New research reveals consumers are feeling confident about their finances this year, but when it comes to spending disposable income the majority plan to invest in experiences over products.
According to a study by VoucherCodes.co.uk, almost two thirds of the populations (62%) feel positive about their finances, with consumers expecting disposable income to rise from £363 in 2018, to £371 in 2019. However, when it comes to spending priorities, material possessions such as jewellery are not high on the list.
When it comes to spending money in 2019, holidays (38%), paying off personal debt (16%), and house renovations (14%) top the list of financial priorities for the UK this year, while new gadgets (9%), cars (8%), and white goods and appliances for the home (8%) also feature in the top ten.
At the other end of the scale, spend on non-essential food and drink is set to fall – with takeaways (27%), meals out (23%), expensive groceries (19%), socialising in bars (15%), and coffees (13%) all on the decline.
Overall, almost a quarter (24%) are planning to spend more on experiences than material possessions this year, whilst 18% are hoping to invest more money on their health and wellbeing.
Director of marketing at VoucherCodes.co.uk, Jimmy New, comments: “Despite wider political and economic events understandably causing consumers to take a more cautious approach to their spending, businesses, in particular retailers, will find it reassuring that 62% of the nation are still feeling confident about their finances as we settle into the new year.
“Much like last year, we’re seeing people across the UK shop around to try and get more for their money, especially when it comes to bigger ticket items such as holidays. Indeed, site data from VoucherCodes.co.uk revealed a 101% increase in the number of shoppers seeking discounts on trips during the January sales this year compared to 2018.”
Jewellers have been increasingly citing experiences and holidays as one of their greatest competitors.
Looking ahead, the jewellery industry will need to communicate the value of investing in jewellery to mark milestones, over creating milestones, in order to take a share of the market during uncertain times.