Almost a half of UK companies expect there to be an economic recession in 2020. The reasons for which were varied, with two-third of those asked citing Brexit, and increased tensions on trade in and out of the UK being the most likely cause of a crash. However, climate change and shifting consumer behaviour were also reported as the largest risk to the UK economy.
Companies consider changing consumer behaviours so that they can adapt and make sure they stay competitive – and in business – for years to come. However, we think it’s important for consumers to think about the shifts in consumer behaviour for the year to come, too. It could provide valuable insights for how to maintain control of your finances, including worthwhile product purchases and how we might expect to see our buying behaviours change. This awareness could put customers ahead of the curve when it comes to savings, too.
Improving Financial Standing
Fintech companies have been innovating the financial services and the banking industry for some time now, but they are expected to make real changes in 2020, perhaps centred around financial literacy. Interestingly, 6 in 10 believe that their personal finances will improve in the next 6 months. This might be contradictory to the suggestions of an economic crunch. This could be because of companies helping to bridge the gap in financial literacy, which may allow consumers to make informed decisions about their money and take control again. Financial information is so much more available to consumers today, because of Fintechs. Previously, it has not been visible how traditional banks calculated an applicant’s creditworthiness, but today, we have access to free services that break down our credit score – as well as so much more!
This could help with breaking harmful or neglectful financial habits, starting to save with the latest government incentives, or achieving landmark goals such as buying a house due to innovative credit scoring systems. The important thing to remember when it comes to your financial education is:
- It’s never too late to learn – No matter how old you are or how far along you are with achieving financial landmarks the landscape of financial services is changing. You could be over spending, or not aware of the financial products that are now available to you. This could change your attitude towards financial products such as short term loans, personal loans, secured loans, car finance and so much more.
- Financial education could change your attitude towards money – Many younger people (as well as older generations), believe they will not achieve financial stability or will not own a house. This might be because they feel they cannot afford to save. Financial education could open doors, making you realise how much you more you could do with your money! To support this consumer trend for 2020, there are a lot of workshops, webinars and resources currently on sale to those who want to change their relationship and their prospects with money.
Customer Experience Will Be King
It’s not surprising that online and mobile shopping is still a consumer trend for 2020, especially with the inception of wide-spread 5G making it easier to purchase, wherever you are. In fact, research shows that smart phone sales rose by around 40% last year. That does not mean that retail and in-store visits are expected to die off though.
Retailers are going to have to give consumers a reason to visit their store. A curated, customer experience can add value – which does also mean, as the customer, you can expect to pay for the added touch. Shopping is expected to become more “immersive” shopping suggests that in-store sales tactics. Although this sounds positive for the high street, “immersive” shopping suggests that in-store sales tactics, due to image recognition technology for example, could be more compelling and perhaps harder to resist. This could result in a bigger bill than you originally intended, throwing your monthly budget off-kilter. Interestingly, the most desired features that consumers want to see in a clothes shop are a smart mirror (37%), a café (36%) and a tailor shop (29%).
Consumer trends in 2020 could see pop up shops and concessions or events appear more often in store because it gives consumers a reason to visit. Similarly, you should not underestimate the power of walking around making payments from your mobile phone. Small, regular payments from your mobile phone can become a bit subconscious, which can result in over spending. We wrote about this recently, discussing the link between contactless spending and over-spending.
Eco-Conscious Could Become The Norm
Sustainability is not just a consumer trend in 2020. It’s expected to become a benchmark. 87% of consumers in a recent survey stated that they would be more likely to buy a product if it came from a conscious or sustainable brand. This means that being green is no longer a marketing tool, it’s a revenue generator.
Interestingly, for those people who really know their stuff, shopping locally and the ‘shop small’ movement could be the new twist on the conscious consumer trend in 2020. In another study 86% of those polled stated that they had used a small, independent business recently. The correlation between the figures is particularly encouraging, supporting the idea that more people are interested in shopping small.
However, it is a popular opinion that shopping locally or choosing independent businesses is usually more expensive. There is no conclusive data to confirm or deny this, just anecdotal reports. However, we do know that choosing to shop locally is a great choice for the environment, as well as the SME economy. Keeping up with this trend could be a positive, but it might require you to be stricter with the items you do purchase. Stick to a strict shopping list and making sure to take note of expiry dates to avoid wastage could help you to shop locally, without racking up too much of a bill.
The Rise Of The Mindfulness Market
In 2019, the Calm app reached a $1 billion valuation. The global wellness institute also estimates that the wellness market is worth an estimated $4.2 trillion, which is a 12.8% increase since 2015. This is a difference of $3.7 trillion.
More and more products are now marketed as “mindful”, which some people suggest is the term that simply re-branded “meditation”. For example, the biggest publishing trend of 2015 was adult colouring books. This highlights that this health and wellness consumer trend for 2020 has certainly been commodified and exploited. Consumers should be wise to marketing tactics that use mental and emotional wellness as a way to get you to hand over your money. Of course, you should care for your wellbeing, but there are so many free ways to do it, to help you save your cash.
Here at Wizzcash, we have talked previously about the link between financial insecurity or debt and mental health concerns. Unfortunately, marketing tools that use this method to attract customers could be worsening their financial situation. We are a as well as a broker and could provide an emergency loan when you are in a tight spot. The type of loans we offer are not to be relied upon as an ongoing source of credit as they are an expensive way to borrow. To find out more about how we could help you, browse our website!