To give some perspective, consumers are much less confident in the economy than they were three years ago, are more practical in their purchasing and focused more on needs rather than wants.
CONSUMERS 18+
| SEP 06 | SEP 09 | INDEX | |
| Confident/very confident inner economy | 43.4% | 29.8% | 69 |
| More practical in purchases | 39.7% | 49.7% | 125 |
| Focus more on needs v. wants | 49.5% | 56.1% | 113 |
| Become more budget conscious | 38.7% | 44.2% | 114 |
Source: BIGresearch, CIA-Trends
As a way of coping with financial stressors on their budget, such as fluctuating gas prices, consumers say they are doing “more” of the following at a higher rate than just three years ago: buying store brands (35.3%, Sept. 2009 v. 23.5%, Sept. 2006), shopping for sales (43.1% v. 32.6%), shopping online (14.5% v. 11.1%) and using coupons (39.2% v. 22.5%). They are also more likely to only buy clothing when it’s on sale, a shopping strategy carried out by almost a quarter (24.4%) of consumers in 2009 (v. 15.6% in 2006).
The percentage of consumers planning to make major purchases is off from 2006 for the following: house (3.3% v. 4.2%), vacation (12.3% v. 14.6%) and vehicle (9.5% v. 11.3%). The average planned expenditure for a vehicle in September 2009 is $19,718, lower than September 2008 ($20,796) and September 2007 ($20,979).
The new consumer is also more likely to defer purchases now than they did in 2006.
Deferred Purchases Over Last 30 Days (CONSUMERS 18+)
| SEP 06 | SEP 09 | INDEX | |
| Apparel | 24.1% | 30.0% | 124 | Home Improvement | 21.0% | 27.6% | 131 |
| Electronics | 22.4% | 26.9% | 120 |
Source: BIGresearch, CIA-Trends
What does this mean for future purchase intentions for the near term holiday season and over the next five years?
Two in five consumers (39.9%) say they plan on spending less for gifts than last year this holiday season, while only 3.8% say they plan on spending more. When asked how the current economic crisis will impact their lifestyle over the next five years, 52.1% say they will consider each purchase more carefully, 48.8% will be more price conscious when buying clothes and food and 46.7% will stick to a budget.
“What we are seeing is a changed consumer,” said Gary Drenik, President of BIGresearch. “The faltering economy, employment worries and questions about who’s going to pay for healthcare are really weighing on the consumer’ psyche. And if they do as they say, marketers will be dealing with a changed consumer that is less inclined to spend for the next several years.”