Consumers are feeling far from optimistic as we get closer to the holidays, according to Jungle Scout’s Q4 Consumer Trends report.
Of U.S. shoppers, 80% believe the country is headed for a recession, and 93% have noticed higher prices in their day-to-day spending. In addition, 83% say rising inflation has affected their spending. And 69% are worried about their finances.
Consumers are concerned about financial stability for the following reasons:
In addition, in probable reaction to these fears, 33% of consumers are reducing holiday expenses — particularly for gifts and decorations. And 58% are searching for deals and discounts when holiday shopping.
On the positive side, 54% are making travel plans for 2023 — up 16% from 2121. And 79% claim that dining out, getting manicures and smoking or vaping are non-negotiable expenses as we move into 2023.
The most popular gifts this season are virtual ones like streaming and music subscriptions. Of the consumers polled, 20% get their holiday gift ideas from social media.
"Consumer expectations and priorities will shift in 2023, as inflation continues to impact spending," says Michael Scheschuk, president of small & medium business at Jungle Scout.
Scheschuk urges brands to " diversify sales channels and consider expanding into social commerce through popular platforms like TikTok, allowing them to engage with new audiences in more authentic and memorable ways."
Jungle Scout surveyed 1,000 U.S. consumers.