In its latest consumer trends report, Jungle Scout, the e-commerce platform provider, found shoppers are feeling the sting of inflation and have intentions of pulling back spending this coming fourth quarter and holiday shopping season.
Authors of the survey, which polls over 1,000 consumers each quarter, also noted that as Instagram pulls back on social commerce, TikTok has gained market share among Gen Z.
Regarding household spending and the economy, the authors of the report said, “consumers are increasingly concerned about inflation and the economy, with three out of four believing the U.S is already in a recession or will be soon.” The survey showed that 84 of those polled “say inflation has affected their overall spending, a 9 percent increase from three months ago.” Those polled also revealed that 90 percent of shoppers “say they have noticed higher product prices in their day-to-day spending.”
As a result, shoppers said they are cutting back on spending by buying items on sale and purchasing less expensive brands as well as buying “generic brands.”
The traditional timeline for holiday spending has also shifted. With about 100 days until Christmas, 30 percent of respondents said they’ve already begun buying for the holiday, while 70 percent said they plan to do so before Thanksgiving.
Mike Scheschuk, chief marketing officer at Jungle Scout, said upcoming shopping events “like a second Prime Day, Black Friday and Cyber Monday offer consumers the best deals ahead of the holidays. With these events on the horizon, retailers are listening to customers’ inflation fears and must be willing to adapt their strategies. They can maximize growth and retain customers by managing inventory, being strategic with price increases, and understanding the needs of their customers.”
When asked about social commerce, 48 percent of respondents said they “are likely to purchase a product directly from TikTok, while 65 percent have purchased from a streaming platform (Hulu, Netflix, etc.).” By demographic cohort, 72 percent of Gen Z chose Instagram as their top social commerce channel, followed by TikTok and YouTube at 71 percent each. Millennials’ sole choice for social commerce was YouTube, while Gen X was split between Facebook and YouTube. Baby Boomers only cited Facebook.