Gen Z Spending Habits: The Paradox of Consumer Trends: PwC

retail consumer behavior

Data is key to the CPG of the future, yet 74% of execs struggle to harness its potential. Of companies are prioritizing integrated business planning over demand-driven inventory supply Of consumer goods companies identify the omni-connected consumer as a top priority When window displays are designed with the right visual cues, they not only draw in shoppers but also trigger an emotional response and persuade them to take a step forward in their buying journey.

Retailers that act now, shifting from minor adjustments to end-to-end supply chain redesign, may be better positioned to manage rising costs, shorten lead times, and stay competitive in 2026. With 95% of surveyed retail executives expecting global trade policies to push costs higher, many are moving beyond small changes to the current setup and rethinking supply chain design to better manage cost pressure and operational complexity. In 2026, as GenAI tools become more accessible, retailers might stand out by combining creative ideas, customer data, and AI to deliver unique brand experiences. At the same time, shopping is moving to AI intermediaries, with chat-based tools already driving 15% to 20% of referrals for some retailers and forecasts suggesting agents could influence up to 25% of global e-commerce sales by 2030. Yet value is not only about price since up to 40% of brand value perception comes from non-price factors like quality, service, checkout ease, loyalty, and https://dineshtripathi.com/eight-useful-tips-to-consider-while-designing-the-layout-for-retail-business.html employee interactions.

retail consumer behavior

Keep up with our latest data and insights on consumer behavior, category performance, innovation, manufacturing, and more by signing up for The IQ Brief . Learn how AI, agentic commerce, and LLM discovery are reshaping CPG growth—and how brands can win with consumer-led innovation. How Dreame used NIQ’s unified market intelligence to achieve 122% overseas revenue share growth and scale across 16 global SDA categories. Retailers should consider going beyond discounts and find more ways to deliver value through quality, convenience, and emotional connection.

  • And according to PwC’s Holiday Outlook, 11% say it’s one of their top three preferred payment methods this holiday season, up from 5% in 2024.
  • Transparent pricing, All costs, including shipping, taxes, and fees, visible before the checkout stage.
  • A well-executed display doesn’t just show products, it places them in a context that makes the customer feel something, and feeling something is often what converts browsing into buying.
  • Staff behavior is a form of psychological influence on individual shopping choices.
  • Behavioral economics pioneer Richard Thaler’s concept of choice architecture, the idea that how choices are presented inevitably shapes what people choose, suggests that neutrality isn’t actually possible.

Demand-driven retail reshapes the rules of fast fashion

With all the tech and tools available today, people are mixing online and offline touchpoints like never before. Emerging platforms like Central Online and niche verticals such as Konvy (beauty) and JD Central cater to mid- and high-income consumers who prioritize authenticity and quality. Consumers in Thailand are highly responsive to promotional campaigns like 9.9, 10.10, 11.11, and 12.12, with these mega-sale events driving record GMV across platforms. Popular platforms include LINE, YouTube, Facebook, TikTok, and Instagram, making Thailand one of Asia’s most social-driven markets. There are many reliable sources that provide customer and market information at no cost.

retail consumer behavior

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Value brands should emphasize deals on items commonly returned or exchanged, and offer incentives for post-holiday shopping. Shoppers showed new preferences in timing, income-driven patterns and age group habits, reshaping the landscape for retailers. Over 55% of Gen Z’s total holiday spend occurs via omnichannel experiences (integrated online and offline shopping). During peak events, over 55% of Gen Z’s spending was omnichannel, while other demographics averaged just 30%.

retail consumer behavior

The Deloitte Consumer Industry Center delivers insights that help leaders in the automotive, consumer products, retail, transportation, hospitality, and services sectors better understand their business environment and where it’s heading. Globally, consumers say they are least willing to make https://www.nmb-group.com/why-the-retail-industry-will-continue-to-change.html cost compromises around hotel locations, convenience of flight itineraries, and vacation destinations. Insight into where consumers are splurging, how much they’re spending, and what’s driving it Deloitte’s financial well-being index (FWBI) captures changes in how consumers are feeling about their present-day financial health and future financial security. Regional food frugality patterns diverged in May—APAC rebounded, while North America and Europe eased. Deloitte’s 2026 Consumer Products Industry Global Outlook explores seven significant changes in the food and beverage, beauty and personal care, and household goods companies

  • Multi-pack deals, smaller refill packs and loyalty or rewards programs keep frequency high among value-driven buyers.
  • Shoppers showed new preferences in timing, income-driven patterns and age group habits, reshaping the landscape for retailers.
  • At the same time, shopping is moving to AI intermediaries, with chat-based tools already driving 15% to 20% of referrals for some retailers and forecasts suggesting agents could influence up to 25% of global e-commerce sales by 2030.
  • Fragrance has moved into the same emotional-regulation toolkit.

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