“I’m not paying for that!” A look at current consumer spending habits in North America

BY STEVEN KASZAB

68% of North American consumers want to purchase items that will last. Perhaps the days of throwing away toys, clothing that lasts 3-5 washes are over.

Shopify has studied consumer habits over the past two years, coming upon some very important economic markers. In the past, the cost of an item often superseded the quality of an item. It seems that cost is king. Apparently, this has changed for many consumers. The cost of borrowing has risen, as has inflationary pressure upon this population, adding to the scarcity of items available.

Brand loyalty has gone the way of the dodo bird, as quality and the actual value of an item means more to the customer than a patch or name of a brand. Retailers and sellers are doing summersaults in an effort to attract and capture customer’s attention and loyalty. 46% of consumers replying to Shopify said they would move brand loyalty to more quality lasting products, while a further 26% said they would move their loyalty in return for future discounts. This mercenary attitude provides suppliers with the opportunity to win over customers and modify their shopping habits.

The President of Shopify, Harley Finkelstein offered advice to these consumers, telling them that Black Friday and Cyber Monday are not just day events, but a week to month experience. Retailers need to sell wherever customers spend time, whether that be in-store, or online and wherever else that may be.

Building a community with direct relationships supplier to customer will secure the consumers loyalty and open their pocketbooks. While 84% of consumers relaying that they will always compare prices between suppliers, 41% were willing to stick to quality proven products. Ultimately 74% of retailers have put a great deal of emphasis upon the sales coming out of their Black Friday-Cyber Monday Sales Promotions.

Many consumers are looking to local manufacturers, and local distributors that will stand by their products’ durability now and in the future. This is good news for our domestic manufacturers and suppliers. It appears that a possible temporary move away from Asian Imports maybe happening. Consumer tastes and demands are as fickle as your weather person’s predictions.

When consumers start factoring in durability to the purchasing decision, total value becomes central. They are willing to pay up front for a product that will significantly last longer. Every successful business lives by this adage, “The customer is always right.”