Even as the middle class in many countries are struggling financially as well as facing economic uncertainty, middle-class consumers continue to be an important (if not the most important) target for global businesses. Insights into the Middle Class Reset and associated trends can help businesses stay relevant in the long term and succeed.
This report comes in PPT.
If the accumulation of material things was previously a marker of success for middle-class consumers, the global middle class is shifting away from wasteful, conspicuous consumption towards more selective and conscious spending.
Middle-class shoppers’ purchasing decisions are driven by the pursuit of value. They are increasingly conditioned to buy on discount, but are also seeking intangible values including quality, convenience, experience, authenticity and sustainability.
Either to stretch their limited financial resources or to reduce environmental impact, middle-class consumers are placing lower importance on ownership. This requires companies to be flexible and adopt a variety of business models and strategies, from repairing and reselling through to renting and offering a service.
Technology empowers the consumer by giving them more information and more choices, but it also allows brands to engage with consumers, disrupt the market/industry, and exceed consumer expectations. Today, amid the COVID-19 pandemic, middle-class consumers rely on technology more than ever before.
The Middle Class Reset is a megatrend that started off in developed markets where the squeezed middle class reassessed their values and priorities. Yet the trends associated with this megatrend are also prevalent in emerging economies, making them important markets for brands whose main target is middle-class consumers.
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