Shopping Politics: How World Affairs Shape Consumer Behaviour
Shopping is more political than ever: More and more consumers change their spending habits to align more strongly with their political beliefs and world views
In the wake of recent political changes and conflicts all around the world, it has become more and more apparent that how and where consumers spend their money matters. In the US, in particular, many companies have decided to realign themselves with politics, abandoning previously established inclusion and sustainability practices, and it shows.
This sudden shift in a lot of brands' values caused outrage in consumers, leading to community organised boycotts and online lists letting customers know which brands best to avoid.
Winners and Losers
Drastic changes follow drastic consequences.
Companies and brands such as Target, Amazon and Walmart have all reported significant drops in sales or, in the case of Target, footfall. These steady declines have greatly been attributed to consumers' disagreement with the brands' abandonment of their sustainability and inclusion strategies.
But it’s not just these brands: Tesla, with its strong ties to the Trump administration, has also seen a continuous decline in sales over the last few months, with many people now even selling their cars in order to no longer associate with the brand.
On the other hand, businesses such as the wholesale company Costo, who stuck to their diversity and sustainability principles, have seen the impact that conscious consumers can have - reporting an increase in foot traffic for 13 consecutive weeks.
This trend of consumer lead change in retail, can not only be seen when looking at the brands themselves - there is also a visible change when it comes to product origin. In Canada for example, there has been a consistent increase in people supporting local brands and products over imported goods, especially from the US.
What Can We Learn?
If these recent changes in consumer behaviour have remined us of anything, it is that money and values always go hand in hand. Now more then ever, it is important we stay true to our established values and further develop the trust our customers have in us.