Reduced Spending

Consumers will likely reduce spending due to economic pressures in areas such as groceries, travel, entertainment and treats. Telecoms will be affected too, as people cut back on streaming and bundling internet. TV and mobile phone providers to find savings. 30% intend to switch to less expensive brands while 38% will cut back on splurge items.

This trend originates from the report:

VERICAST - Predictions & Trends 2023

Consumers will pull back on spending in multiple areas. We expect that many consumers will continue to feel significant economic pressures. Their inevitable response will be to tighten their budgets across the board but especially where groceries, travel, entertainment and treats are concerned.

In a recent survey, 38% of respondents indicated that they will be cutting back on splurge items while 30% intend to switch to less expensive brands. One area to watch on this front: expect to see people revisiting which streaming services they subscribe to in 2023. Some 22% of our survey respondents said they would be cutting back on streaming services while 17% plan to bundle internet, TV and/or mobile phone providers to find savings.

Expect growth to continue for wireless cable providers as people realize the cost savings and that the coverage is as good as their previous provider. What can brands do to respond? “Deals and discounts will help providers be more aligned to these emerging competitors,” says Jill Morgan, Manager, Telecom Client Strategy, “beyond that, providers need to figure out how to differentiate their services to stay relevant..