In 2022, 73% of Quebecers planned to cut their expenses. However, when it comes to revising their budget, priorities and strategies vary significantly from one consumer to another.
Concerns vary according to household income...
Sources: Numerator Canada, Monthly Consumer Sentiment Study, January 2023 / Vividata, Fall 2022 survey, Canada 18+, lower incomes: households with annual revenues inferior to $60,000
... as do preferred saving strategies
Sources : Vividata, Québec, 18+, Chef/cheffe de famille, individus fortement en accord avec les énoncés
When it comes to what’s essential . . . to each their own!
As budgets get tighter, hybrid consumption methods are emerging. And some may come as a surprise. The consumption of luxury products jumped among Gen Zers and Millennials, particularly those forced to abandon their dreams of buying a home, living with their parents instead.
The sometimes atypical profiles of consumers of premium products
Source: Vividata, Fall 2022 survey, Québec 14+, see end of article for specifications about the three targets
In times of crisis, certain brands with similar positions face opposite outcomes. Lufa Farms remain profitable thanks to their urban agriculture model, whereas meal kit businesses (Goodfood, HelloFresh) are directly affected by households’ limited spending.
The high-end market goes to the wayside
The luxury market is having record-breaking performances, but this is also the case at the other end of the spectrum, among businesses specializing in very low-cost products.
A tidal wave of Dollarama stores in Quebec
Source: NielsenIQ data shared by La Presse, Nos infidélités profitent à Dollarama, February 2022
For some retailers, the strategic repositioning is completely mapped out: Loblaws, for instance, announced that several Provigo stores would be turned into Maxi stores. For most retailers, however, the task isn’t so simple. For fashion retailers, for instance, finding where you fall between Shein and Chanel is no easy feat.
Additional sources: Journal de Québec, De nombreuses tactiques utilisées pour contrer l’inflation, May 2022 / Business Insider, Gen Z and millennials are driving growth in the luxury-goods market, study shows, November 2022
Specifications on the targets of visual 3: The sometimes atypical profiles of consumers of premium products
- Consumers of eco-friendly food: Individuals who consider who feel that paying more for organic food is worth it, OR individuals who try to use organic, pesticide-free vegetables, AND individuals who buy food from free-range breeding when they can OR who prefer vegan food AND households who spend more than $150 on groceries weekly.
- High-end beauty product enthusiasts: Individuals who spent more than$100$ on cosmetics/makeup OR more than $100 on face/skincare AND individuals who say they take great pleasure in taking care of their appearance.
- Fans of international travel: Individuals who say they love travelling AND who have travelled internationally 2 or more times in the past 12 months.