EY: It’s getting more expensive to live, many think it will get even worse

By: Trademagazin Date: 2023. 06. 13. 12:57

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People around the world are worried about the rising cost of living, and many fear that the economic situation will get even worse, according to EY’s international survey of 21,000 people, which was conducted this spring. Businesses must adapt to changing consumer needs as quickly as possible if they want to keep their customers.

Almost everyone is worried about the rising cost of living (94%) and the state of their country’s economy (92%), and one in three (39%) respondents expect that conditions will become even more difficult in the next few months. A similar percentage (35%) of customers are worried that the products they have been used to will become unaffordable for them as a result of the price increase.

More than a third of those surveyed (36%) would spend less on clothes and ordering food (44%) in the future, and almost half of them (49%) would buy only the most necessary goods. The vast majority of consumers (79%) perceive food prices to be rising and find (74%) that some brands have reduced product sizes without this being reflected in their prices.

“The pressure on companies is enormous. It is no longer enough if discounting is the only solution for companies in such a situation, as it is only a short-term tool that can only be used to win rounds in the fight against inflation, but it is impossible to win a match. A business strategy that supports consumer engagement is needed, which can simultaneously increase customer satisfaction and increase the company’s profits.”

– pointed out László Palincsár, head of EY’s newly launched Brand & Customer Engagement services.