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              Will consumers spend in 2019?

              One of the key issues that our The Global Consumer 19 report in partnership with Retail Week looks at is what capacity consumers have to spend this year. 

              Disposable Income

              To determine how likely consumers are to spend money in 2019, we interviewed 10,000 consumers globally from 10 key retail markets to determine how much disposable income they have.

               

              Select the locations to find out key information about disposable income in each of the markets we surveyed.

              One global trend that emerges quite clearly here is that – contrary to the current market focus on Generation Z – consumers aged between 35 and 54 have the greatest spending power. Interestingly, those aged over 55, who often tend to be asset-rich but cash-flow poor, are feeling the pinch.

              It is equally important to take the amount of debt that the consumers are facing into consideration. Our debt calculator looks at the percentage of consumers reliant on debt (such as credit cards, personal loans etc, not mortgages) to pay their monthly bills:

              Things to consider

              With limited disposable income, targeting of ads and promotional activity takes on even more significance. Behavioural or differential pricing based on personal circumstances is becoming the norm for insurance and to an extent travel purchases, and we are used to ads being based on browsing habits, but what is next? We believe a totally personalised shopping experience is the next big step in advertising, but the opportunity brings risk and retailers will have to take care to ensure they have got necessary permissions and data in place.

              With consumer, media and government scrutiny at an all-time high, no retailer can afford to cut corners. While it is right to consider how to deliver your business strategy as efficiently as possible, this should not come at the cost of regulatory or reputational risk, particularly when in many countries regulatory penalties are at an all-time high.

              Consumer confidence will also have an impact on spending in 2019. Find out more here.

              About the research

              The DWF and Retail Week Global Consumer 2019 report surveyed 1,000 consumers in each of the following jurisdictions: Australia, China, France, Germany, Italy, Kenya, the United Arab Emirates, the Republic of Ireland, the UK and the US. Research took place in October 2018.

              People

              Hilary Ross

              • Head of Retail, Food & Hospitality // Executive Partner (London)

              Nils Wolfgang Bings, LL.M. IP (GWU)

              • Partner // Head of Food Law and Regulatory Compliance FMCGs (Germany)

              Oliver Bolthausen, LL.M. (USA), FCIArb (UK)

              • Partner // Executive Partner (Munich) // Global Head of International Arbitration & Disputes

              Ed Meikle

              • Partner // Head of Retail Group