologies
and their curiosity and desire to experiment.
Application of new digital tools and techniques
will enable retail and leisure businesses
to gather valuable insights about specific
customer groups, optimising their offerings and
marketing efforts (such as personalisation) for
better engagement and profitability.
WHAT DID CONSUMERS SAY?
AI adoption for product discovery is catching on
fastest in the Middle East:
• 41% of consumers in the UAE and 36% of
consumers in Saudi Arabia are using AI tools
to research products and holidays. Across
the five European countries surveyed, Italian
consumers showed the highest propensity
for this activity at 23%.
• Consumers generally are willing to explore
and adopt other new technologies as they
emerge in consumer-facing industries.
For example, more than two thirds of all
consumers already use or are open to using
click and collect, digital payments, home
delivery services, or retailers' mobile apps.
Quality is key to success in Leisure.
WHAT DO YOU NEED TO KNOW?
While consumers may reduce spend overall in
these sectors, they will be reticent to trade down
on quality, instead reducing the frequency of
activity to focus on special occasions or fewer
high-quality travel experiences.
A clear brand identity that stands for high-quality
experiences or excellent value for money will be
critical. Operators in the squeezed middle are
unlikely to benefit as customers prefer to stick
with brands that they trust versus trading down.
WHAT DID CONSUMERS SAY?
Net spend intentions will dip amongst consumers
for discretionary leisure activities in 2024:
• 40% of consumers overall expect to spend less
on in-home and out-of-home entertainment;
just 15% say they spend more
• 36% expect to spend less on restaurants and
bars; 18% say they spend more
• 35% expect to spend less on travel and holidays
in 2024 vs. 2023; 26% expect to spend more.
41%
in UAE use AI
to research
products and
holidays
40%
expect to
spend less on
entertainment