Summer is godt underway, and most Norwegians can enjoy the sun and warm weather. Usually, summer is a time when money is a little looser and we indulge in a few extra treats and experiences. But recent price increases and a weak Norwegian krone mean that more people are having to think extra carefully about how they spend their money. However, it's important to remember that the changes we're seeing in consumer habits now are not necessarily permanent. It's still important to maintain ties with consumers, so you're the one they think of when they next shop.
Our latest population survey shows that high food prices are the biggest concern for most Norwegians when it comes to spending this summer. As many as 58% believe that this will have a major or very major impact. In joint second place (42%) are interest rate increases, a low krone exchange rate and high electricity prices. This despite the fact that the latter has fallen by 15pp since last winter.
In fact, while concerns are present, 61% still expect their consumption in the coming month to be as high or higher than usual at this time of year. This indicates that the concerns are more focused on the future. Those between the ages of 30 and 49 are the most likely to experience reduced purchasing power. This age group often has high loans and expenses, and it is therefore important for them to find ways to save. As an advertiser, you have the opportunity to help them by offering valuable products and services that contribute to smart savings measures.
Looking for smart ways to save money
When it comes to adapting to the economic challenges, we see that respondents are willing to take various steps to save money. According to the survey, 49% of participants say they will shop smarter by buying more low-cost products and taking advantage of deals. As an advertiser, you can seize the opportunity to present attractive offers that appeal to consumers' needs without sacrificing necessities and pleasures. By focusing on value and relevance in your marketing, you build trust, which is important in a challenging economic period where consumers often seek reassurance.
At the top of the list of what Norwegians want to save money on is "eating out" (64%). This doesn't necessarily mean that they will refrain from enjoyable restaurant experiences, but rather be more conscious of choosing less expensive options or eating out less often. Next comes clothing and shoes, where 60% of participants want to reduce their consumption. This could be an opportunity to explore more sustainable and economical alternatives, such as buying second-hand and/or higher quality items that last longer.
Many people still haven't booked their holiday - opportunities to inspire!
When it comes to summer vacation plans for 2023, the survey shows that 45% of respondents plan to spend their vacation in Norway. This is about the same level as last year, but compared to the responses from March, significantly more people now say they are going on vacation in Norway or are not planning to go on vacation. For foreign destinations, 28% of participants are planning to travel to Europe, and only 4% outside Europe.
Perhaps even more remarkable is that only 32% say they have booked all or part of their vacation. Of those who have not booked anything yet, 36% state that the weak krone exchange rate will have a major impact on their choice of destination. This could mean that Norwegians will choose more cost-effective destinations, Norwegian holidays or postpone their trip to a more economically favorable time. There are opportunities to inspire with economic solutions!
Even though summer can present financial challenges for many, it's still important for you as an advertiser to maintain visibility and build relationships with consumers. By offering value, relevant information and inspiration in your ads, you can build trust and loyalty with consumers. The summer season is also a great opportunity to showcase products or services that are specifically tailored to consumers' needs and wants during this period.
Want to know more about our monthly population surveys or want to discuss how we can help you strengthen your brand, reach your target audience and maintain visibility this summer?
Check with your contact person at Schibsted!
Have a great summer!
Source: Survey conducted by Norstat for Schibsted May 12-23, 2023 Sample: 1000