Capgemini Report: Easing cost-of-living concerns

Capgemini’s annual consumer trends report, ‘What Matters to Today’s Consumer,’ indicates a decrease in concerns about the rising cost of living. Presently, only 43% anticipate a deterioration in their personal finances in the coming months, a significant drop from the 80% recorded a year ago.

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The latest Capgemini consumer trends report, ‘What Matters to Today’s Consumer,’ notes reduced worries about the increasing cost of living. Currently, only 43% foresee a decline in personal finances in the coming months, marking a substantial decrease from the 80% reported a year ago.

The report highlights the impact of persistent inflationary pressures on shaping consumer expectations, spending habits, and exploration of shopping channels. The report noted that the rising use of generative AI by consumers, which not only aids in shopping but also contributes to enhancing retailers’ operational efficiency and improving customer experience.

Furthermore, there is an increased expectation among consumers for retailers to offer greater affordability on essential items, with 70% expressing a desire for additional discounts. Loyalty is also influenced, with 73% stating they would be more loyal to retailers providing assistance during challenging times, and a similar proportion expressing an inclination to purchase more from such companies in the future.

Talking about the report, Lindsey Mazza, global retail lead, Capgemini Group, said, “Though consumer concerns have eased this year, they remain prudent about spending and are either unwilling or unable to spend more. It is crucial for retailers to transform their operations in order to pass on cost benefits to consumers, who are increasingly selective in their choice of products and brands.”