11/4/13
The majority of consumers in developed countries worldwide (56%) say that having the ability to buy products makes them happy, according to a Boston Consulting Group survey of consumers in Australia, Canada, France, Germany, Italy, Japan, Spain, the U.K., and the U.S. Among millennials (those ages 18-24), this attitude is even more pervasive: 71% say being able to buy things makes them happy.
More than six in 10 U.S. residents believe consumerism-the desire and ability to buy new products-is a force for progress in both the economy and culture. Almost four in 10 U.S. consumers (37%) believe brands have the power to corroborate and communicate personal values and to provide a sense of belonging. Half (50%) of U.S. millennials say brands are personally important to them.
Four in 10 consumers in all of the countries studied (40%) cite brand name and reputation as their most common reason for “trading up” to a higher-priced product. The top reasons for trading up are functional: choosing products that deliver better results (63%) and products that are timeless, durable, or long-lasting (62%) (multiple responses allowed).
Some 17% of consumers say they’re trading up on products that are important to them, while 54% say they’re trading down-choosing less-expensive alternatives. More than four in 10 (45%) say that, when they’re paying “luxury prices,” they prefer to do so for experiences rather than objects.
Categories in which consumers are most likely to trade up include travel, major home appliances, homes, children’s clothing, furniture, and consumer electronics.
Categories in which they’re most likely to be conserving by choosing less-expensive items include jewelry and watches, mobile phone service, handbags and other accessories, fast-food restaurants, and luxury brands.
More than half of consumers in developed countries (55%)-with the exception of Japan (38%)-believe brands should help people in need. Women are more likely than men (64% of women vs. 52% of men in all countries studied) to feel this way.
The majority of consumers in developed countries (57%) want to know how products are made and where they come from. More than four in 10 (44%) make an effort to purchase from companies that show concern for the environment in their business practices.
SOURCE: “The Resilient Consumer: Where to Find Growth Amid the Gloom in Developed Economies,” October 2013, The Boston Consulting Group, Christine Barton, Partner and Managing Director, 2501 N. Harwood St., Dallas, TX 75201; 214-849-1500; barton.christine@bcg.com; www.bcg.com. Price: Available online at no charge.
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