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1、CONTENTSEXECUTIVE SUMMARYHAPPINESS MATTERSTHE STATE OF THE NATIONYOUR FUTURE CUSTOMERA PURPOSE-DRIVEN FUTUREGEN Z:YOUR FUTURE IS IN THEIR HANDSCHANGE,OR BE CHANGEDA PATH TO GROWTH AND HAPPINESS03061117202531532EXECUTIVE SUMMARYIn the turbulent financial,business,and political landscape of today,bran

2、ds that lag are those that stray from customer sentiment.In contrast,successful brands are mastering the art of happiness by innovating,generating fresh consumer demand,and reshaping the existing consumer experience landscape.Dentsus Read the Room research probes 2,000 people on their financial well

3、being and attitudes to spending.It reports on how UK consumers are feeling each year so that brands can truly understand how to engage consumers,create new demand and ultimately help increase happiness across our society.The findings will help your brand respond with agility to changing times,and to

4、 better know your current and potential customers in order to shape strategies that will stimulate growth and maximise competitiveness.Heres a summary of some of our key discoveries:ECONOMIC LANDSCAPEFinancial instability is crippling consumers.Half of consumers are anxious about their ability to re

5、tire and are struggling to save each month.This is due to rent and mortgage prices rising,as well as groceries overtaking rent as a proportion of spending,and pay not increasing in line with inflation.RETAILConsumers are more confident about the future this year.They are saving more money and overal

6、l financial confidence has risen.However,economic issues remain a top concern,meaning shoppers are doing much more research before they make a purchase.Own-branded supermarket labels have also become a priority choice for this reason,with 93%of those who are concerned about the cost of living only b

7、uying own-brand when they shop.GEN ZSocial impact is the driving purchase factor for Gen Z.Brands cant overlook this if they wish to bolster the economy long-term.While Gen Z are the most financially unstable,they have high expectations of brands,citing the greatest concern about social issues and d

8、emanding emotional intelligence from brands(70%).Gen Z are also the most charitable generation,giving the highest proportion(5%)of their income to charity.If brands want to support Gen Z and improve on the buying potential this generation offers,they must do good for society not just through words,b

9、ut through evidenced action.4FINANCIAL SERVICESConsumers are becoming more financially savvy and discerning,though Gen Z is substantially behind older consumers on monitoring good deals and theres a clear opportunity for brands in this space to offer education here.Despite being a financially unstab

10、le cohort,two-thirds of Gen Z have a savings account,although this proportion has decreased year-on-year.Nearly half of Gen Z are in work,but just 13%have a pension creating an opportunity to appeal to them early,to begin to attract those with the highest potential customer lifetime value.TRAVELClim

11、ate change is not driving travel plans economic conditions are a more pressing concern.Consumers will change their travel plans based on economic conditions,particularly Millennials(46%have drastically changed plans for their holidays next year due to economic pressures)and Gen Z(41%).However,80%of

12、those taking long-haul holidays acknowledge that climate change is an issue.FOOD AND BEVERAGESConsumers wont settle for skimpflation as price and quality still matter.Despite rising prices,consumers are still motivated by high-quality produce when purchasing.Concerns around food prices are highest a

13、mong those with children,who are spending the most.Those most concerned about food prices are shopping less often,but on average spending more per month:one bulk shop doesnt always equate to saving money.We are trading at a time where consumers are expecting more from brands to reduce environmental

14、impact,and technology is enabling new experiences and cultivating new behaviours.How your brand considers where and how to place investments is critical to win today and prepare for tomorrow.Here,we delve deeply into customer attitudes to financial wellbeing and relationships with brands.In simultan

15、eously considering how preferences,behaviours,and needs shift by vertical,this report creates stimulus across industries to better engage,service and grow customers-from Gen Z to Boomers.Read on to learn what our findings mean for your brand,and how to respond.5INTRODUCTIONHAPPINESS MATTERSIndex of

16、UK wellbeing measure vs economy2011/122013/142015/162017/182019/202021/2210575HappinessLife SatisfactionGDP IndexHappinessLife SatisfactionGDP IndexHAPPINESS.HAPPINESS.IMPACTS OUR GDPImagine a business where instead of solely financial profit and loss,a priority metric was wellbeing of its people an

17、d its surrounding community.Imagine a world where the life satisfaction and happiness of each nations inhabitants meant just as much to their government as GDP.Perhaps that world should be this world.After all,theres a direct correlation between the happiness of a country,and its GDP.And in this wor

18、ld,we see that Gen Z and Millennials are spending on experiences that are important to their values despite the economic crisis,while Boomers are saving rather than spending.These are new behaviours,pushing brands to get closer to their consumers not simply to react,but to proactively discover new w

19、ays to create fresh consumer demand and unlock value.Source:Office for National Statistics,Quality of Life in the UK,February 2023 I Office for National Statistics,GDP first quarterly estimate,UK:October to December 2022.7UNDERSTANDING CUSTOMER SENTIMENT IN THE NOW IS KEY TO BEING READY FOR THE FUTU

20、REEverything is changing fast,and brands who fall behind are those who fail to track the sentiments of their customers.Brands must understand customers enough to anticipate their needs and preferences,and actually drive demand by creating new experiences.Brands that succeed are becoming experts in c

21、reating happiness.Brand EQ research undertaken over the past four years by dentsu media agency,Carat,has proven that brands with higher emotional intelligence grow more quickly.All brands score more highly on emotional intelligence when they prioritise a meaningful value exchange.Its self-awareness

22、and empathy that distinguish the top performers;they are creating new value by successfully building new consumer demand,and reshaping the existing consumer experience landscape.Source:Brand EQ3 2024 Edition,Carat 2024.8A happier society means a growing economy so,the pursuit of consumer happiness f

23、or your brand is not just a nice-to-have.To truly shift the needle in your favour,digging deep into consumer sentiment to drive that greater satisfaction and joy is vital.In Britain,our economy has been stagnating for two years.We need to have much more of a strategic focus on increasing investments

24、,boosting productivity,and balancing all this with our transition to Net Zero.We need to think laterally about how we as brands are spreading prosperity throughout our communities.How are we approaching the wealth equity equation?And what about the diversity equation?Whilst the Bank of England is su

25、ggesting that we will see the economy pick up slightly this year,its clear that the 12 months ahead will still be volatile.Brands need to prepare for Plan A,Plan B and Plan C.We must be ready,adaptable and flexible amid changing circumstances to stimulate top-line growth,whilst simultaneously mainta

26、ining a sustainable bottom line.But this is only possible when we understand our audiences and whats driving their decision making.Its for this reason that we produce this report on how UK consumers are feeling each year,to help brands respond with agility to changing times.PEOPLE+BUSINESS+9PEOPLE+B

27、USINESS+SOCIETYCentral to our approach is the notion that simultaneously focusing on doing good for business,for people,and for society the Japanese philosophy of Sanpo Yoshi-makes the world a better place.We believe that reading the room and responding accordingly will help brands build better expe

28、riences for people and a better world for society,all whilst creating a competitive advantage.ABOUT THE RESEARCHThis proprietary research of a nationally representative sample of 2,000*respondents will allow you to understand how different groups of consumers are responding to the current UK economi

29、c conditions,societal challenges,and global outlook.Based on the insights of this research,youll gain a framework of consumer behaviours and motivations,along with vertical-specific insights as to how retail,financial services,travel,telco,and food and beverage brands will likely be impacted.Well al

30、so take a deep dive into the generation that will fuel your brands future-Gen Z-and consider what part a strong,well-communicated brand purpose will play for those that will thrive through 2024 and beyond.Gen Z Aged:18-24Millennial Aged:25-44Gen X Aged:45-54Boomer Aged:55+*Dentsu and B2B Internation

31、al conducted an online survey among a representative sample of 2,000 consumers in the UK.The survey ran from 29 November to 8 December 2023.B2B International is dentsus global,full-service market research firm dedicated to researching business-to-business markets.They help clients to make smarter de

32、cisions driven by exclusive insights,empowering them to grow.THROUGHOUT THIS REPORT,WE REFER TO DIFFERENT GENERATIONS DEFINED AS:10In 2024,more critical elections will take place than in any year before(2 billion people go to the polls this year).At this pivotal time,our survey shows consumers incre

33、asingly prioritising not just price,but security,trust and familiarity,when it comes to their spending habits.While consumers are feeling more positive than last years survey found,concerns about the UK economy have not been eliminated.As the overall financial outlook has not changed drastically ove

34、r the past year,marketers are still under significant pressure to limit cost inflation for customers.Marketers need to continue to embrace a doing more with less philosophy,which means:Prioritising moments that matter most in the consumer journey Being relentlessly focused on your value proposition

35、Leveraging AI for increased efficiency Giving your creative assets a make over Ensuring you elevate scenario planningConfidence in the UK economy has recovered substantially since 2022,particularly regarding fears of recessionI think that UK interest rates will stabilise next year at a manageable le

36、velI think that UK inflation will be brought under control next yearI have confidence in the overall UK economy2022(n=2,004)2023(n=2,000)37%35%29%19%15%agreeing with each statement19%1251%52%47%23%23%19%58%48%46%31%30%26%I am extremely anxious about my finances in the immediate futureI am extremely

37、anxious about my ability to retire comfortablyI am in a very comfortable financial situationI believe I am saving plenty of money each monthI believe that any recent increases to my costof living are temporary%disagree%agree-Significantly higher/lower than 202221%25%26%50%54%50%17%29%29%43%48%43%51%

38、52%47%23%23%19%58%48%46%31%30%26%I am extremely anxious about my finances in the immediate futureI am extremely anxious about my ability to retire comfortablyI am in a very comfortable financial situationI believe I am saving plenty of money each monthI believe that any recent increases to my costof

39、 living are temporary%disagree%agree-Significantly higher/lower than 2022Concern about financial issues has decreased this year,although younger people are still much more concerned about interest rates-Significantly higher/lower than 202267%85%71%84%62%70%62%55%Exchange rates/strength of the UK Pou

40、ndInterest rates increasingGen ZMillennialGen XBoomerFinancial confidence has increased significantly,as has housing stability2023202320222022My housing situation is extremely stableI am extremely anxious about my finances in the immediate futureI am extremely anxious about my ability to retire comf

41、ortablyI am in a very comfortable financial situationI believe I am saving plenty of money each monthI believe that any recent increases to my cost of living are temporaryIts clear that the recovery from the peak of the cost-of-living crisis of 2023 is impacting different parts of society in differe

42、nt ways.For example,concern about financial issues has decreased this year,but younger people are still much more concerned about interest rates:Overall,financial confidence has increased over the past year,as has housing stability;however,this is heavily skewed to older generations.Not unexpectedly

43、,Gen Z continue to worry about their finances and housing.13The younger half of our demographic has less disposable income;although they are still worried about what they spend their money on,they have higher expectations through the lens of both their values and community.70%of Gen Z say they are l

44、ooking for brands to demonstrate emotional intelligence and understanding in their advertising,versus just 45%of Boomers,for example.Gen Z are having to put the highest proportion of their income towards their rent(very few have a mortgage)RENT/MORTGAGES32%Gen Z(n=188)Millennials(n=687)29%Gen X(n=37

45、6)25%Boomers(n=749)9%14In contrast,the older half of our demographic have more money available to spend each month,but they report purchasing tangible items less than those younger than they are,and less frequently.Much more of their disposable income is invested in financial products such as saving

46、s,pensions,and insurance.Brands need to stimulate demand in this older demographic by ensuring Boomers and Gen X can choose quality products and services that directly cater to their needs and preferences:60%31%26%18%15%15%14%7%7%3%20%ClothesShoesHomewareHome improvementsAccessoriesTechnology(under

47、100)Technology(100 or more)Garden accessoriesFurnitureLuxury fashion items(costing 500 orNone of theseSignificantly lower than in 2022Significantly higher than in 2022Boomers(n=749)Gen X(n=376)Millennials(n=687)Gen Z(n=188)54%58%66%61%20%31%40%33%25%25%27%30%15%16%23%17%7%11%19%32%6%16%21%20%7%14%19

48、%21%5%7%9%7%4%4%10%10%0%1%6%6%28%22%13%12%-Significantly higher/lower than averageThe combination means we need to be able to solve issues for different needs and expectations of the consumer which may be nothing new according to the laws of marketing-but if consumers are prepared to spend in differ

49、ent ways,we need to create demand in the varying spaces.Spending habits of each generationBoomers(n=749)Gen X(n=376)Millennials(n=687)Gen Z(n=188)54%58%66%61%20%31%40%33%25%25%27%30%15%16%23%17%7%11%19%32%6%16%21%20%7%14%19%21%5%7%9%7%4%4%10%10%0%1%6%6%28%22%13%12%-Significantly higher/lower than av

50、erage15KEY TAKEAWAYS1.Segmented marketing approach:Tailor marketing strategies to address the distinct financial concerns and spending behaviours of different generations.Emphasise emotional connection for Gen Z,quality for older demographics.2.Acknowledge lifestyle concerns:Engage in initiatives/pa

51、rtnerships to enhance financial literacy,particularly targeting younger consumers.This will boost their confidence in investing spend with your brand.3.Diversify targeting:For younger generations,develop campaigns that cater to immediate consumption desires to generate longer-term brand affiliation

52、and loyalty.Build deeper relationships with Boomers to stimulate trust and advocacy.16!#$%!#$%!#$%!#$%!#$%!#$%FINANCIAL PRODUCTS HELD:INCOME IS SPENT ONATTITUDES ABOUT OWN FINANCESNo investments.Unlikely to have a pension.Some savings.50%on rent.High anxiety surrounding cost of living,fear unemploym

53、ent.BUDGET TO RETIREAGE:55+FINANCIAL PRODUCTS HELD:INCOME IS SPENT ONATTITUDES ABOUT OWN FINANCESSome savings.No rent or mortgage spend.More than 80%on bills&food.Very worried about financial future and strong reliance on pension when retired.AMBITIOUS FOR FUTUREAGE:18-44FINANCIAL PRODUCTS HELD:INCO

54、ME IS SPENT ONATTITUDES ABOUT OWN FINANCESStrong savers.Have a mortgage.Mortgage,savings,entertainment and non-essentials.Likely to feel stable and comfortable.Pay into savings,ISAs and investments,as well as credit card debt.SECURE OPTIMISTSAGE:65+FINANCIAL PRODUCTS HELD:Save and have a pension.Hav

55、e credit card debt,and a mortgage.Only group to regularly use buy now,pay later(BNPL).ANXIOUS DEBTORSAGE:25-44FINANCIAL PRODUCTS HELD:INCOME IS SPENT ON30%goes towards their mortgage.Extremely anxious about finances and struggling with debts.COMFORTABLE&UNAFFECTEDAGE:65+FINANCIAL PRODUCTS HELD:INCOM

56、E IS SPENT ONATTITUDES ABOUT OWN FINANCESATTITUDES ABOUT OWN FINANCESHave savings and investments.Some credit card debt.Saving 40%of monthly income.Saving plenty each month and less likely to feel reliant on a pension.Have savings,ISAs and investments,as well as credit card debt.No mortgage.COMFORTA

57、BLE RETIREMENTAGE:55+FINANCIAL PRODUCTS HELD:INCOME IS SPENT ONATTITUDES ABOUT OWN FINANCES70%on bills&food.Feel extremely stable as they are mortgage free.Enjoying their savings.INCOME IS SPENT ON51%spent on other non-essentials,such as houseware and tech.Some anxiety about future finances and savi

58、ngs and savings,although general feeling of stability.ATTITUDES ABOUT OWN FINANCESOur survey respondents can be grouped*into seven customer personas.Each persona has a variety of buying behaviours,motivations,and preferences,and how your brand responds should be dictated according to their prioritie

59、s.*Using Latent Class clustering,we found a strong segmentation solution on the following key questions:Financial products held,proportion of household income spent on essential bills vs.savings vs.entertainment,attitudes to financial stability,saving and spending.KEEP HEADS ABOVE WATERAGE:18-3417%1

60、5%10%21%18%8%10%18Required Quality This segment is looking for quality and presents an opportunity for brands as they have enough disposable income to select more premium brands.High end Brands need to offer products/services which are good value for money.Brands can also offer advice on budgeting a

61、nd how to best plan for the future.Advice Brands need to focus on offering low cost products/services and discounts.Brands can also offer advice and reassurance on how to improve their financial situation.ReassuranceWHAT DOES THIS MEAN FOR BRANDS?KEEP HEADS ABOVE WATERBUDGET TO RETIREAMBITIOUS FOR F

62、UTUREQuality is important to this segment,they are less concerned about price.Brands can take the opportunity to sell quality products to this segment.Benefits This segment does a lot of research and is looking for high quality.Brands need to keep this in mind they are well informed,looking for qual

63、ity products/services.Trust COMFORTABLE&UNAFFECTEDCOMFORTABLE RETIREMENTBrands need to offer high quality products which help this segment to maintain its current lifestyle.Stability SECURE OPTIMISTSBrands should offer deals and ways to spread the cost of purchases without compromising on quality.Ba

64、lance ANXIOUS DEBTORSFor example,the segments have different views on what they will compromise on when it comes to quality versus price.Price Tolerance LowHighLowHighPrice is the most important factor and these segments may compromise on qualityRequire high quality products and have the financial m

65、eans to pay for themRequire high quality products,but for a low price or the ability to spread the cost19Using these segments will allow you to build predictions of your target customers mindset.Knowing your customer is crucial for connecting what you provide in terms of products or services with wh

66、at your audiences are looking for.This is important because its moving out of the control of each brand to dictate what their purpose is in the minds of their customers.Its a case of adapt willingly to this new world,or have adaptation forced upon you by external pressures.Our survey finds that cons

67、umers are increasingly researching and making more considered choices based on factors like social impact.Consumers are progressively abandoning one-size-fits-all relationships with brands and are entering a new era of interrogation and discernment.Brands that have coasted by on hype in the past sho

68、uld beware!Consumers are starting to make more conscious choices,doing their research before purchasing and selecting brands with a strong purpose60%Always do a lot of research before making a purchaseUp 5%from 202235%Prefer to buy from a brand that has a strong purposeUp 8%from 2022Whilst we can id

69、entify the search for brand purpose most strongly in our younger demographics-Millennials and Gen Z-even amongst Boomers,more than a quarter now prefer to buy from a brand with a strong purpose.Communicating your own brands purpose clearly and in a differentiated manner is a strategy that merits ser

70、ious consideration.I prefer to buy from a brand that has a strong purposeGen ZMillennialGen XBoomer26%34%42%41%21Its vital for your brand to define and communicate your purpose beyond profit.This purpose should resonate with your customers and reflect in every aspect of your business,from product de

71、velopment to marketing strategies.Tell your story in a way that aligns with your customers values and the causes they support,making sure this narrative is consistent and authentic across all platforms,because consumers can spot insincerity a mile away.Brand purpose should be clear,genuine,and aimed

72、 at making the world a better place.Its hugely important to clearly communicate your brands mission,the impact of your products,and your social and environmental initiatives.Create content that tells the story behind your products and how they contribute to the greater good.Gen Z puts their money wh

73、ere their mouth is;they are more likely to buy from brands which make products sustainably,donate to charity,and exhibit diversity and inclusion.Gen ZMillennialGen XBoomer70%65%52%45%Demonstrates emotional intelligence and understanding through its advertisingGen ZMillennialGen XBoomerConsumer prefe

74、rences for purpose in brand communications22Will become much less concernedWill become slightly more concerned A major component of a brands purpose must focus on climate change.The planet matters to Gen Z especially,so it should matter to brands.75%of all of our respondents said they expected to be

75、come slightly or much more concerned by climate change in the coming three years.Its not enough to talk about being eco-friendly;brands must show it in their actions and how they share their journey towards sustainability.If youre not already doing so,invest in sustainable materials,reduce waste in

76、your supply chain,and participate in environmental conservation efforts.Brands that succeed will actively share their sustainability journey with their audience,highlighting the steps theyre taking to reduce their environmental footprint.Authenticity is key to connecting with consumers.Brands should

77、 engage in honest,transparent communication,admitting to areas where they need to improve and showcasing their journey towards sustainability and ethical practices.Building a community around your brands values can foster a sense of belonging among consumers,encouraging loyalty and word-of-mouth pro

78、motion.Climate Change7%18%75%Will become slightly less concernedWill become much more concerned%slightly/much more concerned40%35%23KEY TAKEAWAYS1.Define your purpose:Align your brands purpose with your customer values,particularly focusing on sustainability and social impact.Communicate this purpos

79、e authentically across all channels,and dont step away from your purpose when times are hard customers have long memories.2.Commit to sustainability:Integrate climate change initiatives into your brands purpose,recognising its significance to consumers,especially Gen Z.Take tangible steps towards su

80、stainability and environmental conservation,actively sharing your progress with your audience.3.Communicate authentically:Prioritise transparent and honest communication about your brands sustainability efforts and areas for improvement.Build a community around your brands values to foster loyalty a

81、nd advocacy among customers.24Theres one demographic for whom brand purpose and societal good resonates more than any other,and thats Gen Z.These consumers are those of the present and of the future.Their motivations and preferences must be unpicked to steer your brand on its steadiest growth journe

82、y.Our research offers new insight and context around the purchase motivations and spending habits of Gen Z that will enable you to plan for the future.So,how do Gen Z stand out from the other segments in our sample?Perhaps surprisingly,given their relatively lower disposable income,our research show

83、s that Gen Z donates a greater percentage of their income to charity than older demographics around 5%.0%1%2%3%4%5%6%Up to19,99920,000 to29,99930,000 to49,99950,000 to69,99970,000 ormoreGen ZMillennialGen XBoomerGen Z are more charity-oriented than older generations%income donated to charityAnnual i

84、ncome26As Gen Zs wages increase and their living situations stabilise,they will have more income to spend with brands aligned to their views and more to donate to charities.Its vital then that your brand shifts to clearly communicate values and a sense of societal purpose to draw in this influential

85、 future customer base.Given that this generation values transparency,authenticity,and social responsibility above all the older age groups,brands that demonstrate and successfully communicate-a genuine commitment to social and environmental issues can connect more deeply with Gen Z consumers and sec

86、ure their brand loyalty as they age.This involves not just talking about change,but demonstrating real initiatives and outcomes.But connecting with Gen Z on their current values is not enough.Brands need to develop a long-term strategy to connect with Gen Z and retain their loyalty as their circumst

87、ances change.A second way to connect deeply with this young audience is through a personal approach.Gen Z values individuality,and looks for products and services that can be personal or customised to their preferences.They truly want to buy from brands that they see as understanding their lives and

88、 concerns down to an individual level.2770%65%52%45%Demonstrates emotional intelligence and understanding through its advertisingGen ZMillennialGen XBoomer70%65%52%45%Demonstrates emotional intelligence and understanding through its advertisingGen ZMillennialGen XBoomerGen Z are looking for brands t

89、o understand themYour brand should leverage technology to offer personal experiences,from product recommendations to customisable products.This not only caters to Gen Zs desire for uniqueness but also enhances the shopping experience,making it more engaging and memorable.Where shopping is concerned,

90、although Gen Z are spending less on groceries each month than the generations before them,our research shows that they spend more on entertainment and shop for other items more frequently.Gen Z are spending less on groceries each month than the generations before them.but are spending more on entert

91、ainmentDemonstrates emotional intelligence and understanding through its advertising%of households income spent on entertainment70%65%52%45%Demonstrates emotional intelligence and understanding through its advertisingGen ZMillennialGen XBoomer70%65%52%45%Demonstrates emotional intelligence and under

92、standing through its advertisingGen ZMillennialGen XBoomer%of households income spent on entertainmentGen ZMillennialGen XBoomer10887%of households income spent on groceriesGen ZMillennialGen XBoomer20%18%23%28%of households income spent on groceries18%28Average number of times a month generations s

93、hop for clothes,tech,gifts3.3Gen Z2.8Gen X2.5Boomers2.8MillennialsFor Gen Z,even though they have the least disposable income,it really is all about the experience.Brands must look at the emotional connection they are establishing with audiences and should create memorable moments that stay with the

94、m long after.Its important to offer Gen Z products and services that facilitate or enhance shared experiences,such as exclusive events or community-building activities.Gen Z spends a significant amount of time on social media platforms.Brands should create entertaining,engaging,authentic content tha

95、t resonates with this audience on these channels.Creative,shareable short-form videos have become a powerful tool to capture the attention of Gen Z.Additionally,interactive content such as polls,quizzes,and games can engage Gen Z by making them active participants rather than passive consumers.Lastl

96、y,partnering with influencers who Gen Z trust and admire can amplify your brands message,making it more relatable and accessible.29KEY TAKEAWAYS1.Embrace Gen Zs values and social consciousness:Gen Z seek to echo their own values through their purchases,and they are keen to spend towards a better wor

97、ld.Clearly communicate what you stand for and how your brand is genuinely on the journey to a more equitable and sustainable future.2.Personalisation and individuality:This generation needs to feel that your brand gets them as an individual,not a demographic.Ensure you are speaking to a segment of o

98、ne,conveying empathy and understanding at every touchpoint.3.Focus on experiential marketing:The experience is everything to Gen Z.Brands that succeed here will treat each occasion Gen Z spends with them as not simply a transaction but rather as a potential relational moment-winning repeat business

99、and advocacy.30How well your brand weathers the challenges of the future will depend on the actions you take now,from your use of technology,to product diversification,to your approach to partnerships.Most importantly,brands that succeed will truly understand their customer.Recent research from Merk

100、le,dentsus customer experience agency,uncovered that 55%of global consumers want future experiences with brands to be more affordable or cost-effective,and 46%prioritised easier or more convenient experiences(2024 CX Imperatives:From Customer Engagement to Customer Empowerment).Of course,shifting co

101、nsumer sentiment will impact different industries differently.We looked at how consumers are buying and feeling towards retail,telco,financial services,travel,and food and beverage.3246%14%40%6%7%7%23%37%40%25%34%38%19%35%47%68%58%54%18%30%52%AgreeNeither agree nordisagreeDisagreeAgreeNeither agree

102、nordisagreeDisagreeNot at all concernedNot very concernedSomewhat concernedVery concernedI I o on nl ly y b bu uy y o owwn n l la ab be el l p pr ro od du uc ct ts s i in n t th he es su up pe er rmma ar rk ke et tI I wwi il ll l a al lwwa ay ys s b bu uy y f fr ro omm a an n i in nd de ep pe en nd

103、de en nt t s smma al ll lb bu us si in ne es ss s,e ev ve en n i if f i it t c co os st ts s mmo or re eabout the cost of living/price risesQ:How strongly do you agree or disagree with the following statements?Top 2 boxBase:Total(2,000)46%14%40%6%7%7%23%37%40%25%34%38%19%35%47%68%58%54%18%30%52%Agre

104、eNeither agree nordisagreeDisagreeAgreeNeither agree nordisagreeDisagreeNot at all concernedNot very concernedSomewhat concernedVery concernedI I o on nl ly y b bu uy y o owwn n l la ab be el l p pr ro od du uc ct ts s i in n t th he es su up pe er rmma ar rk ke et tI I wwi il ll l a al lwwa ay ys s

105、 b bu uy y f fr ro omm a an n i in nd de ep pe en nd de en nt t s smma al ll lb bu us si in ne es ss s,e ev ve en n i if f i it t c co os st ts s mmo or re eabout the cost of living/price risesQ:How strongly do you agree or disagree with the following statements?Top 2 boxBase:Total(2,000)46%14%40%6%

106、7%7%23%37%40%25%34%38%19%35%47%68%58%54%18%30%52%AgreeNeither agree nordisagreeDisagreeAgreeNeither agree nordisagreeDisagreeNot at all concernedNot very concernedSomewhat concernedVery concernedI I o on nl ly y b bu uy y o owwn n l la ab be el l p pr ro od du uc ct ts s i in n t th he es su up pe e

107、r rmma ar rk ke et tI I wwi il ll l a al lwwa ay ys s b bu uy y f fr ro omm a an n i in nd de ep pe en nd de en nt t s smma al ll lb bu us si in ne es ss s,e ev ve en n i if f i it t c co os st ts s mmo or re eabout the cost of living/price risesQ:How strongly do you agree or disagree with the follo

108、wing statements?Top 2 boxBase:Total(2,000)46%14%40%6%7%7%23%37%40%25%34%38%19%35%47%68%58%54%18%30%52%AgreeNeither agree nordisagreeDisagreeAgreeNeither agree nordisagreeDisagreeNot at all concernedNot very concernedSomewhat concernedVery concernedI I o on nl ly y b bu uy y o owwn n l la ab be el l

109、p pr ro od du uc ct ts s i in n t th he es su up pe er rmma ar rk ke et tI I wwi il ll l a al lwwa ay ys s b bu uy y f fr ro omm a an n i in nd de ep pe en nd de en nt t s smma al ll lb bu us si in ne es ss s,e ev ve en n i if f i it t c co os st ts s mmo or re eabout the cost of living/price risesQ

110、:How strongly do you agree or disagree with the following statements?Top 2 boxBase:Total(2,000)I will always buy from an independent small business,even if it costs more46%14%40%6%7%7%23%37%40%25%34%38%19%35%47%68%58%54%18%30%52%AgreeNeither agree nordisagreeDisagreeAgreeNeither agree nordisagreeDis

111、agreeNot at all concernedNot very concernedSomewhat concernedVery concernedI I o on nl ly y b bu uy y o owwn n l la ab be el l p pr ro od du uc ct ts s i in n t th he es su up pe er rmma ar rk ke et tI I wwi il ll l a al lwwa ay ys s b bu uy y f fr ro omm a an n i in nd de ep pe en nd de en nt t s s

112、mma al ll lb bu us si in ne es ss s,e ev ve en n i if f i it t c co os st ts s mmo or re eabout the cost of living/price risesQ:How strongly do you agree or disagree with the following statements?Top 2 boxBase:Total(2,000)46%14%40%6%7%7%23%37%40%25%34%38%19%35%47%68%58%54%18%30%52%AgreeNeither agree

113、 nordisagreeDisagreeAgreeNeither agree nordisagreeDisagreeNot at all concernedNot very concernedSomewhat concernedVery concernedI I o on nl ly y b bu uy y o owwn n l la ab be el l p pr ro od du uc ct ts s i in n t th he es su up pe er rmma ar rk ke et tI I wwi il ll l a al lwwa ay ys s b bu uy y f f

114、r ro omm a an n i in nd de ep pe en nd de en nt t s smma al ll lb bu us si in ne es ss s,e ev ve en n i if f i it t c co os st ts s mmo or re eabout the cost of living/price risesQ:How strongly do you agree or disagree with the following statements?Top 2 boxBase:Total(2,000)Not at all concernedNot a

115、t all concernedSomewhat concernedSomewhat concernedVery concernedVery concernedNot very concernedNot very concernedNeither agree nor disagreeNeither agree nor disagreeAgree Agree DisagreeDisagreeI only buy own label products in the supermarketRETAILChoosing own-label products or shopping with indepe

116、ndent businesses is clearly correlated to concern about the cost of living.about the cost of living.about the cost of living33Millennials are becoming the most invested in own label,independentbrands and online shopping38%24%26%40%28%28%34%18%14%31%12%10%I only buy own label products in thesupermark

117、etI do all my shopping onlineI will always buy from an independent smallbusiness,even if it costs moreGen ZMillennialGen XBoomerQ:How strongly do you agree or disagree with the following statements?Top 2 boxBase:Total(2,000)-Significantly higher/lower than 2022Millennials are becoming the most inves

118、ted in own label,independentbrands and online shopping38%24%26%40%28%28%34%18%14%31%12%10%I only buy own label products in thesupermarketI do all my shopping onlineI will always buy from an independent smallbusiness,even if it costs moreGen ZMillennialGen XBoomerQ:How strongly do you agree or disagr

119、ee with the following statements?Top 2 boxBase:Total(2,000)-Significantly higher/lower than 2022Millennials are becoming the most invested in own label,independentbrands and online shopping38%24%26%40%28%28%34%18%14%31%12%10%I only buy own label products in thesupermarketI do all my shopping onlineI

120、 will always buy from an independent smallbusiness,even if it costs moreGen ZMillennialGen XBoomerQ:How strongly do you agree or disagree with the following statements?Top 2 boxBase:Total(2,000)-Significantly higher/lower than 2022Millennials are becoming the most invested in own label,independentbr

121、ands and online shopping38%24%26%40%28%28%34%18%14%31%12%10%I only buy own label products in thesupermarketI do all my shopping onlineI will always buy from an independent smallbusiness,even if it costs moreGen ZMillennialGen XBoomerQ:How strongly do you agree or disagree with the following statemen

122、ts?Top 2 boxBase:Total(2,000)-Significantly higher/lower than 2022We also found some significant changes to Millennials clothing brand consumption:Millennials are becoming the most invested in own label,independent brands and online shopping.Millennials are becoming the most invested in own label,in

123、dependentbrands and online shopping38%24%26%40%28%28%34%18%14%31%12%10%I only buy own label products in thesupermarketI do all my shopping onlineI will always buy from an independent smallbusiness,even if it costs moreGen ZMillennialGen XBoomerQ:How strongly do you agree or disagree with the followi

124、ng statements?Top 2 boxBase:Total(2,000)-Significantly higher/lower than 2022-Significantly higher than 202234This is a natural outcome,given Millennials tendency towards a higher level of disposable income than the younger Gen Z,coupled with a relatively greater pull towards brands exhibiting stron

125、ger purpose than the older Gen X and Boomer demographics.As high street clothing brands come increasingly under pressure to retain their customer base,retailers cant rest on their laurels recall of high street brands declined this year among Millennials.To ensure these legacy brands dont lose touch

126、with the Millennial generation its vital they focus on tailoring the shopping experience,particularly in provision of a personal online offering,as well as taking care to clearly communicate their brand purpose.Gen Z notably have less propensity to recall low-cost high street brands compared to last

127、 year a significant threat to those brands that trade on affordability.They risk falling out of favour with this young demographic not just because of a lack of convenience in comparison with online-first sellers,but also because of Gen Zs growing concerns around sustainability and brand social purp

128、ose.KEY TAKEAWAYS 1.Target price-conscious consumers:Understand the link between cost-of-living concerns and preferences for own-label products and independent businesses.Offer competitive pricing without sacrificing quality,especially in groceries and clothing.2.Appeal to Millennial spending power:

129、Adapt strategies to cater to Millennials shift towards own-label brands and online shopping.Emphasise brand purpose and quality,particularly in clothing,where loyalty to high street brands is declining.3.Address sustainability and ethics:Respond to Gen Zs focus on sustainability and social purpose b

130、y prioritising eco-friendly practices,ethical sourcing,and transparent communication.35FOOD AND DRINKMillennials are the most conscious of price and quality when purchasing groceries.Millennials are the most conscious of price and quality when purchasinggroceries60%49%29%63%59%38%59%51%33%55%58%38%P

131、rice is the most important factor wheneverI buy groceriesI buy groceriesQuality is the most important factor wheneverThere is always a surplus of food in the houseGen ZMillennialGen XBoomerQ:How strongly do you agree or disagree with the following statements?Top 2 boxBase:Total(2,000)-Significantly

132、higher/lower than 2022Millennials are the most conscious of price and quality when purchasinggroceries60%49%29%63%59%38%59%51%33%55%58%38%Price is the most important factor wheneverI buy groceriesI buy groceriesQuality is the most important factor wheneverThere is always a surplus of food in the hou

133、seGen ZMillennialGen XBoomerQ:How strongly do you agree or disagree with the following statements?Top 2 boxBase:Total(2,000)-Significantly higher/lower than 202270%65%52%45%Demonstrates emotional intelligence and understanding through its advertisingGen ZMillennialGen XBoomerMillennials are becoming

134、 the most invested in own label,independentbrands and online shopping38%24%26%40%28%28%34%18%14%31%12%10%I only buy own label products in thesupermarketI do all my shopping onlineI will always buy from an independent smallbusiness,even if it costs moreGen ZMillennialGen XBoomerQ:How strongly do you

135、agree or disagree with the following statements?Top 2 boxBase:Total(2,000)-Significantly higher/lower than 2022-Significantly higher than 2022Price is the most important factor whenever I buy groceries36Grocery spending has increased for everyone and has nearly doubled for the highest earners,driven

136、 by Millennials.Concern about food prices makes price more important,but doesnt negate the need for quality;unsurprisingly,those with surplus food feel less worried about food prices.Price is the most important factor whenever I buy groceries39%8%51%54%37%39%9%9%58%32%9%Quality is the most important

137、 factor whenever I buy groceries46%14%40%6%7%23%37%40%32%45%56%19%35%47%61%45%36%18%30%52%AgreeNeither agree nordisagreeDisagreeAgreeNeither agree nordisagreeDisagreeNot at all concernedNot very concernedSomewhat concernedVery concernedI I o on nl ly y b bu uy y o owwn n l la ab be el l p pr ro od d

138、u uc ct ts s i in n t th he es su up pe er rmma ar rk ke et tI I wwi il ll l a al lwwa ay ys s b bu uy y f fr ro omm a an n i in nd de ep pe en nd de en nt t s smma al ll lb bu us si in ne es ss s,e ev ve en n i if f i it t c co os st ts s mmo or re eabout the cost of living/price risesQ:How strongl

139、y do you agree or disagree with the following statements?Top 2 boxBase:Total(2,000)15%46%14%40%6%7%23%37%40%32%45%56%19%35%47%61%45%36%18%30%52%AgreeNeither agree nordisagreeDisagreeAgreeNeither agree nordisagreeDisagreeNot at all concernedNot very concernedSomewhat concernedVery concernedI I o on n

140、l ly y b bu uy y o owwn n l la ab be el l p pr ro od du uc ct ts s i in n t th he es su up pe er rmma ar rk ke et tI I wwi il ll l a al lwwa ay ys s b bu uy y f fr ro omm a an n i in nd de ep pe en nd de en nt t s smma al ll lb bu us si in ne es ss s,e ev ve en n i if f i it t c co os st ts s mmo or

141、 re eabout the cost of living/price risesQ:How strongly do you agree or disagree with the following statements?Top 2 boxBase:Total(2,000)15%46%14%40%6%7%23%37%40%32%45%56%19%35%47%61%45%36%18%30%52%AgreeNeither agree nordisagreeDisagreeAgreeNeither agree nordisagreeDisagreeNot at all concernedNot ve

142、ry concernedSomewhat concernedVery concernedI I o on nl ly y b bu uy y o owwn n l la ab be el l p pr ro od du uc ct ts s i in n t th he es su up pe er rmma ar rk ke et tI I wwi il ll l a al lwwa ay ys s b bu uy y f fr ro omm a an n i in nd de ep pe en nd de en nt t s smma al ll lb bu us si in ne es

143、ss s,e ev ve en n i if f i it t c co os st ts s mmo or re eabout the cost of living/price risesQ:How strongly do you agree or disagree with the following statements?Top 2 boxBase:Total(2,000)15%Not at all concernedNot at all concernedSomewhat concernedSomewhat concernedVery concerned.about food pric

144、es.about food pricesVery concernedNot very concernedNot very concernedNeither agree nor disagreeNeither agree nor disagreeAgree Agree DisagreeDisagree37There is always a surplus of food in the houseIn contrast,the most concerned about food prices are shopping less often,but spending more per month:T

145、he average UK consumer goes grocery shopping times per month Level of concern about food pricesNot at all concernedNot very concernedSomewhat concernedVery concerned Number of grocery shopping trips per month8.87.16.26.5Monthly spend on groceries 308.22306.34350.70414.726.546%42%11%51%40%31%11%8%31%

146、6%61%Not at all concernedSomewhat concernedVery concernedNot very concernedNeither agree nor disagreeAgree Disagree.about food prices38In the supermarket price wars,its vital to remember that quality still matters to most consumers.Brand marketing communications should reflect this priority.Brands t

147、hat succeed in creating new consumer demand and an experience that resonates with new concerns and behavioural needs will move ahead of the competition.Understanding the price and quality sensitivity of different generations,such as Millennials,has several implications for grocery retailers and Cons

148、umer Packaged Goods(CPG)brands,for example:Doubling down on private label and/or store-brand products that offer good quality at competitive prices,and typically provide better margins for retailers while still meeting consumer expectations.Increasing transparency in pricing and product quality,comm

149、unicating clearly and honestly about product sourcing,ingredients and manufacturing processes.This is particularly important on online platforms to make it easy to compare prices,read reviews and make purchases conveniently.Building trust with consumers can lead to greater brand loyalty.Emphasising

150、eco-friendly practices,ethical sourcing,and corporate social responsibility initiatives to appeal to an increasingly sustainability and ethically-conscious shopper.Simplifying the in-store and online shopping experience is crucial for attracting Millennials,for example convenient payment options,eas

151、y navigation,fast checkout processes and responsive customer service.Combining both offline and online data analytics to gain deeper insights into shoppers preferences and behaviours to tailor offerings and marketing strategies more effectively.Investing in technologies to extend the life of product

152、s in response to todays less frequent purchasing pattern.This also helps FMCGs/retailers demonstrate their social and ethical responsibility,making their brand more appealing to consumers.KEY TAKEAWAYS 1.Price-quality balance matters:Brands should prioritise offering competitive prices without compr

153、omising on quality to appeal to Millennials.2.Transparency and sustainability drive loyalty:Build trust by increasing transparency in pricing and product quality,while emphasising eco-friendly practices and ethical sourcing.3.Optimise the shopping experience:Simplify both offline and online shopping

154、 experiences,with convenient payment options,easy navigation,and responsive customer service.Utilise data analytics to understand customer preferences and tailor offerings effectively.39TRAVELAltering travel plans based on economic conditions is increasingly common for younger generations.Altering t

155、ravel plans based on economic conditions is more common,and increasingly so,for younger generations41%46%37%30%I have drastically changed my plans for holidays next year due to economic conditionsGen ZMillennialGen XBoomerQ:How strongly do you agree or disagree with the following statements?Top 2 bo

156、xBase:Total(2,000)-Significantly higher/lower than 2022Concern about climate change is not affecting the desire to take holidays,but economic conditions have a decided effect,particularly on long-haul travel.The most financially concerned consumers dont take any holidays at all.I have drastically ch

157、anged my plans for holidays next year due to economic conditionsMillennials are becoming the most invested in own label,independentbrands and online shopping38%24%26%40%28%28%34%18%14%31%12%10%I only buy own label products in thesupermarketI do all my shopping onlineI will always buy from an indepen

158、dent smallbusiness,even if it costs moreGen ZMillennialGen XBoomerQ:How strongly do you agree or disagree with the following statements?Top 2 boxBase:Total(2,000)-Significantly higher/lower than 202270%65%52%45%Demonstrates emotional intelligence and understanding through its advertisingGen ZMillenn

159、ialGen XBoomer40Concern about climate change is not affecting the desire to take holidaysSomewhat concernedSomewhat concernedNot at all concernedVery concerned.about climate change41Economic conditions have much more of an effect,reducing long-haul trips the most;the most concerned consumers dont ta

160、ke any holidaysThis suggests that travel brands should keep a close finger on the economic pulse,tailoring their marketing communications to convey value for money particularly to Millennials and Gen Z while economic conditions remain somewhat volatile through 2024.Economic conditions have much more

161、 of an effect,reducing long-haultrips the most;the most concerned consumers dont take any holidays9%10%4%38%33%27%52%56%68%UK short-break(1-4 days)Long haul holiday(outside Europe)UK holiday(4+days)European shortbreak/city breakHoliday in EuropeNo holidays takenthis yearNot at all concernedNot very

162、concernedSomewhat concernedVery concernedSomewhat concernedNot very concernedNot at all concernedVery concerned.about cost of living/price risesEuropean short break/city breakUK short-break(1-4 days)Long haul holiday(outisde Europe)UK holiday(4+days)Holiday in EuropeNo holidays taken this year42In o

163、rder to appeal to cost-conscious consumers,the travel sector should consider various strategies,including:Providing flexible booking options,such as no-fee cancellations or rescheduling to ease concerns about unexpected expenses or changes in plans.Promoting destinations offering good value for mone

164、y,for example with favourable exchange rates,lower living costs,or less-explored regions.Offering limited-time promotions to attract budget-conscious travellers,including last-minute deals,early booking discounts and discounted package deals.Encouraging travellers to consider alternative accommodati

165、on options,such as rentals or budget hotels to help save on lodging compared to traditional hotels.Offering all-inclusive travel packages or bundled deals that provide cost savings.Encouraging travel during off-peak seasons or mid-week can often result in lower prices for flights,accommodation and a

166、ttractions.Driving further value through loyalty programmes or travel rewards schemes to incentivise repeat bookings and provide savings through points,discounts or exclusive perks.Providing transparent pricing with no hidden fees or surcharges helps build trust with cost-conscious consumers and all

167、ows them to accurately budget for their trips.43KEY TAKEAWAYS1.Dynamic marketing response:Develop agile strategies that allow you to respond to changing travel plans.2.Cost-conscious approaches:Implement cost-conscious tactics and address customer concerns about unexpected expenses.3.Value enhanceme

168、nt:Increase your value proposition by offering incentives such as loyalty programs to establish trust and transparency.44FINANCIAL SERVICESConsumers are becoming more financially savvy and discerning,though Gen Z is substantially behind older consumers on monitoring good deals.Theres a clear opportu

169、nity for brands in this space to offer education here:Consumers are getting more financially conf id ent and discerning;Gen Zare substantially behind older consumers on monitoring good deals31%22%24%29%39%34%25%42%19%33%49%8%I believe I am saving plenty of money eachmonthI frequently change my insur

170、ance policies inorder to get the best dealI use buy now,pay later payment methods on aregular basisGen ZMillennialGen XBoomerQ:How strongly do you agree or disagree with the following statements?Top 2 boxBase:Total(2,000)-Significantly higher/lower than 2022Consumers are getting more financially con

171、f id ent and discerning;Gen Zare substantially behind older consumers on monitoring good deals31%22%24%29%39%34%25%42%19%33%49%8%I believe I am saving plenty of money eachmonthI frequently change my insurance policies inorder to get the best dealI use buy now,pay later payment methods on aregular ba

172、sisGen ZMillennialGen XBoomerQ:How strongly do you agree or disagree with the following statements?Top 2 boxBase:Total(2,000)-Significantly higher/lower than 2022I believe I am saving plenty of money each monthI frequently change my insurance policies in order to get the best deal70%65%52%45%Demonst

173、rates emotional intelligence and understanding through its advertisingGen ZMillennialGen XBoomer70%65%52%45%Demonstrates emotional intelligence and understanding through its advertisingGen ZMillennialGen XBoomerUnsurprisingly,younger people in less financially stable situations are less likely to be

174、 financially confident,with 6%of our survey respondents saying they currently own no financial products at all.Back in 2018,a survey by the UK governments Financial Capability Strategy found that only 52%of 717-year-olds said they were receiving a meaningful financial education in school,at home,or

175、in other settings.Many of those children now make up the young adult Gen Z cohort,so lack of confidence is likely to continue to be a factor in their decision-making.Brands need to bolster Gen Zs financial literacy where they can,to increase this cohorts propensity to bank or insure with them.Millen

176、nials are becoming the most invested in own label,independentbrands and online shopping38%24%26%40%28%28%34%18%14%31%12%10%I only buy own label products in thesupermarketI do all my shopping onlineI will always buy from an independent smallbusiness,even if it costs moreGen ZMillennialGen XBoomerQ:Ho

177、w strongly do you agree or disagree with the following statements?Top 2 boxBase:Total(2,000)-Significantly higher/lower than 2022-Significantly higher than 2022Millennials are becoming the most invested in own label,independentbrands and online shopping38%24%26%40%28%28%34%18%14%31%12%10%I only buy

178、own label products in thesupermarketI do all my shopping onlineI will always buy from an independent smallbusiness,even if it costs moreGen ZMillennialGen XBoomerQ:How strongly do you agree or disagree with the following statements?Top 2 boxBase:Total(2,000)-Significantly higher/lower than 2022-Sign

179、ificantly higher than 20224565%20%12%4%4%4%2%1%1%1%68%Savings accountCredit cardPensionISAInvestments/Stocks andMortgagePrivate health insuranceIncome insurance/CriticalHelp To Buy/LISA(LifetimeNone of theseT Th he ey y r re e mmo or re e l li ik ke el ly y t to o b be e:Gen ZWomenStudents,casual wo

180、rkers or currently unemployedRenting or living with their parentsAnxious about their finances and struggling to make ends meetThose who have no financial products also have little intention of obtaining any in 2024,outside of a savings account(n=120)65%Theyre more likely to be:Gen Z Women Students,c

181、asual workers or currently unemployed Renting or living with their parents Anxious about their finances and struggling to make ends meetThose who have no financial products also have little intention of obtaining any in 2024,outside of a savings account Younger people in less financially stable situ

182、ations are also less financially confidentof UK consumers say they currently own no financial products46This 6%with no financial products constitute the part of the UK who may be referred to as financially excluded.Financial exclusion occurs when individuals are unable to access mainstream financial

183、 services,such as banks or credit unions.Recent research by Compare the Market and MyBnk finds that only 2/5 of young adults are financially literate and 61%do not recall receiving financial education at school.Amongst those who held credit cards,only 44%were considered financially literate.Accordin

184、g to the same study,70%of young adults endorse the consistent inclusion of financial education in schools,while 88%of teachers advocate for mandatory financial education lessons.Findings showed that dedicating just three and a half hours per month to financial education could substantially enhance t

185、he financial literacy of young adults and contribute to broader economic wellbeing across society.Theres an excellent opportunity for brands to lean in here to support these efforts and to win early recognition from their future audience base.47Most people have savings and a credit card but only hal

186、f have a pension;Gen Z are notably behindMost people have savings and a credit card but only half have a pension;Gen Z are notably behind on credit cards and pensions75%64%52%33%24%24%12%10%3%6%Savings accountCredit cardPensionISAMortgageInvestments/Stocks and shares(ISA)Private health insuranceInco

187、me insurance/Critical illnessHelp To Buy/LISA(Lifetime ISA)None of theseQ:Which of the following financial products do you currently have?Base:Total(2,000)Gen Z(n=188)Millennials(n=687)Gen X(n=376)Boomers(n=749)65%73%75%81%40%60%67%75%13%43%59%71%17%24%35%47%13%37%35%9%22%21%24%27%13%17%13%7%5%14%12

188、%6%8%5%1%1%12%7%6%4%2 2.0 02 2.9 93 3.1 13 3.3 3-Significantly higher/lower than average75%Help to buy/LISA(Lifetime ISA)Income insurance/Critical illnessOur research finds most people have savings and a credit card,yet only half of our sample has a pension.Despite being a financially unstable cohor

189、t,two-thirds of Gen Z have a savings account,although this proportion has decreased year-on-year.They are notably behind on credit cards and pensions-nearly half of Gen Z are in work,but just 13%have a pension creating an opportunity to appeal to them early to begin to attract those with the highest

190、 potential customer lifetime value:48Brands need to keep an eye on this concerning trend towards low pension uptake.Whilst auto-enrolment may have improved the numbers of those contributing regularly to a pension as a proportion of the population,theres a significant minority that appears to be opti

191、ng out.With an aging population,the impact on the nations spending power in years to come could be considerable.Today,even the richest fifth of pensioners depend on state pensions for about a quarter of their income,according to the Institute of Fiscal Studies.There are likely to be about 7.5 millio

192、n more older people by 2069 than there are today.That represents a huge potential reduction in national spending power,unless more people can be persuaded to engage more actively with their pension savings in the immediate future a critical responsibility for the financial services brands of today.K

193、EY TAKEAWAYS 1.Address financial literacy:Recognise that many people lack confidence in managing finances.Brands have an opportunity to contribute to financial education efforts,which can ultimately lead to increased trust and engagement with financial products in the future.2.Tackle financial exclu

194、sion:Brands can play a role in promoting financial inclusion by offering accessible financial products tailored to diverse customer needs and could stimulate demand for other products.3.Engage people early:Secure long-term customer loyalty by building early relationships with customers through genui

195、ne value exchange.49TELCOTheres high inertia amongst consumers in this industry.Just 18%of people say that they would buy from a brand they dont currently use,and 82%said they would definitely or probably buy from their current provider again in the coming 12 months.18%would like to buy from a brand

196、 they dont currently purchase from;82%will continue to use the same provider over the next 12 monthsQ:Thinking about these brands,which of the following describes you?I would like to buy from this brand;This isnt a brand I want to buy from Base:673Q:Do you think you will buy from the following brand

197、s in the next 12 months?Base:68818%OverallI would like to buy from this brandThis isnt a brand I want to buyNot sure%saying brand they dont use is one theyd want to purchase from in the future45%37%10%6%OverallWould definitely buy use againWould probably buy use againWould probably not use againWoul

198、d definitely not use againNot sure%saying they would buy from their current provider again in the future8 82 2%38%44%18%18%would like to buy from a brand they dont currently purchase from;82%will continue to use the same provider over the next 12 monthsQ:Thinking about these brands,which of the foll

199、owing describes you?I would like to buy from this brand;This isnt a brand I want to buy from Base:673Q:Do you think you will buy from the following brands in the next 12 months?Base:68818%OverallI would like to buy from this brandThis isnt a brand I want to buyNot sure%saying brand they dont use is

200、one theyd want to purchase from in the future45%37%10%6%OverallWould definitely buy use againWould probably buy use againWould probably not use againWould definitely not use againNot sure%saying they would buy from their current provider again in the future8 82 2%38%44%18%18%would like to buy from a

201、 brand they dont currently purchase from;82%will continue to use the same provider over the next 12 monthsQ:Thinking about these brands,which of the following describes you?I would like to buy from this brand;This isnt a brand I want to buy from Base:673Q:Do you think you will buy from the following

202、 brands in the next 12 months?Base:68818%OverallI would like to buy from this brandThis isnt a brand I want to buyNot sure%saying brand they dont use is one theyd want to purchase from in the future45%37%10%6%OverallWould definitely buy use againWould probably buy use againWould probably not use aga

203、inWould definitely not use againNot sure%saying they would buy from their current provider again in the future8 82 2%38%44%18%saying brand they dont use is one theyd like to use in the future50Its important that telco brands do not rely on this inertia theres a growth opportunity in poaching the nea

204、rly one in five consumers who want to explore a new brand.Theres also a need to drive loyalty in place of apathy for the remaining pool of those less inclined to switch.Brands that allocate resources to advanced analytics and effectively manage extensive datasets can implement personally-tailored ma

205、rketing strategies at scale.This will enable swift adaptation to evolving consumer behaviours and targeted promotion of relevant products and offers to the most suitable customers,precisely when it aligns with their preferences.18%would like to buy from a brand they dont currently purchase from;82%w

206、ill continue to use the same provider over the next 12 monthsQ:Thinking about these brands,which of the following describes you?I would like to buy from this brand;This isnt a brand I want to buy from Base:673Q:Do you think you will buy from the following brands in the next 12 months?Base:68818%Over

207、allI would like to buy from this brandThis isnt a brand I want to buyNot sure%saying brand they dont use is one theyd want to purchase from in the future45%37%10%6%OverallWould definitely buy use againWould probably buy use againWould probably not use againWould definitely not use againNot sure%sayi

208、ng they would buy from their current provider again in the future8 82 2%38%44%18%18%would like to buy from a brand they dont currently purchase from;82%will continue to use the same provider over the next 12 monthsQ:Thinking about these brands,which of the following describes you?I would like to buy

209、 from this brand;This isnt a brand I want to buy from Base:673Q:Do you think you will buy from the following brands in the next 12 months?Base:68818%OverallI would like to buy from this brandThis isnt a brand I want to buyNot sure%saying brand they dont use is one theyd want to purchase from in the

210、future45%37%10%6%OverallWould definitely buy use againWould probably buy use againWould probably not use againWould definitely not use againNot sure%saying they would buy from their current provider again in the future8 82 2%38%44%18%18%would like to buy from a brand they dont currently purchase fro

211、m;82%will continue to use the same provider over the next 12 monthsQ:Thinking about these brands,which of the following describes you?I would like to buy from this brand;This isnt a brand I want to buy from Base:673Q:Do you think you will buy from the following brands in the next 12 months?Base:6881

212、8%OverallI would like to buy from this brandThis isnt a brand I want to buyNot sure%saying brand they dont use is one theyd want to purchase from in the future45%37%10%6%OverallWould definitely buy use againWould probably buy use againWould probably not use againWould definitely not use againNot sur

213、e%saying they would buy from their current provider again in the future8 82 2%38%44%18%18%would like to buy from a brand they dont currently purchase from;82%will continue to use the same provider over the next 12 monthsQ:Thinking about these brands,which of the following describes you?I would like

214、to buy from this brand;This isnt a brand I want to buy from Base:673Q:Do you think you will buy from the following brands in the next 12 months?Base:68818%OverallI would like to buy from this brandThis isnt a brand I want to buyNot sure%saying brand they dont use is one theyd want to purchase from i

215、n the future45%37%10%6%OverallWould definitely buy use againWould probably buy use againWould probably not use againWould definitely not use againNot sure%saying they would buy from their current provider again in the future8 82 2%38%44%18%saying they would buy from their current provider again in t

216、he futureWould definitely use againWould probably use againWould definitely not use againWould probably not use again51KEY TAKEAWAYS 1.Seize growth opportunities:Despite high consumer inertia in the telco industry,some customers are open to exploring new brands your brand should be targeting people

217、ready to switch.2.Drive loyalty through personalised marketing:Telco brands should drive loyalty among existing customers by implementing personal marketing strategies.By investing in advanced analytics,brands can tailor promotions and offers to individual preferences.3.Adapt quickly to customer beh

218、aviours:Ensure your brand strategy is agile,so that it can swiftly respond to changes in the market and customer preferences-staying ahead of the competition and maximising opportunities for growth.52A PATH TO GROWTH AND HAPPINESSAs we look ahead to another economically challenging year,a focus on p

219、eople-centred transformation must be at the heart of your brands strategy.Whether pricing strategies to acquire the right type of customers,or a new product to retain and grow existing customers and everything in between this research reaffirms that understanding customer behaviour and anticipating

220、their needs for tomorrow is critical to growth.In 2024 and beyond,lets get future-ready by shouting about brand purpose,making deeper connections with our customers,forging new relationships with Gen Z,and creating new experiences that will secure loyalty for the long term.At dentsu,were supporting

221、brands to power ahead with our Sanpo Yoshi approach,elevating people,society and business all at once,to deliver the consumer happiness that will turbocharge your brands bottom line.Get in touch to find out what consumers really think about top industry brands-which theyre planning to buy from and t

222、hose where sentiment is falling.If youd like to learn more about what to expect from 2024,you can download our dentsu Creative 2024 Trends report,or our Global AdSpend Forecast.CONTACT OUR GROWTH SPECIALISTS TO LEARN MORE:Dan Truman,Chief Strategy Officer UK&I,dentsu Azlan Raj,Chief Marketing Officer UK&I,dentsuGet in touch here5354