In recent years, Electronics & Technology dominated consumer splurges, but a new study by 5WPR reveals a significant shift.
5WPR, one of the largest PR firms in the U.S., surveyed 2,005 consumers to explore their spending preferences and behaviors.
The findings were published in their new “2024 Consumer Culture report,” aimed at helping brands understand current consumer interests and culture. Leveraging insights from this report can assist retailers and shopping centers craft better communication strategies and events to resonate with today’s consumers.
So, let’s dive into the findings:
A Focus on Health & Wellness
Electronics and technology no longer hold the majority share of consumer interest to splurge for the first time in five years, now sharing the top spot alongside health & wellness (52%).
More precisely, health and wellness is the number one splurge category for individuals aged 45-44 (62%), Gen Z aged 16-24 (59%), and those 65 and above (45%).
This marks a significant shift, with Health & Wellness seeing a notable 9% increase over the previous year.
Dara A. Busch, Co-CEO at 5WPR, highlights that this is a great opportunity for brands in the health and wellness industry:
“We have never seen an increase in consumer interest this great in a single year across any category, and no industry has come this close to rivaling electronics and technology for the top spot. Brands in the health and wellness industry should be excited by these insights”.
Beauty and Personal Care: A Rising Star
Gen-Z respondents not only want to prioritize their health and wellness but also how they look and feel, as indicated by respondents.
Their second favorite splurge category is beauty and personal care (57%), and both categories are among the top industries they plan to spend most of their disposable income (32%).
“These insights underscore the potential of these industries to excel, and indicate a change in consumer perceptions, blurring the traditional line that has previously separated the health and wellness, and beauty and personal care industries,” added Busch.
Adapting Marketing Strategies to Appeal to Consumer Trends
As Health, Wellness, Beauty, and Personal care are now the top splurge categories among consumers, brands should adapt their strategies to align with these shifting preferences.
The report emphasizes the importance of clear messaging and influencer marketing to appeal to today’s consumers.
Unlike most consumers, who consider word-of-mouth recommendations from real-life friends and families to be the most influential, Gen Z turns to actual influencers when looking for product recommendations. Their ability to authentically connect with Gen Z and their influence over their followers’ purchasing power make them among the strongest tools for modern brands.
Therefore, focusing on health, beauty, and personal care combined with influencer marketing should be the pillars of a brand strategy in today’s market.
“Consumers want to invest in themselves, and insights from the complete report reinforce the need for brands to have clear messaging around brand and product value to drive sales. Now is the time for companies in the industry to double down on their communications efforts as consumers are in the market and ready to spend”, says Busch.
