The recent Consumer Navigator Survey which aims to understand the economic outlook and general disposition of European consumers revealed complex and contradictory insights spread across the countries. The results revealed significant apprehension and a pessimistic outlook toward both current and future economic conditions. This sentiment was particularly marked by UK consumers and even more by French ones and was least shared among Spanish and Polish consumers.
Economic Outlook & Financial Settlement:
- Consumers remain pessimistic, especially in France (81%) and UK.
- Despite low macro confidence, the majority can still cover essentials.
- Over half expect stable personal finances in the short term.
Consumers in France displayed the most consistent negative outlook across sectors. Data showed that 81% of French consumers feel ‘terrible’ or ‘not good’ about the European economy’s current state. The UK followed closely behind with 79% of consumers expecting their financial situation to stay the same or worsen.
Despite 45% stating that the economy will continue to decline, over half also affirmed that they were able to afford all of their essentials. This contrast between emotional pessimism and financial functionality suggests a complex dynamic, one where fear and mood are not fully aligned with behaviour. Brands must recognize this cognitive dissonance and speak not only to practical needs, but also to consumer sentiment and emotional reassurance.
Value-Seeking & Spending Behaviour:
- 47% have cut back spending; the UK and France lead this trend.
- Small indulgences (food, beauty, quick dining) remain resilient.
- Major purchases see more cautious value-for-money decisions.
Across Europe, just under half have cut down on their spending. This has been especially prominent in the UK and France, where economic uncertainty impacts not only perspective but also everyday financial decisions. However, small indulgences remain popular especially among Spain and Poland. These countries have expressed the least amount of apprehension towards how they spend and of their own personal economic life. Sectors like food, beauty and casual dining are consistently strong areas for spending. This may be because these areas provide comfort and joy without causing major financial strain. However, for more financially heavy purchases, consumers are more wary and selective. They prioritise value, sek deals, bundles and loyalty benefits to justify their spending.
This emphasises how brands need to focus on being understood as smart and safe financial choices. Value often takes priority over factors such as emotional satisfaction.
Purchase Drivers & Channels
- "Good value" is the top factor; brand trust and transparency matter.
- High street leads but social commerce is growing, especially for younger shoppers.
Overall, European countries seek to prioritise value, as this gives them the satisfaction that they are making just use of their finances. Well justified purchases often take priority over affordability. This makes it essential for brands to be able to communicate clearly the practical benefits of their products and to display its cost-effectiveness.
Trust and transparency also play an important role in influencing purchasing decisions. Consumers are more attracted to brands that appear to be honest, consistent and socially responsible.
Regarding shopping channels, traditional high street retail is still highly valued but there has been a surge among Gen Z and Millennials in social commerce. These age groups increasingly make use of social media platforms like TikTok and Instagram to purchase products through there. Brands must focus on having an active presence on these platforms to reach a greater, growing audience.
Generational Divide
- Gen Z and Millennials are more optimistic; Boomers more cautious.
- Age shapes financial perception; stable vs unstable.
Boomers and Gen Z displayed a significant difference in their perspective. Boomers are significantly more concerned about the economy, with 56% believing it to be in ‘bad shape’. However, 41% of Gen Z consumers felt the economy was in ‘good shape’.
This may be due to the different experiences these generations have been shaped by. Boomers have been raised in relatively stable economic times, so the current financial volatility is alarming and unfamiliar to them. On the other hand, Gen Z has been raised amid global crises ranging from the pandemic to ever-changing climatic issues. This has made them more emotionally resilient and most likely caused a more neutral or positive outlook towards changing economic times.
Being able to understand these generational mindsets can help brands tailor their messaging, older consumers may respond better to messages of stability and security while younger ones may be more open to innovation, creativity and social impact.
Brand Expectations
- Simplicity, clear communication, and empathy build loyalty.
- Promotions, bundles, and loyalty programs are seen as smart financial choices.
Overall, consumers have reduced their spending and now prioritize value for money. They want straightforward, trustworthy communication that clears through any uncertainty. To engage them, brands should offer simple, trustworthy options using promotions, bundles, and loyalty programs positioned as smart financial choices. Brands that deliver simple value through clear messages, transparent pricing and helpful promotions are more likely to gain consumer trust. Despite economic anxiety affecting many consumers' financial decisions, sectors like holidays, beauty and fashion continue to thrive, showing that emotionally intelligent branding still wins