October 20, 2023
Kasi Insight’s Cost of Living Tracker examines consumer behavior amidst rising inflation. It scrutinizes their foremost concerns within the nation, the sectors witnessing the most pronounced price surges, their tactics for managing inflationary pressures, and their evolving purchasing patterns. This tracker is conducted on a quarterly basis across 20 African markets. Overall, 41% of respondents surveyed in Egypt expressed being concerned with price hikes, while 48% felt somewhat concerned, and 11% reported not being concerned.
Breaking it down by gender, both females and males shared the same level of concern at 41%. However, females showed slightly higher levels of being somewhat concerned (49%) compared to males (48%). In the category of not being concerned, males and females were equally distributed at 11%.
Looking at generational differences, Millennials exhibited 39% concern, with the highest level of being somewhat concerned at 51% and 10% not concerned. In contrast, Gen Z had the highest overall concern at 48%, while their level of being somewhat concerned was lower at 41%, and they shared the same level of not being concerned as Millennials at 11%.
When assessing the strategies employed to address recent price hikes, 65% of survey participants opted for more budget-friendly alternatives, brands, or products, highlighting a widespread preference for cost-effective solutions. In terms of postponing non-essential expenses, 62% of respondents have embraced this strategy, while 59% have made other adjustments in their shopping habits.
This trend holds true across genders, with both women and men equally inclined at 65% when it comes to choosing economical options. In the realm of delaying non-essential purchases, women show a slightly higher inclination at 65%, while men follow suit at 60%. In terms of other shifts, subtle gender differences emerge, with women displaying a slightly higher rate at 60% and men following closely at 57%.
When considering different age groups, both Millennials and Gen Zers are actively embracing these strategies. Specifically, 65% of Millennials have chosen more budget-friendly alternatives, with 60% opting to delay non-essential purchases and 58% making other modifications in their shopping behaviors. In contrast, Gen Zers are demonstrating even greater adaptability in their financial choices, with 66% choosing cost-effective alternatives, 70% delaying non-essential purchases, and 62% making other adjustments in their shopping habits.
The data underscores a significant consumer preference for cost-effective alternatives, indicating a growing market for value brands. With 65% of survey participants opting for budget-friendly options, value brands have a substantial opportunity to cater to this demand and potentially expand their market presence. Given the consumer's willingness to prioritize cost-effective solutions and delay non-essential purchases, premium brands may face heightened competition from their value-focused counterparts. This competition could compel premium brands to reevaluate their pricing and marketing strategies to remain attractive to cost-conscious consumers.
Understanding the distinctions in consumer behavior across generations is crucial for both premium and value brands. As Millennials and Gen Zers actively embrace cost-effective alternatives and delay non-essential purchases, brands must tailor their products and marketing strategies to resonate with these younger demographics. Moreover, the active consumer response to inflationary pressures highlights the market's sensitivity to economic fluctuations. Premium brands should be more attuned to the needs and preferences of price-conscious consumers during periods of rising prices and economic uncertainty.
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