Dive Brief:
- One-third of consumers decreased their overall spending during the second quarter, while about a quarter said they increased their spending, according to a Q2 trend report from Jungle Scout.
- The report, which measured Q2 versus Q1 2024, found that across generations, Gen Z consumers increased their spending the most, both overall and online specifically. Baby Boomers were the least likely to alter their spending this quarter, while Gen X were the most likely to cut their spending overall and Millennials were most likely to cut their spending online, per the report.
- Jungle Scout also found that consumers increased their use of social media to find and make purchases. Compared to Q1, over 20% more consumers in Q2 said they were likely to purchase products directly from such prominent social media platforms as Facebook, Instagram, YouTube and TikTok.
Dive Insight:
Jungle Scouts’ recent report highlights how many consumers are still cautious about spending.
The survey, conducted between May 31 and June 2 of this year, reached 1,000 anonymous U.S. consumers to ask them about their buying preferences and behaviors. Some 84% of respondents to the report said rising inflation affected their spending. Another recent survey commissioned by Forter and conducted by Talker Research revealed that nearly two-thirds of respondents changed their online buying habits due to higher prices.
There were bright spots, however, in consumer spending during Q2, per the Jungle Scout report. As summer approached, consumers turned their attention to such outdoor categories as patio, lawn and garden, which jumped 80% from the previous quarter. Other categories that experienced a quarter-over-quarter sales increase were automotive, electronics, grocery, and health and household.
Jungle Scout also found that almost half of shoppers start their online product searches on social media platforms, and many consumers view social media ads as more important than ads on e-commerce marketplaces like Amazon. Eva Hart, content marketing and demand generation manager at Jungle Scout, said the findings around social media advertising are crucial for sellers and brands as they need to adapt their strategies to meet prospective buyers where they shop.
“With Millennials significantly impacted by economic pressures, understanding these trends is vital,” Hart said in an email to Retail Dive. “Brands that tailor their approaches to these insights will be better positioned to connect with diverse consumer segments in a dynamic market.”
