Consumer behaviour - what are the trends based on the current events?

Rising prices have overtaken all other current topics as top concerns of consumers worldwide. Rising prices are worrying for all generations and income groups. 

Gibraltar's inflation rate is currently at 8.9%, in comparison to the UK at 11.1%.

However, many consumers are responding to a world in crisis by using the behaviours learned during the pandemic. Consumers have become resilient to change and uncertainty. 

Consumers around the world, in the past years, have faced and overcome challenges. It has been about three years since Covid-19 was declared a global pandemic by the World Health Organisation. Since it first emerged, people's behaviour changed, literally overnight. Health became a priority, and cost of living and affordability became the focus as the economic impact of the pandemic started to unfold. 

It almost seemed unreal when life returned to 'normal', but is the crisis really over? 

It is arguable whether the current macroeconomic factors are causing a new crisis or it may be an extension of the crisis we were already in. 

It is intriguing to observe consumer behaviour, instead of reacting to the uncertainty, active responsiveness to emerging disruptions is the new norm. 

What caused the shift in consumer behaviour?

In comparison to the last financial crisis back in 2008/9, there are three main contributing factors:

1) Adaptability as a result of the pandemic

People are become comfortable living in uncertain and volatile environments.  Individuals are able to adapt, and make changes to long-established habits and creating new ones based on the current environment.

2) The digital revolution 

During the last financial crisis in 2008/9, the online world was still an evolving space. The internet disconnected when your parents were on the phone and mobiles had just been redesigned without an antenna. 

 The pandemic accelerated the adoption of digital technologies by several years. Information is easily accessible, consumers are able to connect, learn from each other and work together.  

3) Consumer values 

Sustainable lifestyles is the new trend, since the pandemic materialism has declined.