The great retreat (indoors)

With the rising cost of living in the UK, people are cutting back on non-essential spending and retreating to their homes to save money. The COVID-19 pandemic has caused an abrupt shift in attitudes, with consumers implementing eight new actions on average to save money. They are seeking advice and tips from brands that offer visible savings and useful information, particularly from supermarkets and financial expert Martin Lewis.

As consumers spend more time at home, they are replicating their out-of-home experiences and seeking entertainment and indulgences in-house. Brands that can enhance the at-home experience or "premiumise" a night in have the opportunity to maximize their products and services for the in-home market. Social media platforms, particularly TikTok, are becoming popular sources of discoverable content for saving money, beauty treatments, and budget planning.

As brands consider how to respond to changing consumer behaviors and respond to the cost of living crisis, it is crucial to be mindful of customers and respond accordingly. Brands need to consider offering personalized rewards, exclusive offers, and price locks to build or strengthen brand loyalty while conveying emotional and functional value to customers. By thinking about the sense of comfort the home brings, brands can tap into the great retreat and the sense of cocooning that is rising, leading to innovative approaches and new opportunities.

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