Eimear Collins
Irish consumers are prioritising value over quality in their Christmas shopping this year, according to new research by law firm DWF.
The findings are a result of a global survey commissioned by the firm and conducted by Retail Week, with a total of 10,000 consumers surveyed worldwide, including 1,000 in Ireland.
When asked what influences their food purchasing decisions, 66 per cent of Irish consumers identified low prices, compared with 63 per cent who opted for product quality.
Discounted products were the next most popular option for canny Irish shoppers (55 per cent). These far outweighed other factors such as loyalty schemes (26 per cent), great customer service (22 per cent) or ethical practices and sustainability (10 per cent).
When it comes to non-food shopping, Irish consumers seek out deals and promotions (59 per cent) above all else, far higher than their enthusiasm for customer-centric concepts such as in-store service (28 per cent), branded products (31 per cent) and manned checkouts (16 per cent).
The survey also found Irish consumers are among the most cash-strapped compared to their peers in the US, Europe and China, with 58 per cent having less than €280 in disposable income each month.
Compounding these findings, half of Irish consumers expect their disposable income to remain static next year with 34 per cent anticipating an increase and 15 per cent fearing a decrease. When asked about the cost of living in general, more than 34 per cent of Irish consumers expect the situation to worsen.
In terms of Brexit, there was a general level of uncertainty about the future (43 per cent), with 31 per cent of Irish consumers saying they remained positive about the EU’s handling of the negotiations and 33 per cent also positive about the EU’s prospects post Brexit.
Eimear Collins, partner at DWF Dublin, said: “With issues like Brexit on the horizon and with consumers already feeling the pinch when it comes to disposable income, retailers are faced with a great challenge in attracting customers through the door this Christmas.
“With consumer confidence decreasing, retailers will be looking to be more competitive on price and prioritise their value offering above all else.”