5WPR Unveils Insights On Consumer Culture

36% of consumers reported splurging on clothing & fashion, which has increased to 42% in 2024, 5WPR’s consumer culture report unveiled.

In an era marked by content overload, the 5WPR 2024 Consumer Culture Report underscores the critical role of brand consistency as consumers navigate a dynamic shopping landscape that mirrors an evolving shopper mindset. 

The report reveals an increase across all categories in the percentages of consumers who intend to splurge this year, with some categories seeing an almost 10% increase. In 2023, 43% of consumers reported splurging on health & wellness products, rising to over half (52%) this year. Similarly, last year, 36% of consumers reported splurging on clothing & fashion, which has increased to 42% in 2024. 

5WPR Co-CEO, Dara A. Busch, said, “Unclear messaging around brand and product value leads to the disparities we see between trends in appetite to spend and ultimately the spending that’s reported. Consumers want to invest in themselves, so it makes sense they are spending generously in categories like health and wellness. Though excitement to spend on travel and experiences is high, the further the value proposition of the spend on personal wellbeing, the less likely they end up feeling inclined to make that purchase. For brands to convert consumer spending desires to actual purchases, it all falls to how they message the value proposition of that trip or experience on personal well-being. This is a key area for travel and experience brands, and brands in other categories, to explore in their messaging this year and beyond.”   

“What we’re hearing from consumers in this year’s report is that they are being served brand messaging in every channel and at every turn. This, combined with the fact that the number one channel they’re relying on to purchase is word of mouth, followed by customer reviews and testimonials reinforces the need for crystal-clear brand positioning and storytelling across all channels – ensuring that as messaging is filtered across mediums and into the hands of consumers themselves, the value proposition remains clear to the end purchaser. Further, with Gen Z driving a return to stores, the same messaging and value proposition need to be reflected in the experience of brick-and-mortar shopping and the added value offered through that experience,” added Busch.

However, the factors convincing them to spend, and the channels being used to drive purchases, are increasingly diverse and difficult to pinpoint. For marketers, this means that brand recognition across channels, and clear channel-specific value-add messaging, is stronger than any singular sales tactic. 

In terms of factors influencing purchase decisions, for most shoppers (46%), what ultimately drove them to spend was word of mouth, widely defined as recommendations from IRL friends and/or family members (71%). However, for consumers under the age of 55, word of mouth also extends to user-generated content across social media channels with 67% of Gen Z shoppers choosing being informed by social media user-generated content as their top definition for what they associate as word-of-mouth marketing. Friends and family, and online customer reviews and testimonials followed closely while celebrity endorsements wield the least influence across all ages, with fewer than half of respondents considering them for word-of-mouth referrals.

Consistent messaging on every channel is also key in optimising the consumer shopping experience. In a shift from recent years and diverging from other generations, nearly 50% of Gen Z (16-24) now note a preference for browsing in-store. The survey results indicate a pendulum shift away from the convenience-forward online shopping experience of years past, and towards a hands-on personal experience with their favourite brands.