According to new research from Mintel’s British Lifestyles report, just under half (45%) of women feel financially worse off compared to a year ago, compared to just over a third (35%) of men.
This greater financial concern during the cost of living crisis has led to a particularly cautious approach to spending over the past year. For example, 46% of women have cut back spending on clothing and accessories compared to 33% of men. What is more, concern is also driving a more cautious approach toward future spending as half (51%) of women expect to cut back on non-essential spending in response to rising prices compared to 39% of men.
Overall, Mintel estimates that total annual consumer expenditure will grow by 6.5% to reach £1.73trn in 2023. However, much of the growth is driven by rising prices. This compares to 15% record growth between 2021-22.
Francesca Smith, the research group’s Senior Consumer and Lifestyles Analyst, said: “While few have escaped the severe impact of the cost of living crisis, women appear to be paying a higher price. They are more likely to be in insecure or part-time employment, typically earn less money and bear a more significant burden of unpaid care work, leaving them more exposed to tougher economic conditions. The past 18 months have placed additional pressure on women’s finances. They are feeling worse off and more nervous for the year ahead.
“The income squeeze has resulted in many savvy behaviours which we think will stick in the long-term, mainly where consumers have experienced financial benefits first-hand. At this point, shopping at discounters, such as Aldi and Lidl, has become a fairly class-resistant activity and one that will stick around.”
Smith added: “Brits continue to look at ways to combine value and sustainability, leading to a steady growth in the refurbished technology market. In 2023, one in five (19%) Brits said they were more likely to buy second-hand technology as a result of the cost of living crisis. There is a definite risk to brand perception if a device cannot easily be repaired and has to be discarded before the user feels they have been using it long enough.
“Beyond technology, there’s also growing demand for clothing retailers to offer repair services in their stores, and we are seeing more companies adding this service. Offering additional services such as alterations and repairs is a key way for brands to appeal to savvy shoppers, with 42% of women’s clothes buyers having repaired clothes over the past year.”
Mintel found that consumers have significantly reduced the frequency of their food delivery/takeaway orders, with just a quarter (24%) ordering home delivery or takeaway once a week or more in 2023, compared to 30% in 2021. Smith commented: “Cash-strapped Brits are looking for more special out-of-home experiences or meals prepared at home to save money. Rising costs and relentless consumer demand for free delivery and meal deals mean many delivery operators in this sector will have to work harder to maintain trading levels and protect their profit margins.
“Instead, Brits are increasingly turning to ready-to-cook meals, sales of which are set to increase 41% between 2022-23 to reach an estimated £301m. Similarly, frozen ready meals are expected to grow 16.5% between 2022-3 to reach an estimated £649m.”
Meanwhile, Mintel highlighted that ‘Dupe’ culture is prominent within the beauty and personal care market, with dupe products often going viral on TikTok and other social media platforms. Smith said: “Young women are well-versed in spotting and promoting dupes and believe quality does not have to be sacrificed for a lower price. Seven in ten (69%) women who use makeup have either used or are interested in trying cheaper versions/copies of premium makeup products.
“Own-label brands in other consumer categories, such as household, healthcare, food and drink, are well-positioned to explore the possibility of dupes. Prestige brands will need to prove the value and quality of their products to combat the threat of dupe innovations.”
NAM Implications:
- If women are your target audience…
- …anticipate a tougher sell to increasingly savvy consumers.
- Unwilling /unable to settle for anything less than demonstrable value for money…
- …where any growth will have to come at the expense of rivals.
