'Be affordable, convenient, and authentic or fall behind'

While UK consumer confidence falters under persistent economic pressures, Britain is still a land of opportunity for brands to adapt and grow, but they must understand the evolving consumer mindset or risk losing ground to the competition.

So says Dentsu’s latest EMEA Consumer Navigator Report, which maintains that shoppers are still being influenced by value for money, reputational pull and solid advertising strategies.

With four in five (80%) Brits perceiving the economy as being in poor shape and nearly half (46%) struggling to afford some essentials like food, utilities, and rent or mortgage payments, consumers are shifting their spending priorities – forcing brands to rethink how they engage their audiences.

This transformation in consumer behaviour is not just about spending less but spending differently. The report outlines actionable strategies for brands to navigate this complex landscape, delivering impactful customer engagement and business growth.

Adapting to changing spending habits
The report details how consumers are prioritising essentials like groceries while postponing larger, discretionary purchases such as technology (66%) and luxury goods (70%). However, they are still indulging in affordable comforts with increased spending on dining out (33%) and fast food (32%).

Brands must seize these opportunities by targeting what Dentsu calls “affordable indulgence”, by developing messaging and products that align with consumers’ need for small but meaningful rewards.

Brands must also ensure contextual relevance by tailoring advertising to moments when consumers are most receptive to engaging with brands, particularly during treat-seeking occasions.

Meanwhile, it is also essential to deliver seamless digital experiences. As consumers make more careful spending decisions, convenience in online and app-based interactions becomes a non-negotiable element of engagement, the report clams.

Harnessing the power of social commerce and apps
Dentsu’s data reveals that the shift toward digital interactions is accelerating, with one in five (21%) consumers expecting to shop via social media in 2025 – a number that jumps dramatically among Gen Z (67%).

Apps are also becoming indispensable tools for managing purchases, though the report highlights the surprising demand for in-person reassurance among younger consumers for complex transactions, such as financial services.

To grow in this space, brands should invest in social commerce by seamlessly integrating shopping experiences on platforms like Instagram and TikTok, where Gen Z and Millennials are increasingly active.

They should also create short-form interactive content to prioritise “snackable”, engaging storytelling to capture the attention of younger demographics. Meanwhile brands can build trust by offering a hybrid approach, combining intuitive digital interactions with accessible human support.

Building loyalty through trust and values
Economic challenges have magnified the importance of loyalty and trust, but these attributes are evolving. The report reveals generational divides, where older consumers value rewards and loyalty schemes, while Gen Z emphasises ethics, sustainability, and brand purpose.

To strengthen relationships, the report says brand need to personalise the consumer journey by leveraging AI-driven insights to tailor offers, loyalty programmes, and experiences to the priorities of different generations.

They must also clearly communicate values and demonstrate authenticity to resonate with socially conscious younger consumers, while prioritising transparency and trust. This is especially critical in sectors like financial services, where trust remains a cornerstone for older audiences, while convenience and ease of use appeal to younger generations.

Transforming for long-term success
The report stresses that economic uncertainty is not a fleeting challenge but a permanent reality, requiring brands to embrace transformation at every level.

Future-ready strategies include embedding AI and predictive analytics to anticipate consumer needs and optimise marketing efforts with data-driven precision.

Meanwhile, brands should allocate advertising budgets more efficiently by investing in retail media platforms and ensure a seamless flow between online and offline touchpoints to meet rising consumer expectations.

The EMEA Consumer Navigator Report makes it clear: brands must evolve or risk falling behind. In this new era, winning over consumers requires focusing on affordability, convenience, and authenticity. Brands that embrace these principles, coupled with data-driven decision-making and business agility, will not only survive but thrive.

Dentsu chief strategy officer UK&I Dan Truman said: “Against the current economic backdrop, it’s unsurprising that consumer habits are shifting. As they look towards newer purchasing channels, like social media, it provides a unique opportunity for brands to meet them where they are.

“To be successful across these channels, brands must listen to their audiences, understand the pressures they are facing and be able to respond quickly. It’s only then that they’ll unlock the insights and services that sets them apart and drives long-term engagement.”

Co-op chief membership and customer officer Kenyatte Nelson added: “As consumers continue to battle the cost-of-living crisis, the retail industry needs to step up and meet them halfway.

“At Co-op, we firmly believe in the importance of understanding and responding to the needs of our customers – our recent price match initiative, both in stores and online, was a direct result of this.

“Dentsu’s Consumer Navigator Report provides further evidence that truly listening to the voices of those who shop with us day-in, day-out will set us apart – in both today’s climate and the future.”