AlixPartners - The Critical Consumer

The Critical Consumer 2024

In EMEA, the companies that can offer trade-downs that feel like a deal to consumers

are most likely to win share. However, product quality must remain high to meet the

expectations of any new customer segments to secure their custom for the long term.

Across all countries surveyed, 41% of consumers in the low-income bracket expect

to spend less in 2024 than 2023, while only 16% plan to spend more. This spreads to

another net decline for the mid-range income bracket too - 29% say they'll decrease

spending in 2024, compared to the 20% that say they will boost spend.

Pragmatic, price-sensitive European shoppers are turning to discount labels; in fact,

many prefer them. In the UK, more than half of low-, medium- and high-income

consumers regularly shop at budget supermarkets and discounters. Affordable massmarket

brands in fashion are also at the forefront of brand popularity. We see similar

trends in other European countries.

To mitigate price concerns, companies across sectors should turn to promotions and

rebates that attract consumers who feel they are getting a deal. These marketing tactics

are now an expectation of EMEA consumers who enjoy finding bargains and are, on the

whole, more comfortable spending rationally rather than lavishly.

Consumer across EMEA are resorting to promotions, better planning and alternative

products to maximise their grocery budget

TOP 5 METHODS FOR MANAGING SPEND REDUCTION IN GROCERY BY MARKET

RANK GERMANY SWITZERLAND UAE

ITALY

FRANCE UK

SAUDI ARABIA

I buy products in promotion more often

I switch to less expensive retailers, e.g. discounters

I avoid buying certain product categories, e.g. meat

I better plan my grocery shopping

I switch to cheaper product alternatives

I buy more written-off products close to their expiry dates

I do grocery shopping less often

Do you plan to spend 'less', 'the same' or 'more' in the following shopping areas next year?

PLANNED 2024 LEISURE SPEND ACROSS INCOME BANDS

Low income Medium income

Out-of-home entertainment | Home entertaiment | Restaurants and bars | Travel and holidays

3.06%

12.79%

43.21%

23.47%

17.46%

3.81%

15.85%

50.95%

20.68%

8.71%

8.04%

17.66%

49.88%

17.20%

7.22%

High income

Much less Less The same More Much more