Consumer Spending: YouGov research shows why brands will need to work hard post-lockdown
YouGov’s deep-dive research reveals that consumers have made some important adjustments to the realities of the COVID-19 pandemic; a crisis that has left many out of work, stuck at home, and facing uncommon financial strains across the globe.
Matt Palframan, YouGov's director of financial services research comments "On the surface of things, it looks like the COVID-19 pandemic has had a positive impact on people’s finances in many countries, but we know all too well how the average can often mask the reality. Further work that we have done in Great Britain that measures levels of financial distress and over-indebtedness, reveals that a minority of consumers are struggling more now than they ever have been. This group were struggling before the pandemic and have been impacted the most by it."
| Indonesia | 72% | |
| Italy | 56% | |
| Mexico | 55% | |
| UAE | 53% | |
| Poland | 51% | |
| Singapore | 51% | |
| Spain | 50% | |
| China | 50% | |
| Hong Kong | 50% | |
| France | 49% | |
| India | 49% | |
| Australia | 44% | |
| USA | 41% | |
| Great Britain | 37% | |
| Sweden | 35% | |
| Germany | 28% | |
| Denmark | 20% |
Markets where consumers are actively reducing expenses
Most notably, in several markets, the majority – or a significant minority – of consumers are actively limiting their expenditure: ranging from a fifth (Denmark: 20%) to comfortably over half (UAE: 53%; Italy 56%) of the adult public. In Indonesia, the figure is as high as 72%. COVID-19 has provided a number of plausible reasons for this reduced spending.
Yet reduced expenditure may also relate to a general lack of options: people who are discouraged from or unable to travel, to eat lunch at a quick-service restaurant, to watch films at the cinema or to socialize in bars simply have fewer non-essential things to spend money on.
The COVID-19 cutback? Consumers set to continue limiting spending in future
Whether consumers are restricting non-essential expenditure out of choice or not, they intend to continue doing so in future. The only countries where a clear majority do not plan to cut back are Germany and Denmark, where 45% and 46% respectively believe they will slim down their outgoings. However, across the rest of Europe most consumers (58% – 86%) anticipate restricting their spending.
In each of the APAC nations featured in our study, at least two-thirds of consumers (69% - 87%) plan to cut their costs going forward. By next year’s study, we will have a better idea of the extent to which they have delivered on these intentions.
Get the complete research, for free
For the complete research, including a look at consumer behaviour, use of cash, investing habits, and much more, download the complete YouGov Global Banking & Finance Report 2021 now.
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