Digital River Survey Finds Consumers Express Optimism for Future Finances Despite Economic Pressures
May 02 2024 - 10:05AM
Business Wire
Data shows consumers reducing spending and
turning towards second sources of income in the face of rising
prices
Digital River, a global commerce enabler directly connecting
brands and buyers, today released findings from its most recent
consumer survey aimed at helping brands understand shifting
consumer shopping habits tied to current and future economic
concerns. The survey data was collected from 3,000 total
respondents equally spread across the US, UK, and Germany.
Global economic worries persist, yet consumers are less
concerned about personal finances compared to previous
years.
Despite facing heightened financial strain, a significant
portion of consumers anticipate a brighter financial future ahead,
with hopes for improvement over the next year.
- Over half (55%) of consumers are concerned about the current
state of their country’s economy, with 54% feeling more stressed
about their personal finances.
- Over the last 12 months, 24% of consumers say their financial
situation has gotten better, while 42% say it has gotten
worse.
- Yet compared to 2022, consumers are generally more optimistic
about the future of their financial situation. In fact, two in five
respondents expect their financial situation to improve over the
next 12 months.
Consumers have changed spending habits to cope with
uncertainty.
While some resort to 'doom spending' to cope, many consumers are
scaling back spending across the board, trying to control budget
variance.
- Over the last 6 months, half (51%) of consumers have been
spending less due to concerns about the economy and geopolitical
events.
- Nearly one-quarter (23%) of consumers describe their current
habits as “routine spending,” with consistent and predictable
patterns prioritizing necessities.
- One in five (22%) consumers describe their current spending
habits as “budget-conscious spending,” meaning they carefully plan
and track expenses.
- Gen Z consumers (22%) were more likely to admit to “doom
spending” than other generations (Millennials: 19%, Gen X: 11%, and
Boomers + Silent Gen: 9%).
Shoppers are divided on their approach to savings.
Many consumers have pursued side hustles to add to their savings
or plan to in the future, with rising costs underscoring the need
for emergency funds.
- One-quarter (24%) of consumers have taken on an additional job
or “side hustle” to increase their income in the last 12 months.
Another one-third (32%) plan to do so in the future.
- About one-third (30%) admit to “doom saving,” reporting the top
reasons for increasing savings are contributions to emergency funds
(52%) and affording the rising cost of necessities like food and
rent (33%).
- German consumers were particularly focused on increasing their
emergency savings (62%), compared to the US (41%) and UK
(48%).
“Amid global economic concerns, consumers are demonstrating
cautious optimism about their financial outlook, signaling a shift
towards greater cost-consciousness and strategic savings," said Ted
Rogers, Digital River’s Chief Marketing Officer. "While facing the
pressure of rising prices, the trend of decreased spending and
increased savings underscores a prudent approach to navigating
economic uncertainty, with encouraging signs of price stabilization
in certain markets."
To view the complete survey results, please visit here.
About Digital River
Digital River empowers ecommerce brands to confidently
accelerate growth in more than 240 markets worldwide. The company
connects brands and buyers directly, staying behind the scenes to
manage international payments, tax, fraud, compliance,
localization, and domestic and cross-border shipping and returns.
Digital River is a strategic partner for brands, helping turn data
into actionable insights and providing expert guidance based on 30+
years of experience enabling ecommerce brands to thrive. Digital
River is global commerce growth, simplified.
Digital River is headquartered in Minneapolis with offices
across the U.S., Asia, Europe, and South America. For more details,
visit DigitalRiver.com.
Digital River is a registered trademark of Digital River, Inc.
All other company and product names are trademarks, registrations,
or copyrights of their respective owners.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240502612035/en/
Mary Swanson Sr Director, Strategic Marketing Digital River +1
952.239.8828 publicrelations@digitalriver.com