- Declines in apparel and department store spending indicate that consumers are tightening their belts in some areas.
- Shoppers continue to spend despite rising inflation and stagnant incomes — and social media influencers have a big part to play with their spending.
- “Brands need to reassess their strategy as social media and affordability reshape the retail landscape.”
Inflation has been the most talked about topic of 2022, and the buzz is not expected to go away anytime soon. The Bureau of Labor Statistics reported that inflation rose nine percent in June, even more than expected, as price pressures continue to intensify.
Because of this record increase in the cost of goods, retail sales rose more than expected in June, and while this may initially seem like a good thing, the one percent month-over-month rise in sales mainly reflects the boost to nominal sales values from surging prices. “Up one percent from May 2022 and eight percent from June 2021, these retail sales numbers reveal how consumers are continuing to absorb higher prices in non-discretionary categories like gas, and deferring purchases in categories like appliances. Declines in apparel and department store spending indicate that consumers are tightening their belts in some areas as they manage through this difficult period,” Claire Tassin, Morning Consult’s Retail and Ecommerce Analyst, said.
Getting Around Inflationary Struggles
It is not all bad news, though. Jungle Scout’s Q2 2022 Consumer Trends Report revealed that shoppers continue to spend despite rising inflation and stagnant incomes — and social media influencers have a big part to play with their spending. The report found that 59 percent of consumers are buying less expensive brands to help cut costs, but social media and advertising significantly influence their purchases and opinions of brands.
- 35% have purchased a product after watching a social media brand’s livestream
- 42% say being “followed” around the internet by ads is a helpful reminder, while 32% say they are “creeped out” by the tactic
- YouTube is the most trusted social media platform for finding and purchasing products, followed by Facebook and Instagram
“Despite concerns about inflation, consumers are still investing in the retail economy and are turning to ecommerce for the best deals. What is changing is the products consumers buy and the factors that influence their purchase decisions,” Mike Scheschuk, CMO of Jungle Scout, said in a press release sent to WholesaleCentral. “Brands need to reassess their strategy as social media and affordability reshape the retail landscape. By optimizing their online presence, brands can engage with customers, better understand their needs, and secure loyalty in these uncertain economic times.”
Even though we are still in the midst of some of the most troubling times that business owners must deal with, there are still ways around the ever-looming inflation and supply chain issues. As long as retailers can keep up with trends and utilize the right marketing skills, they are sure to make it out alive.
Hot & Trending Products
As we come up on holiday shopping season preparations and retailers search for the perfect products to market to consumers, here are some hot and trending merchandise to keep on your radar:
Perfect for a holiday gift or as a way to get the ladies together for a fun gathering during the holidays, this game comes with hilarious and thought-provoking conversation starters for women. Made for ages 21 and up, each acrylic cube comes with 135 question cards. A few jaw-droppers, some juicy tales, and a whole lot of fun!
LectroFan Micro2 is a portable bluetooth speaker with 11 built-in sounds to help your customers get better sleep. Pair it with a smartphone for streaming audio and making calls with the built-in microphone, or select sleep sound mode and enjoy five digital fan sounds, four variations of white, pink and brown noise, and two ocean surf sounds. It is powered by a built-in battery that lasts for up to 40 hours playing sleep sounds, or 20 hours playing bluetooth audio between charges.
Sound of Sleep
Today, using laptops and iPads for classwork is becoming more common than ever. This upcoming back-to-school season, let students rest their wrists from their keyboard with a comfortable, soft wrist rest. Everlasting Comfort’s wrist rests for keyboards help to relieve pain and pressure from daily usage while completing assignments. It is designed to shape around the natural curves of hands and wrists for optimal support.