Scoop and Share ® business articles highlight consumer trends and the heart of conducting business in retail today. Our content is good to know and provides consumer insights centered in solutions that can make a valued difference for both businesses and consumers in the marketplace.

Crossroads

In 2025, the global economy is at a crossroads. Many consumers are rethinking how they spend, weighing dollars against necessity, quality and value. Yet, and still, brand loyalty continues to remain an opportunity for business owners; it's just evolving.

The Challenge of Understanding Consumer Trends
According to NielsenIQ

Consumers are projected to spend an additional $3.2 trillion in 2025, a nearly 6% increase from 2024. However, within this surge, spending behaviors conflict. Some consumers are fiercely loyal to their favorite brands, while others have become ruthless bargain hunters, constantly looking for opportunities to spend less on past items they purchased.

Brand Loyalty Redefined

The fundamental shift is in consumer psychology. While affordability drives decision-making for some, others remain emotionally invested in the brands they trust.

Value Driven Doesn't Mean The Cheapest

Consider two nearly identical products, without knowing the price; it's a good bet that instinctively the choice would be for the one that feels like a good value, not necessarily the cheapest. Essentially, this is the essence of a value-driven economy, a marketplace where purchasing decisions are no longer dictated by price alone but by multiple factors, i.e. quality, sustainability, convenience, ethical considerations, feelings, etc.

Goes Without Stating .. Income Drives Brand Loyalty

High-Income Consumers ($150K+): This group remains largely unaffected by economic shifts. They prioritize quality, convenience, and exclusivity over price, remaining loyal to their preferred luxury brands.

Middle-Income Consumers ($50K-$150K): These consumers engage in selective brand loyalty. They will pay more for brands that consistently deliver quality and value in essentials but are not so tied to a brand that they won't consider a switch, when it comes to discretionary spending.

Lower-Income Consumers (Below $50K): Often, price dictates everything. Private-label brands, discount retailers, and Buy Now, Pay Later (BNPL) services can dominate their purchasing decisions as they prioritize affordability over long-term brand loyalty.

McKinsey Illustrates 2024 Generational Discretionary Spending

McKinsey & Company Illustrates 2024 Generational Consumer Spending Trends

The chart indicates that while price sensitivity may be rising, consumers earning $150K+ continue to spend on premium goods, with 79% intending to continue. Consumers earning $50K-$150K spend selectively with 72% still planning to splurge. Consumers earning below $50K show more cautious spending behaviors.

75% of Consumer Respondents Changed Past Buying Behavior

McKinsey illustrates consumer buying behavior post-Covid

75% of respondents changed shopping behavior: 36% switched brands, 33% switched retailers, 25% opted for private labels and 80% of respondents who moved to digital shopping plan to continue. To retain customers, brands must focus on value, availability, and convenience. (Source: McKinsey)

Savvy Businesses Choose to Navigate Trends with Precision

Embracing the surge in online spending

Digital shopping increases during the pandemic remain. 92% of consumers who first shopped online in 2019 continue to do so regularly. (Source: McKinsey)

Adopting new products and services

During the lockdown, 28% of consumers upgraded their living spaces, adding home gyms, theaters, and work-from-home setups; 30% planned to continue investing in home improvements. (Source: McKinsey)

Subscription programs that offer perks with rewards programs, such as providing access to limited offerings, drive consumption, as 58% of consumers earning 50k - 150k continue to sign up for personalized and incentive services, which include opportunities to buy more with reward credits.

(Source: EY.com)

According to Deloitte, 53% of consumers now participate in paid loyalty programs, which is an increase from just 17% in 2021.

Brands that focus retention strategies by strengthening value, availability, and convenience, continue to grow brand loyalty even with the growth of cost-conscious spending trends.

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