According to a recent Attest survey, a significant gender divide is influencing consumer spending patterns, with 45% of women feeling financially insecure compared to 33% of men.
This heightened insecurity is driving women to adopt more cautious spending habits. Currently, 63% of women report spending cautiously, compared to 46% of men, with a notable 27% of women being “very cautious” versus 17% of men.
Female consumers are increasingly shifting towards cheaper brands to manage expenses, with 41% willing to forgo their preferred brands, compared to 34% of men. This trend is partially fuelled by economic uncertainty during election years, which has heightened women’s cautious spending by seven percentage points, while men’s caution has decreased by five percentage points. Confidence in government economic policies also shows a clear divide, as only 23% of women feel reassured, against 36% of men.
Women are more inclined to seek reassurance in brand messaging, with 41% favouring supportive communication, while only 32% of men share this preference. Additionally, women desire more brand involvement in social issues, particularly women’s rights, with 34% seeking corporate advocacy, a sentiment even stronger among Gen Z women.
Despite this, women generally exhibit lower trust in brands, with less than a quarter trusting major global companies to prioritise consumer welfare over profits. Even purpose-driven brands garner less trust from women than men.
Gen Z showing signs of optimism
Meanwhile, Gen Z is showing signs of diminished optimism, with a decline in positivity and a reduction in free spending from the previous year. Only about a third feel confident in the government’s economic plans, and their interaction with brands on social media is waning.
Platforms like TikTok and Snapchat have seen significant declines in engagement among this demographic. This shift highlights the need for brands to diversify their strategies beyond social media.
Gen Z’s preference for online shopping through social media has also decreased, while marketplaces are gaining traction as the starting point for online shopping journeys. Simultaneously, AI search adoption is rising among this group. Interestingly, offline shopping is resurging, as a growing segment of Gen Z now prefers in-store experiences, signalling an important pivot for brands towards enhancing physical retail environments.