Cost of living and inflationary concerns to continue to weigh on the minds of Irish consumers.
More than half (58%) of Irish consumers are either ‘extremely’ or ‘very’ concerned about their personal financial situation.
According to the new PwC 2024 Irish Voice of the Consumer Survey, which analyses more than 1,000 Irish consumers, 40% of consumers cite inflation as the number-one risk to their consumption habits.
“In the year ahead, companies must achieve a delicate balance between consumer affordability and environmental impact if they are to win new and retain existing consumers”
This is higher than global counterparts (31%), with 48% citing better value for money as their top reason for switching away from their favourite brands.(Global: 42%).
“Irish consumers are continuing to feel the squeeze of inflation and rising prices,” said John O’Loughlin, partner with PwC Ireland’s Retail & Consumer Practice. “Value remains high on the agenda, with nearly half of Irish consumers seeking better value for money when considering switching from brands to which they are loyal.
“In the year ahead, companies must achieve a delicate balance between consumer affordability and environmental impact if they are to win new and retain existing consumers. They will also need to bolster their digital engagement and service-delivery, particularly as more consumers purchase products directly through social media.”
Digital experience remains key: 34% of Irish consumers purchased products directly through social media (Global: 47%) and has surged from 15% in 2019 – even as data protection concerns are high.
Irish consumers are increasingly prioritising sustainability in their consumption practices, as almost nine-in-ten (84%) say they are experiencing the disruptive impacts of climate change in their lives (Global: 85%).
Over four out of ten (42%) Irish consumers would consider acquiring a hybrid vehicle in the next three years (Global: 39%). 20% would consider acquiring an electric vehicle (Global: 32%).
Irish consumers don’t trust AI
In the last six months, nearly half (47%) of Irish consumers have encountered daily or weekly suspicious online and mobile activity, such as scams, unsolicited messages, calls or phishing attempts when browsing or shopping online, higher than global counterparts (39%).
Irish consumers are less inclined to trust AI compared to global peers. For example, just 37% of Irish consumers on average would trust AI to support them on low risk activities such as getting product information, providing product recommendations (Global: 48%). Just 17% on average would trust AI with higher risk activities such as providing investment advice and executing financial transactions (Global: 27%). Nearly a quarter (23%) of Irish consumers do not trust AI at all to support them on any activities (Global: 11%).
Irish consumers are also more concerned than global peers about the potential outcomes of future AI developments and capabilities.
For example, 89% are concerned about the increased risk of being hacked / scammed when using AI (Global: 83%); 87% are concerned about the potential for job losses (Global: 82%); 90% are concerned about the lack of regulation/governance for AI (Global: 85%) and 89% are concerned about how AI development could infringe on their personal and data privacy (Global: 84%).
Nearly half (47%) of Irish consumers have encountered daily or weekly suspicious online and mobile activity when shopping online, higher than global counterparts (39%)
Whilst concern exists, it is clear that younger generations are overall more trusting of AI to complete activities than their older counterparts. Unsurprisingly, Gen Zs are the most trusting across both low and high risk activities. For example, 44% of Gen Zs would trust AI to support them with written communications compared to 30% of Baby Boomers; 34% of Gen Zs would trust AI to handle customer service versus 25% for Baby Boomers. .
“There is no doubt that digital is playing a huge part in retailing and the overall customer journey with AI having the potential to deliver significant opportunities if applied in a safe and secure manner,” Owen McFeely, Director, Retail & Consumer Practice, concluded.
“But trust needs to be earned. Those retailers who can demonstrate that they are keeping consumer data safe and who are using AI to enhance the consumer experience whilst ensuring they bring their customers on the journey, will be the winners.”
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