May 16, 2025
Brand loyalty means little when money’s tight. Here’s what B2C companies need to know about consumers’ financial stressors.
Recently, the US and China agreed to cut reciprocal tariffs. Now, tariffs on all Chinese goods are at 30% rather than 125%. While this cost reduction is only guaranteed for the next 90 days, it’s an encouraging sign for consumers, who were braced to foot the bill on the current administration’s trade policies.
Still, global markets remain unsettled. No one really knows what to expect next.
There are dozens of warring theories about how the current administration’s trade and economic policies will affect the average consumer down the line. But most people aren’t spending their time scrutinizing policy rates or studying macro trends. They’re going grocery shopping, and noticing they’ve spent $40 more than last week.
Most people are feeling the pressure. So how can B2C companies accommodate skittish buyers? Are there some people who are feeling the squeeze more than others, and if so, what types of consumers feel most insulated from rising prices?
We surveyed almost 600 people to find out.
In this report summary, we’ll cover:
And more.
A whopping 74% of respondents reported that inflation has impacted not just their monthly budgeting plans, but their daily spending habits.
This stat paints a vivid picture of the average consumer’s anxiety. For most people, inflation isn’t an abstract percentage. It’s a dozen little compromises every single day.
Even more worrisome for B2C brands: 70% of people have changed brands not because they wanted to, but because their preferred option feels too expensive.
About one in five (22%) said inflation has impacted their daily spending “a great deal”, while another 23% said it has changed their daily purchasing habits “a lot”.
Unsurprisingly, almost half of respondents (44%) have switched to private brands, while 29% have switched to a cheaper alternative that isn’t store-brand.
One striking finding: sentiment toward current economic conditions is negative across all income levels. Whether someone earns $20K or $200K, the majority think the economy is bad.
Low-income consumers are the canaries. They’re the first to say they’re worse off. Forty percent of them feel their finances have declined in the past six months. But middle-earners are only slightly more confident: 32% said they’re feeling more financially strained than they did just 6 months ago.
What’s alarming is that even high earners are reporting hesitation. In fact, people across the board are delaying major purchases: 54% have put off something big, like a vacation or a new phone.
Those who reported feeling significant economic impact are much more likely to delay big purchases, with 74% of highly-impacted individuals reporting pushing off high-priced items and luxuries vs. 47% of those who said they were only moderately impacted.
Personal electronics (45%) and vacations (44%) were the top two delayed categories, signaling that people are trying to limit expenses mostly to the bare essentials. Thirty-five percent of respondents are waiting longer to buy a new car, while 30% are putting home renovation projects on the backburner.
Despite an overwhelming sentiment of skepticism, a lot of people are actually a little hopeful about the future.
Nearly half (46%) of respondents are cautiously optimistic about their personal financial outlook. Still, nearly 30% feel insecure.
Respondents overall derive more financial hope from the broader economy or political conditions vs. a confidence in their own financial decision-making or resilience. This signals that most people don’t feel like they have real agency over what happens to their wallet.
There are a few lessons in the data for B2C brands.
First, people are looking for daily wins. They’re trying to cut corners where they can, swapping their time-tested favorites for the generic alternatives.
Price drops, bundled discounts, and – taking the long view – more affordable versions of luxury goods would likely play well. People want to feel like they’ve stumbled on a deal when they’re watching what they spend closely.
Second, there’s a chance here to rebuild consumer confidence around big purchases.
Flexible payment plans and buy-now-pay-later models both lower the mental barrier to purchase and make people feel a little more confident about adding things to their cart.
People are trying to do more with less. The brands that survive periods of economic uncertainty pinpoint exactly what’s important to consumers, and strip away all the stuff they don’t really care about or notice.
What’s left are the necessities. And the necessities are what most people feel they can afford right now.
Want to do more research like this in a week or less? Chat with our team.
