New post-pandemic consumer trends

The current economic scenario, which brings with it high inflation and an uncertain geopolitical environment, is creating a cautious environment for consumers globally, as seen in the Future Consumer Index presented by EY.

According to the study, these events coupled with recent changes in the way we consume have transformed the way people purchase products or services.

“The environment has made consumers wary. In Mexico, 51% of those surveyed believe that their lives will be the same for the next 3 to 5 months and 31% do not expect the global economy to recover in the following year. However, 69% say they have confidence in the future”, they point out.

Francisco Olivares, Lead Partner of the Consumer Industry for North Latin America at EY, pointed out during the presentation of the study that in the face of the economic slowdown, these data acquire particular relevance.

“Unlike other times of crisis, it is clear that recent circumstances have made us much more resilient. Latin American consumers are aware of the challenges that are yet to come, but they reflect an adaptability and willingness to change”, he indicates.

“Businesses urgently need to anticipate these behaviors, adapt quickly in the short term, and build the capabilities to stay relevant in the future.”

consumer segments

Through the Consumer Index, EY has identified 5 consumer segments in Mexico:

• 28% of those surveyed the priority is the planet.

• 25% prioritize health.

• 18% think that experience comes first and

• 14% consider that the main thing is society.

Priorities vary widely across geographies, with most markets focusing on affordability and sustainability.

The demand for sustainability is driven above all by young consumers, where this element is a priority for 31% of millennials and Generation Z surveyed, while 30% of Baby boomers prioritize health.

Likewise, it is pointed out that the young generations also continue to promote consumption through emerging technologies and experiences, one in ten respondents in these age ranges said they were digital consumers: 18% already use digital currencies and virtual platforms, compared to 9% and 7% respectively older generations.

“The adoption of digital habits will require companies to create the right tools, a resilient supply chain and flexible logistics to serve customers. To do this, they will have to apply sustainability strategies that profitably serve people and the planet, through integrated transparency throughout the value chain”, they indicate.

Additionally, pricing and portfolio strategies will need to respond to new perceptions of value, as affordability becomes an important factor in the current inflationary environment.

“In this scenario, the four imperatives that consumer companies need to keep in mind is to focus on reviewing operations and portfolios to meet affordability; adapt sustainability strategies to offer profitable solutions; balance investment in commitments to accommodate new digital opportunities and, finally, establish key performance indicators that reflect the changing values ​​of consumers”, said Gilberto Lozano, Consulting Partner for the Consumer Industry at EY Latin America North.

Cheer up

Finally, the study also refers to the fact that the increase in the cost of living and health are the main concerns of consumers in Mexico.

“58% of consumers are concerned about an increase in the cost of electricity, gas and water, 56% are concerned about the increase in the cost of groceries and other basic household products,” the study says.

Likewise, more than 50% of consumers feel concerned about the high cost of health, and an increase in the cost of gasoline and gas.

alba.servin@eleconomista.mx