Rising inflation and supply chain disruptions are changing consumer habits worldwide

Ready to make radical changes in their buying habits in response to disruptions in the supply chain, but also to rising inflation, say consumers, especially those facing problems related to the distribution and availability of products. The above results from PwC’s Global Consumer Insights Survey conducted on a sample of 9,069 consumers from 25 different countries, as announced today.

More than one in three (37%) say they would choose a different business to meet their needs or – if they shop in physical stores – would switch to online shopping. Accordingly, almost a third of those who shop online say they would give brick-and-mortar stores a chance to meet their needs, while 40% would use price comparison websites to check product availability.

According to the survey, global uncertainty and problems facing the supply chain are driving more and more shoppers to turn to local markets. Eight out of ten respondents said they were willing to pay more for products produced in their country or region.

Despite the increase in inflation, more than 75% estimate that they will maintain current levels of purchases in most product and service categories over the next six months. In fact, almost one in two (47%) expect to spend more money on groceries. However – and this may be a sign of things to come – more than one in four consumers plan to cut back on a number of goods categories, including luxury goods (37%), dining out (34%), the arts , culture and sports (30%) and fashion (25%).

Rising grocery prices were the biggest problem consumers faced, whether shopping in-store (65%) or online (56%) with more than half of survey respondents (57%) saying they almost always or often they are faced with increased prices.

Problems faced by the supply chain negatively affect the consumer experience. These include the availability of products (43% for those who buy online and 37% for those who shop in physical stores), long delivery times for online purchases (42%) as well as long waits and crowding in physical stores ( 36%).

Consumers have changed their lifestyles and purchasing habits as a result of the pandemic. And as it turns out, many of these habits have been established and will be reinforced over the next six months.

Specifically, 63% of the consumers who participated in the survey stated that they have already increased the purchases they make online, while correspondingly while 42% have reduced the purchases in physical stores. Half of respondents are cooking more at home and 50% have increased activities related to home entertainment and entertainment.

Regarding their future plans, these consumers estimate that they will move even more in the same direction:

– 50% expect to shop online more – this percentage is higher among core millennials (58%), new millennials (57%) and Gen Z (57%). Correspondingly, it is lower among baby boomers (32%) and those who belong to Gen X (42%). 39% expect to maintain online shopping at current levels.

– 46% plan to cook more at home.

– 41% will do more activities related to fun and entertainment at home.

– 22% will reduce their purchases from physical stores while only 33% will increase them

About one in two survey participants responded that a company’s ESG-related actions often or always influence their trust in it and the likelihood of recommending the company or its brands to others. Regarding the purchase decision, factors related to corporate governance (41%) and the relationship with society (40%) have a clearly greater influence than the environmental commitment of the respective company (30%). Accordingly, ESG factors are weighted more among Gen Z and millennials, and less for Gen X and baby boomers.

The most important factors in building trust between customers and companies are data security and customer experience. The protection of personal data is ranked first (by 58% of respondents) as it greatly affects trust in companies, having recorded an increase of 11% in the last six months. The answers “always meet my expectations” and “provides excellent service” were ranked high respectively in the answers of more than half of the respondents (53% and 52% respectively).

The impact of virtual reality (VR) and the metaverse as a shopping channel is just beginning to be felt, but there are significant implications for companies and retailers.

Globally, 32% of consumers surveyed have used virtual reality services and features in the last six months with the highest percentages in China (56%), India (46%) and Qatar (45%) as well as among those belonging to Gen-Z and young millennials (39% in both cases).

Of these, more than half have used VR to play games or watch movies/TV shows (51%) or participate in a virtual world. However, nearly a third (32%) of VR users say they have purchased products as a result of browsing through VR stores, and nearly two in 10 (19%) have used VR to purchase luxury goods. In addition, 45% expect to increase their spending in the future through VR in six categories.