After feeling the weight of high prices, consumers are starting to feel confident enough again to make small luxury purchases…
Here’s why more people are leaning into the “treat yourself economy…”
The Age Of Small Luxury Purchases
Following years of complaining about high prices…
Consumers are starting to feel more confident about making discretionary purchases.
Small luxury purchases lead consumers to indulge in products they normally would’ve shunned under economic stress. Products like expensive skincare are rising in popularity as more people feel better about what lies in their wallets…
This marks a fresh shift in the consumer mindset. During periods of economic downturn…
More people adopt an “essentials only” mindset and cut out low-priority products.
With skyrocketing grocery inflation…
It makes sense that customers are sacrificing their wants for their needs.
BUT NOW… CONSUMERS FEEL LIKE THEY CAN BUY MORE THAN JUST THE ESSENTIALS.
In August, consumer retail spending increased 1.4%, more than economists expected.
Buyers tend to reward themselves with small luxury purchases after enduring economic hardship. But consumers still have to remember that treating yourself sometimes is a slippery slope…
One that could lead to more uncertainty within your finances.
The Future Of Shopping
Besides, while consumers are focusing on small luxury purchases like dupes…
They’re still not ready for major purchases, and luxury brands like Gucci are suffering because of it.
Even so, this shift into small luxury purchases may indicate that the economy could be getting back in shape.
Be Great,
GCTV Staff
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