Global consumers identify where they’re reducing spending this year | FullStory

Global consumers identify where they’re reducing spending this year

In terms of the economy, times are undeniably uncertain.

Nearly everywhere in the world, people are being more scrupulous about their spending—cutting back on transactions with key industries because of economic uncertainty. 

Our new global consumer survey revealed which industries are most likely to feel the burn in 2023, based on responses from 7,000 consumers around the world. Here’s a quick look at how consumers from seven countries will change their spending this year. 

For a complete look at the DX trends the survey revealed, download the full report. 

Online retail gets removed from cart

Globally, 49% of consumers say they are cutting back on online shopping while the economy settles. Here’s a look at what percentage of consumers say they are reducing online shopping in each surveyed country:

• Australia:52% of consumers

• Germany: 52% of consumers

• Indonesia: 52% of consumers

• Singapore: 52% of consumers

• United Kingdom: 48% of consumers

• United States: 44% of consumers

• The Netherlands: 41% of consumers

The travel industry may lose altitude

Just as the travel and hospitality industry began to see a post-pandemic surge, many people  say that economic uncertainty will prevent them from planning trips in 2023. 

Globally, 44% of surveyed consumers are cutting back on travel. Here’s how this trend breaks down by country: 

• Indonesia: 53% of consumers

• Australia: 45% of consumers

• United States: 43% of consumers

• Germany: 42% of consumers

• Singapore: 42% of consumers

• United Kingdom: 42% of consumers

• The Netherlands: 41% of consumers

Luxury goods and retailers get put on layaway

It’s perhaps unsurprising that many consumers will refrain from more luxurious purchases in the coming year.

Of total survey respondents, 43% will reduce spending on luxury goods and retailers. The percentage of consumers who say they are cutting spending in this sector varies more widely from country to country than other industries: 

• Indonesia: 51% of consumers

• The Netherlands: 45% of consumers

• Australia: 44% of consumers

• United States: 43% of consumers

• United Kingdom: 41% of consumers

• Singapore: 40% of consumers

• Germany: 37% of consumers

In-store shopping could see shorter checkout lines

While fewer people report cutting back on in-store shopping than online shopping, the numbers are still significant.

On average, 42% of surveyed global consumers say they are reducing their in-store spending. Here are the numbers by country, which cover a wide range: 

• Germany: 50% of consumers

• Australia: 45% of consumers

• United Kingdom: 43% of consumers

• United States: 43% of consumers

• The Netherlands: 42% of consumers

• Singapore: 42% of consumers

• Indonesia: 32% of consumers

Some will pull the plug on gaming

Though not as startling as online and in-store shopping decreases, the data shows that some consumers will cancel gaming subscriptions to save money.

Globally, 20% of surveyed consumers are reducing their spending on gaming because of economic uncertainty. Here are what percentage will cut back by country: 

• Singapore: 23% of consumers

• United States: 22% of consumers

• Indonesia: 21% of consumers

• United Kingdom: 21% of consumers

• Australia: 20% of consumers

• The Netherlands: 19% of consumers

• Germany: 16% of consumers

Software could have a hard year

Finally, an average of one in five global consumers say they’re canceling software subscriptions to cut back on costs.

Let’s look at what percentage are cutting spending in each surveyed country: 

• Australia: 23% of consumers

• Singapore: 23% of consumers

• United Kingdom: 22% of consumers

• United States: 21% of consumers

• The Netherlands: 19% of consumers

• Germany: 17% of consumers

• Indonesia: 14% of consumers

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When consumers are spending less, their experiences on your site or app matter even more. After all, 44% of global consumers say they “don’t care” where they transact online, “as long as it works.”

The digital experience can make or break your customer or user retention. Especially in an uncertain economy, online businesses can’t afford to lose customers to digital friction. 

Investing in Digital Experience Intelligence today leads to higher conversions and happier customers tomorrow. Get a demo of FullStory to learn more.