Toluna’s Global Consumer Barometer Study found that the rising cost of living continues to impact New Zealand consumers to the point where it’s taking a toll on their health and well-being. Yet, even as Kiwi shoppers seek out ways to cut their spending, they remain focused on brand values. In fact, many are still prioritising brands whose values align with their own, and they’re going out of their way to seek out environmentally and socially responsible brands.
“This is an incredibly significant finding, and brands and businesses who are not already focused on improving their ESG efforts must do everything they can to make this a priority. It’s clear that consumers are unwavering when it comes to their values, and businesses would do well to ensure they’re making every effort to understand what makes their customers tick in order to remain relevant,” said Sej Patel, Country Director, Toluna, Australia & New Zealand.
Cost of living impacts mental and physical health
Almost half (47 percent) of Kiwis say they’re worse off now financially compared to before the pandemic, and 30 percent are concerned about their finances in light of current global and economic circumstances. A quarter (25 percent) expect to be even worse off over the coming three months.
Three in five (60 percent) Kiwis are concerned about the rising cost of living, and 65 percent cite concern about the energy crisis, specifically. And these issues are weighing heavily on consumers’ minds, with 66 percent of respondents stating that both the energy crisis and cost of living are impacting their spending plans. More than half (56 percent) are putting off big life expenditures until the economic climate is more stable.
In fact, the economic situation has become so stressful, that almost half (49 percent) of respondents said the rising cost of living is impacting their health and well-being; 38 percent are feeling more stressed, 24 percent are eating less healthily, and 19 percent are exercising less often. One in ten (12 percent) drink more alcohol, and 8 percent smoke more cigarettes.
Over the next three months, Kiwis expect to spend less money eating out (43 percent), ordering takeaway (39 percent), going on holidays (33 percent), drinking in pubs and bars (32 percent), and buying new clothes (35 percent). Over half (57 percent) will start reducing unnecessary purchases in their grocery shops and start buying more home-brand items (33 percent).
Ethical brand values are still important
Despite the increased cost of living and tightened spending, Kiwis are still committed to shopping ethically. The majority of consumers (82 percent) say it’s important to them that a brand’s values align with their own, with over four in ten (43 percent) stating that this is very (29 percent) or extremely (14 percent) important to them.
It’s also important to Kiwis that brands care about their role and contribution to the environment and society (83 percent), that they have policies which benefit the environment and society (84 percent), and that they commit to reducing their use of plastic and paper packaging (87 percent).
Respondents also said it’s important to them that brands only invest and operate in countries that behave in an ethical manner (82 percent), with almost half (49 percent) stating that this is very (31 percent) or extremely (18 percent) important.
Over four in ten (43 percent) of Kiwis say they want to make a difference to their community and the world, with a similar proportion (42 percent) stating they care strongly about their behaviours' social and environmental impact. Close to half (44 percent) say they feel satisfied when they make socially responsible choices.
Values driving purchasing decisions
When it comes to ethical purchasing behaviour, Kiwis are putting their money where their mouth is. Twenty-eight percent of respondents said they go out of their way to engage with brands that align with their own values, while 31 percent will avoid using brands that don’t share their values. Over a quarter (27 percent) have stopped using a brand due to its negative environmental or social impact.
However, New Zealand shoppers feel they have inadequate information when it comes to making ethical purchasing decisions. Over a third (36 percent) would like to make more decisions about the brands they use based on environmental and social factors, but don’t have enough information.
Of course, price is proving prohibitive for some shoppers in the current economic landscape, with 37 percent stating they would like to base more of their purchasing decisions on a brand’s environmental and social activities, but they cannot afford to do so.
Green investments
It doesn’t stop at shopping; Kiwis are also starting to pay more attention to ethical investing. Almost half (45 percent) the respondents said they want their savings and investments to align with their values, and 39 percent want their savings and investments to contribute to sustainability. In fact, 37 percent of respondents said they would never invest in a product if they knew was detrimental from a sustainability perspective.
Electric vehicles
There is a clear disconnect between values and cost when it comes to electric vehicle purchases. If cost weren’t an issue, 58 percent of Kiwis would purchase either an electric or hybrid vehicle for their next vehicle. However, the upfront costs (68 percent), lack of infrastructure (42 percent), maintenance costs (33 percent), and charging times (33 percent) are all factors preventing people from making the switch.
